Shaw Capital Working Management News Worldwide: The Big China Question – 3 May
2011
http://goldnews.
bullionvault.
com/china_overtake_050320112
Will China really overtake US in five years?
ACCORDING TO the International Monetary Fund (IMF) "World Economic...
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Shaw Capital Working Management News Worldwide: The Big China Question – 3 May
2011
http://goldnews.
bullionvault.
com/china_overtake_050320112
Will China really overtake US in five years?
ACCORDING TO the International Monetary Fund (IMF) "World Economic Outlook,"
China s output will surpass that of the United States in 2016 – only five years from
now, writes Martin Hutchinson, contributing editor at Money Morning.
But don t worry.
The IMF calculation is based on "purchasing power parity" (PPP), which
does not reflect real money.
It relies on projecting China s stellar growth rates five years
into the future.
And it relies on Chinese official statistics, which are more than a little
questionable.
In fact, after the media storm that resulted, the IMF apparently even soft-pedaled its
prediction that China would leapfrog the United States in just five years; in a subsequent
interview, an IMF spokesman reportedly said that, by non-PPP measures, the US
economy "will still be 70% large
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