China Just Overtook The US As The World's Largest Economy?

Interesting article about the Chinese economy vs the U.S. economy.

A little confusing, but could be accurate.

"Real" money vs. "Purchasing Power" is the comparison.

Sorry, America. China just overtook the US to become the world's largest economy, according to the International Monetary Fund.

Chris Giles at the Financial Times flagged up the change. He also alerted us in April that it was all about to happen.

Basically, the method used by the IMF adjusts for purchasing power parity, explained here.

China Just Overtook The US As The World's Largest Economy

Okay.

China has over one billion people....the U.S. has something like 300 million people.

Not really concerned.

Scary!!!! just kidding...

From the article you linked I believe this is the more relevant bit...


So the USA is still winning, lol.

a reply to: boogeywoogey

Exactly, the math just shows inevitability. In any case, oh well. All things come to an end and America and its prosperity are no exception.

a reply to: Krazysh0t



Agreed, change is inevitable.

originally posted by: Elton
Scary!!!! just kidding...

From the article you linked I believe this is the more relevant bit...

So the USA is still winning, lol.

If the current state of poverty and homelessness is what makes America win, I hate to see what it looks like when they lose.

Peace

The larger they come, the harder they fall.

The more economic power they have, the easier it will become for the banksters to bring them to their knees.

Probably not in the near future, but they will definitely be targeted in the end.

a reply to: jude11

I did not know that the raw market value of our currency is a function of our homelessness and poverty. I thought it was based of commodities and futures markets.

:/

originally posted by: Cobaltic1978
The larger they come, the harder they fall.

The more economic power they have, the easier it will become for the banksters to bring them to their knees.

Probably not in the near future, but they will definitely be targeted in the end.

both China and the Saudis have us by the scrotum...all they have to do is cash in a trillion or so of the US debt they hold and, .BOOM!!!...the dollar drops to pennies within hours, no warning given, and nothing to stop it. check Greece last year or Argentina a few years ago.

Is anyone really surprised?
I'm not.

a reply to: Elton

Yes chasing the Petro Dollar not the American Dollar

originally posted by: boogeywoogey
Okay.

China has over one billion people....the U.S. has something like 300 million people.

Not really concerned.

You mean, China has more people paying taxes to the chinese gov.

China's tax revenue came to 6.31 trillion yuan (924 billion U.S. dollars) in 2009

source: en.wikipedia.org...

Almost a trillion US dollars in revenue... in only one year. It seems having more population to pay pays... I am not surprised.

a reply to: jimmyx

both China and the Saudis have us by the scrotum...all they have to do is cash in a trillion or so of the US debt they hold and, .BOOM!!!...the dollar drops to pennies within hours, no warning given, and nothing to stop it. check Greece last year or Argentina a few years ago.

Not quite accurate.

They can't "cash in" at the government window until the notes and bonds reach maturity date.

But they can sell on the open market.

a reply to: xuenchen

Here's the thing about this to watch, the fact that "Debt Payments to Exceed Defense Budget Within the Decade":
townhall.com...

In other words, long term the US financial outlook points to shrinking of its military power, while China's outlook is really good. The consensus wisdom is that the Chinese don't act in colonial ways, they historically don't project force beyond their borders. But I don't think modern Chinese are all that traditional, its reforms that have brought them to this point...And if they get involved in foreign affairs HALF as much as we have, its going to be a very different world out there. Still time to learn mandarin I guess!

Shanzhai economy rules...

a reply to: xuenchen

They're probably sitting around bragging how they won the cold war. Actually they're probably bragging to co workers during their 18 hour shifts at 70 cents an hour.

Still time to learn mandarin I guess!

a reply to: tridentblue
That would be a Smart Choice, I told a poster in another thread, if the young people today wanted a good paying job, learn Mandarin Chinese or Japanese, along with your English, those will be the Languages of the future if your going to work in Big Money Finance and Commerce.

Learning Spanish will do you no good, read a bill board or direction on your Lawn Mower.
Chinese students are taught English, but as a business woman or man working with an entirely Asian Clientele, you want to win Respect and the Contract, Learn their Language.

@ mattsawaufo, You really, really need to to read a better source, as of 1995 there have been a Law enforced that forces all companies, of all counties to include Chinese, that no one can work more than 49 hours a week.
You also need to understand, Chinese are not like the Westerner counterparts, the Chinese employee will actually ask to work more hour's and it for a good reason, they send their monies home to support they family or a bother or sister in a better school than a Government Run School.
In China, Education is Everything, it means you get Out and a better life. It is the responsibility of the Family to ensure each talented child has a chance to succeed and in doing so, in China that Child or those Children will take care of the ones that help them.
It's Not this Me, It's All About Me, Generation.
It's a different Culture, where student still listen to teachers and teachers have Respect.

They don't get paid .70 cents an hour,,, I wish you'd get some updated material. You have to remember, in China, it does not cost what it cost you to live in America.
My old apartment in Beijing, China cost us 400.yuan a month for two bed rooms one bath. fully furnished, ground floor.
That was about $75. Propane was 7. Yuan a month and water was 12. yuan a month and electric was 15. yuan a month that comes to about $20. in American.

Now I had a good job and was making as a middle class Chinese Citizen 1,850. yuan a month.
Most of my girl friends then and now still living in China are making better monies, 2,500. y a month and factory workers are making 1,100. yuan to 1,800. yuan a month.
They are not poor.

Quanta’s emphasis on hours that are easier on employees means they are prohibited from overtime shifts that advocates say are abusive, but which some workers insist they want….

Zhang Jiang, a slim 21-year-old, previously assembled laptop computers at another company in Shanghai. Each week, he sent the bulk of his pay home so his younger brother could stay in school. Overtime was like a blessing, he said.

But last summer, fed up with the 25-hour train trip to see his family, Mr. Zhang moved to Chongqing and joined Quanta. He enjoys the better facilities and dorms. He frequently visits his parents’ home. But his take-home pay has fallen by nearly a third and the thought that his brother may have to drop out of school so he can help the family gnaws at Mr. Zhang. Instead of working in the factory each night, he spends hours playing an online game, Dungeon Fighter.

“I’d like to work 80 hours a week,” he said

One might blame this on the advocates who push these companies for “better labor conditions”. Or one might blame Chinese law which at least nominally mandates that workers can work no more than 49 hours a week. But as both Tabarrok and Worstall emphasize the largest changes happening in Chinese labor markets are the result of market forces. And the article acknowledges that changes like lower mandated hours are part of an attempt to reduce turnover, so perhaps absent regulatory or advocate pressures firms would be limiting hours anyway. So these hourly limits, while they may make some workers worse off, may represent efficient contracts that make workers better off overall.

In any case, it is an important reminder: simply because you cannot imagine wanting to work 80 hours at a difficult job in a Chinese factory doesn’t mean you can necessarily help workers by banning them from doing this.

Link

China uses a five-day workweek that spans from Monday to Friday, with Saturday and Monday off. The normal business hours are from 08:00 to 18:00, with two-hour break from 12:00 – 14:00. However, there are local variations in different sectors and cities.

Government offices, institutions and schools begin at 8:00 or 8:30, and end at 17:00 or 17:30 with two-hour noon break, from Monday to Friday. They usually close on Saturday, Sunday and public holidays.

Companies usually start at 8:30 and close at 18:00, with one or two hours noon break. Though usually open from Monday to Friday, companies have some staff on duty at weekends.

Banks and post offices open daily from 9:00 till 17:00. During weekends and public holidays, their business hours are shortened by one or two hours. One can find self-service banks and ATM machines operate any time.

Hotels and hospitals offer round-the-clock services every day. Community clinics are also open every day from 8:30 till past 22:00.

Chinese working hours