America is loosing its value gradually.

This didn't happen today. China overtook US economy as far back as 2007 that's why the 2008 economic meltdown because world economy was reset then. Once China embraced science with their huge population there could not be any going back on being the world's number one economy.

Psylas:
We Nigerian students are celebrating it here in France

We're celebrating it here too in Judea!

major466:

50 years? That's completely wrong. China is scheduled to be declared officially as world's number one economic power by the year 2020.

Please check the latest official data. US GDP is almost double China. U can also check IMF projection till 2060.

http://data.worldbank.org/indicator/NY.GDP.MKTP.CD

kmariko:
.

Sir go back and reread the article again

Young man, do u have a faint idea of economics. PPP is useless. Its a model with wrong and dreamy assumptions. That was the basis for the Keynesians later idea of Comparative Cost Advantage coz resources are not equal across nations and their values are totally different. Just answer this question, is the value of goods in China same with the value in UK, US or in Nigeria. PPP says let's assume value of raw materials, wages, machines (factors of production) are equal world over and that price of goods are equal. If u still don't get it, can't help u anymore. Pleasant morning

we corrupt pas the two of u

Nothing can stop the fact that America will govern God and this universe for eternity! Look all around u, babyyy! Even China knows better!

hayokunleoni:


Young man, do u have a faint idea of economics. PPP is useless. Its a model with wrong and dreamy assumptions. That was the basis for the Keynesians later idea of Comparative Cost Advantage coz resources are not equal across nations and their values are totally different. Just answer this question, is the value of goods in China same with the value in UK, US or in Nigeria. PPP says let's assume value of raw materials, wages, machines (factors of production) are equal world over and that price of goods are equal. If u still don't get it, can't help u anymore. Pleasant morning

Two words - Who cares?

Value is a consumer driven utility - If you can get your haircut for 100 naira in Nigeria versus 20 pounds in the UK, who cares about the value?

To explain further - Take a look at the two cars below. One is produced in China, its called LandWind X7 and it sells for 120,000 yuan, the other is produced by Jaguar and it sells for 40,000 pounds. They both look exactly alike and will very likely give equal utility/value to their owners, who cares?

If China can produce similar goods at a cheaper cost, then the fair value of its exchange rate should strengthen to reflect this cost advantage. But its exchange rate has not adjusted to reflect this. This is deliberate, in order to keep exports competitive.








The 120,000 yuan should really be equivalent to 40,000 pounds. It should defy logic if this isn't the case. But of course, it isn't the case - the 120,000 yuan in this instance is only equivalent to 14,000 pounds.

If goods and services are compared with market based rates, China will be ranked lower than the US in GDP terms. But market based rates are subject to volatility and central bank manipulations which could drive them well away from their long term fair value. The Yuan, relative to the US dollar is relatively well below its fair value. If the Yuan were trading at its fair value and the Chinese economy compared on such basis, i see no reason why China shouldn't have a higher GDP than the US

bookface:


Two words - Who cares?

Value is a consumer driven utility - If you can get your haircut for 100 naira in Nigeria versus 20 pounds in the UK, who cares about the value?

To explain further - Take a look at the two cars below. One is produced in China, its called LandWind X7 and it sells for 120,000 yuan, the other is produced by Jaguar and it sells for 40,000 pounds. They both look exactly alike and will very likely give equal utility/value to their owners, who cares?

If China can produce similar goods at a cheaper cost, then the fair value of its exchange rate should strengthen to reflect this cost advantage. But its exchange rate has not adjusted to reflect this. This is deliberate, in order to keep exports competitive.








The 120,000 yuan should really be equivalent to 40,000 pounds. It should defy logic if this isn't the case. But of course, it isn't the case - the 120,000 yuan in this instance is only equivalent to 14,000 pounds.

If goods and services are compared with market based rates, China will be ranked lower than the US in GDP terms. But market based rates are subject to volatility and central bank manipulations which could drive them well away from their long term fair value. The Yuan, relative to the US dollar is relatively well below its fair value. If the Yuan were trading at its fair value and the Chinese economy compared on such basis, i see no reason why China shouldn't have a higher GDP than the US

LOL. You have never driven a Jag. The new ones feel like angel p)ussy on the inside. There's a reason why that vehicle sells for that price.

Nobody wants to lose money.

To put it differently, China has a slightly higher total GDP than the US with four times the population! Not exactly the picture of economic prosperity, is it?

US GDP per capita = approx. $53,000 (up from $44 000 in 2005)
China GDP per capita = approx. $6,800

Even so, to say it 'crept up', that didn't see this happening, is purely false. We've been watching it happen steadily for the past 30 years or so, and further saw that outcome catapult significantly during the Clinton era. The US has been shooting itself in the proverbial foot for a long time now; outsourcing, taking manufacturing overseas for cheap labor, overspending etc. Really, it should come as no surprise to anyone!

Kinda reminds me of a clip I was shown a while back:
https://www.youtube.com/watch?v=OTSQozWP-rM

The world's resources are swindling. People need to talk about a degrwoth movement and conserve more of the world's resources.


https://www.youtube.com/watch?v=TWYM9W-3oVQ

OmoUSH:
Nothing can stop the fact that America will govern God and this universe for eternity! Look all around u, babyyy! Even China knows better!

Govern god?? Why do so many Nigerians think like this?