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by Michael Snyder
October 8, 2014
from
EndOfTheAmericanDream Website
In terms of purchasing power, China now
has the largest economy on the entire planet, but that is not the
only area where China has surpassed the United States.
China also accounts for more total
global trade than the U.S. does, China consumes more energy than the
U.S. does, and China now manufactures more goods than the U.S. does.
In other words, the era of American economic dominance is rapidly
ending.
Global economic power is making a
dramatic shift to the east, and that is going to have huge
implications for our future.
We already owe the Chinese well over a
trillion dollars, and as our economic infrastructure crumbles we are
feverishly borrowing even more money in a desperate attempt to prop
up our falling standard of living.
We can't seem to match the work
ethic, inventiveness and determination of China and other Asian
nations and it is showing.
If we continue down this path, what will
the future look like for future generations of Americans? In terms
of raw GDP, the U.S. is still number one, at least for now.
But according
to the IMF, China is now the number one economy on the entire
planet in terms of purchasing power…
The simple logic is that prices
aren't the same in each country: A shirt will cost you less in
Shanghai than San Francisco, so it's not entirely reasonable to
compare countries without taking this into account.
Though a typical person in China
earns a lot less than the typical person in the US, simply
converting a Chinese salary into dollars underestimates how much
purchasing power that individual, and therefore that country,
might have.
The Economist's Big Mac Index is a
great example of these disparities.
So the IMF measures both GDP in
market exchange terms, and in terms of purchasing power. On the
purchasing power basis, China is overtaking the US right about
now and becoming the world's biggest economy.
When I first learned about this, I was
quite stunned.
I knew that China's economy had been
roaring, but like most Americans I just assumed that the U.S. would
continue to remain head and shoulders above everyone else.
Unfortunately, things are changing at a
pace that is much faster than most people ever thought possible.
The following are 26 other ways that
China has surpassed America…
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When you add up all imports and
exports, China now accounts
for more total global trade than the United States does.
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There is now
more total corporate debt in China than there is in the
United States.
-
During 2013, we sold about
121 billion dollars worth of stuff to the Chinese, but
they sold about
440 billion dollars worth of stuff to us. That was the
largest trade deficit that one nation has had with another
nation in the history of the world.
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China is now
the leading manufacturer of goods in the entire world.
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Back in 1998, the United States
had 25 percent of the world's high-tech export market and
China had just 10 percent. Today, China's high-tech exports
are more than twice the size of U.S. high-tech exports.
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The United States had been the
leading consumer of energy in the world for about 100 years,
but during the summer of 2010 China
took over the number one spot.
-
China now has the
largest new car market in the entire world.
-
China has
more foreign currency reserves than anyone else on the
planet.
-
China is the
number one gold producer in the world.
-
China is also the
number one gold importer in the world.
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15 years ago, China was 14th in
the world in published scientific research articles. But
now, China is expected
to pass the United States and become number one very
shortly.
-
China is also expected to soon
become
the global leader in patent filings.
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China awards
more doctoral degrees in engineering each year than the
United States does.
-
China has
the world's fastest train and the world's most extensive
high-speed rail network.
-
China uses more cement than the
rest of the world
combined.
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Today, China produces
nearly twice as much beer as the United States does.
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85 percent of all artificial
Christmas trees
are made in China.
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There are more pigs in China
than in the next 43 pork producing nations
combined.
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China is now
the number one producer of wind and solar power on the
entire globe.
-
China produces
more than twice as much cotton as the United States
does.
-
China produces
more than three times as much coal as the United States
does.
-
China now produces
11 times as much steel as the United States does.
-
China controls
over 90 percent of the total global supply of rare earth
elements.
-
An investigation by the U.S.
Senate Committee on Armed Services found
more than one million counterfeit Chinese parts in the
Department of Defense supply chain.
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According to author Clyde
Prestowitz, China's number one export to the U.S.
is computer equipment. According to an article in U.S.
News & World Report, the number one U.S. export to China is
"scrap and trash"
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Nobel economist Robert W. Fogel
of the University of Chicago is projecting that the Chinese
economy
will be three times larger than the U.S. economy by the
year 2040 if current trends continue.
The Chinese are using some of their new
wealth to buy up land, properties and businesses here in the United
States.
In fact, just the other day we learned
that a group from China is buying
New York City's Waldorf Astoria hotel. And most Americans don't
realize this, but Chinese-made cars will soon be sold in the United
States.
The following is from a recent WND
article…
Chinese-made cars will be making
their way to the U.S. next year, and guess which company is
going to start exporting them to our shores?
A Chinese company, of course.
Chinese-owned Volvo's parent
company, Zhejiang Geely Holding Group, will begin exporting its
S60L from China to the United States as early as next year,
according to a Reuters report which quoted a senior Volvo
executive.
Volvo is trying to take advantage of
two new Chinese factories that will make up an export hub to
send vehicles to the U.S. and Russia.
Everywhere you look, China is dominating
and
America is in decline...
If this was a sporting event for little
kids, the "mercy rule" would have been invoked by now.
-
Unfortunately, there is no
"mercy rule" on the global economic stage.
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The United States is going to
have to get things together if it wants to have any hope of
competing with the Chinese in the future.
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The Chinese are kicking our
tails and they know it.
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One survey found found that
75 percent of those living in China believe that their
country is on the right track.
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On the other hand, Americans are
not nearly as optimistic.
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According to one average of
recent surveys, only
28 percent of Americans believe that the United States
is on the right track.
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I think that those numbers say a
lot. We have been in decline for quite some time, but we can
never seem to get the ship righted.
Hopefully our leaders can start
coming up with some solutions soon, because we are running out of
time...
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