” Sorry, America. China just overtook the US to become the world’s largest economy, according to the International Monetary Fund.
Chris Giles at the Financial Times flagged up the change. He also alerted us in April that it was all about to happen.
Basically, the method used by the IMF adjusts for purchasing power parity, explained here.
The simple logic is that prices aren’t the same in each country: A shirt will cost you less in Shanghai than in San Francisco, so it’s not entirely reasonable to compare countries without taking this into account. Though a typical person in China earns a lot less than the typical person in the US, simply converting a Chinese salary into dollars underestimates how much purchasing power that individual, and therefore that country, might have. The Economist’s Big Mac Index is a great example of these disparities. “
Heck of a job , Barack … read more
For those who might be interested in the growing student protests and increasing crackdown of same by the Chinese authorities we provide the reader with a pair of live feeds from Hong Kong .
The above feed is from Ustream subscriber 本台設有下載區及網誌 Mee JTV
The second feed is from 佔領中環直播 Occupy Central,Hong Kong Live
Bear in mind that these feeds sometimes cease broadcasting for a time but usually go live again fairly quickly so keep checking back for the latest developments .
” This enormous megayacht concept comes from the specialist superyacht division of the Chinese CIMC Raffles shipyard. She follows the sale of the yard’s 88.8 metre new build superyacht Illusion, which is due for delivery in late 2015.”
Here is a video of Illusion …
” Based on her smaller sistership Illusion, Estatement was designed by Sinot Exclusive Yacht Design. She will feature an 18.1 metre beam, a steel hull and an aluminium superstructure with a displacement of 5,500 gross tons.
Her spacious, contemporary interior will accommodate 22 guests in a master stateroom, two VIP cabins and eight double cabins. She will also be able to accommodate 35 crew.
With a fuel capacity of 300,000 litres, Estatement will have a cruising speed of 15 knots and a top speed of 17.5 knots. She is expected to have a range of 6,000 nautical miles.
As well as presenting the Estatement concept, Pride Mega Yachts will also be providing an update on Illusion‘s building progress at the Monaco boat show. “
Overall length: 115 m
Maximum beam: 18.1 m
Maximum draft: 4 m
Gross tonnage: 5,500 GRT
Maximum speed: 17.5 KT
Cruising speed: 15 KT
Range: 6,000 nautical miles
Fuel capacity: 300,000 liter
Fresh water capacity: 75,000 liter
Hull material: Steel
Superstructure material: Aluminum
22 persons 8 double cabins, 2 VIP cabins, owner stateroom
Crew capacity 35 persons
14 double cabins, 6 staff, 1 captain)
2 x sports tender, 1 x limo tender, 4-6 wave runners
Pride Mega Yachts
Exterior & Interior Design
Sinot Exclusive Yacht Design “
Thanks to BoatInternational
See here for more on the Monaco Yacht Show
Image Via AFP/Getty
” The US is on the brink of losing its status as the world’s largest economy, and is likely to slip behind China this year, sooner than widely anticipated, according to the world’s leading statistical agencies.
The US has been the global leader since overtaking the UK in 1872. Most economists previously thought China would pull ahead in 2019.
The figures, compiled by the International Comparison Program hosted by the World Bank, are the most authoritative estimates of what money can buy in different countries and are used by most public and private sector organisations, such as the International Monetary Fund. This is the first time they have been updated since 2005.
After extensive research on the prices of goods and services, the ICP concluded that money goes further in poorer countries than it previously thought, prompting it to increase the relative size of emerging market economies.
The estimates of the real cost of living, known as purchasing power parity or PPPs, are recognised as the best way to compare the size of economies rather than using volatile exchange rates, which rarely reflect the true cost of goods and services: on this measure the IMF put US GDP in 2012 at $16.2tn, and China’s at $8.2tn.”
Read the whole disgraceful news item at Financial Times. Can’t say he didn’t warn us .
Here we have a collection of bizarre bans instituted at one time or another by States around the world . Have a look and a laugh …
We can easily envision some of the more totalitarian states around the globe proscribing certain names , as a matter of fact Saudi Arabia just issued an edict banning certain “Christian” names , but Denmark ? The land of anything goes , in the “tolerant” EU ?
Here is one more example , again from a “tolerant” EU country , this time France …
Yes readers , apparently French culture is such a delicate flower that the authorities felt the need to protect their citizens from the well known effects of addiction to the famous American condiment . We guess the “haughty French looking”
Senator , er , Secretary of State John “Heinz” Kerry does not wield the clout his shrew of a wife would prefer .
Along with these two bizarre bans the reader can see which countries felt the need to ban such other mundane items as chewing gum , the color yellow , Scrabble and even Valentine’s Day . Visit the Chive to see more .
Image Credit: Reporters Without Borders
” While press freedom seems to be in a troubling downward trajectory in the U.S., Internet freedom is not looking much better either.
Reporters Without Borders recently announced its annual “Enemies of the Internet” list, and it is a real doozy this year. There are some of the usual suspects — China, Sudan, Iran, North Korea and Cuba — but there are also a few surprising additions to the list — especially the U.S. and the U.K.
Take a look at the map … “
We in the west should be so proud . Look at the details of the map and hang your heads in shame .
” “How will so-called democratic countries be able to press for the protection of journalists if they adopt the very practices they are criticizing authoritarian regimes for?” asked the report.
Check out this interactive version of the map for a more detailed look at Internet censorship around the world.”
The leaders of the US and UK should be absolutely ashamed of themselves to find the homes of the Magna Carta and Declaration of Independence / Constitution / Bill Of Rights in company with the above mentioned dictatorships , oligarchies and theocracies . One can practically feel the earth tremble as the Founding Fathers turn over in their graves .
Read the rest
” China is braced for a wave of industrial bankruptcies as its slowing economy forces companies with sky-high debts to the wall, the country’s premier has said.
Premier Li Keqiang told lenders to China’s private sector factories they should expect debt defaults as the world’s second largest economy encounters “serious challenges” in the year ahead.
Speaking after the annual session of the national people’s congress, Li Keqiang said: “We are going to confront serious challenges this year and some challenges may be even more complex.” He told lenders to China’s private sector factories they should expect debt defaults.
Li said China must “ensure steady growth, ensure employment, avert inflation and defuse risks” while also fighting pollution, among other tasks.
” So we need to strike a proper balance amidst all these goals and objectives,” he added. “This is not going to be easy,” he said.
Li’s warning followed the failure of Shanghai Chaori Solar Energy to make a payment on a 1bn yuan (£118m) bond last week. The default was the first of its kind for China and widely seen as pointing to the end of 11th-hour government bailouts for troubled enterprises.” “
The Guardian has the details
” In order for our current level of debt-fueled prosperity to continue, the rest of the world must continue to use our dollars to trade with one another and must continue to buy our debt at ridiculously low interest rates. Of course the number one foreign nation that we depend on to participate in our system is China.
Unfortunately, there are signs that China has now decided to start looking for a smooth exit from the game. In November, I wrote about how the central bank of China has announced that it is “no longer in China’s favor to accumulate foreign-exchange reserves”. That means that the pile of U.S. dollars that China is sitting on is not going to get any higher.
This week, we learned that China started to dump U.S. debt during the month of December. Many have imagined that China would try to dump a flood of our debt on to the market all of a sudden once they decided to exit, but that simply does not make sense. Instead, it makes sense for China to dump a bit of debt at a time so that the market will not panic and so that they can get close to full value for the paper that they are holding.
As Bloomberg reported the other day, China dumped nearly 50 billion dollars of U.S. debt during the month of December… “
The profligate spending of our ruling class over the past few decades is about to come back and bite us on the **s . Do you speak Chinese ? You might want to learn . Read the rest of this alarming report .
A parting shot to make you sit up and take notice …
” So if China is not going to stockpile U.S. dollars or U.S. debt any longer, what is it going to stockpile?
It is going to stockpile gold of course. In fact, China has been voraciously stockpiling gold for quite some time, and their hunger for gold appears to be growing.”
” While we will have more to say about the disastrous December TIC data shortly, which was released early today, and which showed a dramatic plunge in foreign purchases of US securities in December – the month when the S&P soared to all time highs and when everyone was panicking about the 3% barrier in the 10 Year being breached and resulting in a selloff in Tsy paper – one thing stands out. The chart
below(above) shows holdings of Chinese Treasuries (pending revision of course, as the Treasury department is quite fond of adjusting this data series with annual regularity): in a nutshell, Chinese Treasury holdings plunged by the most in two years, after China offloaded some $48 billion in paper, bringing its total to only $1268.9 billion, down from $1316.7 billion, and back to a level last seen in March 2013! “
Not exactly confidence inspiring Barack , especially when you consider that the Japanese shed billions in US treasuries in December as well . Read more at Zero Hedge .