OK, I just posted a piece by Simon Hunt and then this came across my desk. As noted, Simon spends a lot of time in China. His connections are at the top. This is his report on his latest trip to China. Much different than what you get in the press. This quote caught my attention: The latter view can be shown by using the GDP deflator which averaged 10.7% a year in the 1991-1999 period and10.1% in the later period. The GDP deflator is a broad measure of the level of price changes of all new domestically produced goods and services. It is, thus, a far better reflection of the underlying level of inflation. Nominal GDP deflated by these numbers gives a better indication of the economy‟s real growth. In the earlier period real GDP grew by an average of 7.8% a year and by an average of 4% a year since 2000.