You have to pay back the interest money since most of the debt is owned by the US, not foreign countries. Why do you think the Federal Reserve had its first layoff in a decade?
Chinese Economics Thread
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You have to pay back the interest money since most of the debt is owned by the US, not foreign countries. Why do you think the Federal Reserve had its first layoff in a decade?
US GDP has increased to $26.7 trillion and china is around $18 trillion.
Despite China outgrowing US every year.
Overvaluation of dollar is the reason.
Despite China outgrowing US every year.
Overvaluation of dollar is the reason.
Are those the numbers for 2013?
You have the wrong numbers, as of 2023, it's 32.9t (China) vs 26.9t (US).
Compared to covid era where the gap between China and US was stationary, the gap has again started to grow ever so slightly this year. US is staying out of recession, but stagnation from deflation without demand is causing very lethargic growth.
I was talking about Nominal GDP. Yes China has a higher purchasing power GDP than US.
You can't compare 2 different currencies without first accounting for the different levels of inflation in each currency.
Doing so will give you the wrong results.
If you need to compare the sizes of the 2 economies, you need to normalize them (as I've done above) first.
I think he's referring to the nominal GDP figures not PPP.
Nominal GDP is heavily skewed towards the US due to an undervalued RMB and high US inflation.
PPP is not perfect, but is a far more accurate measure of economic size, power and influence.
But you can't compare those numbers between China and US, because they use different currencies.
It can by definition not be skewed since its not even a comparative measure to begin with.
Neither PPP nor nominal GDP is perfect.
Ron Unz looked at "productive GDP at PPP", namely excluding the services sector and in that regard China dominates.
But this ignores control of "chokehold sectors". For example, I think Japan and South Korea combined have a lot more control over such "choldhold sectors" that e.g. India despite them being lower in industrial PPP GDP. India's industrial sector may be big but it is very unsophisticated. That's not true for China but looking at PPP GDP alone wouldn't tell you that.
There is no perfect measurement.
Ron Unz looked at "productive GDP at PPP", namely excluding the services sector and in that regard China dominates.
But this ignores control of "chokehold sectors". For example, I think Japan and South Korea combined have a lot more control over such "choldhold sectors" that e.g. India despite them being lower in industrial PPP GDP. India's industrial sector may be big but it is very unsophisticated. That's not true for China but looking at PPP GDP alone wouldn't tell you that.
There is no perfect measurement.