China is under-counting its gdp by a lot.
Chinese Economics Thread
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China is under-counting its gdp by a lot.
If you think about it, the world really should be using the RMB when comparing against different countries.
1. More countries count China as their largest trading partner than the USA.
2. China has the largest economy in the world in terms of real output of goods and services. So China has more influence over global benchmark prices for goods and services.
Of course, such a practice would be heresy for the US.
Plus China is not ready for this, as they still see themselves as a developing middle-income country.
But let's see what happens when China passes the US in terms of nominal GDP.
NB. In the event of this happening, IMF bylaws state the headquarters has to move from the US to China
France did industrialise at the same time as Germany. But they fell behind in the second half of the 19th century. An important factor is probably that they fought various wars, most importantly the Crimean war, after which they start to fall behind and the one in 1870 against Germany, after which they get left behind by their peers.
Geography just gives you the opportunity to develop, it doesn't automatically give you development. Any county in east Asia has the opportunity now and I don't think it can be argued against China benefiting from its environment. That doesn't take away from the achievements of the communist party. But if China were located where south Africa is, I think they'd have had a much harder time.
Of course failing to develop, like the Philippines, despite such a beneficial environment is a sign of incompetence and a failure to seize the opportunity
A 20% drop in the CNY to USD exchange rate due to a 5.75% swing in relative interest rates seems like basic economics.
An appreciation is expected if the US drops its interest rates again.
We have NO SAY on the matter, granting us independence is a farce as we are so depended on the US for our reconstruction needs that we had to pawn our future to them. ( Mineral resource were given to American company as collateral to exploit)
Why didn't the US annex us as the 51st state? aside from being Brown why bother to reconstruct a former colony devastated by our war when we can control it for cheap and benefited hugely from it.
Bell Trade Act, an act passed by the U.S. specifying the economic conditions governing the emergence of the Republic of the from U.S. rule; the act included controversial provisions that tied the Philippine economy to that of the .
When the Philippines became independent on July 4, 1946, its economy had been thoroughly devastated by . Payment of war damage claims by the U.S. government and an influx of capital were both desperately needed. The Bell Act set quotas on Philippine exports to the U.S., pegged the Philippine peso to the U.S. dollar at a rate of 2:1, and provided for between the two countries for 8 years, to be followed by gradual application of tariffs for the next 20 years. Many Filipinos objected to the so-called , which required an to the Philippine constitution allowing U.S. citizens with Filipinos in the exploitation of natural resources and operation of public utilities; nonetheless, some powerful Filipinos involved in these negotiations stood to benefit from the arrangement.
A strong incentive for Philippine acquiescence was the fact that American payment of $800,000,000 in war damage claims was made upon Filipino ratification of the Bell Act. The act remained extremely unpopular in the Philippines. It was later superseded by an agreement more favourable to Filipino interests, the Laurel-Langley Agreement, which took effect in 1956.
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I guess even without an army there, the Philippines is a de facto vassal state.
The sad thing is that the American are the one who leveled and destroyed Manila, we then borrowed the money used for her reconstruction, like a mafia the loan was provided with a high interest rate. The rebuilding effort sucks all the fund needed for other development that the provinces had become so poor that the farmers had to sell their land to survived thus increasing the landholdings of the landed oligarch. Thus we term our capital as Imperial Manila, all the wealth of the nation had to go through her and she alone decide how much is distributed (the joke is Mindanao provide the lumber in return for a toothpick....lol), you control the purse you control the loyalty of your subject, its the only means to hold the nation together, Manila is an extension of American rule if you destroy her you destroyed the American influence.
CCP will absolutely do better. South Africa was already developed, had independent MIC, world class medical industry, nuclear weapon armed. All CCP needs is to not to fuck up what it already got.
South Africa is where it is right now because of corruption. They need Xi Jinping's CCP not Hu or Jiang's.
By the looks of it, vassal bagholders like Japan and others will be hurt the most when the UST values go to nothing, as they are still replenishing and increasing their UST reserves (while missing out on gold, which could go parabolic in the future if that above happens as it becomes the new neutral reserve asset and could offset that loss). Imagine all that generational wealth and reserves you accumulated as a nation vanishing overnight due to some lies the US brainwashed you with about their "superiority" in the world when they are a terminally ill patient rotting away.
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