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China to surpass US economy in 5 years

Published time: April 25, 2011 20:59
Edited time: April 26, 2011 01:37

The IMF has announced that China will surpass the US economically in real terms in 2016 – a mere five years from now.

The report brings new light to US economic debates surrounding American debts, budget debates government spending, investment and the crisis of the US dollar.

Whoever is elected president in 2012 will be the last president to preside over a US economy on top. With only five years to change the outlook, that person has a daunting task ahead.

The report uses purchasing power and other factors to gauge economic growth. It measured what people earn and spend in real terms as opposed to measuring exchange and currency rates.

This has shocked many who did not realize China was so close to surpassing the US.

Economist Max Fraad Wolff from The New School in New York explained that China has a great deal of resources and many more people than the US. Thus, they have the potential to produce more and at a greater rate. In addition, China has a much lower cost of living making quick growth more possible. However, US policies have also assisted in the US decline relative to China.

Our own policies are behind the rise of China in many ways and the decline of the United States,” he added. “If you do keep importing more than you export, you keep running giant trade deficits, and you consume more than you produce and you outsource and ship those jobs, and import lots of goods from another place, and that place is China, they you are actually sending out your growth and they are receiving it.”

China is thoroughly capitalistic, Wolff explained, Chinese growth is driven by their capitalistic policies and competition.

The Chinese continue to make basic policy decisions in order to maximize their growth and have a dominate position in the world economy, five, ten and 20 years from now,” he said. “Having much better policy eventually catches up to the people with the worse policy and benefits the people with the better policy.”

Often many assume America will remain strong because it is America, but this is not the case. American decision makers often make decisions based on politics – not on long term policy.

Wolff explained the US is going to remain important in global economics but old habits and assumptions have developed overtime and continue to hurt the US economy.

Get off a particular path and figure when it’s not working for you anymore. We haven’t been particularly good on that front,” Wolff remarked.

Former Reagan administration official Paul Craig Roberts said American capitalists destroyed the US economy by moving capitalism to China. By outsourcing production and jobs to China the American economy suffered.

It was only after the demise of the Soviet Union that China had a change of mind and opened its economy,” he said. “All of a sudden the first-world capitalists had large amounts of inexpensive labor and they turned to this labor, deserted their own workforce in order to lower costs and maximize profits.”

Roberts explained that US policies have allowed the US to decline and China to rise. The system of economic policies in place favors the few and the rich and promotes making money abroad as opposed to producing in the US.

Comments (3)


cirrus108 15.01.2014 03:54

Within Duality, Beggary is Thievery suppressed with Thievery being Beggary expressed. And what a beggarish and thieving lot the self-righteous of duality are, Suspicion being just another word for Guilt, Guilt being Anger suppressed, Anger being The Root of Evil. Reality is when What You Do is Who You Are - that of being An Example, oka Of Selflessness, whereas Selfishness is The One who is Of/Possessed-By The Other, oka The Leader or "Leadership&quo t;. Realise this reality and one will realise what/Who Freedom really means/Is. At least then, being easily mesmerised by Stupidity & Dumbness will become less frequent.


cirrus108 15.01.2014 03:46

Whenever the dual natured imagine that their duality is one of singularity, that singularity then is of malevolence, Malevolence being the word for, "When Benevolence is Absent", oka The Stone Dead. Is it then any wonder that the unconscionables are always on the lookout for Yellards, Swarzens & Islamos stealing their ALL? But then, what has The Others done to Guilt to deserve their Anger? Because they were never "Chosened" or had the nerve to, "Take NO fur zer answer?" Perhaps the propaganda impact of Greater Israelism/Chosenism on Amerikanism/Anglo-Sa xonism/Ffrennnchie-i sm is more than it'll ever meet the eye.


cirrus108 15.01.2014 03:39

For The Stupid-Dumb, perhaps they ought to "discover" why a thief is always on the lookout for other theives - especially the thieves imagined by the Guilty as running amok amongst the good guys, Guilt being the latency of Anger because Guilt is merely Anger suppressed. For the exceptionally Stupid & Dumb like "Amerikans" ;, you know, those whose legacies are not only of Slavery, Genocide and Plunder [euphemised as "Opportunity&qu ot;] but whose legacies of Anger are ongoing in addition to "proactively&qu ot; plotting and planning to remaining so. Forevah, pleeze G_d.

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