OT: China poised to pass US as world’s leading economic power this year
As China turns capitalist, the US embraces big-government socialism. What happened?
Financial Tiimes- The US is on the brink of losing its status as the world’s largest economy, and is likely to slip behind China this year, sooner than widely anticipated, according to the world’s leading statistical agencies.
The US has been the global leader since overtaking the UK in 1872. Most economists previously thought China would pull ahead in 2019.
The figures, compiled by the International Comparison Program hosted by the World Bank, are the most authoritative estimates of what money can buy in different countries and are used by most public and private sector organisations, such as the International Monetary Fund. This is the first time they have been updated since 2005.
After extensive research on the prices of goods and services, the ICP concluded that money goes further in poorer countries than it previously thought, prompting it to increase the relative size of emerging market economies.
The estimates of the real cost of living, known as purchasing power parity or PPPs, are recognised as the best way to compare the size of economies rather than using volatile exchange rates, which rarely reflect the true cost of goods and services: on this measure the IMF put US GDP in 2012 at $16.2tn, and China’s at $8.2tn.
With the IMF expecting China’s economy to have grown 24 per cent between 2011 and 2014 while the US is expected to expand only 7.6 per cent, China is likely to overtake the US this year.
"As China turns capitalist, the US embraces big-government socialism."
Another laughable statement passed along by the ideologically-driven, Whacko Bird, Screwie Lewie, the old man extremist.
Did you not know that China is a command-economy, and far from a capitalist system like the US, which is
an example of capitalism gone wrong- to the great benefit of the very rich and to the detriment of the citizenry
China is a large economy, but it's also on the verge of a credit bubble collapse resulting from absurd levels of unproductive spending. When that bubble bursts, the world economy suffers- just as it did after the Bush bubble popped.