Who Has the World’s No. 1 Economy? Not the U.S.

Please see the source for additional charts.

 

The wear and tear doesn’t help. Photographer: Kurt Wittman/UIG via Getty Images

 

By the most measures, China has passed the U.S. and is pulling away.

What’s the most powerful country in the world? There’s a good case to be made that it’s China.

There are many kinds of power — diplomatic, cultural, military and economic. So an easier question to ask is: What’s the world’s largest economy? That’s almost certainly China.

Many might protest when hearing this. After all, the U.S. still produces the most when measured at market exchange rates:

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Erdoğans Transition

BERLIN/ANKARA (Own report) – The German government is negotiating new German Turkish arms deals, as was confirmed by the German Ministry of Economics. Brigitte Zypries (SPD), Minister of the Economy, spoke with the CEO of Rheinmetall weapons manufacturer about upgrading the Turkish Leopard battle tank. “In principle,” such deals with NATO partners “can not to be restricted,” according to Berlin. The German government is also seeking to re-invigorate German-Turkish economic cooperation, to strengthen bilateral relations. Germany does not want to loose Turkey as a “bridge” connecting Germany and the EU to the Middle East. Under President Recep Tayyip Erdoğan, Ankara is not only strengthening the country’s economy and, in the long run, make it one of the world’s top ten economies (“Vision 2023”), he is also planning to transform the country into an independent regional power, forming alliances as it chooses – no longer dependent on the western states. The reorientation of its foreign policy is accompanied by the country’s transformation into a presidential dictatorship. Continue reading

China’s Plan to Subvert the Global Dollar Standard

Regardless of how it all plays out, the U.S. Dollar hegemony is under threat. There is indeed a replacement system ready to go, with America out of the picture. There is an alternative to the Dollar. There is an alternative to SWIFT. There is an alternative to the IMF and the World Bank. America, for all its greatness, is not untouchable.

 

 

If nothing else, the Chinese have a sense of history and destiny. They have had a glorious past, stretching back millennia, and once controlled most of the Asian heartland in the days of Genghis and Kublai Khan. But even then, China was essentially inward-looking, protecting her own cultural values. Trade with Europeans in the centuries following Marco Polo’s visit was mostly at the behest of European travelers, not the Chinese. She exported her art and culture to visitors, and did not import European values.

This was a mistake, implicitly recognized by China’s current leadership. This time, China has embraced Western thinking and technology to further her own progress. The development of the Shanghai Cooperation Organization in recent years is the platform for China in partnership with Russia to embrace the Asian continent through peaceful trade, improving the lives of all the citizens of the many nations who are and will become members. The SCO promises a revolution in the wealth and living standards of over 40% of the world’s population, and associated benefits for its supplier-nations on the other continents. Continue reading

The new multilateral financial architecture

The announcement that major European powers will join the AIIB as founding members means the bank is now clearly accepted as a tangible game changer in the multilateral financial architecture. The formidable intentions of AIIB and the new transnational corridors project are both a challenge and an opportunity for India

China-promoted Asian Infrastructure Investment Bank (AIIB) has taken the world by surprise. AIIB, dismissed just a few months ago by western countries as another flamboyant plan by China, is now clearly accepted as a tangible game-changing development in the multilateral financial architecture. Continue reading

China’s Economy Surpassed U.S. … a Long Time Ago

Who contributed most to global growth?

 

We reported in 2012 that China might have already surpassed the U.S. in terms of PPP as of 2010.  The same year, China became the world’s largest trader. And in October, we noted that China had officially surpassed America in PPP … citing the same numbers that Marketwatch cited today. Continue reading

It’s official: America is now No. 2

Hang on to your hats, America.

And throw away that big, fat styrofoam finger while you’re about it.

There’s no easy way to say this, so I’ll just say it: We’re no longer No. 1. Today, we’re No. 2. Yes, it’s official. The Chinese economy just overtook the United States economy to become the largest in the world. For the first time since Ulysses S. Grant was president, America is not the leading economic power on the planet.

It just happened — and almost nobody noticed. Continue reading