For the first time ever, the international association set a date for when the ''age of the USA'' will expire and when the Chinese economy will take over. And this date is much closer than what we expected!
According to the latest official forecasts of the IMF, the Chinese economy will surpass the American one in real terms by 2016, that is, only within 5 years from now.
The report provides a painful context for the budget wrangling taking place in Washington right now.
It also raises some important questions as to how the international insurance system will look like in 2 years from now. And it casts a deepening cloud over both the American dollar and the giant American Treasury market, which have been propped up for decades thanks to the priveleged status of the liabilities of the world's hegemonic country, which are now in danger of being downgraded, since S&P downgraded America's outreach for the first time in its history after almost 1 century!
According to the IMF forecast, whoever is elected U.S. president next year will be the last to preside over the world’s largest economy.
Most people are not prepared for this. They are not even aware that this is close. The most bearish ones put the figure around 2025, the report says. But they are miscounting, as they are only conmparing the gross domestic products of the two countries using current exchange rates. But the gross domestic products change quickly. IMF's analysis makes its comparisons based on the visible scenarios for the gross domestic products.
More importantly, it makes the analyis based on the true picture of the economies using ''purchasing power parties'' (PPP), that is, what people earn and spend in their domestic economies in real terms.
Under PPP, the Chinese economy will expand from $11.2 trillion this year to $19 trillion in 2016. Meanwhile, the U.S. economy will rise from $15.2 trillion to $18.8 trillion. This will take America’s share of the world output down to 17.7%, the lowest in modern times, whereas China’s will reach 18%, and will keep rising.
Balance is changing rapidly, and the battle for the winning country is in full bloom. Yuan and dollar are in the frontline of this battle and in between stands the common european currency.
The wolrd fiscal battle seems to have ended, but the international developments transpire that everything is still in the air.
2016 is a mid-summer night's dream. USA Has already collapsed. Nobody's buying its treasury bills.
NOTE: G.H.REES. FORSAW AND WARNED AGAINST THIS DEVELOPMENT AT LEAST 10 YEARS AGO, WHEN ROCKFELLER STARTED ''FORWARDING'' THE US DEBT TO THE CENTRAL BANK OF CHINA, UNDER THE ORDERS OF THE CHIEF RABBIS ABOVE HIM. AND THE BIG STRATEGIC PORTS OF THE USA SUCH AS THE LONG BEACH ONE IN CALIFORNIA WERE GIVEN TO COSCO AND TO THE CHINESE ARMY... WITHOUT FIRING ONE SINGLE BULLET.
WAKE UP... AMERICA!!!