Nah they have been the worlds second largest ecomome, behind the US before. Back in the 1800's ther were for a time as well. Guess it really depends on how cah the US gets in the next year or so.
The challenge is that the USA is currently dependant on China for buying the debt that Obama is running up at record levels at the moment... China effectively OWNS the USA!!
You will notice that China is currently investing in currencies other than the dollar at present. They are preparing for the day they pull the plug on the US economy.
On the other hand, China is also dependent on the USA. Should the USA stop buying, China would have a massive collapse.
Also, the projections are just that... projections if all remains the same. As we know the capitalist economy is BOUND to go through cycles.
China's growth will level off with its people getting a greater share and making labor more expensive there.
Which is actually a good thing, suggesting that the wealth of the world CAN be spreading out to the rest of the world after having been confined to the west only.
Looking at Japan, I wonder why Japan stagnated anyway. They surely have the top technology, have taken over the great US auto market and so on. But, its econ is not growing. Surely there is a limit to the growth of the economy of a country. After reaching the current state of "productivity" via contemporary technology, the only differentiating element becomes "NEW AND INNOVATIVE TECHNOLOGY".
In that regard, I do not see any competition to the US *yet*. But, it surely will come if the US does not invest in its domestic education.
There still are no competition to Microsoft, Google, Facebook, iPhone, Android....
Take iPhone. That product is absorbing money from all over the world like a sponge.
Why did it not come from China or Japan? The once great phone company NOKIA of Finland is total despair and is seeking alliance with other companies to stay afloat.
I am not going to draw a "chauvinistic" view of the USA. All I am saying is that it still has a lot of teeth.
Which is why it's starting to buy up other currency other than the dollar. It'll be interesting to see how China's new investment in the Euro affects its fortunes. Apparently Japan is also investing in it.
Perhaps we should look at China+USA as a new conglomerate, of their economies are so intertwined.
On the one hand, there is the EU, and then there is China+USA which plays havoc with the EU productivity.
As you know, "capital" has no nationality or religion. This whole US+CHINA thing was set in motion by Henry Kissinger after the Vietnam War. It did not just "happen".
I don't believe its going to stay that way. This is just my theory but I think USA's reckless gambling with the printing of money is going to bite it. China realise this and it's getting ready to step back and watch the sinking ship. Europe, on the other hand, is the world's biggest market. Once the dollar fails the Euro will be ready to take its place, hence China and Japan's investments.
Of course we can all look into the crystal ball and make our own interpretations can't we. *shrug*
Nah they have been the worlds second largest ecomome, behind the US before. Back in the 1800's ther were for a time as well. Guess it really depends on how cah the US gets in the next year or so.
AntwortenLöschenAt its current rate of growth, analysts see China replacing the US as the world's top economy in about a decade.
AntwortenLöschenYes.
The challenge is that the USA is currently dependant on China for buying the debt that Obama is running up at record levels at the moment... China effectively OWNS the USA!!
AntwortenLöschenYou will notice that China is currently investing in currencies other than the dollar at present. They are preparing for the day they pull the plug on the US economy.
AntwortenLöschenOn the other hand, China is also dependent on the USA. Should the USA stop buying, China would have a massive collapse.
AntwortenLöschenAlso, the projections are just that... projections if all remains the same. As we know the capitalist economy is BOUND to go through cycles.
China's growth will level off with its people getting a greater share and making labor more expensive there.
Which is actually a good thing, suggesting that the wealth of the world CAN be spreading out to the rest of the world after having been confined to the west only.
Looking at Japan, I wonder why Japan stagnated anyway. They surely have the top technology, have taken over the great US auto market and so on. But, its econ is not growing. Surely there is a limit to the growth of the economy of a country. After reaching the current state of "productivity" via contemporary technology, the only differentiating element becomes "NEW AND INNOVATIVE TECHNOLOGY".
In that regard, I do not see any competition to the US *yet*. But, it surely will come if the US does not invest in its domestic education.
There still are no competition to Microsoft, Google, Facebook, iPhone, Android....
Take iPhone. That product is absorbing money from all over the world like a sponge.
Why did it not come from China or Japan? The once great phone company NOKIA of Finland is total despair and is seeking alliance with other companies to stay afloat.
I am not going to draw a "chauvinistic" view of the USA. All I am saying is that it still has a lot of teeth.
Which is why it's starting to buy up other currency other than the dollar. It'll be interesting to see how China's new investment in the Euro affects its fortunes. Apparently Japan is also investing in it.
AntwortenLöschenPerhaps we should look at China+USA as a new conglomerate, of their economies are so intertwined.
AntwortenLöschenOn the one hand, there is the EU, and then there is China+USA which plays havoc with the EU productivity.
As you know, "capital" has no nationality or religion. This whole US+CHINA thing was set in motion by Henry Kissinger after the Vietnam War. It did not just "happen".
I don't believe its going to stay that way. This is just my theory but I think USA's reckless gambling with the printing of money is going to bite it. China realise this and it's getting ready to step back and watch the sinking ship. Europe, on the other hand, is the world's biggest market. Once the dollar fails the Euro will be ready to take its place, hence China and Japan's investments.
AntwortenLöschenOf course we can all look into the crystal ball and make our own interpretations can't we. *shrug*
How?
AntwortenLöschenExporting WHAT?
If the EU opens up to imports, it will collapse in no time.
Germany WAS the greatest exporter of manufactured good until recently, when China surpassed it, too.
With WHAT, exactly, will FRANCE (for the sake of argument) balance its trade when it opens up to China?
Name me one single good...
In case of the USA, I can still mention Microsoft, Apple, Google, Military...
It is a matter of FEW YEARS before first the KOREAN and then Chinese automobiles will flood the EU.
Do you REALLY think that any EU country can compete with Japanese, Korean and eventually Chinese automotive?
What exactly will England EXPORT other than its CAPITAL?
But that is exactly what the US has been doing. Exporting its capital to China.
Very frankly, I do not see any investment potential in ANY EU enterprise.
On the other hand, you can argue that I am not a credible source for discussing issues on capital investment.
I will acknowledge that only to qualify it: I have never had the capital to prove myself, to begin with. I live on salary.
Considering where China are starting to invest they either know something you don't or you need to give them a call!
AntwortenLöschenOK. I will.
AntwortenLöschen:P