IMF Admits China Has Overtaken The US As The World’s Largest Economy, Western Mouthpieces Conspicuously Silent

[Exarch]

We have reached a historic milestone, China has been restored as the largest economy in the world as admitted by the IMF and the

IMF Admits China Has Overtaken The US As The World’s Largest Economy; But Why Is The Media Silent?

The world is waking up to a new reality post the devastating pandemic that brought everything to a grinding halt. One of them is the rise of China as the undisputed new economic superpower.

According to the IMF’s World Economic Output 2020 released recently, China has now overtaken the US to become the world’s largest economy.Yes, you read that right. The International Monetary Fund (IMF), using the more reliable and now widely accepted yardstick, called the Purchasing Power Parity (PPP), has determined China’s economy at $24.2 trillion compared to America’s $20.8 trillion.The PPP calculation method used by the IMF enables you to compare how much you can buy for your money in different countries. The economists have traditionally been using MER (market exchange rates) to calculate GDP, which doesn’t reflect the real figures.

Source: https://eurasiantimes.com/imf-admits...-media-silent/

Thanks to this historic turn in events, meaning the COVID-19 pandemic, China's superseding of the US comes as the US reports that the plague will cost them their entire year's GDP output:

The $16 TRILLION bug: Pandemic could cost US economy its entire annual output


The US economy may lose a whopping $16 trillion due to the devastating impact of the Covid-19 outbreak, both in output and people’s lives, new research has found.
While most studies assess the costs of the deadly virus by its impact on the national gross domestic product (GDP), a paper published in the Journal of the American Medical Association earlier this week offered a different approach.

The authors of the study – former Treasury Secretary Lawrence Summers and Harvard University economist David Cutler – also took into account losses associated with those who have died due to the virus, in addition to the purely economic costs.

Source: https://www.rt.com/business/503350-c...ts-us-economy/

Given the pandemic, China's economy has been the only bright spot in economic growth this year-and more to the point President Xi has informed the UN that China will be carbon neutral by 2060- a stunning turn of events sure to impact coal and gas producing nations.

[Coughdrop addict]

Why are we silent? Because unlike China we have self-esteem and don't constantly compare ourselves to others to feel like we matter. How sad that even as you despise us, you need the west's validation like a child does it's parents.

[alhoon]

Why they are silent? Because it didn't happen yet. PPP is not the size of the economy, it's the purchasing parity but that should be used within a country. If China wants to buy oil for example, China would pay from its nominal value.

So, if we go to the actual economies and not the assumed PPP:

https://www.imf.org/en/Countries/CHN#data
China: GDP, current prices (Billions of U.S. dollars): 15.22 thousand
USA: GDP, current prices (Billions of U.S. dollars): 20.81 thousand

China is still a long way from USA.

[Exarch]

Only a matter of time on any metrics...

Still, until 2025 when China surpasses the US in your preferred metric, China will accomplish something this year that no other country has accomplished in more than 100 years, which is to be at 75% GDP of the US. Every year from now on until China overtakes the US in absolute GDP terms, it will set a new record in this aspect. Japan at its peak was only about slightly less than 70% of US GDP. The Soviets did not even come close to that.

[AqD]

Wasn't Japan's GDP heavily inflated by crazy real estate prices?

[Exarch]

How did they do it?

China is back to normal — the US and Europe are not. Here's how it succeeded.

Source: https://www.ampgoo.com/china-is-back...w-it-succeeded

This should be a wake up call to many anglo and european governments; their way of doing things down to medical practice and policymaking is simply not as effective in countering COVID-19

[alhoon]

Only a matter of time on any metrics...

Still, until 2025 when China surpasses the US in your preferred metric

And when that happens, the Western Mouthpieces would be reporting it. Actually on the way from now till it happens, the Western Media will occasionally report that China is in the way to overtake USA as the largest economy. You know, as they were saying for like 5 years already...
What I mean is coolios for China and all that. It is not a conspiracy to hide it, they just don't have much to report about it. Occasionally there's the usual "China's economy still on the path to overtake USA's economy" article here and there just to remind us.

[Sir Adrian]

What's the point of being the world's largest economy if half your population can't read or write, lack any form of sanitation and have never even had electricity.

I'd rather live in a country that is not the largest economy but treats its citizens fairly and is more concerned with the prosperity of its own people than fixing the statistics so that it is first in a ranking that does not even matter.

[Exarch]

And when that happens, the Western Mouthpieces would be reporting it. Actually on the way from now till it happens, the Western Media will occasionally report that China is in the way to overtake USA as the largest economy. You know, as they were saying for like 5 years already...
What I mean is coolios for China and all that. It is not a conspiracy to hide it, they just don't have much to report about it. Occasionally there's the usual "China's economy still on the path to overtake USA's economy" article here and there just to remind us.

With the current western mouthpieces and their 24/7 hopeful pieces on 'the coming collapse of China'?
Doubtful.

Western mouthpieces have been forced to report on this because they can't pull the wool over everyone's eyes any longer; their culture, society and governments are failing the test of COVID-19, and they are desperate. This pandemic will cripple america's ability to compete in the world, and that's not even taking into account the crippling side effects of surviving COVID and the deleterious effects this will have on the economy downstream.

The EU for instance knows which side its bread is buttered and have opted for trade and neutrality with China rather than joining the US' declaration of race war against china. As Varoufakis points out:



Rather than signing onto white supremacist policies as the USG wishes, EU nations are opting for Chinese trade and investment.

What's the point of being the world's largest economy if half your population can't read or write, lack any form of sanitation and have never even had electricity.
.

Are you referring to India?

I'd rather live in a country that is not the largest economy but treats its citizens fairly and is more concerned with the prosperity of its own people than fixing the statistics so that it is first in a ranking that does not even matter

LOL

Because we are getting firsthand examples of just that in this COVID-19 crisis in western and anglo countries hey?

[Sir Adrian]

What does COVID, and China's lies about the infection rate, have to do with this statistic? Nothing.

[Gigantus]

What's the point of being the world's largest economy if half your population can't read or write, lack any form of sanitation and have never even had electricity.

Seriously, only 50% literacy? Sounds like the figure from 1960. Care to provide a source? Last I heard Chinese literacy was roughly around 95% with Tibet (only about 65%) dragging the average down.

That apart - if they can be the largest economy with those medieval figures you claim then you could kiss the economic influence of any country good bye if they ever reach the literacy level they actually have. It's just as well they do have 95% already, right?

[Lord Thesaurian]

It’s like 96% yeah. I don’t know who is counted and who isn’t though, given the size and expanse of China with widely varying degrees of development.

https://www.statista.com/statistics/...racy-in-china/

But I agree China is only beginning to realize her economic and geopolitical potential. That is all the more reason why she must not be allowed to remain in the grip of her current brand of authoritarianism if the world wants to live to tell about it. Tens of millions slaughtered by the state doesn’t bode well for countries falling into her orbit, to say the least. If the US/UN had handled the situation properly in the 40s and 50s we probably wouldn’t be having this issue now. Neville Chamberlain vibes.

[Gigantus]

Apart from statistica I was having a look at microtrends as well which uses worldbank data. Electricity access is 100% as well.

'Tens of millions slaughtered' is mostly the casualties of Mao's disastrous economic reforms I guess? Certainly a leading example on how to effectively kill people without military conflict or suppression, ineptitude does the job just as well. But agreed, most nations simply haven't caught on to the way China operates. It's the opposite of the all popular embargoes and military threats from what I can see, foremost the 'belt and road initiative' that has been going on since 2013, supposed to be completed in 2049 - talk about long term planning.

If I have read it right then Greece and Italy are some of the 'Western' participants in that initiative.

[Lord Thesaurian]

Apart from statistica I was having a look at microtrends as well which uses worldbank data. Electricity access is 100% as well.

'Tens of millions slaughtered' is mostly the casualties of Mao's reforms I guess? But agreed, most nations simply haven't caught on to the way China operates. It's the opposite of the all popular embargoes and military threats from what I can see, foremost the 'belt and road initiative' that has been going on since 2013, supposed to be completed in 2049 - talk about long term planning.

Mao’s policies included democide, mass torture and executions to eliminate political undesirables or simply to use human beings as fodder.

https://www.washingtonpost.com/news/...rderer-his-due

This governmental methodology continues today in the CCP’s systematic eradication of racial and religious groups like the Uigurs or Falun Gong, as well as political dissidents. This is an unbroken set of policies continuing since the beginning of the communist regime.

https://chinatribunal.com/wp-content...March_2020.pdf

It’s intentional and systematic as opposed to collateral or accidental comparisons. Han supremacism supercharged by communist political absolutism. Western countries certainly can be morally criticized for turning a blind eye to all these factors for the sake of economic concerns since the 70s, and that’s been the way of things vis a vis China for decades now. It’s an indifference maintained both by corporate greed and by ideologically sympathetic movements that subscribe to the idea the CCP is some kind of payback mechanism against perceived western imperialism. Self preservation may spur gradual action, but the task only grows more difficult in the interim.

[Gigantus]

Appreciate the sources. The relative portion of 'simply starving to death' victims appear to be way smaller then I had thought.

Seeing that history does come around in a circle it would appear that it's that time again for central, absolute control. With China in the lead this time and not some European country, some do try to get there, though. That should get exarch going properly.

[Exarch]

But I agree China is only beginning to realize her economic and geopolitical potential. That is all the more reason why she must not be allowed to remain in the grip of her current brand of authoritarianism if the world wants to live to tell about it. Tens of millions slaughtered by the state doesnÂ’t bode well for countries falling into her orbit, to say the least. If the US/UN had handled the situation properly in the 40s and 50s we probably wouldnÂ’t be having this issue now. Neville Chamberlain vibes.

The above is the example of north korean like levels of propaganda in the West; your average privileged western white male believes he will be personally affected by the rise of China, like PLA soldiers are going to come tearing into his neighbourhood killing wolverines and raping and pillaging.

The reality however is far more mundane, but you can expect western leaders to become realists and pragmatists and finding ways to work with a China with its realised power and potential.
Or else, they will be made to kowtow.

[Lord Thesaurian]

1. The peaceful buddhist country of Tibet was invaded by Communist China in 1949. Since that time, over 1.2 million out of 6 Tibetans have been killed, over 6000 monastaries have been destroyed, and thousands of TIbetans have been imprisoned.
2. In Tibet today, there is no freedom of speech, religion, or press and arbitrary dissidents continue.
3. The Dalai Lama, Tibet's political and spiritual leader, fled to India in 1959. He now lives among over 100,000 other Tibetan refugees and their government in exile.
4. Forced abortion, sterilization of Tibetan women and the transfer of low income Chinese citizens threaten the survival of Tibet's unique culture. In some Tibetan provinces, Chinese settlers outnumber Tibetans 7 to 1.
5. Within China itself, massive human rights abuses continue. It is estimated that there up to twenty million Chinese citizens working in prison camps.
6. Most of the Tibetan plataeu lies above 14,000 feet. Tibet is the source of five of Asia's greatest rivers, which over 2 billion people depend upon. Since 1959, the Chinese government estimates that they have removed over $54 billion worth of timber. Over 80% of their forests have been destroyed, and large amoutns nuclear and toxic waste have been disposed of in Tibet.
7. Despite these facts and figures, the US government and US corporations continue to support China economically. This shows their blatant lack of respect for these critical issues of political and religious freedom and human rights.

http://www.umass.edu/rso/fretibet/education.html

Thankfully, it won’t be me facing this fate as a result of Chinese communist territorial expansion, at least not in the immediate sense. That doesn’t mean the US doesn’t have the power and responsibility to put a stop to it as they should have in the 40s and 50s, rather than waiting for trillions of dollars in foreign investment to magically make the Politburo adopt democratic norms and drop its expansionist territorial claims.

The PLA is practicing for an invasion of Taiwan. Xi convinced toddler Trump to mindlessly repeat age-old Chinese claims to the Korean Peninsula, invaded by Chinese forces not so long ago, the very reason Korea is divided today. The Chinese air force has simulated attacks on US forces in Guam. Chinese forces attacked Indians along the LAC this year. Could this all be bluster to impress Chinese citizens watching at home? Sure. The alternative is to read a history book and take Mr. Xi at his word:

Xi Jinping paid a visit to a People’s Liberation Army (PLA) Marine Corps base in Guangdong Province this past Tuesday. During his tour the Chinese Communist Party (CCP) supremo exhorted marines to devote their “minds and energy” to “preparing for war,” to “maintain a state of high alert,” and to remain “absolutely loyal, absolutely pure, and absolutely reliable.”

America is more interesting as a target audience. Return to the Taiwan Strait once again. To oversimplify, Beijing has constructed forces to slow down and weaken U.S. reinforcements as they cross the Pacific to join with sea, air, and land forces based in Guam, in Japan, and elsewhere around maritime East Asia. Xi may or may not believe he can persuade U.S. political leaders, the armed forces, or the American people the PLA would defeat U.S. forces outright. He can try to persuade them U.S. forces would reach the scene of action too late and too feeble to accomplish their goals. In which case, what’s the point of offering battle?

And then Xi can try to manipulate U.S. perceptions of how much it would cost to repel a cross-strait assault against the island. The narrative goes something like this: it may remain possible for U.S. maritime forces to achieve their goals vis-à-vis Taiwan, but even if so, America will pay a penalty for success—perhaps a heavy one. Xi can ask Americans, sotto voce, how much they’re prepared to pay for the independence of a small island inhabited by just 23 million people and lying permanently under the shadow of a giant enemy’s seacoasts.

If they don’t care enough to sacrifice for Taiwan’s independence, Clausewitz would advise them not to make the outlay.
And even if they do care enough, the opportunity costs could prove severe.

https://nationalinterest.org/feature...tell-us-170939

China’s growing power means the Politburo is keen to convince America to give up, go home, and leave our East Asian allies to their fate, because we are too weak to deliver on our commitments. It used to be understood in this country that we have a responsibility to constantly remind our enemies they are very, very wrong about that. Whether that will remain the case going forward, I do not know. We already abandoned the people of Hong Kong to communist takeover, which the Politburo achieved with minimal to no meaningful repercussions at all. Red China is eager to press the envelope given this open display of weakness and apathy, and it will only get worse from here.

[AqD]

What's the point of being the world's largest economy if half your population can't read or write, lack any form of sanitation and have never even had electricity.

They can be held hostages, the same way best Korea works.

[alhoon]

If I have read it right then Greece and Italy are some of the 'Western' participants in that initiative.

Yeap. We've been progressively more and more influenced by China. It started during the crisis. Soon we will be kissing the Emperor's ring. It is a problem that has to be dealt with.

Everyone is saying how USA bullies nations around or how EU is holding nation economies hostage and such, but in my opinion, USA and EU are much better pimps than China. Once we're in the fold we will be hit hard. I don't want to become a 2nd class citizen in the re-emergent Chinese Trade Empire where the Chinese leech us with impunity of everything of worth for pennies.

[Sir Adrian]

Seriously, only 50% literacy? Sounds like the figure from 1960. Care to provide a source? Last I heard Chinese literacy was roughly around 95% with Tibet (only about 65%) dragging the average down.

That apart - if they can be the largest economy with those medieval figures you claim then you could kiss the economic influence of any country good bye if they ever reach the literacy level they actually have. It's just as well they do have 95% already, right?

I was exaggerating to make a point. The Chinese standard of living outside the major metropolises is a far cry from most of the average standard of living in economically trailing countries like Rich Korea, Sweden, or Switzerland. What I was trying to illustrate is that being first is meaningless if the prosperity of the average Joe, or average Liu in this case, comes second to macroeconomic indicators.