You are right on the deflation. It has proven to be very healthy, especially for those with cash, gold, and income earning assets. It has been, in fact, beautiful.
The bottom up data collected by the central government is now under-reporting growth ... I gauge matters by the state of traffic jams, number of tractors, road pavers, and cranes working, the bustle in the expensive eating places, and the amount of shady deals going on. And, ogf course, by whether the bankers are enthusiastically picking up the meal and entertainment tabs, and the venue of these meals and entertainment. I sense (a) the party just got started, and (b) it will be good. I will, as usual, leave this party early, in time to catch the next one somewhere.
Electricity demand no longer a good gauge, as I spend 1/3 of my time helping int'l clients to sell their small co-gen plants, as these are seriously undermined by the mega-projects (mostly hydro based) coming on tap.
Chugs, Jay |
