China replaces America as the world's economic superpower

[LEGENDARY WARRIOR]

China is gonna replace USA .. they why are you excited??

China is gonna replace USA; why are you worried. . .

 

[Cheetah786]

the so called great power to be and an average worker makes 60 cents an hour . While a high school kid in the US on a summer job makes $10/hr at McDonalds

This is just a childlike comment to make an average programmer was making 100 to 200,000/yr before and now the same job is done in India for less then ten grand all figures in us dollars so basically what you are saying is when Chinese do it its bad but same thing did by Indians is some how different

 

[casual]

china have no where near 3 trillion dollars in US t-bonds. it's more like 1.15trillion
that article is garbage.

 

[Cheetah786]

china have no where near 3 trillion dollars in US t-bonds. it's more like 1.15trillion
that article is garbage.

MAJOR FOREIGN HOLDERS OF TREASURY SECURITIES
(in billions of dollars)
HOLDINGS 1/ AT END OF PERIOD


New 5/ Old 5/
Series Series
Feb Jan Dec Nov Oct Sep Aug Jul Jun Jun May Apr Mar Feb
Country 2011 2011 2010 2010 2010 2010 2010 2010 2010 2010 2010 2010 2010 2010
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------

China, Mainland 1154.1 1154.7 1160.1 1164.1 1175.3 1151.9 1136.8 1115.1 1112.1 843.7 867.7 900.2 895.2 877.5
Japan 890.3 885.9 882.3 875.9 873.6 860.8 832.5 817.3 799.9 801.2 784.8 793.8 783.3 768.2
United Kingdom 2/ 295.5 277.9 271.6 242.5 209.0 190.5 181.0 107.2 94.5 363.6 350.7 321.1 279.0 233.5
Oil Exporters 3/ 218.8 215.5 211.9 204.3 207.8 215.4 211.7 209.3 210.2 216.3 228.6 232.9 223.4 211.9
Brazil 194.3 197.6 186.1 189.8 183.0 181.0 170.5 167.7 163.8 158.5 161.5 164.4 164.5 170.9
Carib Bnkng Ctrs 4/ 169.4 166.5 168.1 158.8 146.3 157.7 172.6 164.1 178.9 165.9 166.3 153.2 148.2 144.4
Taiwan 155.9 157.2 155.1 154.4 154.5 153.3 153.4 153.8 151.9 128.6 126.2 126.9 124.8 121.4
Russia 130.5 139.3 151.0 167.3 176.3 173.3 173.7 175.7 168.2 123.4 126.8 113.1 120.1 120.2
Hong Kong 124.6 128.1 134.2 134.9 135.2 131.9 133.9 131.2 137.0 141.0 145.7 151.8 150.9 152.4
Switzerland 110.4 107.6 107.0 107.0 107.7 110.0 113.0 111.8 106.5 100.1 84.4 80.0 78.8 81.8
Canada 92.9 86.5 76.7 76.7 66.1 56.5 44.9 43.0 35.9 93.7 84.8 81.9 77.1 67.1
Luxembourg 81.0 83.0 86.4 81.9 78.5 86.1 79.0 98.9 97.6 96.6 75.6 76.9 83.9 77.8
Singapore 66.7 57.8 72.9 62.2 66.4 56.7 55.4 55.3 53.3 50.5 40.6 42.4 45.5 42.6
Germany 58.3 61.1 60.5 58.6 58.2 57.9 56.8 55.3 52.2 54.0 55.8 54.8 53.7 50.0
Thailand 57.6 56.5 52.0 52.2 52.7 50.4 47.3 40.8 35.7 49.3 46.3 46.9 43.5 42.1
Ireland 42.0 44.4 45.8 50.0 48.9 51.5 49.5 51.1 55.7 48.3 48.0 45.7 43.3 38.7
India 40.3 40.6 40.5 39.7 40.1 40.0 37.9 38.4 35.4 36.4 29.3 31.0 32.0 31.6
Mexico 34.6 34.4 33.5 32.6 34.8 36.8 36.1 33.5 33.1 33.2 34.2 33.1 36.1 33.9
Turkey 34.3 32.9 28.9 29.1 27.8 27.8 29.7 26.7 25.7 25.5 27.6 27.9 28.7 27.3
Belgium 32.0 32.1 33.2 33.4 33.4 33.8 51.9 34.3 34.8 17.2 17.6 18.5 17.1 17.0
Korea, South 31.2 31.9 36.2 39.8 39.4 38.7 39.9 37.6 37.0 38.7 37.8 38.7 40.1 39.8
France 30.2 30.2 15.0 20.1 23.5 23.3 26.1 19.8 24.2 36.0 37.9 40.6 39.8 32.8
Poland 27.3 26.3 25.5 27.2 28.8 28.4 26.6 24.8 25.7 23.2 23.4 24.6 23.4 22.6
Netherlands 24.9 25.4 22.7 22.1 22.0 23.1 25.1 24.2 24.7 17.3 17.6 19.6 19.2 20.4
Italy 24.3 24.6 23.7 23.6 23.7 24.1 23.6 23.2 22.7 20.1 20.8 20.3 20.5 20.9
Philippines 22.7 22.8 20.1 19.2 18.5 18.5 19.3 20.3 20.0 14.3 14.4 15.0 14.6 12.5
Norway 20.8 19.4 19.6 19.0 18.0 18.1 17.5 16.3 15.4 16.1 15.2 15.0 14.6 13.6
Colombia 20.1 19.8 20.2 20.3 16.7 16.3 16.5 16.4 16.4 17.0 15.7 15.7 16.2 16.0
Israel 19.8 19.9 20.6 20.5 17.9 17.6 16.3 17.9 18.3 18.4 20.1 19.9 22.0 18.9
Sweden 17.7 17.0 16.8 15.2 16.1 15.4 16.8 17.7 17.6 16.5 13.4 15.3 16.3 16.0
Chile 16.0 15.0 13.9 13.4 13.4 13.0 13.0 13.1 12.0 12.2 12.0 12.0 11.9 12.3
Egypt 14.9 20.7 26.0 29.8 30.5 30.6 29.2 25.9 25.0 29.4 28.0 21.1 21.4 21.7
Australia 12.6 14.7 14.9 14.9 15.7 18.0 15.5 19.2 18.4 14.5 14.1 17.9 14.4 14.4
Malaysia 11.3 11.3 11.5 11.7 11.6 11.5 11.7 11.7 11.1 11.1 10.5 10.9 11.0 10.9
All Other 197.0 194.4 193.0 200.5 201.5 204.2 206.7 206.8 199.1 171.1 174.6 168.1 163.4 162.1
Grand Total 4474.3 4453.0 4437.9 4412.5 4372.9 4324.1 4271.8 4125.3 4069.9 4002.8 3958.1 3951.1 3877.8 3745.4

Of which:
For. Official 3161.4 3152.1 3163.5 3186.8 3202.3 3167.2 3119.2 3074.4 3046.5 2690.3 2690.8 2715.1 2703.3 2670.3
Treasury Bills 432.4 438.9 462.3 499.2 531.3 495.4 486.9 473.5 454.4 454.4 466.9 498.5 501.3 496.5
T-Bonds & Notes 2729.0 2713.1 2701.2 2687.6 2671.0 2671.8 2632.4 2600.9 2592.1 2235.9 2223.8 2216.6 2202.0 2173.8

Department of the Treasury/Federal Reserve Board
April 15, 2011

1/ Estimated foreign holdings of U.S. Treasury marketable and non-marketable bills, bonds, and notes
reported under the Treasury International Capital (TIC) reporting system are based on annual
Surveys of Foreign Holdings of U.S. Securities and on monthly data.
2/ United Kingdom includes Channel Islands and Isle of Man.
3/ Oil exporters include Ecuador, Venezuela, Indonesia, Bahrain, Iran, Iraq, Kuwait, Oman, Qatar,
Saudi Arabia, the United Arab Emirates, Algeria, Gabon, Libya, and Nigeria.
4/ Caribbean Banking Centers include Bahamas, Bermuda, Cayman Islands, Netherlands Antilles and Panama.
Beginning with new series for June 2006, also includes British Virgin Islands.
5/ New series reflect new benchmark survey taken in this month. Estimated positions based on the
previous survey are shown for comparison.



It turns out China does own more Treasury bonds than the government's official numbers have been letting on.

China held $1.16 trillion of U.S. government bonds at the end of 2010, Treasury said Monday in its preliminary revision of data on foreign portfolio holdings.That's up $268 billion from the previous official tally covering the same dates, released two weeks ago, and puts China ahead of the No. 2 U.S. foreign lender, Japan, by about the same amount.

The revision appears to confirm the suspicions of some China watchers that the biggest U.S. creditor's government-bond stake was being lowballed in the official data.

Some observers such as Derek Scissors of the Heritage Foundation noted that China's Treasury holdings inexplicably held steady over the past year even as the Chinese ran a substantial trade surplus and bought dollars to limit the appreciation of their currency, the yuan.

Also raising eyebrows was the sharp rise in Treasury holdings attributed to the United Kingdom. Scissors and others said those trends didn't make sense unless China was buying Treasuries through accounts in the U.K.

Monday's revisions certainly seem to point in that direction. While China's holdings rose by $268 billion in the revised numbers, the U.K. holdings fell by the same amount.

Even so, there are reasons to believe China's actual government bond take is much bigger. Fed chief Ben Bernanke this month put the number at $2 trillion or so in congressional testimony, for instance. Our dollar, everyone's problem.

 

[ephone]

It is fine to be confident.

However, it is wise to be modest and keep moving ahead.

Over-confidence won't do any good to China's progress.

U.S. has shot itself in the foot by committing two/third wars concurrently. However, you really cannot say China has replaced America as the world's economic superpower. China may grow faster than U.S. However, U.S. is still way more powerful and advanced than China now.

Even China's RMB has appreciated over time. However, it seems that $1 can buy more stuff in U.S. than what 6.5 RMB can purchase in China.

China may have some new and beautiful infrastructure built in the past decades, much better than those built in U.S. decades ago. However, you cannot really say China has overall better infrastructure than U.S. does. BTW, do you know you do not have to play when traveling on Highway in U.S. most of the times except on those very few tollways? Even on tollway, the price is very very low.

However, it seems that most highways in China are tollways. My father-in-law drove from Northeastern China to HuBei Province three times back and forth, each times it costs way more than the round trip airline tickets. he had to pay constantly stop by stop.

As far as the treasure bill, before we can exchange that paper into anything useful in face value, we still need each other enormously.

So it is still our time to 韬光养晦.

 

[Aramsogo]

the so called great power to be and an average worker makes 60 cents an hour . While a high school kid in the US on a summer job makes $10/hr at McDonalds

JayATl, how do you know so much about wages at McD's ??
I'll have a large hazelnut iced coffee.

 

[tallboy123]

China is gonna replace USA .. they why are you excited??

doesn't a kid get excited seeing her fathers acheivement???

 

[REEVER]

Not one fact in the article no major news source is carrying it and it's not on google

They own about 1 trillion in bonds most 68% is owned by the us people.

China Is a command economy not demand they cheat the IMF with a huge peg and artificial cfheap currency they need tonby us bonds because it's liquid and has a good yeald and I was just on IMF news not a shred of info so bs

 

[Zeeshan360]

JayATl, how do you know so much about wages at McD's ??
I'll have a large hazelnut iced coffee.

A cheap personal attack .

 

[JayAtl]

This is just a childlike comment to make an average programmer was making 100 to 200,000/yr before and now the same job is done in India for less then ten grand all figures in us dollars so basically what you are saying is when Chinese do it its bad but same thing did by Indians is some how different

you must understand economic indicators before you write. The average worker makes X comment by me was about average worker wages and not what a programmer makes or certain professions average salaries. btw average programmer never made 100k .

 

[acetophenol]

the change is inevitable...........

 

[anon45]

Everybody is ditching the dollar now. The collapse is imminent.

China Proposes To Cut Two Thirds Of Its $3 Trillion In USD Holdings | zero hedge

IMF bombshell: Age of America nears end

Now India has a choice. Recognize the great superpowerdom of China, or try to side with USA in its last desperate attempt to hang on to its empire.

Brace everybody, this is going to be wild ride! But when the dust settles, China's flag will be the one flying highest.

The final emancipation of China's 1.3 billion people is at hand! 300 years of western global dominance is coming to a close.

Well you certainly have the ego of a superpower already

Alright article but unfortunate that it was coopted by a troll.

It's expected and unsurprising that China's econ should surpass the US, if it didn't with 4.5 times the population and a reputation as the 'worlds manufacturing floor' it would be a bit sad. This doesn't erase the game of geopolitics though, nor does this erase China's nascent population issues and current foreign dependencies which are only growing.

The CCP shouldn't use it's new economic rank to push around countries on territory, or it might find itself cut off from food imports from the US, and self-fulfill the very scenario it fears, being ringed by a coalition of nations (against China).

 

[ChinaToday]

China poised to claim global pre-eminence


EMPIRES whose power depends on military strength alone rarely maintain their dominance for long. The former Soviet Union is the most recent and conspicuous example of such one-sided suzerainty, but there have been many in world history. In contrast, the United States, which emerged from its Cold War with the Soviet Union as the sole superpower, exercised that power in every sphere: in its global military reach, yes, but also through its many-faceted cultural influence and, above all, because of its economic sway. Since World War II, the US dollar has been the world's reserve currency and the US economy has been the centre of global production as well as the world's biggest market. That pre-eminence, however, is fast disappearing.

According to projections published by the International Monetary Fund, within five years China will overtake the US in real economic output. It will be the first time in the modern era that any country has done so: the Soviet Union never managed to produce more than one-third as many goods and services as the US, and Japan at its peak never managed more than half. China's rise, in contrast, has been meteoric: three decades ago it produced just 2.2 per cent of the world's output but it produces 14 per cent now and is expected to produce more than 18 per cent by 2016. The US share of global output is now 20 per cent but by 2016 it will have sunk below 18 per cent, and the world will have entered a new era. Nominally the US economy will still be the larger, but that will merely reflect the fact that China keeps its currency artificially undervalued and, thereby, its exports competitively cheap.

While Beijing continues to ignore pleas by China's trading partners to relax the exchange controls that peg the value of the yuan to the US dollar, the latter may stagger on as the world's reserve currency. But even that prospect is receding. Three years ago, after steep falls in the value of the dollar arising from the Bush administration's decision to run up the US deficit by cutting taxes while increasing spending on foreign wars, a vice-director of China's central bank noted tersely that the dollar was ''losing its status as the world's currency''. China had been holding reserves of about $US1 trillion but lost about $US100 billion as the currency's value fell. Since then, the Obama administration has encountered its own deficit problems because of the need for stimulatory spending to cushion the impact of the global financial crisis. The US dollar remains weak, and recovery slow and uneven.

Advertisement: Story continues below All of this means that the US will not be able to deal as confidently and assertively with the new Chinese superpower as it usually did with the Soviet Union. Even US strategic preponderance can be expected to wane: to trim the deficit the administration must start with its massive military budget, and President Barack Obama's planned withdrawals from Iraq and Afghanistan and refusal to commit ground troops elsewhere do not only derive from a principled reluctance to intervene in other people's wars. Within China, an enhanced global status is likely to intensify the country's conflicts. Those who want democracy and open, accountable government will, rightly, insist that political reforms to complement the economic reforms of the past three decades would be the best means of easing the wider world's apprehensions about Chinese power. The ruling Communist Party's suppression of dissidents in response to the ''jasmine revolutions'' in the Arab world, however, suggests that it is unlikely to heed such arguments from the country's liberal elites. In this uncertain new world order, countries such as Australia that are US allies but economically dependent on China will be in an especially delicate situation. Like the US, Australia will have to hope that China's dissidents eventually prevail.


China poised to claim global pre-eminence

 

[cross1993]

HongWu is a fake Chinese people. I guess he is JayAtl.

 

[IndianArmy]

Now India has a choice. Recognize the great superpowerdom of China

India actually has 2 choices Switch on the TV to see the news, or Switch it off and Move on... But I highly adhere to switching it on and See how Things have been made to change in that virtual world...