dcaliph:
Anything that goes up must come down. The US has reach its peak and started doing what the super power of old did that cause their fall- fighting useless wars.

podosci:

Point of correction, you compare GDP with either nominal or PPP......... Per capital is not realy a basis for comparing ecomies but rather standard of living ...........per capital is either nominal or ppp........and IMF campares with PPP because nominal gives USA unfair advantage since the dollar is the standard exchange currency

r33d:


Thank you. Someone is calling China. The USA has a higher living standard, a higher education standard and takes care of its citizens better. As for statistics, it is the same that relates Nigeria to the biggest economy in Africa. Figures without real substance

ttmacoy:
Also note, China's gross domestic product bigger than USA in only one indicator based on a method of calculation by the IMF which can be said to be flawed - by adjusting GDP for China's relatively low cost of living, compared with USA's higher cot of living.

On the face of it you may say China is cheaper so better, but no America has a higher standard of living and workers earn more. Also on a GDP per person perspective which to me is far important, $58,000 to $6,000, I don't care how much China's gdp is, USA is a far superior and better economy. China has 1 billion more people than USA so they have a long way to go.

Also there is lots of talk about USA's debt, but China has a lot of debt and the way they account for debt doesn't give the true picture. Most of the Chinese boom was funded by state backed bank's which means the debt is all internal and not exactly transparent for accounting.

ttmacoy:


Firstly gdp per capita is a better measure than gdp based on ppp. It means 300 million people generated same output as 1.3 billion people.

Secondly, don't be deceived by the fact China holds the bulk of America's debt. It's because they are hedging their economy against the usa - beneficial to both countries.

China has a massive debt problem which they are gripping with and the economy will undergo a massive correction over the next few years which may be painful.

atbu1983:


Qater, Norway, Luxemburg, kuwait and about five other countries have better living standard than USA

ducii:


Until the bubble you are claiming that China has burst, then we will assume that China is still growing organicly.

It is hard for me to see China having large debts, because of the way their system operates. China has no social welfare programmes( absolute zero welfare programmes) which is one of the biggest problems most economies in the West have. Iceland experimented with social programmes (like free tertiary education) and their Economy blew up just after a few years of experimenting.

Yea China has bailed a few of their financial institutions, but everybody does it. America is the biggest culprit. So I don't see that affecting them much.

And don't forget China is America's largest creditor, they over took Japan early this year as the country with the largest exposure to America's debts.

atbu1983:


With GDP per capita USA will be 10th in the world. Countries like Qater, luxemburg, kuwait and more others are ahead of USA

ttmacoy:


Simply google China' debt and the information is there. China has built a massive debt pile to push through rapid investment in the country over the past few years, and most of the debt is held at the local government level and not federal which is why you may not see it depending on which numbers you look at.

China funded massive investments in real estate and infrastructure to grow their economy and if you research online, you will see cases of ghost towns all around as a result of excess investment. This was possible because the government controls the banks - note this is different from a bail-out.

In simple terms what they did was use the banks to fund investment and thereby boost production and employment. Problem with this is sustainability.

The economy needs to go through a correction to stabilise and it may be a painful correction due to the debt pile and property bubble. After all the investment in properties, prices have been falling leaving the banks with lots of bad debt, but given they are controlled by the government, they are not recognised as bad debt like in America which operates a near free market system. In pure accounting terms they have a shitload of debt.

Regariding China holding the bulk of America bonds, that doesn't say much because America has loads of assets as well (holding debt of other countries) despite their debt. Having debt doesnt mean you have no asset. In my opinion I actually see it as the Chinese government hedging their economy against the US economy which they know to be a stronger and more sustainable economy.

e.g. If Dangote Industries is owing GTB N1bn, that doesn't mean they don't have the assets to back it up. I must say though at some point America may need to look at their role as saviour of the world cus all the incessant wars are taking a toll on their finances and the main reason for the massive debt they have.

r33d:

I am making my comparison with China not Norway, Luxembourg, Kuwait or Qatar. I also stand by my statement that China does not have a better standard of living than the USA.

Idrismusty97:
It doesn't matter how people see the US. What matters is the fact. US is the strongest politically and military. But starting from today, The US is living on past glory economically. China isn't waiting for them, They would continue to rise.

r33d:


Thank you. Someone is calling China. The USA has a higher living standard, a higher education standard and takes care of its citizens better. As for statistics, it is the same that relates Nigeria to the biggest economy in Africa. Figures without real substance

atbu1983:
I know. I wanted you to know even when d world says US was d largest economy in d world it wasn't not d country with highest standard of living. When US took over from UK 142 years ago, UK standard of living was still higher than US standard of living. Over time US standard of living surpass UK. What is important in the news is dat china has grown at a very fast rate in the past 30years. And d standard of living in china has improved drastically too in d past 20 years. That is what is important. It is not all about US. There is nothing new. Many countries have been world largest economy before US became d largest. Now it is china Era. For sure US is a big force. What is clear is dat China influence relatively to US in d world will continue to rise while that of US will continue to fall. It may take another 50years or more b4 china can completely over shadow US. it is nature. when china time is over, another country will emerge. In 1980 China was 11th largest economy in the world. in 2005 they became 2nd largest economy. Ever since they have been closing d gap between them an US steadily. October 2014 they just surpass US very slightly. What is clear is that in 5 years time China will be much ahead of US by GDP. In terms of per Capital income China may not reach US even in another 100years. But GDP decide the power and influence of a country not the per capital income.

Afam4eva:
Btw, what's the big deal in having the largest economy if it's not reflective of the citizens of that country. The US still has way higher standard of living than China and china will need to break a leg to displace the US in that very important category.

sexzskil:
I was hoping in aghast that someone would say that in term of real GDP, the US is still miles ahead of China.

Still..yet...


NO NATION IN THIS UNIVERSE IS AS HALF POWERFUL AS THE UNITED STATES OF AMERICA. THIS NATION STILL RULES THE WORLD ECONOMICALLY(REAL GDP), CULTURALLY, SOCIO-CULTURALLY, MILLITARILY, TECHNOLOGICALLY AND EVERY AREA.

MAY THE UNITED STATES RULE OVER GOD AND THE UNIVERSE FOR ETERNITY(AMEN)!

Idrismusty97:
Wow. Nice one from China!

That great Babylon, that traded in the souls of men...is fallen...