China Overtakes The US

[Thomas Promise]

As a American this is very hard for me swallow. I grew up in a can do nation. Now we don't do anything. I have seen how corrupt my country has become with our legislators just becoming more and more incompetant and our elections are questionable frauds. The US is now an corrupt Oligarchy who control the people with a bread and circus government.

Congratulations China it is our turn now to become the sleeping giant by design.

 

http://www.aol.com/article/2014/12/04/china-overtakes-the-us-as-worlds-largest-economy/21003035/?icid=maing-grid7%7Clegacy%7Cdl1%7Csec1_lnk3%26pLid%3D575985

 

 

[Randy W]

I'd still like to come back in about 500 years and see how this actually all turns out.

 

I think there's a lot to be said for both styles of government, and that it's not at all clear which will ultimately prove more successful and by what standard.

 

Kind of interesting, though, that when talking about China, you would refer to the U.S. in this way. The last election in China was in the 1940's.

 

I have seen how corrupt my country has become with our legislators just becoming more and more incompetant and our elections are questionable frauds. The US is now an corrupt Oligarchy who control the people with a bread and circus government.

 

[danb]

China should be very proud of where they are today compared to where they were 35-40 years ago. But I would not count the United States and her people out quite yet. That article states:

 

The IMF made the calculations by measuring purchasing-power parity (PPP), which does not account for fluctuations in exchange rates when measuring economies.

Similar goods cost the same in both Shanghai and New York, as far as PPP is concerned.

What is all that about? Are they comparing apples to apples? I don't speak economnese. China may be at the top but at what cost. She has a lot that she will have to pay to stay up there I wish her and us well. Hopefully we can all peaceably prosper. Danb

[Randy W]

China should be very proud of where they are today compared to where they were 35-40 years ago. But I would not count the United States and her people out quite yet. That article states:

 

The IMF made the calculations by measuring purchasing-power parity (PPP), which does not account for fluctuations in exchange rates when measuring economies.

 

Similar goods cost the same in both Shanghai and New York, as far as PPP is concerned.

What is all that about? Are they comparing apples to apples? I don't speak economnese. China may be at the top but at what cost. She has a lot that she will have to pay to stay up there I wish her and us well. Hopefully we can all peaceably prosper. Danb

 

What that means is that if an apple costs $1.76 in New York and $1 in Shanghai, then $1.76 in New York is equal to $1 in Shanghai.

 

From the Financial Times article

 

PPPs are an attempt – far from perfect – to account for varying price levels between countries, particularly in goods and services not open to international competition. PPPs make a big difference. According to the IMF, China’s GDP this year measured in simple dollars, making no adjustment for relative prices, is $10.4tn.

 

 

 

So in order to "overtake" the U.S., China's GDP was adjusted for PPP from $10.4 trillion to $17.6 trillion, while the U.S. GDP is $17.4 trillion.

[Randy W]

A MUCH better analysis of the data

 

Does China Really Have the Most Powerful Economy in the World?

Arends does note that when you look at international exchange rates, the U.S. economy is 70 percent bigger, but claims that is meaningless. A lot of that is because the Chinese currency is so much lower in value, which speaks to the value of the dollar, as well as the Chinese desire to have a cheap currency in order to export more. Dumping your dollars for the renminbi (yuan) on the basis of this article might be a mistake, in other words.

 

But gross domestic product (GDP) isn't the only economic measure. If you look a little further at that same International Monetary Fund (IMF) report and PPP data, you'll find that China's GDP per capita is $11,868, putting it 89th on the list of 187 countries, behind the Dominican Republic, Serbia, South Africa and Turkmenistan. The USA is tenth on that same list (behind some oil rich emirates, some entrepots and a few European countries like Luxembourg, Norway and Switzerland). Its GDP per capita is $53,001.

 

[tsap seui]

As a American this is very hard for me swallow. I grew up in a can do nation. Now we don't do anything. I have seen how corrupt my country has become with our legislators just becoming more and more incompetant and our elections are questionable frauds. The US is now an corrupt Oligarchy who control the people with a bread and circus government.

Congratulations China it is our turn now to become the sleeping giant by design.

 

http://www.aol.com/article/2014/12/04/china-overtakes-the-us-as-worlds-largest-economy/21003035/?icid=maing-grid7%7Clegacy%7Cdl1%7Csec1_lnk3%26pLid%3D575985

 

 

Thomas, I for one well understand your comments about America. I highly agree with them. Our oligarchy started the day the pilgrims landed. Voting doesn't change anything but the names...nor do lies to the people about our economy, and anything else of importance of our existence as a nation.

 

I have no clue why that article even was written. If anyone needed any help seeing the lie, Randy cleared it up with the articles he found. It looked to me like that article was written by some presidential or governmental spin doctor...they are the best in the world at spinning the truth.....LOL THe CHinese don't even come close, at least they don't try and act like they wear white hats, ride white horses, and have God on their side...LOL

 

Don't let it get you down. Yes, China will pass us by eco-comically and economically...so what...both countries need each other in this game silly game of money printing and money lending so one can buy the goods of the other. IT will just be a seesaw as to who is on top on any given day. The hope is, maybe somebody in charge of our country will WAKE THE F UP. Stop the oligarchy for the wealthy few. Then again, that is just a dream, we never had it before, most likely never will...but we can say..."we voted". Yeah right. How touching that is.

 

tsap seui

Glad I am an AMerican, even actively did my part for the country. But, I ain't buying no more lies and propaganda. Patriotism taught me one important thing.....the LIES made. How often I wish I'd never have seen them, never been made aware of them, and could just live in "peaceful ignorance". LOL

Edited December 7, 2014 by tsap seui (see edit history)

[Randy W]

And I just came across this, which seems like an EXCELLENT article about the Chinese economy from Zacks

 

China Faces Near-Term Hurdles Before GDP Beats US: 3 Funds to Sell

Analytics firm IHS anticipates China’s nominal gross domestic product to reach $28.25 trillion in 2024, beating US’ projected GDP of $27.31 trillion. The chief Asia economist of the firm believes the economy will “re-balance towards more rapid growth in consumption, which will help the structure of the domestic economy as well as growth for the Asia Pacific (:APAC) as a region.”

It is consumer spending that is expected to play a vital role in helping China topple the US economy. Consumer spending is forecasted to grow at 7.7% annually in real terms in the next 10 years. China’s share in global GDP is forecasted to be at 20% in 2025, up from 12% in 2013.

 

 

 

China’s economy also faces many hurdles. IHS’ chief Asia economist said that China needs to convert economy from “low-cost manufacturing export-driven economy of the past three decades into a higher value-added economy, competing in more sophisticated, higher value-added exports.”

A report by Fox Business argues that “A country’s wealth is not based on consumer transactions occurring during a calendar year. Cheaper currency to buy cheaper goods or services doesn’t equate to wealth—nor does arming consumers with more paper in their wallets.” The debate gains strength amid an environment where the country is devaluing its currency.

Certain sector specific steps to stimulate growth itself hints at the sorry state of the economy. Such steps had become necessary following weakness in the property sector and a series of dismal economic reports. This includes industrial production, foreign investment and home prices.

A slowdown in the property sector and problems with the country’s banking system has put the brakes on China’s economy. The slide in the real estate sector has also impacted the growth rate, with the economy expanding only by 6.3% in August on an annual basis. This is a grievous decline from the 7.4% increase experienced in July.

If the situation continues to deteriorate, the economy also runs the risk of missing its yearly growth target of 7.5%. The area of new property under development has fallen by 14.4% till now this year.

President Xi also needs to move China away from a tendency of using nationally owned banks to boost the economy when it veers away from its growth path. This habit has led to an excessive allocation of a large amount of resources to infrastructure and property sectors.

 

 

[Randy W]

An article about China's "New Normal" in China's economy from Forbes

 

What China’s wild markets are really saying about its economy

 

What’s going on in the Chinese economy is that people are getting acquainted to a new story—actually, a “new normal,” as the government frames it. The 25-person Politburo said last week that “new normal” is a focus on quality economic development while incorporating previously outlined reforms, which include lessening state-planning and liberalizing interest rates and the currency.

In the past year, China’s old model of building infrastructure and churning out commodities has slowed way down—industrial output growth hit a six-year low in September. That means old-style GDP growth has fallen while quality growth of the new-normal variety is slow to arrive. Markets are thrashing around in part because traders are trying to guess at which point the government steps in to save GDP growth from falling too low. What recently sent Chinese stocks jumping by 25% in just three-week span—three weeks—was the first interest rate cut in two years. It seemed to provide evidence that China’s government will keep the economy buzzing around its stated goal of 7.5% growth this year.

. . .

The silver lining of China’s recent slower growth—this year most analysts expect GDP growth to come in below the target of 7.5%—has been that more of the growth is coming from services instead of heavy industry. The share of what China calls “tertiary” industries has passed the share of “secondary” industries (including mining, manufacturing, production, and construction) for five consecutive quarters.

. . .

China’s stock markets have been volatile, in part because so many small investors are using leverage to amplify their bets, but investors are endorsing the view that China won’t suffer terribly amid future slower growth.

. . .

China’s stock markets have been volatile, in part because so many small investors are using leverage to amplify their bets, but investors are endorsing the view that China won’t suffer terribly amid future slower growth.