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America usurped: China becomes world's largest economy - putting USA in second place for the first time in 142 years

OWoN: Interesting given this is the second article seen on the subject ignored by the West, this week. With Xi in Germany with his entire cabinet and 550 businessmen today working on deals, it is not hard to imagine the growth of China. Since China has a looming cheap labor problem you can depend on them making more and more higher value products in the future outsourcing cheap labor jobs throughout Asia and Africa. Already there are shoe factories in Africa turning products no longer economically feasible in China, controlled by China based corporations.

One ponders the hubris of the West not understanding that jobs that create things bring wealth and thus hope and dignity to people. America just funds Wars with Fiat money landing the debt back on the crippled economy. They ONLY way to STOP Military waste is to close these bastards down. Let them fund their own wars and go die alone.

America usurped: China becomes world's largest economy - putting USA in second place for the first time in 142 years

  • Figures show the Chinese economy is worth $17.6 trillion, compared to America's $17.4 trillion
  • The IMF estimates China's economy will be worth a whopping $27 trillion in 2019
  • The US has been the global economic performance leader since it overtook Britain in 1872
  • White House seemed oblivious on Wednesday, crowing that 'the economic policies that this president put in place are the envy of the world'

Mail Online
By Hugo Duncan
and David Martosko
9 October 2014

China has toppled America to become the biggest economy in the world, according to figures from the International Monetary Fund.

The White House seemed caught flat-footed by the news, crowing on Wednesday about America's relative economic strength in comparison with the rest of the world.

The US has been the global leader since it overtook Britain in 1872, but has now lost its status as top dog.

The latest IMF figures show the Chinese economy is worth $17.61 trillion compared with $17.4 trillion for the U.S.

China – whose wealth has accelerated in recent decades amid rapid industrialization – is expected to extend its lead, with the IMF estimating its economy will be worth just under $26.98 trillion in 2019.

That would be 20 per cent bigger than the U.S. economy, which is forecast to be worth $22.3 trillion by then.

White House Press Secretary Josh Earnest seemed oblivious to the news as it percolated on Wednesday.

Asked for his assessment of the health of the global economy in the face of Russia's zero-sum economy and other troubles in Europe – including Germany's search for stimulus measures to head off a recession – Earnest crowed.

Those conditions, he said, 'make the president's policies look pretty good. They certainly make the performance of the American economy look pretty good.'

'The United States is showing the kind of resilience that other counties are desperate for,' Earnest claimed. 'And a lot of that is due in no small part to the policies that this administration put in place.'

'There is no doubt that the economic policies that this president put in place are the envy of the world,' he boasted.

Earnest added that the White House is 'hoping that the economy of our allies and partners around the globe strengthens. We certainly would like to see that happen.'

He cited 'a tremendous record of progress that we have made here in the United States ... occurring against the backdrop of a global economy that continues to struggle.'

That, Earnest told reporters, 'is an indication of how strong the America economy is.'

President Barack Obama himself showed his confidence in a U.S.-centered manufacturing economy on October 3 during a speech in Princeton, Indiana.

'About 10, 15 years ago, everybody said American manufacturing is going downhill, everything is moving to China or other countries,' Obama said. 'And the Midwest got hit a lot harder than a lot of places because we were the backbone of American manufacturing.'

'But because folks invested in new plants and new technologies, and there were hubs that were created between businesses and universities and community colleges so that workers could master and get trained in some of these new technologies, what we've now seen is manufacturing driving economic growth in a way we haven't seen in about 20-25 years.'

Spokespersons for several U.S. senators who serve on the Finance Committee did not respond to requests for comment. Two Republican aides said on background that they wouldn't be offering a critique.

The new IMF analysis is based on a statistic called 'purchasing power parity' (PPP), which makes adjustments for the fact that goods are cheaper in China and other countries relative to the US.

Without these cost adjustments factored in, the Chinese economy is still smaller than that of the U.S., at $10.3 trillion.

But experts have described the toppling of America after nearly 150 years by China, even on the PPP measure, as a 'symbolic' moment for the global economy.

China enjoyed three decades of double-digit growth before the global downturn, as industrialization and sweeping economic reforms created a new powerhouse in the East.

Growth has slowed in recent years but remains strong by Western standards with the IMF forecasting expansion of 7.4 per cent this year and 7.1 per cent in 2015.

By contrast, the IMF is predicting growth of just 2.2 per cent in the US this year and 3.1 per cent next year.

The Fund said Tuesday that the U.S. and the UK 'are approaching economic lift-off' as they bounce back from the recession.

But Olivier Blanchard, chief economist at the IMF, warned that 'potential growth is lower than it was in the early 2000s' for much of the West, including the U.S. and the UK.

He added that China is 'maintaining high growth' which will slow in the coming years to a more 'healthy' level between 6 per cent and 7 per cent. Arvind Subramanian, senior fellow at the Washington-based Peterson Institute and an expert on China, recently highlighted the 'symbolic' importance of China overtaking the US.

'China is very big and getting bigger,' he said. 'It's not to be underestimated.'

The news that China is now the largest economy in the world is an embarrassment for Barack Obama and ends America's 142 years at the top.

Britain had out-produced the U.S. and its European rivals for much of the 19th century, at the height of the industrial revolution and with trade links across the Empire. But the US caught up as a growing population, the expansion of the railways and a focus on industry as well as agriculture boosted its economy.

The PPP measure of output makes India the third largest economy, followed by Japan in fourth place and Germany in fifth.

Russia, Brazil, France, Indonesia and the UK make up the rest of the top 10 in that order.

Many economists believe the PPP measure of an economy is the fairest measure because it takes into account the cost of living in different countries.

For example, although wages are typically far lower in less developed countries than in mature economies, goods and services are often also cheaper, which affects individual consumers' comparative purchasing power.

But critics argue that analysis does not take into account how well off people actually are.

China has a population of around 1.3 billion – four times that of the U.S. – but its economy has only now become the biggest.

That means Americans are typically far wealthier than their Chinese counterparts, and better off than people in other emerging markets that benefit from huge work forces and more rapid growth.


1 comment :

  1. Unfortunately, things are changing at a pace that is much faster than most people ever thought possible. The following are 26 other ways that China has surpassed America…

    #1 When you add up all imports and exports, China now accounts for more total global trade than the United States does.

    #2 There is now more total corporate debt in China than there is in the United States.

    #3 During 2013, we sold about 121 billion dollars worth of stuff to the Chinese, but they sold about 440 billion dollars worth of stuff to us. That was the largest trade deficit that one nation has had with another nation in the history of the world.

    #4 China is now the leading manufacturer of goods in the entire world.

    #5 Back in 1998, the United States had 25 percent of the world’s high-tech export market and China had just 10 percent. Today, China’s high-tech exports are more than twice the size of U.S. high-tech exports.

    #6 The United States had been the leading consumer of energy in the world for about 100 years, but during the summer of 2010 China took over the number one spot.

    #7 China now has the largest new car market in the entire world.

    #8 China has more foreign currency reserves than anyone else on the planet.

    #9 China is the number one gold producer in the world.

    #10 China is also the number one gold importer in the world.

    #11 15 years ago, China was 14th in the world in published scientific research articles. But now, China is expected to pass the United States and become number one very shortly.

    #12 China is also expected to soon become the global leader in patent filings.

    #13 China awards more doctoral degrees in engineering each year than the United States does.

    #14 China has the world’s fastest train and the world’s most extensive high-speed rail network.

    #15 China uses more cement than the rest of the world combined.

    #16 Today, China produces nearly twice as much beer as the United States does.

    #17 85 percent of all artificial Christmas trees are made in China.

    #18 There are more pigs in China than in the next 43 pork producing nations combined.

    #19 China is now the number one producer of wind and solar power on the entire globe.

    #20 China produces more than twice as much cotton as the United States does.

    #21 China produces more than three times as much coal as the United States does.

    #22 China now produces 11 times as much steel as the United States does.

    #23 China controls over 90 percent of the total global supply of rare earth elements.

    #24 An investigation by the U.S. Senate Committee on Armed Services found more than one million counterfeit Chinese parts in the Department of Defense supply chain.

    #25 According to author Clyde Prestowitz, China’s number one export to the U.S. is computer equipment. According to an article in U.S. News & World Report, the number one U.S. export to China is “scrap and trash”.

    #26 Nobel economist Robert W. Fogel of the University of Chicago is projecting that the Chinese economy will be three times larger than the U.S. economy by the year 2040 if current trends continue.

    The Chinese are using some of their new wealth to buy up land, properties and businesses here in the United States. In fact, just the other day we learned that a group from China is buying New York City’s Waldorf Astoria hotel.,,


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