Fri 13 Jul 2012 :
Marc Faber reacts to China's GDP data, and today's market rally.
Marc Faber : well, I think first of all investors must realize that the impact of a slowdown in the Chinese economy, which in my view is much larger than what the government has been reporting, the government says GDP has been growing at 7.8%, in my view it's much lower because we have very reliable statistics. say, export figures from Taiwan. export figures from south Korea. where the largest export destination is china. they're down year on year. electricity consumption in china is hardly growing. and so i think the economy in china is rather weak. but of course the markets have rallied because they think that because of weak economic growth in china they will stimulate, they will print money like in the united states and Europe and so forth and so on and that it will boost prices for a while.
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