More Chinese Take Out

I have posted before how incredibly corrupt Chinese companies accounting practices are.

tradersutra.blogspot.com/2009/08/chinese-accounting-tricks.html

This is a real eye opener:

www.foreignpolicy.com/articles/2009/09/03/how_china_cooks_its_books

When you have Trillions in USD doing a Micheal Phelps in their economy, you can afford to pay people more money not to work. The more money in the pockets of Chinese citizens makes then consume more. The more efficient and streamlined Chinese companies are the more competitive they are in the global economy.

Bottom line: China needs GDP growth to "Save Face & Keep The Peace" So the only way to get GDP growth is to help companies cook their books.

Its a known fact that there is almost 100% correlation historically between electricity use and positive GDP growth in China. But look at this most recent statistic:

China's economy grew at an annualized 6.1% in the first quarter, and 7.9% in the second. Yet electricity usage, a key indicator in industrial growth and a harder metric to manipulate, declined 2.2% in the first six months of the year.

How could an economy largely dependent on manufacturing grow while its industrial sector shrank?

Anyone for take out?