Political Crossfire Forums

[Maruf]

http://www.nytimes.com/2006/01/25/business...artner=homepage

Quote: Chinese Economy Grows to 4th Largest in the World

The Chinese economy has surpassed the British economy and expected to be the number one economy in the world within 2030.

Maruf

[adleberg]

TwinkieDP wrote: antonio62 wrote: China owns your economy though. If they wanted they could destroy it. Owned? Yes U.S. have a trade deficit of over $230 billion annually, and that number is rising each year. That is because American consumers are still hungry for apparel, computers, audio and video equipment.


Where do you think America gets the money to service those deficits? China's savings rate is a massive 46%. If it wanted to send the US economy downhill it could do it in a heartbeat.

[Poon]

adleberg wrote: TwinkieDP wrote: antonio62 wrote: China owns your economy though. If they wanted they could destroy it. Owned? Yes U.S. have a trade deficit of over $230 billion annually, and that number is rising each year. That is because American consumers are still hungry for apparel, computers, audio and video equipment.


Where do you think America gets the money to service those deficits? China's savings rate is a massive 46%. If it wanted to send the US economy downhill it could do it in a heartbeat.

Thanks for reviving a forgotten thread.

True, the U.S. debt is financed mainly by Japan, and 2ndly by China. But the fact is, the U.S. still have bigger and better guns. If you are the biggest bully on the block, sometimes you don't have to worry about who you owe money to. Hell, if anyone dares ask America to repay its debts Washington will just send over its carriers, bombers and nukes to turn foreign countries into a waste land. Our gov't is indebt over its head. Yet, Some Americans still guzzle gas, eat as much as they can, living the high life.

What do you think the Invasion of Iraq is really about? Congressman Ron Paul (Libertarian, Texas) wrote a very enlightening piece a while back about the world wide scam that is known as The Dollar Hegemony.

How dare Saddam tried to trade oil for Euros and undermine world wide acceptance of the American Dollar! What are we going to do if foreign countries no longer wish to accept American dollars for goods, services, and lets not forget ==> Oil? American dollar will lose its value on the world market, oil prices, as well as price of everything else will rise dramatically. Soon American citizens may have to work as hard if not harder than those in so called "developed countries" just to provide for basic needs. You can bet American standards of living will drop dramatically.

America today is really very similar to Germany back before the World Wars. You may be able to have Bread and Guns at the same time, but when you try to provide Bread, Guns and Circus, you're pushing it.

[PhilDing]

For centuries China stood as a leading civilization, outpacing the rest of the world in the arts and sciences, but in the 19th and early 20th centuries, the country was beset by civil unrest, major famines, military defeats, and foreign occupation. After World War II, the Communists under MAO Zedong established an autocratic socialist system that, while ensuring China's sovereignty, imposed strict controls over everyday life and cost the lives of tens of millions of people. After 1978, his successor DENG Xiaoping and other leaders focused on market-oriented economic development and by 2000 output had quadrupled. For much of the population, living standards have improved dramatically and the room for personal choice has expanded, yet political controls remain tight.

China's economy during the last quarter century has changed from a centrally planned system that was largely closed to international trade to a more market-oriented economy that has a rapidly growing private sector and is a major player in the global economy. Reforms started in the late 1970s with the phasing out of collectivized agriculture, and expanded to include the gradual liberalization of prices, fiscal decentralization, increased autonomy for state enterprises, the foundation of a diversified banking system, the development of stock markets, the rapid growth of the non-state sector, and the opening to foreign trade and investment. China has generally implemented reforms in a gradualist or piecemeal fashion. The process continues with key moves in 2005 including the sale of equity in China's largest state banks to foreign investors and refinements in foreign exchange and bond markets. The restructuring of the economy and resulting efficiency gains have contributed to a more than tenfold increase in GDP since 1978. Measured on a purchasing power parity (PPP) basis, China in 2005 stood as the second-largest economy in the world after the US, although in per capita terms the country is still lower middle-income and 150 million Chinese fall below international poverty lines. Economic development has generally been more rapid in coastal provinces than in the interior, and there are large disparities in per capita income between regions. The government has struggled to: (a) sustain adequate job growth for tens of millions of workers laid off from state-owned enterprises, migrants, and new entrants to the work force; (b) reduce corruption and other economic crimes; and (c) contain environmental damage and social strife related to the economy's rapid transformation. From 100 to 150 million surplus rural workers are adrift between the villages and the cities, many subsisting through part-time, low-paying jobs. One demographic consequence of the "one child" policy is that China is now one of the most rapidly aging countries in the world. Another long-term threat to growth is the deterioration in the environment - notably air pollution, soil erosion, and the steady fall of the water table, especially in the north. China continues to lose arable land because of erosion and economic development. China has benefited from a huge expansion in computer Internet use, with more than 100 million users at the end of 2005. Foreign investment remains a strong element in China's remarkable expansion in world trade and has been an important factor in the growth of urban jobs. In July 2005, China revalued its currency by 2.1% against the US dollar and moved to an exchange rate system that references a basket of currencies. Reports of shortages of electric power in the summer of 2005 in southern China receded by September-October and did not have a substantial impact on China's economy. More power generating capacity is scheduled to come on line in 2006 as large scale investments are completed. Thirteen years in construction at a cost of $24 billion, the immense Three Gorges Dam across the Yangtze River will be essentially completed in 2006 and will revolutionize electrification and flood control in the area. The Central Committee of the Chinese Communist Party in October 2005 approved the draft 11th Five-Year Plan and the National People's Congress is expected to give final approval in March 2006. The plan calls for a 20% reduction in energy consumption per unit of GDP by 2010 and an estimated 45% increase in GDP by 2010. The plan states that conserving resources and protecting the environment are basic goals, but it lacks details on the policies and reforms necessary to achieve these goals.



From CIA WORLD FACTBOOK [excerpted]