It’s Official: America is Now # 2Posted: December 4, 2014
Brett Arends reports:
…There’s no easy way to say this, so I’ll just say it: We’re no longer No. 1. Today, we’re No. 2. Yes, it’s official. The Chinese economy just overtook the United States economy to become the largest in the world. For the first time since Ulysses S. Grant was president, America is not the leading economic power on the planet.
It just happened — and almost nobody noticed.
The International Monetary Fund recently released the latest numbers for the world economy. And when you measure national economic output in “real” terms of goods and services, China will this year produce $17.6 trillion — compared with $17.4 trillion for the U.S.A.
“Make no mistake. This is a geopolitical earthquake with a high reading on the Richter scale.”
As recently as 2000, we produced nearly three times as much as the Chinese.
To put the numbers slightly differently, China now accounts for 16.5% of the global economy when measured in real purchasing-power terms, compared with 16.3% for the U.S.
This latest economic earthquake follows the development last year when China surpassed the U.S. for the first time in terms of global trade.
I reported on this looming development over two years ago, but the moment came sooner than I or anyone else had predicted. China’s recent decision to bring gross domestic product calculations in line with international standards has revealed activity that had previously gone uncounted.
Hear how China’s Sina Weibo microblog makes you money, watch how your fingertips could give you access to your health records and check out top five games for holiday gifts.
These calculations are based on a well-established and widely used economic measure known as purchasing-power parity (or PPP), which measures the actual output as opposed to fluctuations in exchange rates… (read more)
- How To Profit From China’s Currency Move (etfdailynews.com)
- G20 heads reveal global growth plan (independent.ie)
- IMF and World Bank Warn of Peak Trade as Global Recession Begins! (financearmageddon.blogspot.com)
- Japan’s Recession a Bad Sign for U.S. Investors (business2community.com)
- G20 leaders agree on measures to boost growth (wyff4.com)