China's Economy Just Overtook The U.S. In One Key Measure

China's Economy Just Overtook The U.S. In One Key Measure

China's Economy Just Overtook The U.S. In One Key
Measure

The Huffington Post  | By Mark
Gongloff

Posted: 10/08/2014 9:31 am EDT Updated:
10/08/2014 3:33 pm EDT 

http://www.huffingtonpost.com/2014/10/08/china-gdp-tops-us_n_5951374.html?utm_hp_ref=world

This was inevitable, but it still
feels momentous: By one important measure, China's economy is now the biggest
in the world, topping the United States.

China's gross domestic product is
worth $17.6 trillion, adjusted for China's relatively low cost of living,
compared with $17.4 trillion for the U.S., the International Monetary Fund
estimated as part of its latest World Economic Outlook.
Here's how that looks in chart form:

Note the chart extends to 2018. The
IMF expects this trend to continue indefinitely. (h/t to Business Insider
for the news and the idea to use Google Public Data's
amazing charts.)

Here's another way of looking at it
-- China's share of the global economy is now slightly bigger than America's,
at 16.5 percent to 16.3 percent:

It's important to note that these
figures are adjusted for the relative costs of living in both countries, known
to fancy economists as "purchasing power parity." It's something
economists do to try to make comparisons between countries more fair. It is
crazy cheap to live in China and crazy expensive to live in the U.S., so a
trillion U.S. dollars are worth a lot more in China than in the U.S.

And that has something to do
with the fact that China is manipulating its currency
to be worth much less than the dollar. It does this to help make Chinese stuff
cheaper than U.S. stuff on the global market. American politicians regularly
pretend to be super angry about this, but don't much mind getting
all the cheap Chinese stuff. And China's booming factory sector has, in turn,
helped make China's economy rapidly get bigger and bigger.

In terms of sheer size, however --
meaning, not adjusted for costs of living -- the U.S. economy still dwarfs
China's, at $17.4 trillion to $10.4 trillion:

GDP breaks down to nearly $55,000
per capita per year in the U.S., compared with less than $8,000 per person in
China:

Again, though, that $8,000 goes a
long way.

COMMENT:

Having
studied the context of the article and the valuable data provided in the form
chart eloquently explains the prose and cones for the purpose of proper
financial analysis and deduction.  

This
would facilitate to visualize the tremendous negative impact on the already other
heads in which lone superpowers stand much ahead than the one on the basis of which
the article was written.

However,
it now seems to be amazingly much ahead leading even China, but within a couple
of years the leading figures would crumble down much below the Chinese level
and position.

The same would also be applicable to UK
French, Australia, Canada and Turkey joining the coalition to fight the ISIL terrorist
uprising. The fiery speech delivered by UK PM to continue the war for a long
period to destroy ISIL forever, and the others followed him. However, UK’S  PM David Cameron stumbled over to stand up to
his delivered statement publicly announced. He Miserably failed. This has
created doubts and apprehension with regard to the UK’s stay in the coalition
to the last. It might at a suitable situation pull back as it always had done. In
any case whatever happens it would be taken care of in future.  

Now, coming back to the chart, we find the Chinese
had gone ahead of US because of the difference between the two countries living
standard. Well, having said that, would all the coalition countries incurring
financial expenditure including US every month for the safety and security of
Iraq and Syria be replenished to the respective Countries treasuries.

If yes, then by whom when and how? If not then
enumerate the financial heads that would be affected  by such expenditure on a long-term war against
ISIL. In addition, for how long can the devastated financial and economical condition
would be able to withstand at this recovering stage.

On the other hand, Chinese is not having any
extra expenditure to mind. All finance earned goes to its treasury and boost
the economy.

I just raised certain pertinent issues of concern,
for the mighty paid Analysts and policy makers of the mighty lone super power. They
are requested to analyze these in detail.

And brief the President in clearly terms as
to how long or how long under the circumstances US financial and economic condition
at this recovery stage would sustain safely and comfortably and would not if
the war against ISIL is prolonged, without the shown headings in the chart to slide
down below Chinese position shown there in.  

 In addition, placing the US population in hazards like G W Bush did. State
the limits to stop the war or repeat the economical and financial devastation
once again. If needed take the matter to the American Public.