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Thread: China Overtook The US As The World's Largest Economy

  1. #21
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    Re: China Overtook The US As The World's Largest Economy

    [QUOTE=polgara;1063850501]QUOTE=joG;1063850191]Funny. I had thought it had happened a while ago in PPP terms. Anyway, the implications are the same that we analyzed in the 1990s as soon to come. Now we are there. The shift in wealth may still not be dangerous, but it will become so over the next 15 years. At the same time India and a number of other transition economies will have caught up and we will all be competing head on in varying alliances and coalitions, 20 countries with atom bombs and 30 with chemical and biological killers. Boy, will that be ever interesting.


    Hi Polgara, good points and I would add that this trend to which you speak has continued through both democratic and republican administrations for decades and neither of them taking any action. The trade agreements that have been made by both parties have been harmful to manufacturing and of course many other factors.
    Last edited by Montecresto; 10-10-14 at 08:46 PM.
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    Re: China Overtook The US As The World's Largest Economy

    China's books are a black box, but they're obviously cooked. They're building pre-fab cities in the middle of nowhere just to boast that they still have 10% growth per year.

    The financial system is ridiculous. It looks at growth, but not at sustainable, practical, realistic growth. If China goes and ****s out a town with 40,000 houses in the Gobi Desert the IMF will call it growth but no one will live there.

    Not to mention the IMF itself is corrupt as ****.

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    Re: China Overtook The US As The World's Largest Economy

    Quote Originally Posted by shrubnose View Post
    That might help to keep your neck warm, I've never really figured out what a tie is supposed to do.
    An ascot does a great job in Spring, Winter and Fall. In The Summer they are too hot. Ties keep you a little warm and make Summer unpleasant. But they are just part of a uniform, lend the grey suit some color or allow the wearer to show he can totally wast $300.

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    Re: China Overtook The US As The World's Largest Economy

    Title is a lie.

    If you read the article, and the part is also quoted by the OP
    So the IMF measures both GDP in market exchange terms, and in terms of purchasing power. On the purchasing power basis, China is overtaking the US right about now and becoming the world’s biggest economy.
    What is purchase power parity?
    Purchasing power parity - Wikipedia, the free encyclopedia

    The PPP exchange-rate calculation is controversial because of the difficulties of finding comparable baskets of goods to compare purchasing power across countries.[citation needed]

    Estimation of purchasing power parity is complicated by the fact that countries do not simply differ in a uniform price level; rather, the difference in food prices may be greater than the difference in housing prices, while also less than the difference in entertainment prices. People in different countries typically consume different baskets of goods. It is necessary to compare the cost of baskets of goods and services using a price index. This is a difficult task because purchasing patterns and even the goods available to purchase differ across countries.
    What does this mean? It means that chinesse can buy more basic goods that are measured by the price index (the price index doesn't measure everything that exists, just certain goods and services) than an american. What does this mean? It means that if an american can afford 3 apples for every 1$, the chinesse can afford 3.1 apples for the equivalent sum of money.

    It doesn't measure the wealth of individuals. I mean, the gdp per capita in the USA is way higher than in China. Sure, the gdp per capita has been growing in china quite rapidly over the past 20 years but it's still has a long way to go.
    The gdp per capita in the USA is about 53k $. In China it's about 12k $. So even if you scrap 2/3rds of chinesse population to get to the same population as the USA, it's still 36k $ to USA's 53k $.

    Now ofc, the problem in the USA is that the middle class isn't growing and in China, it kinda is.

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