sean Posted January 4, 2008 Via The great fall of China The most important story to come out of Washington recently had nothing to do with the endless presidential campaign. And although the media largely ignored it, the story changes the world. The story's unlikely source was the staid World Bank, which published updated statistics on the economic output of 146 countries. China's economy, said the bank, is smaller than it thought. About 40% smaller. China, it turns out, isn't a $10-trillion economy on the brink of catching up with the United States. It is a $6-trillion economy, less than half our size. For the foreseeable future, China will have far less money to spend on its military and will face much deeper social and economic problems at home than experts previously believed. What happened to $4 trillion in Chinese gross domestic product? Full story Sean Share this post Link to post Share on other sites
gendao Posted January 4, 2008 Also, the difference in U.S. and Chinese living standards is much larger than previously thought. Average income per Chinese is less than one-tenth the U.S. level. With its people this poor, China will have a hard time raising enough revenue for the vast military buildup needed to challenge the United States.Unfortunately, what this CFR tool fails to mention is how the Chinese are actually leaving WITHIN their means, while the US is living in DEBT. China is not in debt, but actually has billions in foreign currency reserves. Whereas, the US is in $9-$14 trillion of debt. So, who's REALLY poorer? Share this post Link to post Share on other sites
