Thread: China 'overtakes U.S. as the the world's largest economy': America falls into second

China 'overtakes U.S. as the the world's largest economy': IMF says economy is now worth £11 trillion as America falls into second place for the first time since 1872

• Figures show the Chinese economy is worth £11trillion, the US £10.8trillion
• The IMF estimates China's economy will be worth £16.7trillion in 2019
• The US has been the global leader since it overtook Britain in 1872

By Hugo Duncan for the Daily Mail
Published: 17:46 EST, 8 October 2014 | Updated: 18:58 EST, 8 October 2014



No longer number one: Barack Obama's America now has the second largest economy in the world

China has toppled America to become the biggest economy in the world, according to figures from the International Monetary Fund.
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 £11trillion compared with £10.8trillion for the US.
China – whose wealth has accelerated in recent decades amid rapid industrialisation – is expected to extend its lead, with the IMF estimating its economy will be worth £16.7trillion in 2019.
That would be 20 per cent bigger than the US economy, which is forecast to be worth £13.8trillion by then.
The numbers are based on ‘purchasing power parity’ (PPP) which makes adjustments for the fact that goods are cheaper in countries such as China relative to the US.
Without these adjustments for living costs, the Chinese economy is still smaller than that of the US, at £6.4trillion.
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 industrialisation 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, while the UK is set for expansion of 3.2 per cent and 2.7 per cent.
The Fund yesterday said the US 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 US and UK.



Financial powerhouse: In the last decade alone, the skyline of major cities in China, such as Shanghai (pictured), have been completely transformed as the economy grew in leaps and bounds

NUMBER ONE FOR 142 YEARS: HOW THE U.S. OVERTOOK BRITAIN AS THE WORLD'S ECONOMIC POWERHOUSE IN 1872

Britain led the world in the industrial revolution of the mid-18th century, but America was hot on its heels.
The US underwent huge industrial expansion after its civil war ended in 1865, fuelled by rapid urbanisation and huge population growth – including the immigration of nearly 30million Europeans.
In 1872, its economy overtook Britain to become the world’s largest, a position it held for the next 142 years.
Productivity, leading brands and innovation, coupled with the success of the US dollar and the fact that 62 per cent of the world’s financial reserves are held in the currency, kept America on top.
Meanwhile, the economies of Britain and other European powers were ravaged by two world wars. Britain borrowed heavily from America during the Second World War and received a further $4.3billion in 1945.
China was the world’s leading trading nation up to the 18th century, until control of its ports and trade were taken over by imperial nations in Europe. Under Communism it remained inward-looking, until 1980 when the government started to allow foreign investment.

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 US 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.



China's wealth has accelerated in recent decades amid rapid industrialisation. Pictured, a car factory in Beijing



China has a population of around 1.3billion – four times that of the US – but its economy has only just become the biggest

The PPP measure of output makes India the third largest economy, followed by Japan in fourth 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 the comparative spending power of individuals.
But critics argue it does not take into account how well off people actually are.
China has a population of around 1.3billion – four times that of the US – but its economy has only just become the biggest.
It means that individuals in America are typically far wealthier than they are in China and other emerging markets benefiting from a huge workforce and rapid growth.


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http://www.dailymail.co.uk/news/arti...time-1872.html

AmeriKa... you'll have to come up with another chant as you can no longer yell were #1... that belongs to china

yelling Were Number 2 sounds bad and smells bad as well too ... but it's fitting

http://www.alipac.us/f19/not-just-la...0/#post1439802

Originally Posted by AirborneSapper7

AmeriKa... you'll have to come up with another chant as you can no longer yell were #1... that belongs to china

yelling Were Number 2 sounds bad and smells bad as well too ... but it's fitting

--------------------------------------------------

Support the Sheriffs that support The Constitution

In reality, the headlines applauding the unemployment rate dropping below 6% are nothing more than proof of the fact that the major media are still bowing at their statuettes of Barack. The underlying numbers, which you will not hear or see from the networks or the NYT/WaPo/AP Axis of Irrelevency, tell us more about what’s going on and just how incompetent the Obama administration really is.
Read more at http://joeforamerica.com/2014/10/we-...oyment-is-5-9/




We Must Be In a Recovery - Unemployment is 5.9%
Unemployment dropped to a new low for the Obama administration proving that we're in a solid economic recovery if you're economically illiterate.
joeforamerica.com

http://www.alipac.us/f19/america-sli...2/#post1440418

Not Just The Largest Economy – Here Are 26 Other Ways China Has Surpassed America

By Michael Snyder, on October 8th, 2014

In terms of purchasing power, China now has the largest economy on the entire planet, but that is not the only area where China has surpassed the United States. China also accounts for more total global trade than the U.S. does, China consumes more energy than the U.S. does, and China now manufactures more goods than the U.S. does. In other words, the era of American economic dominance is rapidly ending. Global economic power is making a dramatic shift to the east, and that is going to have huge implications for our future. We already owe the Chinese well over a trillion dollars, and as our economic infrastructure crumbles we are feverishly borrowing even more money in a desperate attempt to prop up our falling standard of living. We can’t seem to match the work ethic, inventiveness and determination of China and other Asian nations and it is showing. If we continue down this path, what will the future look like for future generations of Americans?
In terms of raw GDP, the U.S. is still number one, at least for now. But according to the IMF, China is now the number one economy on the entire planet in terms of purchasing power…

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.
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.

When I first learned about this, I was quite stunned.
I knew that China’s economy had been roaring, but like most Americans I just assumed that the U.S. would continue to remain head and shoulders above everyone else.
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.
For much, much more on this trend, please see some of my previous articles…
-“The Chinese Are Acquiring Large Chunks Of Land In Communities All Over America”
-“45 Signs That China Is Colonizing America”
-“Meet Your New Boss: Buying Large Employers Will Enable China To Dominate 1000s Of U.S. Communities”
And most Americans don’t realize this, but Chinese-made cars will soon be sold in the United States.
The following is from a recent WND article…

Chinese-made cars will be making their way to the U.S. next year, and guess which company is going to start exporting them to our shores?
A Chinese company, of course.
Chinese-owned Volvo’s parent company, Zhejiang Geely Holding Group, will begin exporting its S60L from China to the United States as early as next year, according to a Reuters report which quoted a senior Volvo executive.
Volvo is trying to take advantage of two new Chinese factories that will make up an export hub to send vehicles to the U.S. and Russia.

Everywhere you look, China is dominating and America is in decline.
If this was a sporting event for little kids, the “mercy rule” would have been invoked by now.
Unfortunately, there is no “mercy rule” on the global economic stage.
The United States is going to have to get things together if it wants to have any hope of competing with the Chinese in the future.
The Chinese are kicking our tails and they know it.
One survey found found that 75 percent of those living in China believe that their country is on the right track.
On the other hand, Americans are not nearly as optimistic.
According to one average of recent surveys, only 28 percent of Americans believe that the United States is on the right track.
I think that those numbers say a lot. We have been in decline for quite some time, but we can never seem to get the ship righted.
Hopefully our leaders can start coming up with some solutions soon, because we are running out of time.

http://endoftheamericandream.com/arc...passed-america

Where's all the Democrat Progressives ... join in the new chant... Were Number 2, were Number 2

http://www.alipac.us/f9/drudge-repor...-other-314654/

Drudge Report

NEW DAWN: CHINA WORLD'S BIGGEST ECONOMY



It’s official: America is now No. 2
The Chinese economy just overtook the United States economy to become the largest in the world.
marketwatch.com|By Brett Arends

It’s official: America is now No. 2

By Brett Arends
Published: Dec 4, 2014 11:18 a.m. ET
Shares 16,397

Chinese economy overtakes the U.S.’s to become the largest

Brett Arends Columnist

Reuters

A Bank of China branch under construction early this year in Guangzhou, Guangdong Province.Hang on to your hats, America.
And throw away that big, fat styrofoam finger while you’re about it.
There’s no easy way to say this, so I’ll just say it: We’re no longer No. 1. Today, we’re No. 2. Yes, it’s official. The Chinese economy just overtook the United States economy to become the largest in the world. For the first time since Ulysses S. Grant was president, America is not the leading economic power on the planet.
It just happened — and almost nobody noticed.
The International Monetary Fund recently released the latest numbers for the world economy. And when you measure national economic output in “real” terms of goods and services, China will this year produce $17.6 trillion — compared with $17.4 trillion for the U.S.A.
As recently as 2000, we produced nearly three times as much as the Chinese.
To put the numbers slightly differently, China now accounts for 16.5% of the global economy when measured in real purchasing-power terms, compared with 16.3% for the U.S.
This latest economic earthquake follows the development last year when China surpassed the U.S. for the first time in terms of global trade.
I reported on this looming development over two years ago, but the moment came sooner than I or anyone else had predicted. China’s recent decision to bring gross domestic product calculations in line with international standards has revealed activity that had previously gone uncounted.

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These calculations are based on a well-established and widely used economic measure known as purchasing-power parity (or PPP), which measures the actual output as opposed to fluctuations in exchange rates. So a Starbucks venti Frappucino served in Beijing counts the same as a venti Frappucino served in Minneapolis, regardless of what happens to be going on among foreign-exchange traders.

Make no mistake. This is a geopolitical earthquake with a high reading on the Richter scale.

PPP is the real way of comparing economies. It is one reported by the IMF and was, for example, the one used by McKinsey & Co. consultants back in the 1990s when they undertook a study of economic productivity on behalf of the British government.
Yes, when you look at mere international exchange rates, the U.S. economy remains bigger than that of China, allegedly by almost 70%. But such measures, although they are widely followed, are largely meaningless. Does the U.S. economy really shrink if the dollar falls 10% on international currency markets? Does the recent plunge in the yen mean the Japanese economy is vanishing before our eyes?
Back in 2012, when I first reported on these figures, the IMF tried to challenge the importance of PPP. I was not surprised. It is not in anyone’s interest at the IMF that people in the Western world start focusing too much on the sheer extent of China’s power. But the PPP data come from the IMF, not from me. And it is noteworthy that when the IMF’s official World Economic Outlook compares countries by their share of world output, it does so using PPP.
Yes, all statistics are open to various quibbles. It is perfectly possible China’s latest numbers overstate output — or understate them. That may also be true of U.S. GDP figures. But the IMF data are the best we have.
Make no mistake: This is a geopolitical earthquake with a high reading on the Richter scale. Throughout history, political and military power have always depended on economic power. Britain was the workshop of the world before she ruled the waves. And it was Britain’s relative economic decline that preceded the collapse of her power. And it was a similar story with previous hegemonic powers such as France and Spain.
This will not change anything tomorrow or next week, but it will change almost everything in the longer term. We have lived in a world dominated by the U.S. since at least 1945 and, in many ways, since the late 19th century. And we have lived for 200 years — since the Battle of Waterloo in 1815 — in a world dominated by two reasonably democratic, constitutional countries in Great Britain and the U.S.A. For all their flaws, the two countries have been in the vanguard worldwide in terms of civil liberties, democratic processes and constitutional rights.

http://www.marketwatch.com/story/its...o-2-2014-12-04