The GDP numbers were released this past Friday and shows China overtaking Japan's No. 2 spot in world. According to the projections of the World Bank and Goldman Sachs - China should overtake the US by at least 2025.China's GDP grew at a blistering 11.1 percent for the first half of 2010. China overtook Britain and France in 2005, and then Germany in 2007. It's no wonder Mad Man Jim Creamer is taunting Caterpillar stock - it is because they are sending virtually all of their equipment to China to help facilitate their economic boom.
In comparison - the US GDP only grew at an annual rate of 2.4% which lags nearly 5 times less than China's blistering pace.
In my estimation - with current US economic policies - the US is no match for competing against the Chinese. As China's communist government works to unravel the regulatory process - the US implements more regulatory regulations and barriers - (health care, tax increases, trade protectionist measures). The present and past economic trade policies have resulted in restraining the US economic corporate engine. So what has happened to the economic stimulus incentives? Inquiring minds want to know.
Folks . . . please keep all of this in mind when you go to the polls and vote. If you don't then China will most likely be looking at the US in their rear view mirror.
16 comments:
Keep shopping at Wal-Mart.
All I can ever remember hearing while attending high school and college was that communism was a detriment to a nations economy.
In light of what has transpired in China - I wonder what all of the experts have to say now.
As much as I hate to admit it - our Federal System is now the greatest threat to the american dream.
As a small business owner I can honestly say that I have no desire to hire any new employees under the current regulatory environment.
The associated regulatory cost per employee - is so expensive that it is easier to go out of business than to try and stay in business.
That is why the US economy is not expanding. More and more businesses are finding this out also. It is going to get worse with even more regualations coming down the pike.
This idiot really has the nerve to try to pen a trend going on for the last decade or more on OBAMA! Don't you see this is why we continue to have gridlock in government and we continue to fall behind. Our citizenry is being robbed while the pundits and politicians have us fighting over Donkeys and Elephant bullsh!t
China has a socialist market economy. Routine consumer goods and services are produced by privately owned companies and individuals, but heavy industry and strategic goods and services are corporatized and owned by the government. Profits are placed by the government in sovereign wealth funds that invest globally, like in US bonds.
So, an oil company in China would have 51% of its stock owned by the Chinese government but would be managed by company employees. A flower shop can be privately owned.
They are not deregulating. If anything, GM is now more like a Chinese company than before.
China also has some problems:
Only members of the Communist party can vote in elections, they do not trust the common people.
They have 1.2 billion citizens but only 300 million are participating in the new economy, the rest are rural poor, and feeling left out.
They have tremendous pollution of both water and air and need lots more energy to continue expanding.
In the near term China will thrive. In the long term they will be hard pressed to continue expanding.
Cold war didnt end it just evolved with the global economy, what did the guy riding on Tag used to say?
Bill, while your insight is appreciated, as one of the world's oldest civilizations, I think China will prove you wrong. Formerly US companies are putting Chinese workers to work while we send more wealth over by buying their goods. If we were to make a consertive effort to buy American, alot of this wouldn't happen. But where is the charge from the conservative leaders on this front? They don't care, they just want power just like the lefties.
It is not suprising considering everything we by says "made in China". Maybe if more things said made in USA, our economy would be better.
Just a thought.
You really can't trust any information that is coming out of Washington or the Maryland State House for that matter.
Secretary of Tresury - Geitner - doesn't report income.
Congressman Charlie Rangal helps to write IRS code yet does the same.
In times like these one has to rely on survivor instincts. Best to watch Fox news as it is the only unbiased media. However, CNBC has shown some diverse views lately that parallel Fox's views.
As for myself - I try and not to depend on any form of government.
You wait and see - the government will try and shut out Fox very soon.
Reference to 'Keep Shopping At Walmart'
You had better go and read the hyperlink in the article. It appears Chinese Walmarts are doing exceptionally well in China.
This is the first time I've heard about this news.
News of this magnitude should have been on the front burner of every major US network.
Great investigative reporting SBYnews!
The only way the US economy is going to significantly improve is when the government starts compensating businesses for hiring employees.
The government regulations have created an overwhelming burden and hardship for businesses to hire employees.
Where is the incentive for businesses to hire? The government imposes regulations and then just sits back and requires businesses to collect withholdings that, in turn, end up in the politicians hip pockets. It's realy a no brainer as to why businesses are not expanding.
In other words . . . the businesses 'mash the potatoes and the government ends up getting all of the gravy'.
For once in our nations history . . . this philosophy is getting traction.
I think there will military conflict with China over Taiwan. They want it and we will let them have it. This will happen in the next ten years.
8:13, If you haven't been hearing about this, it's because your head is in the ground, not because of the media.
7:53, Fox? Really? For fun, I kept Fox on the other day while working on my computer all morning. You really think the network that showcases a line up of conservative pundits to comment on every "News" story is being "fair and balanced"?
To 8:22 posting
I didn't hear about this news either and I read USA Today, Baltimore Sun, New York Times & Daily Times. I didn't hear anything on the news either before I saw it on SBYnews.
What other publications or websites are you reading so that I'll know in the future.
Sheesh, you can find it right on Yahoo. Also on Reuters, Bloomberg, as well as regional papers like Chicago Post. Sheesh. No wonder you guys fall for every piece of BS someone feeds you.
BY the way, this does not disparage the work Joe has done. He's put together quite a good blog. But can all the "it's nowhere else" crap.
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