China Overtakes U.S. as Biggest Economy When Measured by Purchasing Power

China Overtakes U.S. as Biggest Economy When Measured by Purchasing Power

www.bloomberg.com

China overtook the U.S. last year as the world’s biggest economy when measured in terms of purchasing power, according to Arvind Subramanian, senior fellow at the Peterson Institute for International Economics in Washington.

The size of China’s economy in 2010 was $14.8 trillion, compared with the U.S.’s $14.6 trillion, when accounting for the countries’ differing costs of living, Subramanian wrote in a note published yesterday, a week before President Hu Jintao visits Washington. So-called purchasing power parity calculates gross domestic product using exchange rates that adjusts

(visit the link for the full news article)

Of course, both countries GDP is made up... so it comes down to... who's the biggest liar... and who's the best?

Both economies really are made up on lies and inflated on stimulus. Who will reach the end of the rope first?

Me thinks the US have chances since it doesn't have a central government who can do whatever the hell they want without much trouble... The US, unless it's under martial law, cannot do that... and declaring martial law would probably mean civil war.

Anyway, I'm grabbing my popcorn to see the race to who's gonna blow up first.

And even if this report was to be taken at face value... then it means China doesn't need the ``US consumers`` anymore and can drop the US dollar whenever the hell they want destroying it. They sure are positioning themselves for that since they are now trading yuan outside of China.

www.bloomberg.com
(visit the link for the full news article)

Good for them, screw us.... I am sick of us being the big brother of the world.. Drop one and make it quick, we deserve it.


Deebo

Originally posted by Vitchilo

Of course, both countries GDP is made up... so it comes down to... who's the biggest liar... and who's the best?

Both economies really are made up on lies and inflated on stimulus. Who will reach the end of the rope first?

Me thinks the US have chances since it doesn't have a central government who can do whatever the hell they want without much trouble... The US, unless it's under martial law, cannot do that... and declaring martial law would probably mean civil war.

Anyway, I'm grabbing my popcorn to see the race to who's gonna blow up first.

And even if this report was to be taken at face value... then it means China doesn't need the ``US consumers`` anymore and can drop the US dollar whenever the hell they want destroying it. They sure are positioning themselves for that since they are now trading yuan outside of China.

www.bloomberg.com
(visit the link for the full news article)

edit on 14-1-2011 by Vitchilo because: (no reason given)

Why would China's economy "blow up"..?
Their economy is still on the rise and their currency is deliberately under valued..
On the other hand,
The US economy is based on debt, is sliding and the US dollar has nowhere to go but down thanks to Fed intervention..

I back China, do you give odds.?

reply to post by Vitchilo


The funny thing is, in the UK we are seeing more and more manufacturing come back into the country from China, they cannot continue to pay their skilled workforces the low wages they did a decade ago, the more attention given and the more wealth accrued by the Chinese the worse it will become for them.

I do not really care if they have overtaken the US, I just care that my countries once active and skilled engineering industry is slowly returning to prominence after outsourcing began over a decade ago.

Well, it looks like it's time to start rethinking my desire to cut the military budget by a bunch. I can definitely see visions of world conquest dancing in their heads.

It was only a matter of time when china overtakes america 'if the figures are true' china has a bad PROPERTY bubble that is waiting to go pop when that goes it wont be good at all

Originally posted by backinblack
I back China, do you give odds.?

As bad as things are here in the states, and many here make it sound worse than it really is....

Divide China's wealth by their population [Which China doesn't] and now you'll see which citizens have more buying power.

NOTE: Not all of us have maxed out credit cards.

Interesting article well worth a read:
China as No. 2: Why Its Days as a Manufacturing Outsourcer Are Numbered

This shift has been in process for 30 years. China exports more than Germany, much of that in the form of good produced in factories on behalf of Western countries. Much of the population is still poor, but labor and material prices are on the rise in China. It makes sense, as domestic growth must compete for the same physical and people resources.

However, they’re also on the rise throughout other parts of Asia, including Indonesia, Vietnam, and Bangladesh. What we now see is the beginning of a shift of economic conditions. For a short period of time, companies could become manufacturing nomads, moving from one country to another in search of low costs. Eventually, however, you run out of new territories.