How the Money is Spent?

Do an intellectually lazy post on a short- to medium-term outlook of Chinese economy.

• There’s a credit expansion in Q1, with a targeted increase of RMB5 trillion from ‘08
• There’s a 20% YoY drop of export (an increasingly significant part) in Jan and Feb, reversed from 20% increase in ‘08
• Corporate profit is hurting, almost 40% YoY dip in the first two months for large-size industrial companies

Hmmmm, so we are taking more debt while selling less and earning less. Not a good sign, is it?

http://icecurtain.blogspot.com/