• The Chinese economy may become bigger than the American economy this year.
    14 replies, posted
[quote]BEIJING (AP) — China has rejected a World Bank report that suggests it might pass the United States this year to become the biggest economy measured by its currency's purchasing power. China is on track to become the No. 1 economy by sheer size by the early 2020s and possibly sooner. But its leaders downplay such comparisons, possibly to avert pressure to take on financial obligations or make concessions on trade or climate change. The estimate by the World Bank's International Comparison Program says that based on 2011 prices, the purchasing power of China's currency, the yuan, was much stronger than was reflected by exchange rates. By that measure, China's economy was 87% the size of the United States' in 2011, or 15% bigger than the previous estimate, according to a calculation by RBS economist Louis Kuijs. Faster-growing China would pass the United States in purchasing power terms this year, though it still would be about 60% the size of the U.S. economy at market exchange rates. China's National Bureau of Statistics, which took part in the study, rejected its conclusion, according to the World Bank report. The statistics bureau "expressed reservations" about the study's methodology and "did not agree to publish the headline results for China," the report said. A figure was estimated anyway by researchers, but "the NBS of China does not endorse these results as official statistics," the report said. The statistics bureau in Beijing did not respond Wednesday to a request for comment. China's government has been reluctant to acknowledge previous milestones showing its economic rise when it passed Germany as the biggest exporter, Japan as the No. 2 economy and the United States as the biggest trader.[/quote] [url]http://www.usatoday.com/story/money/business/2014/04/30/china-us-top-economy/8538689/[/url]
And just like the American economy it will tank for years.
china will grow larger etc etc Really though this isn't that surprising, been coming for a while now. China has 1.3 billion people while america has .3. It's not like all of a sudden they cross the point of our economy and then BAM everyone in america becomes slaves to our chinese overlords.
[QUOTE=Satane;44695549]Aren't they faking their GDP by building all those ghost cities?[/QUOTE] Yeah, that roads, obliterating mountains, [url]http://www.theguardian.com/world/2012/dec/06/china-flatten-mountain-lanzhou-new-area[/url] not kidding their economy is mostly artificial growth that can easily explode if they don't start spreading out and putting people in jobs that can afford to purchase/move to these places.
Also. The fact is over half of their economy is in BUILDING REAL ESTATE. Though the thing is, when the real estate bubble of 2008 happened, the western world had it at 15 percent of gdp, and that was with trading it. IN CHINA THE REAL ESTATE JUST FUCKING SITS AND ISN'T TRADED OR RENT PAID
I doubt it will stay on top if it goes pop as badly as people are predicting. Interesting documentary if any of you are interested [video=youtube;w2-axIk5yyI]http://www.youtube.com/watch?v=w2-axIk5yyI[/video]
These ghost cities in china are really fascinating, and most people just seem to see them as an amusing news story, when really when you look a bit closer at them, they are the first signs of a gigantic bubble about to burst.
[QUOTE=Paul McCartney;44695782]Also. The fact is over half of their economy is in BUILDING REAL ESTATE. Though the thing is, when the real estate bubble of 2008 happened, the western world had it at 15 percent of gdp, and that was with trading it. IN CHINA THE REAL ESTATE JUST FUCKING SITS AND ISN'T TRADED OR RENT PAID[/QUOTE] And at the same time many of them are being bought up by the extremely rich Chinese population and used as investment. A [B]square meter[/B] of house in China can cost up to 20,000 USD, while the average salary is somewhere around 11200 USD a year. So yeah houses to just sit there, but they are also being traded. So they push the prices higher and higher. Of course one day this bubble will pop. There's so more to this than just "omg ghost cities" that threads like this one and related thread seems to be about. There's sooo much things going on.
[QUOTE=FlashMarsh;44696495]These ghost cities in china are really fascinating, and most people just seem to see them as an amusing news story, when really when you look a bit closer at them, they are the first signs of a gigantic bubble about to burst.[/QUOTE] If you thought the american housing bubble was hard...
[QUOTE=Beafman;44697004]If you thought the american housing bubble was hard...[/QUOTE] It all depends on a bunch of factors. This is an interesting read: [url]http://www.international-economy.com/TIE_F10_ChinaBubbleSymp.pdf[/url]
Every world power has to change roles someday, USA will get behind China if there aren't some major changes.
Move mountains to make manmade mountains.
[QUOTE=Genericenemy;44695830]I doubt it will stay on top if it goes pop as badly as people are predicting. Interesting documentary if any of you are interested [video=youtube;w2-axIk5yyI]http://www.youtube.com/watch?v=w2-axIk5yyI[/video][/QUOTE] I love it when BBC specials use the dark knight soundtrack In all seriousness this is worth the watch
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