Our Economy, Now Number Two....

Discussion in 'Off Topic' started by tug_boat, Dec 4, 2014.

  1. tug_boat

    tug_boat Member

    Jun 18, 2012
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  2. USMCGrunt

    USMCGrunt 5-Year Member

    Dec 13, 2010
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  3. hornetguy

    hornetguy 10-Year Member

    Jun 9, 2006
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    As mentioned in Grunt's article, this is the purchasing power adjusted for cost of living. China's economy in real terms is much smaller than ours: ~$10 trillion to our ~$17 trillion. And their rate of growth is slowing down, so the anticipation that they will pass us in real GDP is unfounded (gonna take a very long time). The Yahoo article conveniently ignored those facts to make it sound like a bigger deal.

    Don't expect the dollar to lose its spot as the reserve currency of choice anytime soon, either.
  4. LineInTheSand

    LineInTheSand USCGA 2006 5-Year Member

    Nov 25, 2007
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    I don't think the dollar is as secure as an exchange currency….. but that for other reasons.

    China's got some big issues in the future, but so does the U.S. Our debt is FAR too high, and the only thing saving us (at least for a time) is what a potential collapse in the U.S. would do to the rest of the world.
  5. Day-Tripper

    Day-Tripper Member

    May 16, 2014
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    I think "China Inc" is the biggest bubble going.

    I'm old enough to remember the 1980s when all the "experts" were just positive that the world economic superpower of the future was going to be Japan. There was no doubt. Japanese investment in New York and London was met with resentment. Robin Williams joked that Nintendo translated into English meant "We won the war".

    You don't hear too much fear of Japan being the future power nowadays.

    And the Japanese economy, their political system, their transparent and corruption-free legal system, etc are leaps and bounds ahead of China.

    When China's one-child policy yields a nation of 1.4 billion with the average age being over 60, there's going to be some real problems.

    When China's policy of raising revenue from the rural peasantry by "selling" them land (confiscated by the communists back in the 1950s) runs out, there'll be fiscal problems.

    When Vietnam and the Phillipenes and Burma become cheap labor alternatives to Chinese factories, there'll be problems.

    When the people get sick of permanent Communist Party dictatorship (and related obscene levels of government corruption) and political unrest makes China a less attractive investment, there'll be problems.

    Not to mention rampant pollution, damaging brain-drain immigration, growing dependence on foreign energy imports, etc.

    I predict that 20 years from now people will be shocked that there was once a fear that the Chinese would be the superpower of the future!

    Or the European Union.
  6. Kirkmanj

    Kirkmanj Member

    Dec 2, 2014
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    If we follow our principles we cannot lose. If China follows its principles it cannot win. Never underestimate the power of freedom.

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