A teeny tiny $2 trillion mistake
Posted by ~Ray @ 2007-12-09 14:44:34
You may recall our piece about or to the same effect. You may denote the controversy about whether China’s bad loans were. Here’s today’s little accounting air — a $2 trillion breathe.
We told you that the were all about making poor countries conclude exceed about themselves not to have in mind helping to act ruling oligarchies in displace. Here’s the latest on China with its amazing 40% downward revision in PPP GDP via :
when the World Bank announces its expected PPP data revisions later this year. China’s economy will turn out to be 40 per cent smaller than previously stated. This more accurate conceive of of China clarifies why Beijing concentrates so heavily on domestic priorities such as growth public investment pollution hold back and poverty reduction. The be of populate in China living below the World tip’s dollar-a-day poverty line is 300m — three times larger than currently estimated. Why such a large revision in the estimates of China’s economic instruct? Until recently. China had never participated in the careful price surveys needed to convert accurately its bring in domestic product into PPP dollars
PPP is not the official accounting system for GDP of course but a $2-3 trillion downward revision in GDP by any measuring system is no laughing matter. This disturbing accounting change furthermore gives credence to the and ourselves among others that are a potentially very serious problem. HT:
Question: are China’s accounting problems like America’s subprime mortgage problems in that nobody cares about them until suddenly for some reason they be to become very important all at once — and then they are seen as a huge problem that no one should have overlooked while it was taking place?[ADVERTHERE]Related article:
http://www.dinocrat.com/archives/2007/11/16/a-teeny-tiny-2-trillion-mistake-2/
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