The 'Age of America' is ending
China will surpass the US as the world's largest economy soon -- sooner than most people expected, according to an IMF report.
That's according to forecasts from the International Monetary Fund, which has set 2016 as the year when China's economy officially surpasses that of America as the world's largest.
To put this into perspective, only 10 years ago the U.S. economy was three times the size of China's, according to Brett Arends at MarketWatch. We knew this was coming, but this is the first time the IMF has put an actual date on it. "Most people aren’t prepared for this," Arends writes. "They aren’t even aware it’s that close."
The Daily Mail puts it starkly: "Whoever wins the 2012 presidential election will have the dubious honour of presiding over the fall of the United States." Even at its peak, Japan only had half of America's economic output, the Mail adds, and the USSR produced only a third.
If you look solely at the gross domestic output of the U.S. and China using current exchange rates, you wouldn't see this coming, Arends writes. That's because China works hard to undervalue its currency.
The IMF analyzed something different: "Purchasing power parity." Or, the amount people earn and spend in their economies.
Using this yardstick, China's economy is set to zoom from $11.2 trillion this year to $19 trillion in 2016, Arends writes. The U.S. economy will rise as well in that period, but only from $15.2 trillion to $18.8 trillion.
And the U.S. portion of the world economy drops to 17.7%, which Arends writes is the lowest in modern times.
The Telegraph notes that the IMF report comes a few days after Standard & Poor's sounded a warning shot over America's debt status. The U.S. federal debt has hit World War II levels, and Medicare, Medicaid and other entitlement liabilities are five times the annual GDP.
"It is premature to write off America as the world’s dominant superpower, for this is a nation that possesses an extraordinary ability to rebuild itself after periods of decline," writes Nile Gardiner. "It remains a beacon of hope to billions across the world, a 'shining city upon a hill' built on the ideals of liberty and freedom, as Reagan reminded the American people before he left office."
So what's next? Will India and its gangbuster economy eventually pass the U.S. for second place? Will the U.S. dollar be replaced as the world's dominant reserve currency?
TAKE OUR ECONOMY BACK....VOTE WITH YOUR FEET AND YOUR WALLET.
BUY .....MADE IN AMERICA OR DON'T BUY IT.........
UNITED WE STAND, DIVIDED WE FALL....Don't let politicians and bankers divie us.
SAY NO TO ANYTHING NOT MADE IN AMERICA.............
START TODAY...before you loose all your fore fathers fought so hard for, encourage your neighbor or start taking chinese language classes.
TIME TO PUT UP OR SHUT UP. Stop shopping at WalMart....
And it's also time to start exploiting our natural resources, like oil, gas, and rare earths. Production needs to increase drastically.
This is sad, I agree with some of you, but the US did to itself, it started years ago when we closed down our steel mills, sending the jobs overseas...coz IT WAS CHEAPER. We want CHEAP CRAP and thats what we get. You cant hardly find MADE IN AMERICA anymore. When we decide and only when that weve had enough of this crap, will it end. Bring back the mills and textiles and all the other jobs weve sent over seas and to mexico and south america. Will the cost be great? YES! But we will have US jobs back and our DEPENDENCY on these countries will end. It should have never gotten to this in the first place. The US needs to wake up and stop trying to be everyones friend and take care of our own.
well, this has happened before with "super powers" - Imperial Rome lost its export and industrial advantage by the end of the first century A.D. - but this was an agrarian based economy and it took another 125 years for the economy to collapse after substantial debasemen of its currency - to worthlessness. Of course taxes only increased - the burden of government eventually broke all classes.
So yes let some one else police the world - petty tyrants, threats, global economic warfare based on state subsidies, etc. On a fast track - thr end of the third quarter of this century will be a mess, if not sooner, but hell I will be dead and the ones that caused this will be as well. Nice future ehhh? The Fat Lady has been singing for some time but no one listens certainly not the paralyzed "intellectuals" of this administration.
I will gladly buy American if you can tell me what we make....everything has been shipped overseas.
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