China has the gold! It has overtaken Japan to become the world’s second-largest economy, the fruit of three decades of rapid growth that has lifted hundreds of millions of people out of poverty. Now, just depending on how fast its exchange rate rises, China is on course to overtake the United States and vault into the No.1 spot sometime around 2025, according to projections by the World Bank, Goldman Sachs and others.
Oh, so the world will definitely not end in 2012. Thanks World bank, Goldman, Sachs and others for your assurances!
Okay, illuminate me further… “yes indeed,” Yi Gang, China’s chief currency regulator, mentioned the milestone in passing in remarks published on Friday. “China, in fact, is now already the world’s second-largest economy,” he said in an interview with China Reform magazine posted on the website (www.safe.gov.cn) of his agency, the State Administration of Foreign Exchange. Cruising past Japan might give China bragging rights, but its per-capita income of about $3,800 a year is a fraction of Japan’s or America’s. So roar on Tigress…with every roar of your performance gives us caution to signal right and turn left!
“China is still a developing country, and we should be wise enough to know ourselves,” Yi said, when asked whether the time was ripe for the Yuan to become an international currency.
China is a leading member of the Group of 20 rich and emerging nations, which since the 2008 financial crisis has become the world’s premier economic policy-setting forum.
But, in one important respect, China is still a shrinking violet: anxious to shield itself from the rough-and-tumble of global markets, it does not permit its currency to be freely exchanged except for purposes of trade and foreign direct investment.” (Additional reporting by Zhou Xin; Editing by Ken Wills)
Also, in an assessment disputed by Beijing, “the International Energy Agency said last week, that China has surpassed the United States as the world’s largest energy user.” Well, at least they had a savoir faire to brush us off lightly! Even though Beijing doesn’t agree…here are some facts to back that up…Look at the size of a 4000 year old Tiger compared to a 200 year old Red/White and Blue, using oil, gas, coal, Hydro electrics, nuclear power, geothermal wind, solar energy, wood—and then compare the population of 280 mil Americans to 1300 mil Chinese…. But, CAN IT BE SUSTAINED? That’s another question.
Back on home turf, I have something to tell you. Are you sitting down?
“Last week, three Democratic senators publicly advocated extending the 2003 Bush tax cuts scheduled to expire at the end of the year. That’s right. Three senators from the political party that since 2003 have bashed those tax cuts as a sop to “the rich” have suddenly decided that it’s not a smart idea to let tax rates go up when the economy is as weak as it still is.
These three bright fellows are Evan Bayh (Ind.), Kent Conrad (N.D.) and Ben Nelson (Neb.). All honor to them for having the political courage to do the right thing for the economy, even if it means going against the conventional wisdom of their party.
News of their conversion broke the evening of July 21. The following day, the S&P 500 index gained 2.3%.
Here’s the logic behind Bayh, Conrad and Nelson’s decision.
First and foremost, they’re thinking about jobs — and with the unemployment rate at 9.5%, everyone in Washington ought to be thinking the same thing. Bayh, Conrad and Nelson understand that the prospect of higher taxes on “the rich” next year is holding back job creation.”
Instead of focusing on the negative, stuff that changes daily, hoard your stash your physical gold and silver, and the best way to use this strategy is to do your research and prepare at Regal Assets. If you stay on your toes you’ll be ahead of making a topsy-turvy volatile economy into a lifetime of opportunity!