China’s rise is reversing

[Syed_Adeel]

No one uses PPP to measure relative economic strength between countries. PPP is only useful when measuring individual standard of living.

There’s no such thing as a national cost of living.

So you mean it does not matters to you that a average Chinese is living better than average US Citizen? Really .

When China is producing almost all the things locally it means that their spendings on military should also be calculated according to that because if they spend 100 Billion USD on military then its impact will be more than the US spending 100 Bn.

 

[Menthol]

Americans have never been wealthier | CNN Business

Fueled by a resurgent stock market and rising home values, US household wealth hit a record $154.3 trillion during the second quarter of this year, according to federal data.

amp.cnn.com

Americans are wealthier than ever, unemployment rate at record lows, economy growing near 3%, inflation murdered.

China meanwhile is in long term steady decline. We’ve hit peak China.

I don't know.

Your politicians and media are saying differently.

There's massive unemployment in USA.

A lot of people are unable to pay the rent and buy food.

That is why USA government takes a long route by demonizing China as the main cause of the problem.

Up to declaring an economic war, consolidating allies to join the war.

 

[F-22Raptor]

So you mean it does not matters to you that a average Chinese is living better than average US Citizen? Really .

When China is producing almost all the things locally it means that their spendings on military should also be calculated according to that because if they spend 100 Billion USD on military then its impact will be more than the US spending 100 Bn.

US PPP GDP per capita is $80K, China $23K. The average Chinese is MUCH WORSE off than the average American and it’s not close.

And no, just because China can produce more military equipment doesn’t mean it has more impact. The US offset the Soviet Unions production capability with the introduction of Assault Breaker technologies and qualitative superiority.

Chinas ability to construct more ships than the US in peace time doesn’t mean much in a hot war when the US can produce thousands of missiles and bombs to target Chinese naval yards and production facilities.

The US is not even spending half, as a percentage of GDP, on defense of what it did in the 1980s. US defense spending should be $1.5T.

 

[Menthol]

Sure, Americans can print lots more greenbacks and it will be $30T by the end of 2023.

https://twitter.com/x/status/1726549948781691374

Basically, USA is robbing the world.

The thing that USA media never speak, how USA is exporting inflation to third world countries.

I already know USA is going to do it since USA was declaring an economic crisis.

I already sent several posts here as a warning.


Despite how hard you are working, USD 200 is still USD 200, except your currency is falling.

For the same USD 200, now you need to spend more in your country currency to get the same USD 200 product you want to buy.


The thing I hate most about USA, for a country that has a big responsibility, USA doesn't care about it.

Doing careless things and costing everyone hardworking around the globe.

In the last 2 decades, China increased everyone living standard by reducing price of many products worldwide.

For doing the same thing, people today able to afford smartphone, laptop, flat screen TV, air conditioner, clothes, shoes, etc.

And soon after it will be a car.

The only thing people are still unable to buy is the real estate, because it's not Made in China.

 

[etylo]

Basically, USA is robbing the world.

The thing that USA media never speak, how USA is exporting inflation to third world countries.

I already know USA is going to do it since USA was declaring an economic crisis.

I already sent several posts here as a warning.


Despite how hard you are working, USD 200 is still USD 200, except your currency is falling.

For the same USD 200, now you need to spend more in your country currency to get the same USD 200 product you want to buy.


The thing I hate most about USA, for a country that has a big responsibility, USA doesn't care about it.

Doing careless things and costing everyone hardworking around the globe.

In the last 2 decades, China increased everyone living standard by reducing price of many products worldwide.

For doing the same thing, people today able to afford smartphone, laptop, flat screen TV, air conditioner, clothes, shoes, etc.

And soon after it will be a car.

The only thing people are still unable to buy is the real estate, because it's not Made in China.

Exactly, US prints money and the whole world pays esp those countries use greenbacks a lot. That's why the world has to de-dollarized becos US doesn't give a shit care to others in the world.

 

[F-22Raptor]

So you mean it does not matters to you that a average Chinese is living better than average US Citizen? Really .

When China is producing almost all the things locally it means that their spendings on military should also be calculated according to that because if they spend 100 Billion USD on military then its impact will be more than the US spending 100 Bn.

A good explanation on why nominal GDP is the only measure to assess relative strength of countries economies.

 

[ST1976]

View attachment 1030726

A good explanation on why nominal GDP is the only measure to assess relative strength of countries economies.

i have a reliable source to confirm that US is no more in top 2 of the economies in the IMF source as below.

it also said that China would be on first place while India shows less impact of 'bubble' US-nato economies. and this way, it confirm that there is a chance that USA has slipped to 4th place, below to Russia who has share of SU states also

List of countries by GDP (PPP) - Wikipedia

en.wikipedia.org

View attachment 1030726

A good explanation on why nominal GDP is the only measure to assess relative strength of countries economies.

it also confirmed that 1.0US$ is measured below 1.0 Yuan value.
it said, this way, US economy is in fact less than half to Indian economy size on PPP

 

[beijingwalker]

If China's Yuan was gone , it doesn't affect China much, the world still needs Chinese products and we can trade with gold or other currencies. If dollar is gone, US will collapse overnight, the world doesn't need much from US and US needs everything from other countries.

This is why US economy is fake and looks good only on paper, because US economy is based on dollar manipulation, not real productivity.

 

[beijingwalker]

• China is using its downturn to deflate bubbles and raise productivity while the US is doing the opposite – feeding the Bernanke bubble and hoping for an AI cure for falling productivity

China’s economy is more sustainable precisely because it is deflating its bubbles, while a US economy that continues to rely on an expanding debt bubble can only be headed for a cliff.

Opinion | A booming US economy and a Chinese crash? Think again

China is using its downturn to deflate bubbles and raise productivity while the US is doing the opposite – feeding the Bernanke bubble and hoping for an AI cure for falling productivity

www.scmp.com

 

[ST1976]

Opinion | A booming US economy and a Chinese crash? Think again

China is using its downturn to deflate bubbles and raise productivity while the US is doing the opposite – feeding the Bernanke bubble and hoping for an AI cure for falling productivity

www.scmp.com

i guess, the way we find only CHinese products in Western market, its would have a effect on CHina.
while its also true that major buyers of Chinese products are also India-Brazil type countries. India's largest trade partner CHina, with highest trade deficit, India did business of loss with CHina ....."

countries like India-Brazil are too many in world. CHinese flag everywhere...... China has business in whole world, who are similar to India-Brazil-Russia to do business of loss with China

 

[F-22Raptor]

If China's Yuan was gone , it doesn't affect China much, the world still needs Chinese products and we can trade with gold or other currencies. If dollar is gone, US will collapsed overnight, the world doesn't need much from US and US needs everything from other countries.

 

[beijingwalker]

A booming US economy and a Chinese crash? Think again​

• China is using its downturn to deflate bubbles and raise productivity while the US is doing the opposite – feeding the Bernanke bubble and hoping for an AI cure for falling productivity

Published: 7:00pm, 21 Nov, 2023

China’s economy is more sustainable precisely because it is deflating its bubbles, while a US economy that continues to rely on an expanding debt bubble can only be headed for a cliff.

For the first three quarters of this year, China’s growth of 5.2 per cent came from improving efficiency on the supply side; in the US, growth came on the back of its fiscal deficit increasing sharply as a proportion of its gross domestic product.

Yet there is manufactured consensus in the West that China’s economy is crashing and the US economy is booming. For China, its deflating property bubble and high youth unemployment rate are cited as evidence. As I have said before, when an economy enters a downturn for the right reasons, it is an opportunity for renewal. And China appears to be making all the right decisions.

China’s economy has been plagued by “twin cancers”: a property bubble and shadow banking system rife with Ponzi schemes. A bunch of very destructive people screamed “GDP!” and “jobs!” to get the government to print money. China was marching to the cliff. But the government stopped feeding the beasts two years ago.

Chinese workers are among the world’s most competitive. As long as China’s economic system is not too obstructive and the global market remains open, China will boom. Prosperity happens naturally in peacetime China. Only endemic government corruption and a mass speculative frenzy can bring China down. These destructive forces are in check for now, so China’s immediate future looks good.

Dealing with the twin cancers will take a long time and the economic pain is just beginning. The losses embedded in the shadow banking system, for instance, are estimated to be in the trillions of yuan – and the psychological blow from these losses has yet to sink in fully.

But as the bubbles deflate, Chinese businesses are focusing more on productive, but less glamorous, activities such as becoming better at making things. The breakout success of China’s electric vehicle sector is probably the most important one. The automobile sector is a major chunk of global manufacturing and much bigger than the smartphone market. China’s transition towards electric vehicles was inevitable.
Chinese companies are not just leading, they are also innovating faster than their competitors and can dominate the global auto sector in the coming decade. Countries competitive in automotive-making have traditionally become high-income economies. China may well go down that path.

But while there are bright spots in the Chinese economy, they cannot completely offset the drag from its property sector. The surge in domestic tourism made up for some of the downward pressure – but it won’t be able to do the same next year.

As China holds the line against reviving its bubbles, productivity growth will eventually boost the economy again. In particular, the virtuous economic circle linking China and the rest of the Global South will provide a powerful lift.

China is supplying renewable technology and infrastructure across the Global South at affordable prices. This will increase productivity across the region and lift the purchasing power of billions of people.

The United States, on the other hand, is stuck with the legacy of the bubble engineered by former Federal Reserve chairman Ben Bernanke in 2008, in response to the subprime mortgage crisis that triggered a global financial crisis. When the market is trying to flush out destructive people, the government should not step in to save them.

When it does, they come back to haunt you. In the US, there are those who were bailed out who went on to help create a bigger bubble, which now hangs around the neck of the US economy. This is why the Federal Reserve cannot shrink its balance sheet in a timely manner. This is why the government must run ever bigger deficits to keep the economy afloat.

Meanwhile, despite a boom in demand, US labour productivity has been going nowhere for the last three years. It fell to 1.6 per cent the decade before, down from 2.7 per cent in the previous decade.

The US seems to be pinning its hopes on artificial intelligence and its promise of revolutionising productivity. But I wouldn’t bet the farm on that. Rounds of AI hype have come and gone: the latest caught the mass imagination only because ChatGPT appears to be able to talk to people.

But it is too early to say if it is just a version of a more sophisticated deepfake or real intelligence. The latest developments in generative AI are based on massive data and computing power. But how confident are we that intelligence boils down to data and computing power?

Remember self-driving cars? For at least a decade, we were promised that the miracle of autonomous driving was very nearly here – but it will probably be another decade before it is ready. And this is task-specific AI.

There is talk in the market of a recession coming to the US once the Federal Reserve starts cutting interest rates again soon. Don’t hold your breath. The US government is spending borrowed money like a drunken sailor chasing alcohol. Lower interest rates just means cheaper alcohol.

How can an economy go into recession when more money is available to be spent? This story will stop only when the US bond market crashes. But that is another story.

Opinion | A booming US economy and a Chinese crash? Think again

China is using its downturn to deflate bubbles and raise productivity while the US is doing the opposite – feeding the Bernanke bubble and hoping for an AI cure for falling productivity

www.scmp.com

 

[Nan Yang]

US may be "rich" but China is better off.

Enjoy.

 

[ST1976]

not sure about America getting richer but it is definitely getting more expensive, you know something feels off when you see a simple dish of 西红柿炒蛋 cost $30 in a Seattle restaurant when it's usually $2 in China

I was discussing in Hunger Index section, "a good food on 2.0US$ can be bought in Delhi-Kuala Lumpur", as per my experience of living in Delhi and around a year in KL-Malaysia.
'nominal' GDP of US is a heart break level.......
and its worth mentioning, its $2.0 price food in Delhi or Kuala Lumpur is what i liked than eating in Perth or Sydney for over $25.....

 

[ST1976]

here, my old experience, by February 2015, nearly half of the people of Republic of India were considered having living standard similar to developed countries. surprisingly China had 'little' less developed countries standard people than India that time. while India-China lost to Russia by a margin in February 2015 itself....
worth mentioning, by February 2015, Republic of India had more people of developed countries standard as compare to Western countries combine itself
.
=> the new update i got, as per the 'numbers' of Developed countries standard people, China defeated Republic of India by nearly 5% or less. while whole Western countries had less number of developed countries standard people than India, in ratio and number both, by February 2015.....