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</a> When the mainstream media writes that it is “surprised” by data, what it is really saying is that the data is not conforming to its narrative. China experienced an economic slowdown in the Spring as officials attempted to tighten the money supply in response to frothy conditions. Sometime in June, they realized that this policy was crushing industrial output so they printed some yuan and injected it into the banking system. The growth in money supply seemed to do its job with exports rising for two months straight, so the mainstream media declared China to be recovering and moved onto the next crisis. Meanwhile, China is learning that the marginal gains in economic growth from additional credit creation are rapidly shrinking spurring officials to plot their next move.
