When the Soviet Union was there, a field called Kremlinology was prevalent in the West. It was the study of the secretive Kremlin to understand and fathom what was happening behind the iron curtain. Things such as chair placement, who sits next to whom, etc was supposed to give an idea on how Soviet economy is supposed to perform. It was pseudoscientic, and most of it was of course threat inflated guesswork. Obviously sitting arrangements might give a hint of who within the Kremlin walls are falling out of fashion or not, but in no way can it give any hint about the overall direction of the country. Naturally the Kremlinologists couldn’t for the love of God, predict anything about Soviet economy, and couldn’t foresee the primary reason behind Soviet collapse.

In recent days, something similar is back in vogue. There is a steady stream of prediction about Chinese economy. As recently as in Davos forum last year it was predicted that Chinese economy was in for a hard landing. It wasn’t. China’s economy actually grew 6.9 percent in the first quarter from a year, which was slightly better than expected, as well as predicted. 

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