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China's economy by PPP stands at a little under $18 trillion.
This is GOOD news for the whole world.
I predict that the dollar will collapse sometime 2015--2016, causing a global recession....as more nations use the Yuan as their preferred currency for trade, and also as their biggest reserve currency.
What is holding this back is part psychological. China artificially has been keeping its currency value low, for the purpose of exports. Thus based on this ARTIFICIALLY low currency exchange rate, the Chinese GDP looks like a paltry $8 trillion this year.
BUT this is deceptive.
China is the biggest Industrial power with industrial value measured by PPP at $8 trillion....and 13 million factories, whereas the USA's industrial value is a mere $3.7 trillion.
China Steel production is around 840 million tons, whilst that of the USA is 90 million.
China's electricity production is 5.2 trillion Kwh, whilst that of the USA it is 4.3 trillion Kwh.
China is the biggest exporting nation.
One consequence of the dollar collapse is that many of the 194 GM nations will orientate, levitate, gravitate towards China....especially in Asia, Africa and South America, and of course this will have clear geo-strategic implications globally, AND China may become more stringent in how it funds the huge American debt.
China, Japan and South Korea fund America's imperial wars of aggression and international instability.
Whilst Japan and South Korea may continue to be servile towards the USA, because that is the nature of the people, and the imposed political structure that has been fostered on them by the USA.
That may not be the case........with CHINA....who might say finally to the USA, 'not with my money you don't '....We will see?
China given its size, culture and history more than likely will become more assertive in global matters, rather than act as a back seat banker to Washington's misadventures....this is inevitable.
The USA will decline as the SECURITY STATE TAKES OVER with the aid of the Israeli lobby and the Military Industrial Complex. The Mafiaisation of this once great nation will become complete, as it embroils itself in irrelevant, manufactured false policies that favor the security state over the REAL policies that vex the nation. This is how it is with the decline of all empires....though it has happened very quickly in the space of just 70 years, since 1945.
The future looks well.
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China just overtook US as the world's largest economy, IMF says
China just overtook the US to become the world's largest economy, according to the International Monetary Fund. By the end of 2014, China will make up 16.48% of the world's purchasing-power adjusted GDP (or $17.632 trillion), and the US will make up just 16.28% (or $17.416 trillion).
Sorry, America. China just overtook the US to become the world's largest economy, according to the International Monetary Fund.
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Chris Giles at the Financial Times flagged up the change. He also alerted us back in April this year that it was all about to happen.
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Basically, the method used by the IMF adjusts for purchasing power parity, explained here.
The simple logic is that prices aren't the same in each country: A shirt will cost you less in Shanghai than San Francisco, so it's not entirely reasonable to compare countries without taking this into account. Though a typical person in China earns a lot less than the typical person in the US, simply converting a Chinese salary into dollars underestimates how much purchasing power that individual, and therefore that country, might have. The Economist's Big Mac Index is a great example of these disparities.
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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..
We've just gone past that cross-over on the chart here, according to the IMF. By the end of 2014, China will make up 16.48% of the world's purchasing-power adjusted GDP (or $17.632 trillion), and the US will make up just 16.28% (or $17.416 trillion).
