According to the International Monetary Fund, when looking at purchasing-power, China is right now overtaking the US to become the world’s largest economy.
By the end of this year, China will constitute 16.48% of the world’s purchasing-power and the US will make up 16.28%.
This is according to ‘adjusted purchasing power’:
The simple logic is that prices aren’t the same in each country: A shirt will cost you less in Shanghai than in San Francisco, so it’s not entirely reasonable to compare countries without taking this into account. Though a typical person in China earns a lot less than the typical person in the US, simply converting a Chinese salary into dollars underestimates how much purchasing power that individual, and therefore that country, might have. The Economist’s Big Mac Index is a great example of these disparities.
So the IMF measures both GDP in market-exchange terms and in terms of purchasing power. On the purchasing-power basis, China is overtaking the US right about now and becoming the world’s biggest economy.
We’ve just gone past that crossover on the chart below, according to the IMF. By the end of 2014, China will make up 16.48% of the world’s purchasing-power adjusted GDP (or $17.632 trillion), and the US will make up just 16.28% (or $17.416 trillion):
IMF, Google Public Data ExplorerAdjusted for purchasing power, the IMF thinks China’s economy is now the world’s largest.
It’s not all sour news for the US. It’ll be some time yet until the lines cross over in raw terms, not adjusted for purchasing power. By that measure, China still sits more than $6.5 trillion lower than the US and isn’t likely to overtake for quite some time:
God is coming he allows the devil his last hour but god will have his day as a matter of fact he will have 3 days of chastisement upon the world all the world will not escape his justice!! These politicians and judges no nothing about god justice they will get THIER just deserts!! All bitterness!!!! God help THIER souls for what they have chosen to do with the will god gave them they chose the wrong path!!!!!
pretty soon they will wind up taking over the Country ..because we can’t pay it back? how that that default thing work again with Countries?
They collateralized their business deals, loans, etc repeatedly with the same collateral…simultaneously…copper (I think it’s been said). So if one venture fails…There goes the collateral. How long can THEIR superpower…THEIR economy really last???
this is what Hussein Obama wants to bring down the USA
Rise of Fourth Reich – China….
What’s amazing is we send them foreign monetary aid because they manipulate the value of their currency.
obama sucks
Afghanistan bankrupt the former USSR and it looks like we fell into the same trap.
US was taken down from the inside !!
pay attention, that like so many other things is a temporary situation !!!