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It's Official (Finally): The US Is No Longer The World's #1 Economy

Tyler Durden's picture




 

Submitted by Simon Black via Sovereign Man blog,

It seems rather appropriate that just seven days after the US government hit a whopping $18 trillion in debt, mainstream financial media has picked up the IMF’s recent World Economic Outlook report, which puts the US economy as #2 in the world.

There’s no shortage of ostriches out there who come up with every reason in the world why this doesn’t matter.

They say, ‘oh the IMF is just reporting purchasing power parity.’ Or, ‘oh it’s the per capita GDP that it counts.’

But the obvious truth is that the US is in decline. And it’s being overtaken.

1,000 years ago when Europe was just a tribal backwater with local warlords duking it out over salt mines, Asia was the center of wealth, power and civilization.

China continued to be the largest economy in the world up through 1850.

That changed. The West overtook the East in terms of power and influence and it remained that way for centuries.

Now things are changing once again. The West, and the US in particular, is plagued by:

Insane debt levels, which the government has been accumulating at faster and faster rates, hitting an unprecedented $18 trillion in debt this past week.

 

Short-sighted monetary policy, from quantitative easing that has debased the currency to negative interest rates that have wiped out any reason to be smart with money.

 

A crippled economy, as Western nations’ oppressive taxation frightens away the productive, and handouts have created a society of dependency.

 

Global bullying, as the US spies on its own citizens and allies, compelling businesses and governments to terminate their relationships with the Land of the Free.

 

Waging endless wars, whether against nouns (‘terrorism’), plants (‘drugs’), and brown people on the other side of the planet who supposedly hate us for our freedom. If they only knew…

 

A population that lives in fear, as you are more likely to get shot by your own police in the United States today than to ever even see a terrorist.

It’s pretty hard to maintain the top spot when that’s what you stand for.

China obviously has its own substantial problems, but over the last several decades one thing is for certain - China (and Asia in general) is a place where production and savings are valued.

The universal law of wealth is to produce more than you consume. The West has completely broken that.

They’re trying to replace it with debt, war and intimidation. And we’re now only just starting to scratch the surface of the consequences that this brings.

History shows that every time this happens, governments in power will do anything they can to maintain the status quo and keep the party going just a little bit longer.

Do you have an obligation, simply by an accident of birth, to go down with the sinking ship?

Do you owe desperate politicians a greater share of your livelihood so they can blow it on even more war, police and spying?

Or is your primary obligation to your family and your loved ones?

The truth is that all the tools and all the resources exist to disconnect from this economic Hindenburg.

You can choose to either be an unwilling participant in its continued unraveling. Or, to be a curious spectator, having take steps to protect what you’ve worked your entire life to build. The choice is yours.

 

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Sat, 12/06/2014 - 12:33 | 5523723 Took Red Pill
Took Red Pill's picture

Just received this. Wells Fargo’s predictions for 2015: What a load of crap!

 

https://saf.wellsfargoadvisors.com/emx/dctm/Research/ASG/Investment_Strategy/outlook_report.pdf

 

They use words like “Be positive, not defensive”, “Onward and upward”, “Expect better days ahead”, “A brighter tomorrow”

 

Except for gold. They predict it will be at about $1100 an ounce by the end of 2015 and say, “Precious metals look unappealing. We recommend reallocating into a broadly diversified commodity position” Even though they admit demand is high for gold and now another country, Belgium, wants its gold back, too.

 

https://www.bullionstar.com/blog/koos-jansen/belgium-investigating-to-repatriate-all-gold-reserves/

Sat, 12/06/2014 - 12:35 | 5523730 cossack55
cossack55's picture

"Curious spectator" here.  Don't really need a participation trophy.

Sat, 12/06/2014 - 12:42 | 5523748 economics9698
economics9698's picture

Until the USA purges itself of the parasites it will be second.

Sat, 12/06/2014 - 12:47 | 5523770 Buckaroo Banzai
Buckaroo Banzai's picture

I hope Bill Clinton is happy. He and Al Gore were bought-and-paid-for by the ChiComs. They sure got their money's worth.

Come back, Ross Perot! We're sorry. You were right, and we were wrong.

Sat, 12/06/2014 - 12:51 | 5523774 Supernova Born
Supernova Born's picture

Can an American of Chinese ancestry be a Chinese citizen too?

Only way to roll.

Sat, 12/06/2014 - 13:08 | 5523824 williambanzai7
williambanzai7's picture

Trust me, we have not reached the point where it would be a good idea for him to go there if he could. Too many issues.

Sat, 12/06/2014 - 13:23 | 5523864 Headbanger
Headbanger's picture

Kill all the MBAs!

Sat, 12/06/2014 - 14:03 | 5523960 ISEEIT
ISEEIT's picture

Good luck with that dumbass.

 

I'm taking out the lawyers first.

Sat, 12/06/2014 - 15:33 | 5524141 Stackers
Stackers's picture

The E.U. when taken as a whole of equal size and population to the U.S. as a whole has been a larger economy for some time and is still larger than China, which has 3x the population of the either U.S. or E.U., which means on a per-capita apples to apples comparison it still has a ways to go

Sat, 12/06/2014 - 16:32 | 5524224 COSMOS
COSMOS's picture

Agree, that is why we are trying to start a major conflict there again so we can get a brain drain going and to wipe out some competition.

Sat, 12/06/2014 - 16:52 | 5524256 gallistic
gallistic's picture

Maybe it would be to China's benefit to partake in that major conflict. They could kill off 1/3rd of their population and then have more per capita.

Hey, if it works for stock buybacks and some types of financial engineering, it would work for them, right?.

They could then sport better national stats.

/s

Sat, 12/06/2014 - 20:18 | 5524702 Frolf
Frolf's picture

Our economy consists of printing money, waging wars, and posting selfies and tweets.

 

http://y2u.be/tOW5eljyjms

Sat, 12/06/2014 - 20:20 | 5524712 FredFlintstone
FredFlintstone's picture

What about porn?

Sat, 12/06/2014 - 23:17 | 5525098 wee-weed up
wee-weed up's picture

The Destroyer of this country, Obozo, just keeps on giving!

Sat, 12/06/2014 - 20:17 | 5524703 Frolf
Frolf's picture

Our economy consists of printing money, waging wars, and posting selfies and tweets.

 

http://y2u.be/tOW5eljyjms

Sat, 12/06/2014 - 20:26 | 5524738 NoDebt
NoDebt's picture

Last time I checked, China's GDP was less than half the US.  And that's depending on whether you believe their inflated numbers (or ours).  Also lost in this article is that the graph was for purchasing power parity, a number so murky, almost nobody knows what it means.  I know what it means however- it's yet another goal-seeked "made for politics" number.

Oh, and I'm sure the Yuan being pegged to the dollar would NEVER affect a purchasing power parity number.  No, surely not.

This is a typical ZH "weekend red meat" article.  Nothing is as it seems.  Wake up.  Question everything.  Get as close to the truth as you can.  You may need it some day (probably no time soon, but it's the principle of the thing).

 

Sat, 12/06/2014 - 20:40 | 5524782 kowalli
kowalli's picture

It's matter for IMF - it's must go to China=)

Sat, 12/06/2014 - 21:27 | 5524880 The Blank Stare
The Blank Stare's picture

But we buy all their cheap toxic shit so doesn't that still make us #1?

Anyway, housing bubble, massive pollution, can't even make a decent car, gutter oil, standard of living, gimmie a friggin break!

Some kind of IMF voodoo going on here.

Sat, 12/06/2014 - 22:11 | 5524966 kowalli
kowalli's picture

you forgot domestic sales

Sat, 12/06/2014 - 21:58 | 5524940 Escrava Isaura
Escrava Isaura's picture

 

 

Stackers

So, what did go wrong with Europe?

And, if I told you that WW-3 will start "most likely" in Europe, what would be your reason that would justify it?

 

Sat, 12/06/2014 - 22:40 | 5525019 Sandmann
Sandmann's picture

Spoken like a typical lawyer !

Sun, 12/07/2014 - 05:45 | 5525428 Parrotile
Parrotile's picture

The Bard would certainly have approved of that statement . . . . . .

Sat, 12/06/2014 - 17:06 | 5524235 hobopants
hobopants's picture

More of this drivel? Time to take the old "China to rule the world" narrative out behind the woodshed...again.

"China’s banking assets have grown to over 100% of its GDP in the last three years, according to Bass. If the U.S. had engaged in similar policies – which he said would translate to $17 trillion in lending over that time period – it, too, would have achieved more than 7% GDP growth." - Kyle Bass

Do I even need to add anything else? Chinese little people can save all they wish but when your government is blowing money like an NBA player living in a strip club, it ain't going to help ya.

China's rich are not flooding into Canada and the US for the hell of it, they're jumping ship before the fire reaches the powder room.

USA is fucked for certain, but the "Asia to lead the world!" meme is a tired lie. They're fucked too.

Sat, 12/06/2014 - 20:22 | 5524720 BurningFuld
BurningFuld's picture

I'm kinda thinking Bill would like to get in to Barbara's pants so these stories are quite believable.

Sat, 12/06/2014 - 21:15 | 5524859 Frolf
Frolf's picture

Next step

China buys ALL the gold

Sat, 12/06/2014 - 21:00 | 5524829 petkovplamen
petkovplamen's picture

China may be fucked(I doubt that as just yet another US propaganda) but trust me USA is way more fucked than anybody else. Why? Cuz the Chiense are accustomed to eat a bowl of rice a day. While you Americans are SO spolied if you lose your Internet connection for more than 5 minutes you go into panic mode. Trust me, I KNOW; I grew up dirt poor in an adobe house and any ANYTHING was a present. And I CAN live as dirt poor again if the need be but I very much doubt you can.

Sat, 12/06/2014 - 22:05 | 5524951 Escrava Isaura
Escrava Isaura's picture

 

 

petkovplamen

You have a point there... but we're not at the stage you described yet.

Sorry, but US is a better deal than China at any given moment.

 

South America will be the continent to be, starting around 2025.

 

Sat, 12/06/2014 - 13:11 | 5523827 Renewable Life
Renewable Life's picture

Well congratulations my fellow citizens, we finally did it!!

We have really taken our step down the long ladder to irrelevancy, and by WE, yes I mean ALL of us, a Country like ours, that was this far ahead of the pack just 30 years ago, surely couldn't have accomplished this big of a fuck up, without every citizen, politician, corporate CEO, middle class hero, union worker, deadbeat, GOPer, Democrat, neocon military conquest cheerleader, (feel free to add)............and myself included!

Every fucking one of us, in some degree or fashion, contributed to this great honor we have bestowed upon ourselves, of "sinking superpower, global debt mongor"!!!

Great day in America indeed, (ohhh shit the football game is on, gotta go)

Sat, 12/06/2014 - 14:21 | 5524004 Boomberg
Boomberg's picture

Is 2nd place really that bad, or for that matter places 3-100? Let the Chinese murder their young by sending them to the other side of the planet to preserve the currency. If you are a Briton, ask yourself this: Are you and your family better off now living in relative peace than you were in the 19th century sending cannon fodder all over the world for the Queen and pound sterling? 

Sat, 12/06/2014 - 15:03 | 5524067 Max Steel
Max Steel's picture

Are britons living in peace ? No mate .

Sat, 12/06/2014 - 15:37 | 5524151 Boomberg
Boomberg's picture

Yes mate, relative to the US and their 19th century forefathers, they are living in peace.

Only reason US doesn't have overt boots on the ground in Syria, more in Iraq, and elsewhere is because Parliament won't approve. Now the US only has those freedom-loving, tolerant, democracies of Qatar, Saudia Arabia, and Bahrain for the photo-op coalition bombing raids in the ME. Pathetic. Thank you Parliament. 

Sat, 12/06/2014 - 13:59 | 5523954 ISEEIT
ISEEIT's picture

Perot was controlled opposition.

Kinda like donald 'trump'.

Sat, 12/06/2014 - 14:41 | 5524030 Leraconteur
Leraconteur's picture

Speak for yourself, round eye. I was right, but out numbered. Perot called it, fair and square and America lost...it...

Sat, 12/06/2014 - 22:35 | 5525011 Sandmann
Sandmann's picture

What do you expect, Gore was 'made' by Armand Hammer. Clinton was a snake-oil salesman and a perfect counterpart to Blair. They sold out for high office and found  once China had Hong Kong back it was open for favours.

If Russia had driven tanks over students in Red Square it would not have received MFN status and free access to US markets.

Russia is Americans' next land grab, a strip-mining colony for the Empire. The US systematically dismembered the British Empire and now it wants the Russian Empire for its American Global Empire. Everything the US has was gained through WAR and China has found they way to bring the whole lot down just like the Ottoman Empire rotted and fell apart so the USA which will probably breakup as a country

Sat, 12/06/2014 - 22:39 | 5525018 Amerikan Patriot
Amerikan Patriot's picture

The US has no intention of making any part of Russia the 51st state.  However, Russia has said explicitly that it intends on making additional conquered lands part and parcel of Russia.

See the difference?   :-)

Sat, 12/06/2014 - 23:17 | 5525095 Anusocracy
Anusocracy's picture

Links?

Sat, 12/06/2014 - 13:01 | 5523801 sun tzu
sun tzu's picture

Our economy consists of printing money, waging wars at home and abroad, and posting selfies and tweets.

Sat, 12/06/2014 - 13:45 | 5523922 Bangin7GramRocks
Bangin7GramRocks's picture

Don't forget 40 different kinds of fried appetizers!

Sat, 12/06/2014 - 20:19 | 5524708 BurningFuld
BurningFuld's picture

Be heart healthy and eat Escargot.

Like most molluscs, escargot is high in protein and low in fat content (if cooked without butter). Escargot is estimated to contain 15% protein, 2.4% fat and about 80% water.[6]

And what's a little butter.

Sun, 12/07/2014 - 06:47 | 5525464 Parrotile
Parrotile's picture

Waiter, there's a snail or two in my Salade Bourguignonne aux Escargots.

Sir - that salad is supposed to have snails - hence "escargots"???

Yes - I understand that, but they are eating the salad before I can get started . . . . . . . .

Sat, 12/06/2014 - 13:32 | 5523882 Winston Churchill
Winston Churchill's picture

There is no coming back from empire, looking at history.

Spain,Greece, or France is the best future hope, out of a lot of bad options.

No gradual descent either.It will be sudden in historal  terms.Years,not centuries ,or decades.

Sat, 12/06/2014 - 14:07 | 5523973 El Vaquero
El Vaquero's picture

We've been in a state of collapse for years already.  If you wade through the BS and get a real picture of employment, you can say that we've been in a state of collapse since around 2000.  We are unwilling to accept this and are determined to maintain the status quo, so this collapse will be punctuated by crises as things inconsistent with reality get worse, then break.  Eventually, one of these crises will be what a lot of people who are unaware of just how perilous our situation is will call "the" event, even though it was the culmination of years of distortion and corruption.  (Barring WWIII, or course.)

 

Just how many years do you think that Roman citizens were in the midst of collapse before they realized what was going on?  I'd argue that they had been collapsing for a while before they realized it.  They probably had quite a few good years in the midst of the collapse without realizing what was going on.  But today, things move much faster.  I can communicate instantly with people on the other side of the planet.  I can be on an airplane and in China or Australia within 24 hours.  Trade and finance have come to depend on this speed.  It is this speed that means that whatever the final event in the crash is, that crash will be much faster than crashes in the past.  Our system will not tolerate any disruptions to this speed.

Sat, 12/06/2014 - 14:38 | 5524029 Leraconteur
Leraconteur's picture

There were probably also many good and high paying jobs as the end was nigh.

If all around you is collapsing and you are making good money, it is tempting to sit tight and buy up every good and service for cheap.

The trick is when to decamp to Turkey, North Africa, India or another locale with your gold, silver, servants and olive trees.

Sat, 12/06/2014 - 15:48 | 5524167 El Vaquero
El Vaquero's picture

I won't be able to de-ass to another continent.  It's just how it is.  I have a few places that I can go to that look like flat, shitty desert, yet when you get back in there, there are streams, game and on occasion, some livestock.  Very few people know about these places, and there are also very good locations to hide.  The soil is not great, but I can fix that. Its not horrible, just not great.

Sat, 12/06/2014 - 22:09 | 5524960 Escrava Isaura
Escrava Isaura's picture

 

 

El Vaquero

You sound to be the best prepared at Zero Hedge, from my take.

Anyway, these are the ‘Keys’ moving forward, I believe:

1) Electricity

2) Underground fresh water

3) Tropical and/or Sub-tropical weather

4) Food sufficient. So, if you have 2 and 3 you’re more than half way there

5) And the least, and the furthest away of any urbanized area

 

Good luck.

 

Sat, 12/06/2014 - 14:55 | 5524057 Winston Churchill
Winston Churchill's picture

The speed of light versus the speed of a horse.Don't count on those few good years,

as that will be luck if it happens.

Not going to be as smooth as the last time when there was a shared heritage, and language(sort of) in

common.

Sat, 12/06/2014 - 15:48 | 5524168 El Vaquero
El Vaquero's picture

I would argue that we're living those few good years right now. 

Sat, 12/06/2014 - 22:10 | 5524962 Escrava Isaura
Escrava Isaura's picture

 

 

Exactly!

Sat, 12/06/2014 - 12:43 | 5523756 zerozulu
zerozulu's picture

This country needs more paper-shuffler, more printer, more lawyers, more bankers, more politicians but jobs to stay number one.

Sat, 12/06/2014 - 13:00 | 5523803 sun tzu
sun tzu's picture

In other words, good-paying government jobs to torture the citizens

Sat, 12/06/2014 - 13:41 | 5523912 Steroid
Steroid's picture

"This country needs more paper-shuffler, more printer, more lawyers, more bankers, more politicians but jobs to stay number one."

Wrong! We just need a computer to shuffle money back and forth according to the definition of GDP.

Sat, 12/06/2014 - 12:43 | 5523758 LawsofPhysics
LawsofPhysics's picture

Look at the components of America's GDP and America's liabilites...

 

Far too many useless fucking paper-pushers and SNAP babies/dependent.  Eliminate these people and things don't look too bad...

Sat, 12/06/2014 - 14:10 | 5523979 El Vaquero
El Vaquero's picture

All you need to do to fix the economy is to consume MOAR!

 

(But who is going to make what you consume?)

Sat, 12/06/2014 - 16:40 | 5524237 COSMOS
COSMOS's picture

Dont worry, the health care industry is more than happy to consume more of your income as well as the lawyers and govt taxes etc.

Sat, 12/06/2014 - 22:16 | 5524972 Escrava Isaura
Escrava Isaura's picture

 

 

Because US needs a constant bubble; so health-care and student-loans, followed by the last bubble (global warming/pollution that should bring China and the US close together, for a little longer) before final implosion, thus war.

 

Get this, once for all: There is NO more growth, Period!

 

Sat, 12/06/2014 - 20:34 | 5524762 Ginsengbull
Ginsengbull's picture

That's where the old MAD doctrine comes in.

 

If we can just get some other country to nuke our cities, we would default to a sustainable level of prosperity.

Sat, 12/06/2014 - 13:33 | 5523880 Jumbotron
Jumbotron's picture

Around 2020 the next leg down begins.  By 2025 the wheels really start coming off for America.  The combined weight of the Retiree wave, the combined weight of consumer, student, and government debt, Skynet and the Robot Hoards of Automation, 40 million illegals (25 million now...family members coming soon), Peak Cheap Energy, the decline of Shale and Tight oil, Peak Ponzi Federal Reserve Schemes, Social Security WAY insolvent by 2025, Peak Obamacare, and the looming Bond Crisis.....all combine by 2025 to topple the American Empire over completely.  Where Spain, France, and Britain went after their centuries of Empire....we are now heading rapidly.

Sat, 12/06/2014 - 14:11 | 5523984 El Vaquero
El Vaquero's picture

You, sir, are an optimist.

Sun, 12/07/2014 - 17:11 | 5526464 Jumbotron
Jumbotron's picture

"You, sir, are an optimist."

 

I haven't been called that in 15 years.  I've actually been expecting to be wrong since 2008.  Followed a bunch of folks who have said for years that the 2014-2018 timframe would be the collapse.  Now....since the Crash of 2008 I've seen the depth of the Fascist State like I have never thought in terms of the lengths it will go to keep up the Grand Charade of the American Empire.  Plus the power of both Coservative and Liberal media along with the Financial Media, print, TV and internet combined to keep the masses from panicking and sparking off the Collapse, Orwell himself would be tuly amazed.  Huxley.....not so much.

But physics will prevail.  And there is physics even behind economics.  Sooner or later....you run up agaist it.  It seems now to be later than most of us thought.  But it is inevitable.

Sat, 12/06/2014 - 20:16 | 5524692 813kml
813kml's picture

That timeframe sounds accurate if you're talking military time.

Sat, 12/06/2014 - 13:56 | 5523944 Bloppy
Bloppy's picture

It's just a scam so they can scoop up more gold and silver on the cheap.

 

Cornell professor: time for white "race suicides" in wake of Ferguson, NYC

http://tinyurl.com/p99wxz9

Sat, 12/06/2014 - 12:33 | 5523724 cossack55
cossack55's picture

But.....but.....George Bush told us to go shopping.

Sat, 12/06/2014 - 12:45 | 5523767 zerozulu
zerozulu's picture

Once number 2, number three and four and five are no far behind until we start competing with Mogadeshu.

Sat, 12/06/2014 - 15:06 | 5524074 Max Steel
Max Steel's picture

US can't fall further from #3 . Chinese will completely take over by 2025 and so do India by 2050 . 

Sat, 12/06/2014 - 20:42 | 5524788 kowalli
kowalli's picture

USA gdp can go backward...

Sat, 12/06/2014 - 22:36 | 5525013 Sandmann
Sandmann's picture

Never. There is a paid panel of experts to assert that a US Dollar of GDP is worth more than a Chinese US Dollar of GDP or a gErman US Dollar of GDP

Sat, 12/06/2014 - 22:57 | 5525050 kowalli
kowalli's picture

China can paid them too=)

Sat, 12/06/2014 - 13:01 | 5523806 sun tzu
sun tzu's picture

He doesn't have a fucking clue. He was merely doing the bidding of Wall Street

Sat, 12/06/2014 - 12:34 | 5523725 screw face
screw face's picture

#Chickenshitbankers.......MOAR NAIL GUNS!

Sat, 12/06/2014 - 15:05 | 5524072 Winston Churchill
Winston Churchill's picture

Just bought a battery operated one.Works great, so maybe they can sit on the beach while offing

themselves .Easier cleanup.

Sat, 12/06/2014 - 12:39 | 5523739 Disc Jockey
Disc Jockey's picture

We're Number 2! We're Number 2! We're Number 2!

Wait...what does number 2 stand for again?

Sat, 12/06/2014 - 13:41 | 5523913 Brindle702
Brindle702's picture

... first loser ...

Sat, 12/06/2014 - 14:53 | 5524040 noben
noben's picture

First Runner-up, if your glass is half full.

In case the Winner resigns.  If you're a dreamer.

p.s. It turns out that THE best lifestyles are enjoyed by Peoples in medium-sized economies, as long as they control their immigration.  E.g. Austria, Belgium, Canada, Holland, Norway, Sweden, Switzerland.  Or City-states, e.g. Singapore, Monte Carlo...  France and Germany would do much better, had their system not been overly compromised with dysfunctional immigration.

Sat, 12/06/2014 - 17:35 | 5524325 zerozulu
zerozulu's picture

Usually number 2 stands for fake Chinese made  imitation product.

Sat, 12/06/2014 - 12:40 | 5523746 q99x2
q99x2's picture

The US weapons manufacturers and Department of Defense for the UN nation state of the United States of America are headed out of Dodge to Shanghai bitchez. Money talks and Oligarchs walk.

Sat, 12/06/2014 - 12:45 | 5523761 Oldballplayer
Oldballplayer's picture

Throughout recorded history, China held the top spot. Their economy dwarfed Egypt, Rome, Greece, and Britain.

Why is this a surprise to anyone.

You create a product that every chinaman uses once, and you retire and generations of your family never have to work again.

Sat, 12/06/2014 - 12:56 | 5523791 armageddon addahere
armageddon addahere's picture

Tell that to a Chinese rice farmer. When has that ever worked? Although, it has been a dream for 200 years. Sell your product to the billions in China and make billions, fat chance of it working.

Sat, 12/06/2014 - 13:16 | 5523841 Renewable Life
Renewable Life's picture

I think they maybe meant, shit like iPhones, they grow rice in California too!

Sat, 12/06/2014 - 14:18 | 5524000 El Vaquero
El Vaquero's picture

Well, in recent history they have grown rice in California.

 

http://droughtmonitor.unl.edu/

Sat, 12/06/2014 - 17:43 | 5524337 Lea
Lea's picture

"You create a product that every chinaman uses once, and you retire and generations of your family never have to work again."

At a time when they were no patents or copyrights, it would hardly have been the source of the Chinese propsperity. Which was very, very relative. China has long been a feudal society, with a population that was mainly rural. It's so vast, and its people so industrious, that it came out as very advanced, but it was not. 

If they ended up with a revolution and communism, there's a reason, and it was poverty and oppression.

Sat, 12/06/2014 - 22:38 | 5525017 Sandmann
Sandmann's picture

In a non-industrial economy cultivated land dictates wealth

Sat, 12/06/2014 - 12:47 | 5523772 I am Jobe
I am Jobe's picture

What USSA #2. WTF, more WMT and MCD , Jack in the Crack, Buger King and more Slurpees and USSA number 2. Chop Chop get to work Mr. Yellen. 

 

Sat, 12/06/2014 - 13:02 | 5523810 sun tzu
sun tzu's picture

No longer execeptional LOLOLOL

Sat, 12/06/2014 - 12:48 | 5523775 snr-moment
snr-moment's picture

Service Economy!  Yeah Baby!!

Sat, 12/06/2014 - 13:04 | 5523813 sun tzu
sun tzu's picture

Social media economy!

Sat, 12/06/2014 - 14:20 | 5524005 El Vaquero
El Vaquero's picture

Speaking of service economies, how long do you think it will be until the US starts counting pretty young girls servicing the pipes of crusty old men for a fee as part of the GDP?

Sat, 12/06/2014 - 12:52 | 5523776 Mine Is Bigger
Mine Is Bigger's picture

Nonsense! The Fed can print quadrillions, and the U.S. will be No. 1 again.

Who needs production when you can just create "wealth" with computer keystroke?/sarc

Sat, 12/06/2014 - 13:36 | 5523902 Steroid
Steroid's picture

Theirs is bigger!

If we have debt, they have megadebt.

Sat, 12/06/2014 - 12:53 | 5523782 The_Dude
The_Dude's picture

If the world thought the US was bad, they are going to just love their new Chinese masters....

Sat, 12/06/2014 - 13:20 | 5523856 I am Jobe
I am Jobe's picture

With the Chinese buying up things int he USSA and Indians running 7-11 and being CEO's/Doc/Engineers, wonder what the future of the Amerika , er I mean the natives gonna do?

Sat, 12/06/2014 - 15:11 | 5524082 Max Steel
Max Steel's picture

Africa aleady has and they don't regret it .

Sat, 12/06/2014 - 13:18 | 5523783 fiftybagger
fiftybagger's picture

3 And four great beasts came up from the sea, diverse one from another. 4 The first was like a lion, and had eagle's wings: I beheld till the wings thereof were plucked, and it was lifted up from the earth, and made stand upon the feet as a man, and a man's heart was given to it. 5 And behold another beast, a second, like to a bear, and it raised up itself on one side, and it had three ribs in the mouth of it between the teeth of it: and they said thus unto it, Arise, devour much flesh. 6 After this I beheld, and lo another, like a leopard, which had upon the back of it four wings of a fowl; the beast had also four heads; and dominion was given to it.

17 These great beasts, which are four, are four kings, which shall arise out of the earth.

Daniel 7 King James Bible

9 And here is the mind which hath wisdom. The seven heads are seven mountains, on which the woman sitteth. 10 And there are seven kings: five are fallen, and one is, and the other is not yet come; and when he cometh, he must continue a short space. 11 And the beast that was, and is not, even he is the eighth, and is of the seven, and goeth into perdition.

Revelation 17 King James Bible

1 And I stood upon the sand of the sea, and saw a beast rise up out of the sea, having seven heads and ten horns, and upon his horns ten crowns, and upon his heads the name of blasphemy. 2 And the beast which I saw was like unto a leopard, and his feet were as the feet of a bear, and his mouth as the mouth of a lion: and the dragon gave him his power, and his seat, and great authority.

Revelation 13 King James Bible

1 Woe to the land shadowing with wings,

Isaiah 18 King James Bible

Ready?

Sat, 12/06/2014 - 12:53 | 5523785 himaroid
himaroid's picture

Marco Polo say "Follow the Silk Road to the land of paper money."

Great example they set there.

Sat, 12/06/2014 - 13:04 | 5523794 yogibear
yogibear's picture

And China keeps acquiring tons of gold.

All China and Russia have to do now is dethrown the US dollar and help the Federal Reserve put the US in the poor house. If the US cannot afford it's military it's powerless. Sounds like a step by step plan to diminish influence of the US. Putin, just be patient. The BRICS can take down the US and Europe.

Wells Fargo, Obama aims to keep Buffet happy.

Keep killing the Keystone so they require Buffet's trains to transport oil.

Sat, 12/06/2014 - 13:06 | 5523817 sun tzu
sun tzu's picture

The greenies think that transporting liquid fuels by rail is better for the environment. They also think that buying carbon credits from Goldman Sachs will save the world. 

Sat, 12/06/2014 - 13:03 | 5523807 will ling
will ling's picture

toilet paper jobs won't wipe away the longest streak of private sector job deterioration on record.

Sat, 12/06/2014 - 13:07 | 5523812 JustObserving
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If you correct inflation in USA for last twenty years, US GDP falls by half.  US inflation is understated by at least 3% and so US GDP is overstated by 3% every year. Those corrections over twenty years add up to a 50% decrease in GDP.  Besides, imputed rents for owner-occupied housing add about 7.5% to US GDP.

The addition of intangibles such as iTunes added $500 billion to US GDP on July 1, 2013.

US GDP is based on smoke and mirrors, hedonics and the best lies of the US BLS.  At least we are number one in fictitious economic numbers now. Forward - to more manipulation and more chicanery.

http://www.shadowstats.com/alternate_data/inflation-charts

Sat, 12/06/2014 - 13:06 | 5523820 DaveA
DaveA's picture

So it goes. If we waste their inheritance on financial speculation and political patronage, our grandchildren end up sucking Chinese dick for Chinese dollars.

Sat, 12/06/2014 - 13:40 | 5523911 The9thDoctor
The9thDoctor's picture

our grandchildren end up sucking Chinese dick for Chinese dollars

I'd rather have the Chinese actually takeover America, than the current Zionist Israelis we have running this place now.

This Red China Scare is neocon propaganda.  Nevermind the tribe which makes up a tiny mere fraction of the population calling the shots in foreign policy, banking, real estate, entertainment, casinos, the defense industry.  No, no, no, they promote the "only democracy in the Middle East".  We need to be scared of billions of sweatshop workers and farmers who live in a total ecological disaster.

It's beyond comical.  The neocons are all upset because American Exceptionalism is a sham, and USA is no longer NUMBER ONE.  Oh no!  The United States dropped to #2 to a nation with five times the population.

You all who claim to be "awake" sure fall for flag-waving bullshit very easy.

Sat, 12/06/2014 - 14:33 | 5524023 Leraconteur
Leraconteur's picture

I'd rather have the Chinese actually takeover America

 

No, you don't. Live in China before you say such a thing.

Sun, 12/07/2014 - 00:30 | 5525221 Escrava Isaura
Escrava Isaura's picture

 

 

The9thDoctor

Let me tell you something from my own experience in the US and Brazil:

Most Jews are not Zionists; but dealt with a very bad Jew, from Boston. Anyway, Jews (I am talking about in business) are very systematic and careful; such as put everything in writing.

 

Chinese are very closed in society. Very shady business practices. And very racist. I’ll take Japanese over a Chinese at any time. Keep in mind that Brazil has the largest Japanese community in the world, outside Japan.

 

For what I read in Zero Hedge, Chinese banks are as leveraged and corrupted as US banks, if not more.

 

China is run by a bank/government cartel that makes Brussels bureaucrats envious.

 

The American “Left and Right” neocons have no concern with world’s realities; such as China ranking in some bogus metric, as in GDP, or whatever.

 

These Neocons are really worried NOW, not because they cannot grasp reality, but, about the coming financial ruin, because they just realized that, there won’t be any recovery after that, because demographics is in a exponential line, while oil and food production are in a linear line; and declining.

 

So, the Neocons, and their institutions that comes at staggering cost will be the biggest losers.

 

And their rhetoric of virtues will fall in deaf ears.

 

Sat, 12/06/2014 - 13:11 | 5523831 FieldingMellish
FieldingMellish's picture

You know its a top when your economy consists of payday loan sharks and nail bars.

Sat, 12/06/2014 - 14:01 | 5523941 Steal Your Face
Steal Your Face's picture

And electronic cigarette "vapor lounges". The two signs I see popping up the most in my part of the lower Midwest is "e-cigs" and "space available".

Edit: Also, flea markets/pawn shops. 3 new ones in my 3k town since October.

 

Sat, 12/06/2014 - 13:15 | 5523838 Stanley Lord
Stanley Lord's picture

There is a typhoon hitting the Phillipines, where is Simon Black to remind us what a lovely place it is to live?

Sat, 12/06/2014 - 15:01 | 5524064 Baldrick
Baldrick's picture

that's the thing about Simon. I recall a few years back he was pimping Ukraine. lol!

Sat, 12/06/2014 - 13:18 | 5523845 Yen Cross
Yen Cross's picture

    While I agree the U.S. is in decline. The BoC balance sheet would make the Feds. look like pikers. The U.S. is number one far and away at (2) things. ~ waste and misappropriation~

Sat, 12/06/2014 - 13:20 | 5523855 Hohum
Hohum's picture

China has destroyed a lot in producing its wealth.  It may have destroyed more of potential future wealth than it has created in the recent past.

Sat, 12/06/2014 - 13:38 | 5523903 Bioscale
Bioscale's picture

Your post works for USA, rather much better.

At least China is buying gold and assets in the western economies while debt is being considered as wealth in US. Not mentioning how much of US capital is being destroyed by maintaining 900 military bases around the war and how much of capital is being destroyed in foreign countries far abroad by bombing and murdering people, currently Ukraine, Lybia, Iraq, Afghanistan, Syria etc.

Sat, 12/06/2014 - 14:01 | 5523959 The9thDoctor
The9thDoctor's picture

At least China is buying gold and assets in the western economies while debt is being considered as wealth in US.

Gold is not going to do them any good if the whole surface of the globe is irradiated.  I've read plenty of RAND corporation documents over the years.  The neocons would rather nuke the whole earth than to lose their hegemony.  That's their ace in the hole.  Why do you think all of these countries put up with fiat currency and take it up the ass being pushed around all of the time?  They are dealing with Skull and Bones and Bohemian alumni who are ardent nihilists.  These guys will release SARS, and start WWIII, if there is any threat to their magickal USD printing press.  They have alot of koolaid drinking flag wavers who would gladly go with it, because it is "endtimes".

The agenda is to hide in underground bases while the big one hits, then they will re-emerge on the surface as cyborgs with AI implantable technologies.

I used to get laughed at a decade ago for bringing this up.  Nowadays the AI agenda and the eradication of the human species is a daily read on the Drudge Report.

I wish we could stop all of this madness before it is too late.

Sat, 12/06/2014 - 13:39 | 5523870 razorthin
razorthin's picture

Sing it with me - "I'm turning Chinese, I think I'm turning Chinese, I really think so..."  Given the huge demographic disparity, I think we will be singing this song much longer than we did the Japanese version in the 80's.

"Little China girl", anyone?  Don't mind if I do.

Sat, 12/06/2014 - 15:20 | 5524102 Max Steel
Max Steel's picture

Yup but Chinese are here to stay much longer moreover they are already acting like a superpower . Quiet different from Japs . Japs is under US protection umbrella aka our bitch in east  .

Sat, 12/06/2014 - 13:32 | 5523874 yogibear
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Put your "US #2" hat on Barry. We know Obama's doing an excellent job on socializing the US. He uses Europe as the model.

Print more, hand out more Obama phones, welfare, medicaid and section 8 housing to illegals they'll come flooding into the US. What an economic model!

Next target the Obama admin can strive for is #3. Go for it! 

Make China happy and disassemble the military. It's the real target of Obama and the Chinese.

 

Sat, 12/06/2014 - 13:29 | 5523877 GoldSilverBitcoinBug
GoldSilverBitcoinBug's picture

China number one but USA still (even if it's declining) number one in military, listened yesterday a retired French air-force colonel and said it can take as 30 years to catch on military power (to be at an imperialist scale like USA), not because of the lack of technology but rather the military organization itself.

But Russia is very strong on the military side, so maybe China will be the economic side and Russia the military one thus explaining their high cooperation between themselves.

Sat, 12/06/2014 - 13:32 | 5523888 yogibear
yogibear's picture

Take down the US economically and you kill the military. Just that simple.

Make it so the military is unaffordable.

Sat, 12/06/2014 - 22:40 | 5525021 Sandmann
Sandmann's picture

Well it consumes most of the Federal Income Tax revenue and consumes as much energy as Nigeria

Sat, 12/06/2014 - 13:35 | 5523892 AdvancingTime
AdvancingTime's picture

In many ways China and Russia compliment each other in the same way Canada and America find ways to work together. Russia has enough "Nukes" and a bit of space to the East that they need not worry about being overrun.

Sat, 12/06/2014 - 13:40 | 5523907 Jumbotron
Jumbotron's picture

We have never defeated an Asian nation without nukes.  We ran out of Korea....we ran out of Viet Nam.  And we only defeated Japan with nukes.  

 

If America were to go to war with China the Russians would also step in and we would lose.  Like wise, if America were to go to war with Russia, China and North Korea would step in...if only from a cyber warfare standpoint if not militarily...and we would lose.

 

Sat, 12/06/2014 - 13:31 | 5523881 AdvancingTime
AdvancingTime's picture

America imports around five hundred billion dollars more from other countries every year than they export. This means we have a giant trade deficit, when we add this to our enormous government deficit it is easy to see that we are living far beyond our means.

The Fed has been superbly entrepreneurial when it comes to Ponzi schemes or pseudo-economics hocus-pocus that has allowed the current situation to develop. The Fed  must at some point begin to ponder a real exit strategy and end the massive and corrosive stimulus that the economy has come to expect. To make matters worse little has been done to address our structural problems and make America more competitive, this will massively thwart growth going forward. Debt does matter, more on why Fed policies are destined to fail in the article below.

 http://brucewilds.blogspot.com/2014/06/exit-strategy-from-qe-remains-elusive.html

Sat, 12/06/2014 - 13:37 | 5523901 yogibear
yogibear's picture

The best way China and Russia can take down the US is economically.

Where it can no longer afford it's military due to enourmous debts. Seems like the BRICS members are already in progress with this.

To wage a military war makes no sense.

Sat, 12/06/2014 - 20:46 | 5524797 post turtle saver
post turtle saver's picture

I've listened to this line for well over 40 years... it hasn't happened yet and it's not going to happen soon, either

Sat, 12/06/2014 - 23:40 | 5525140 Escrava Isaura
Escrava Isaura's picture

 

 

yogibear

So, why do you think US has the most powerful and sophisticated military in the world?

And the most powerful ally and base (Israel) in the Middle East?

And who do you think NATO answers to?

 

Wake up, for goodness sake! Empires never goes down quietly.

 

Sat, 12/06/2014 - 13:43 | 5523910 Son of Captain Nemo
Son of Captain Nemo's picture

"SNAP" or no SNAP... The way to an American's "soul" is through the purse strings...

This is what Americans will ultimately fight and die for not "Resolution 758" passing the House with unanimous consent and why a war will start before the lemmings figure out what was more important!

Sat, 12/06/2014 - 13:56 | 5523943 ebworthen
ebworthen's picture

The U.S. is still #1 at:  propaganda, distractions, broken promises, selling out, and trashing its Constitution.

Sat, 12/06/2014 - 14:24 | 5524011 El Vaquero
El Vaquero's picture

I dunno, I get the impression that the Chinese are pretty damned good at propaganda, broken promises and selling out.  I'm not sure about the distractions and they don't have a constitution like ours to trash though.  I think that in the long run, China is just as fucked as we are, if not more so. 

Sat, 12/06/2014 - 14:12 | 5523985 phat ho
phat ho's picture

The sign on the door said number 1, when it reallly smelled like number 2

Sat, 12/06/2014 - 14:23 | 5524008 Incubus
Incubus's picture

 

 

Incubus liked this.

Sat, 12/06/2014 - 14:27 | 5524014 LetsGetPhysical
LetsGetPhysical's picture

ZH are you seriously running with this story? Please show me the math. What's the population of China? Now what's the population of the US? This is the worst kind of click-bait ever.

Sat, 12/06/2014 - 14:42 | 5524033 ebworthen
ebworthen's picture

It's just a headline on every news wire in existence.

The U.S. couldn't make a vacuum cleaner to save it's life.

"Going Out Of Business" sign should be hung on the Statue of Liberty.

Sat, 12/06/2014 - 14:57 | 5524055 Jack Burton
Jack Burton's picture

China's ability to grow just got stronger. The USA's declaration of war on the Russian Federation has had the result of pushing Russia and China into a economic alliance and quasi defense alliance. Russia balked at many trade deals with China is the past because China bargained hard, and demanded low prices for oil, gas, minerals, timber, water. But Russia had markets elsewhere and held back for higher prices. With the economic embargo growing by the West, Russia has gone back to the table and accepted China's prices after getting them jacked up a bit in return for military sales of things like the S-400 anti aircraft system, nuclear submarine technology, and much else Russia would not have sold to China in the past.

The changed circumstances explain the flood of trade deals between Russia and China, and the big wepaons sales by Russia to China. It is all part of the larger picture of the two nations admitting the West's implacable hostility to both, and the growing threat of economic war, followed by proxy war, terrorism and then open strikes by NATO.

China's growth is limited today only by energy, water, land, timber minerals. Oh! The things Siberia is bursting with. China will now have Russia's Siberian resources to buy at nice prices, they will not have to try and take them, as the west had hoped, but Russia will produce them and sell at lower prices, in return for a military alliance, and  for consumer goods. Ask yourself, what could a RUssian want to buy in the markets that China can't produce at cheap prices. The very top end stuff Oligarchs want comes from the west, but that is all.

China's economy secured another 100 years of growth potential by alliance with Russia, the earth's resource store house. I believe any analysis of this potential, minus bias, would produce the same conclusion. Who is the big winner from the NATO attack on Russia? It is China!

Sat, 12/06/2014 - 15:21 | 5524103 Winston Churchill
Winston Churchill's picture

And it also makes the US navy as much use as a rubber duck for your bath.

No carrier group will survive close enough to launch sorties.No merchantmen required

for submarine targets.

Its over for Pax Americana, but will it destroy the world in pique on its way out ?

Sat, 12/06/2014 - 15:12 | 5524086 post turtle saver
post turtle saver's picture

so let me get this straight...

- The US accounts for 4.5% of world population and generates 16.4% of world GDP

- China accounts for 19.4% of world population and generates 15.8% of world GDP (note: fucking slackers, get to work)

oh yeah, it's the End Of Days for the US lol... I have to wonder what report ol' "Talkin' My Book" Black is reading, because it sure as hell isn't the most recent IMF report

Sat, 12/06/2014 - 15:30 | 5524133 Max Steel
Max Steel's picture

Not end of days . God bless those printing press and chinese ink . 

 In the components of the U.S. GDP , the financial services sector accounted for 21.4% while the real economy sector accounted for 65%. The total output value of the U.S. financial services industry is composed of two major parts: one is the transferred production value, most of which comes from value distribution of participating in international production. Another part is the inflated value originated from credit innovation, which belongs to bubble value. In addition, due to the high economic financialization, more than half of the profits in the real economy come from the returns of financial activities. If we exclude the factor of virtual economy, the U.S. actual GDP is about 5 trillion U.S. dollars , per capita GDP about $ 15,000. Meanwhile, the total domestic consumption was 10.0 trillion U.S. dollars and government expenditure was 4.5 trillion U.S. dollars. The production capacity of real value in the national economy is the material base to arrange social distribution and consumption. As the U.S. government arranges its budget according to the GDP including the virtual value, its revenue must fall short of its expenditure, so the socialization and normalization of debts will exacerbate the environment of economic development. 

any estimate of when China will (or did) pass the U.S. is meaningless.

It should be clear to everyone, however, that the U.S. is no longer the world’s unchallenged economic superpower.

Sat, 12/06/2014 - 17:14 | 5524296 post turtle saver
post turtle saver's picture

hand waving... all else equal, US is an advanced economy so this isn't a surprise, whereas China is not

China's GDP growth is impressive, but the US doesn't sit still either... 28% GDP growth from 2005 to present, which for an advanced economy is nothing short of phenomenal... yet somehow the US is supposed to have one foot in the grave and the other on a banana peel... sorry, not buying it

Sat, 12/06/2014 - 17:45 | 5524341 Max Steel
Max Steel's picture

28% growth ? any proof/link for more insight info 

Sat, 12/06/2014 - 20:03 | 5524657 Winston Churchill
Winston Churchill's picture

WMD growth.

Sat, 12/06/2014 - 20:37 | 5524774 post turtle saver
post turtle saver's picture

data.worldbank.org

Sun, 12/07/2014 - 15:57 | 5526332 Max Steel
Max Steel's picture

Thanx turtle . What are your views on this : 

 http://www.businessinsider.com/china-dagong-us-gdp-2010-11?IR=T

Sat, 12/06/2014 - 20:27 | 5524736 Ginsengbull
Ginsengbull's picture

China makes up numbers as they see fit.

Sat, 12/06/2014 - 22:50 | 5525036 iceCube
iceCube's picture

Unlike the US, right?

Sat, 12/06/2014 - 15:43 | 5524162 rejected
rejected's picture

America 300 million mouths and only 100 million teats.

Sat, 12/06/2014 - 16:27 | 5524215 EternalAnusocracy
EternalAnusocracy's picture

Bitchezz, the US economy is just fine.  It is simply transitioning (rapidly) to a Brazil type economy.  Lots of poor people, a small number of rich people, and a small middle class to service the rich class, and keep the poor in their place.  

If you have your house paid off, you should be able to survive just fine.  Otherwise, you are pretty screwed going forward.  If you want to know what professions or businesses your kids should go into, don't look into America's past, look to Brazil, India, Argentina, South Africa, Indonesia to see who is doing well there.  That's the future Bitchezz.

Sat, 12/06/2014 - 16:48 | 5524250 world_debt_slave
world_debt_slave's picture

U.S. is the laughing stock amongst allies and foes alike, get ready for the fall.

Sat, 12/06/2014 - 17:05 | 5524278 NubianSundance
NubianSundance's picture

US GDP 15 trillion dollars? Don't make me laugh. More like 7-8 trillion at best. And that's probably an overstatement.

Sat, 12/06/2014 - 20:18 | 5524709 Tom Green Swedish
Tom Green Swedish's picture

It's official America is the new big baby state.

Sat, 12/06/2014 - 22:01 | 5524924 Amerikan Patriot
Amerikan Patriot's picture

Actually, Russia is the world's #1 economy. 

Russia makes watches far superior to popular Swiss brands, cars light years ahead of Germany's premium marques and its industrial equipment prowess make Caterpillar look like novices.

When Nikita Khrushchev said "we will bury you" he wasn't kidding.  The Soviets spent over 70 years perfecting every luxury item, consumer good and advanced manufacturing technology known to man.

Oil is merely a side business for these people.

Sat, 12/06/2014 - 22:10 | 5524963 FredFlintstone
FredFlintstone's picture

As good as MDB

Sat, 12/06/2014 - 22:04 | 5524950 Yen Cross
Yen Cross's picture

  Yes, we can debate per capita GDP and nominal GDP numbers. Yes we can debate the amount of waste and destruction "wonton" spending has delivered on Mother Earth.

  China is roughly the same land mass of the lower 48 contiguous, United States with (China having) 1.3 billion eaters vs 317 million eaters (U.S..

 If you look at #1 in waste and destruction the numbers are clear, "per capita". I can't fucking wait until Russia and China co-opt a Swift alternative.  Absolute power corrupts, absolutely.

~Bitchez~

 

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