From Hyderabad, India: In 2011 nominal dollars on purchasing power parity (PPP) terms the economy of the People’s Republic of China is worth $11 trillion in real terms. It is unclear where the valuation of the American or European economies will be by 2016, four years after the US election of November 2012.
Protected by a large domestic market, close monitoring and restrictions over inflows and outflows of eager foreign money which prevented China from becoming the fallen white elephant akin to Thailand in Asia in 1997, and significant investment by the United States since Nixon and Kissinger beginning 40 years ago, China’s rise to the top of the world’s economic heap is a certainty.
China’s quid pro quo for cooperating with the United States as a wedge nation during the Cold War is displacing the world’s wealthiest democracy since the beginning of the Cold War on the mountaintop about 3 decades after it ended with autocratic monolithic governance, individual freedoms traded off for the resurgence of civilizational pride and prosperity.
The time has come for the protege to part ways with the mentor in China’s strategic economic dialog with its political adversary. Otherwise, China’s inexorable rise could mean the gargantuan, inexorable and consummate fall of America should it be unprepared.
The awakened Asian giant will not permit any world power to come in its way to becoming the world’s #1 economy on a sustainable basis. This strategy will put at risk US debt and dollar as it prepares to float its currency, the renminbi (or the yuan) to secure resources for its continued growth using both dollar holdings and the yuan.
America must focus inward without losing its values because the line has once again been drawn between forms of governance.
The United States must create 250,000 non-farm jobs per month over the nearly next 3 years to remain at the top as China chugs along modulating its growth rate between 7.5 and 9.5 per cent per year, while achieving stable prices and full employment. “Can we do it?” is at least a $15 trillion question.
Arthur Clarke, should the United States be prepared to meet China on Europa by 2050? A start, China may be thinking, is indexing global oil and commodity prices to the renminbi by 2016, displacing the dollar, to go where no one has gone before, first (Methinks, that is Kepler-22b for the Atlantean Poseidon born of the Fountain of Youth to surf Zeus and the stars, trident and cornucopia in hand).