April 30, 2014 1:01 am
China poised to pass US as world's
leading economic power this year
By Chris Giles, Economics Editor
Central Shanghai: China is likely to be the world's richest country by next year
The US is on the brink of losing its status as the world's largest economy, and is likely to slip behind China<http://www.ft.com/intl/world/asia-pacific/china> this year, sooner than widely
anticipated, according to the world's leading statistical agencies.
The US has been the global leader since overtaking the UK in 1872. Most economists previously thought China would pull ahead in 2019.
The figures, compiled by the International Comparison Program hosted by the World Bank, are the most authoritative estimates of what
money can buy in different countries and are used by most public and private sector organisations, such as the International Monetary
Fund. This is the first time they have been updated since 2005.
After extensive research on the prices of goods and services, the ICP concluded that money goes further in poorer countries than it
previously thought, prompting it to increase the relative size of emerging market <http://blogs.ft.com/beyond-brics/> economies.
The estimates of the real cost of living, known as purchasing power parity or PPPs, are recognised as the best way to compare the
size of economies rather than using volatile exchange rates, which rarely reflect the true cost of goods and services: on this measure
the IMF put US GDP in 2012 at $16.2tn, and China's at $8.2tn.
In 2005, the ICP thought China's economy was less than half the size of the US, accounting for only 43 per cent of America's total.
Because of the new methodology - and the fact that China's economy has grown much more quickly - the research placed
China's GDP at 87 per cent of the US in 2011.
For 2011, the report says: "The US remained the world's largest economy, but it was closely followed by China when
measured using PPPs."
China: The Wet Dream of American Oligarchs
By Carl Gibson, Reader Supported News
28 April 14
[http://readersupportednews.org/images/stories/alphabet/rsn-I.jpg]f you have all the money in the world, but there's nothing in the world worth buying, then what's the point of having so much money in the first place?
Two crucial new tidbits of information coming out of China are helping to paint a fuller picture of the long-lasting damage from the unrestrained capitalism
that's evident in the world's most populous nation. A newly-released Chinese state secret revealed that one-fifth of China's farmland is unusable<http://abcnews.go.com/International/wireStory/china-countrys-farmland-polluted-23372981> due to
toxins in the soil leaked by industry. Worse still, 60 percent<http://rt.com/news/154268-underground-water-china-polluted/> of China's groundwater is undrinkable, for the same reasons.
When you combine China's dwindling natural resources with its massive population that encompasses 20 percent of the planet, it's easy to see how
China will inevitably lead itself to societal collapse if it continues its brand of entirely unregulated capitalism. While China is technically known as a
Communist country, it's actually outdoing the US when it comes to establishing a completely unregulated business environment.
China's Ruthless Capitalism
Labor regulations in China are almost nonexistent - 30,000 workers just recently went on strike<http://therealnews.com/t2/index.php?option=com_content&task=view&id=31&Itemid=74&jumival=11777> at a factory that produces Nike and Adidas shoes,
protesting low pay and dangerous working conditions. And China's Foxconn plant, responsible for the manufacturing of Apple technology,
has gotten plenty of attention since its workers - many of them children<http://www.theguardian.com/technology/2013/jan/25/apple-child-labour-supply> - threatened mass suicide several years ago.
Environmental regulations are similarly loose in China, which is home to 16 of the world's 20 most polluted cities<http://theweek.com/article/index/252440/chinas-massive-pollution-problem>. China also burns as much
coal as the rest of the world combined, meaning much of the air is so polluted that residents of certain cities can't go outside without a mask
Lung cancer rates have skyrocketed by 465 percent in just the last three decades, and 1.2 million people died prematurely due to pollution in
One thing China has in common with the US is cronyism, evident in some businesses getting favorable treatment and paying no penalties for
breaking the law. In China, state-owned businesses get around having to abide by laws passed by the central government. And in the US, the
business-owned government, purchased through campaign donations and lobbying, allows rampant abuse of workers and the environment with very little accountability.......................................................................................................................................................
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