China overtakes US as world's largest economy.

Forum adverts like this one are shown to any user who is not logged in. Join us by filling out a tiny 3 field form and you will get your own, free, dakka user account which gives a good range of benefits to you:

No adverts like this in the forums anymore.
Times and dates in your local timezone.
Full tracking of what you have read so you can skip to your first unread post, easily see what has changed since you last logged in, and easily see what is new at a glance.
Email notifications for threads you want to watch closely.
Being a part of the oldest wargaming community on the net.

If you are already a member then feel free to login now.

**Albatross**

http://www.dailymail.co.uk/news/article-2785766/China-overtakes-U-S-world-s-largest-economy-IMF-says-economy-worth-11-trillion-America-falls-second-place-time-1872.html

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.

Is this a momentary set back or wave of the future? Personally, I don't think it'll be long before the US is back on top.

**kronk**

It was bound to happen. The sleeping giant is awakening.

**whembly**

'bout damned time.

Over a billion 'umies over that... they ain't sitting idle.

**agnosto**

It was inevitable.

**Albatross**

I'm just gonna put this here and get it out of the way:

**Swastakowey**

Thats cool.

Anybody smart enough to know what this will mean before im dead in the next 60 or so years?

**jasper76**

Swastakowey wrote:
Thats cool.

Anybody smart enough to know what this will mean before im dead in the next 60 or so years?

I'm not sure, but I for one am practicing my kau tau form in preparation for our new overlords.

**kronk**

Swastakowey wrote:
Thats cool.

Anybody smart enough to know what this will mean before im dead in the next 60 or so years?

Positive Answer: more money going into other economies as China starts importing to feed demand from their citizens.

Neutral answer: That China's economy is growing.

Negative: WWIII China wants our oil.

**Swastakowey**

Ok so (no offence) no intelligent answers then

Oh well. I think everyone knew it was gonna happen.

**jasper76**

I don't have an intelligent answer, but I've got plenty more stupid ones!

**Kali**

The actual logic behind this claim is flimsy at best. Basically PPP measures value according to cost of living, and the Chinese live much more cheaply than Americans (in large part due to the fact that so many of them live in desperate and chronic poverty). The actual worth in real and comparative terms is better expressed by pure GDP, which measures actual economic output, and according to those figures the US is still very much the largest economy at over 16 trillion USD, while China sits in a rather distant second place at 9 trillion USD.

Now some economists predict that China will surpass the US in real terms by 2020, but that assumes that China's growth rates are real and sustainable, which is most certainly not a foolproof statement. They said much the same thing about Japan in the 80s, and it turned out that much of the growth there was actually hollow and toxic... Ghost cities aren't exactly forecasting sustainable growth.

**daedalus**

Swastakowey wrote:
Thats cool.

Anybody smart enough to know what this will mean before im dead in the next 60 or so years?

That the generation most gak upon by the generations most responsible for the economic shift is going to be left in charge of "making America great" again while all the rest of us are old and feeble and lack understanding of how the modern world works?

**SagesStone**

I see daily mail though, so I'm not sure what to believe.

**Grey Templar**

Kali wrote:
The actual logic behind this claim is flimsy at best. Basically PPP measures value according to cost of living, and the Chinese live much more cheaply than Americans (in large part due to the fact that so many of them live in desperate and chronic poverty). The actual worth in real and comparative terms is better expressed by pure GDP, which measures actual economic output, and according to those figures the US is still very much the largest economy at over 16 trillion USD, while China sits in a rather distant second place at 9 trillion USD.

Now some economists predict that China will surpass the US in real terms by 2020, but that assumes that China's growth rates are real and sustainable, which is most certainly not a foolproof statement. They said much the same thing about Japan in the 80s, and it turned out that much of the growth there was actually hollow and toxic... Ghost cities aren't exactly forecasting sustainable growth.

Indeed. China needs to develop a stable domestic market, but that will mean political consequences from having a more affluent citizenry. Those political repercussions could destabilize the economy.

That, combined with the fact that China is still woefully underdeveloped in a few key areas, notably agriculture, means that China could easily slip away if they don't stabilize. They're basically riding their momentum at this point and they could as easily grind to a halt as become the biggest economy.

**Frazzled**

Albatross wrote:
I'm just gonna put this here and get it out of the way:

You're good Alby.

**Do_I_Not_Like_That**

Frazzled wrote:
Albatross wrote:
I'm just gonna put this here and get it out of the way:

You're good Alby.

Frazz, your nation's days as top dog is over. You have one hour to report to your nearest re-education camp. Today's lesson: Why Texas needs communism.

Automatically Appended Next Post:
Piece of advice to all Americans on this site: please handle your decline better than we did in the UK

After WW2 when the British Empire ended, and the UK became that small, miserable island in the Atlantic, we took the loss badly. Very badly.

We acted like a 55 years old who underwent a major mid-life crisis and started hanging around with 18 year olds, smoking weed, dressing like an ass, and boring people with talk of how we invented everything and built everything years ago.

USA, don't do what we did, it's embarrassing.

Decline with your dignity intact

**Frazzled**

I was thinking more along the lines of going out ina blaze of glory...

(replete with rock guitars and a good pyrotechnic show, and bikes, and chicks, and bad beer)

Alternatively we could all adopt Frazzled's happy Hawaiian shirt lifestyle. Sure other houses on the street are bigger and some of the youngins are driving cooler cars. But Frazzled is content to walk the wieners, we're having a fajita party tonight and the wife makes a mean margarita.

**Co'tor Shas**

I gues we have to send China a cake now

Honestly, China isn't really that impressive as it is not self sufficient in ideas. America, the UK, Japan, Western Europe, those are where new ideas are coming from. The way Chinese education works mean that the Chinese are very good ad doing stuff, just not making new stuff up.

**elotar**

Even putting PPP aside - for several years now China is creating national system of inflationing the gdp numbers. By now, i think, thay are even more out of reality than late Soviet ones.

**Miguelsan**

That's fun because recently I read an article about how Evil Chinese Overlords(TM)'s expenses on the military budget were being eaten mostly by that runaway inflation in the system and how our Beloved Fearmongers(TM) didn't seem to realize that the investment in real military stuff was much, much less than reported in the news every couple of weeks.

M.

**Hordini**

I'm not impressed.

**Easy E**

Get back to me when they sustain it for half a century.

**Hordini**

Easy E wrote:
Get back to me when they sustain it for half a century.

Yeah, exactly. Get back to me when they have some freedoms.

'Merica!

**Peter Wiggin**

Good for them?

Frankly I'm a lot more concerned with rebuilding and shoring up American infrastructure than I am about the state of China's economy.

**Do_I_Not_Like_That**

Easy E wrote:
Get back to me when they sustain it for half a century.

In denial already. America, your revolution is over!

Bow down to your Chinese overlords.

As a member of the UK (a country that's been sucking up to the USA since WW2) I offer the following advice to my American friends on dakka on how to integrate yourself with the new superpower on the block.

1. Develop a 'special relationship,' and never miss an opportunity to talk about the special relationship.

even if it makes the other side look awkward.

2. When the Chinese premier asks the US president for a meeting, make sure he drops everything and hops on the first plane to Beijing.

3. Adopt their language, watch their TV programmes and films (no matter how bad they are

) and start wearing their clothes.

4. When China unilaterally decided to invade the Middle East, stand shoulder to shoulder with them, even if 99% of your population is against it.