How Long Before We Admit China Is The #1 Economic Power In The World ?
Posted by China Sourcing CommentatorNov 28
We are the biggest debt-er nation. China is holding the largest U.S. dollar reserves. World oil production has peeked. We are oil dependent. China is not. Our economy is headed toward a huge recession. China is getting richer everyday. So how long do we have as #1 ?
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Sorry psychologist, the world will not necessarily accept USD’s as legal tender: you have to exchange them along with any other currency. A few countries such as Burma and in parts of Asia will accept USD’s but will also equally accept Sterling and AUD’s as well because the local currency is worthless.
You do raise a number of points: China is using more and more of the world’s oil production: hence the war in Iraq being used as leverage to secure resources, and Iran is looked upon the same way: as a potential source of oil. The US economy is fragile, with long term underlying problems:
1. A debased and unstable currency.
2. Ever reducing manufacturing ability.
3. High cost of labour and ongoing costs for benefits.
4. Egregious taxation and a monstrous bureaucracy in a nation whose constitution mandates “minimal government for the protection of liberty”.
5. A sense of isolationism backed by a sense of entitlement: China will keep doing what it is doing, as will India and the EU, and they have no particular reason to play second fiddle to the US and will compete for resources and some places, such as Russia, have greater energy reserves on their own soil. Essentially the US cannot afford to support itself.
6. As you note, the biggest debt in history and the usuary on this takes up half the annual budget.
China is dependent on oil, but many oil producing nations have closer ties to China than to the US. Oil and other resources will be the cause of more conflict, even if it is not admitted openly.
You’re way off, China oil production = 3.84 million barrels per day, oil consumption 7.27 and rising rapidly at the same time as U.S. consumption will drop due to recession. Travel the world and offer to pay in U.S. dollars people will smile and say YES, try to pay in Chinese Yuan [ how many people have even heard of that ! ] and people will frown ! As Chinese workers demand more money, autos, t.v.’s, etc. they will face massive inflation. Probably the European Economic Community and India are the new economic powers in the world. But, write of the U.S. at your peril, they will come through stronger than before !
Statistically, the #1 world economic power is the European Union, and it will stay so for a long time.
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“peaked”.
Oil production doesn’t have eyes.
Let’s see. US GDP is 4 times that of China. I’d say a few more years.