40 Signs The Chinese Economy Is Beating The Living Daylights Out Of The U.S. Economy

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It is time to face the truth.  The Chinese economy is simply beating the living daylights out of the U.S. economy.  Whether you want to call it a rout, a slaughter or a thrashing, the reality is that the Chinese are absolutely embarrassing America on the global economic stage.  At this point, the Chinese are playing economic chess while the Americans are playing economic checkers.  China is poised to blow past the United States and become the largest economy in the world.  Not only that, some economists are projecting that the Chinese economy could be three times larger than the U.S. economy by mid-century.  The age of U.S. economic dominance is ending, and most Americans still don’t even understand what is happening.


Several decades ago, big corporations started figuring out that they could make a lot more money if they sold goods that were made overseas.  At the time the United States was so dominant economically that it didn’t even matter who was in second place.  We started shipping in lots of products that were made somewhere else and the American people loved it because the prices were lower and they could buy more stuff.  U.S. corporations loved it because profit margins were higher.  Foreign nations loved it because we were helping to develop their economies and they were getting richer.  Everyone seemed to be winning and it was a lot of fun while it lasted.

But then the trickle of jobs and factories leaving the country started to become a flood.  Then it became an overwhelming torrent.  The number of “middle class jobs” in the United States began to shrink continually.  Suddenly it seemed like most of the jobs that were available were low paying “service jobs”.  The prices of the goods in the stores were still low, but average American families were feeling increasingly squeezed so they started to borrow massive amounts of money in order to maintain the same standard of living.

Most Americans were willing to go into constantly increasing amounts of debt in order to buy cheap products that were made overseas.  This seemed to work well for everyone involved and so the consumer debt bubble just kept growing and growing and growing.

As businesses and jobs fled the country, the U.S. tax base just wasn’t as robust as it was before either.  The federal government, state governments and local governments all started borrowing gigantic amounts of cash from the countries we were sending all of our money to.

In particular, China really started to emerge as an economic powerhouse over the last couple of decades.  Once China joined the WTO they aggressively started to flood our shores with really cheap products.  When you have hundreds of millions of workers willing to work for about a dollar an hour that is not that hard to do.

Most Americans didn’t care where all of the cheap products were being made.  They just kept running out to the retail giants and filling up their carts.  Of course this was largely done with borrowed money, but at the time nobody really seemed to really care.

It is a lot of fun to run up huge amounts of debt, but eventually bills have to be paid.  All of this borrowing has enabled the U.S. to enjoy the greatest standard of living in the history of the world, but it has been a false prosperity.  The American Dream was purchased with borrowed money.

Now the United States is drowning in consumer debt and government debt from sea to shining sea.  We sent gigantic amounts of wealth over to China and other foreign nations and they sent us gigantic amounts of cheaply made products.

It was supposed to be a good deal for both sides.

In the end, it turns out it was a great deal for them and a crappy deal for us.

The following are 40 signs that the Chinese economy is beating the living daylights out of the U.S. economy….

#1 The Chinese economy has grown 7 times faster than the U.S. economy has over the past decade.

#2 According to the IMF, China will pass the United States and will become the largest economy in the world in 2016.

#3 According to one prominent economist, the Chinese economy already has roughly the same amount of purchasing power as the U.S. economy does.

#4 At the turn of this century the United States accounted for well over 20 percent of global GDP and China accounted for significantly less than 10 percent of global GDP.  But since that time America’s share of global GDP has been steadily declining and China’s share has been steadily rising.

#5 Nobel economist Robert W. Fogel of the University of Chicago is projecting that the Chinese economy will be three times larger than the U.S. economy by the year 2040 if current trends continue.

#6 According to Stanford University economics professor Ed Lazear, if the U.S. economy and the Chinese economy continue to grow at current rates, the average Chinese citizen will be wealthier than the average American citizen in just 30 years.

#7 During 2010, we spent $365 billion on goods and services from China while they only spent $92 billion on goods and services from us.

#8 Since 2005, Americans have gobbled up Chinese products and services totaling $1.1 trillion, but the Chinese have only spent $272 billion on American goods and services.

#9 The United States has lost an average of 50,000 manufacturing jobs per month since China joined the World Trade Organization in 2001, and the U.S. trade deficit with China is now 27 times larger than it was back in 1990.

#10 Back in 1985, the U.S. trade deficit with China was 6 million dollars for the entire year.  For the month of April 2011 alone, the U.S. trade deficit with China was 18.8 billion dollars.

#11 Since China entered the WTO in 2001, the U.S. trade deficit with China has grown by an average of 18% per year.

#12 According to a recent report from the Economic Policy Institute, between 2001 and 2008 the U.S. lost approximately 2.4 million jobs due to the growing trade deficit with China.  Every single state in America experienced a net job loss due to our trade deficit with China during this time period.

#13 The United States had been the leading consumer of energy on the globe for about 100 years, but last summer China took over the number one spot.

#14 China produced 19.8 percent of all the goods consumed in the world last year.  The United States only produced 19.4 percent.

#15 China now consumes 53 percent of the world’s cement.

#16 Last year, China produced 11 times as much steel as the United States did.

#17 Since China joined the WTO, approximately 46,000 factories have been transferred from the United States to Asia.

#18 China now has the world’s fastest train and the world’s largest high-speed rail network.

#19 Is alternative energy the future?  If so, the Chinese economy is positioned well. China is now the number one producer in the world of wind and solar power.

#20 Chinese solar panel production was about 50 times larger in 2010 than it was in 2005.

#21 Today, China controls over 90 percent of the total global supply of rare earth elements.

#22 85 percent of all artificial Christmas trees are made in China.

#23 Back in 1970, 25 percent of all jobs in the United States were manufacturing jobs. Today, only 9 percent of the jobs in the United States are manufacturing jobs.

#24 The United States has lost a staggering 32 percent of its manufacturing jobs since the year 2000.

#25 Between December 2000 and December 2010, 38 percent of the manufacturing jobs in Ohio were lost, 42 percent of the manufacturing jobs in North Carolina were lost and 48 percent of the manufacturing jobs in Michigan were lost.

#26 There are more pigs in China than in the next 43 pork producing nations combined.

#27 China now possesses the fastest supercomputer on the entire globe.

#28 Back in 1998, the United States had 25 percent of the world’s high-tech export market and China had just 10 percent. Ten years later, the United States had less than 15 percent and China’s share had soared to 20 percent.

#29 Manufacturing employment in the U.S. computer industry was actually lower in 2010 than it was in 1975.

#30 In 2002, the United States had a trade deficit in “advanced technology products” of $16 billion with the rest of the world.  In 2010, that number skyrocketed to $82 billion.

#31 Over the past 15 years, China has moved up from 14th place to 2nd place in the world in published scientific research articles.

#32 According to one recent study, China could become the global leader in patent filings by next year.

#33 Do you remember when the United States was the dominant manufacturer of automobiles and trucks on the globe?  Well, in 2010 the U.S. ran a trade deficit in automobiles, trucks and parts of $110 billion.

#34 According to author Clyde Prestowitz, China’s number one export to the U.S. is computer equipment.

#35 In 2010, the number one U.S. export to China was “scrap and trash”.

#36 In 2009, the United States ranked dead last of the 40 nations examined by the Information Technology & Innovation Foundation when it came to “change” in “global innovation-based competitiveness” over the previous ten years.

#37 Russia and China have announced that they have decided to quit using the U.S. dollar and instead start using their own national currencies when trading with each other.

#38 A Washington Post/ABC News poll conducted a while back found that 61 percent of Americans consider China to be a threat to our jobs and economic security.

#39 The average household debt load in the United States is 136% of average household income.  In China, the average household debt load is 17% of average household income.

#40 China has accumulated the largest stockpile of foreign currency reserves on the entire globe – $3.04 trillion as of the end of March.  That figure was an astounding 24.4 percent higher than it was exactly one year earlier.

So where in the world did China get all that money?

That is an easy question to answer.

They got it from us.

We are the wealthy rube sitting at the poker table getting bled dry by all of the sharks.

We gave trillions to the Chinese instead of giving it to U.S. businesses and U.S. workers.

Now our economic infrastructure is in shambles and tens of millions of Americans can’t find decent jobs.

Our government officials are wondering where all of the tax revenue went, but the reality is that you can’t tax workers that don’t have jobs.

Sacrificing jobs and economic infrastructure for “cheap stuff” is kind of like using pieces of your house to keep your fire going.  In the end, you won’t have any house left at all and your fire will go out.

The greatest economy on earth is being ripped to shreds right in front of our eyes and most of our politicians do not seem to care.

This has been a slow-motion disaster that has taken decades to play out. This is not something that happened overnight.

Sadly, the vast majority of the American people are still clueless about all of this.  That is one reason why I write so fervently about economic news.  My hope is that the American people will wake up before it is too late.

Unless fundamental changes are made, the current trends we are witnessing are only going to continue to accelerate.  The Chinese economy is going to continue to beat the living daylights out of the U.S. economy.

So what do all of you think about the dominance of the Chinese economy?  Feel free to leave a comment with your opinion below….

  • from europe – Dirty COOKIES 4 Gary

    you make it sound like a bad thing that the chinese are getting ahead. well, they deserved it. so quit your bitching and man up. you yanks are getting boring and annoying.

    • from asia

      hear, hear. only US bragging and preaching was slightly less annoying than this whining. china runs a tighter ship and doesn’t go on and on. time to suck it up, america. your problems are of your own making. get over yourselves.

    • robertsgt40

      This sounds like another dumbass Brit. You’ve been screwed too by the same banksters that infiltratrd us in 1913. Yeah, the UK, a prison on an island. Thanx for sending over your cancer.

    • China wouldn’t have anything if the UK hadn’t turned over Hong Kong in 1997.

      The only thing China is good at is theft and imitation.

    • hippy

      piss off wanker … like you got a clue .. still pissed about the tea party eh ? tuff kippers son get over it and move on this conversation if for the big boys.. no england… Talllyhoe!!

  • Concerned Reader

    China: The Rise of the Dragon

    In 1991, the Soviet Union, America’s chief rival for the preceding fifty years, collapsed and its empire ceased functioning on the world stage. For nearly two decades afterwards America experienced the privilege of functioning in the international world as a unipolar power, one in which it is the only superpower acting in geopolitics. However, during this period of time a new potential rival was gaining strength in the world, that rival is the People’s Republic of China. According to Doug Bandow, author of “China Rising: The Next Global Superpower” says, “Rapid economic growth, global trading ties, and expanding diplomatic cooperation have pushed China to the first rank of nations.” Since the 1970s China has made significant gains in regards to it gaining prescience among the developed nations of the world and especially their economies. There are several factors that will contribute to China becoming a superpower and factors that will hinder its rise.
    The first factor that is driving China towards superpower status is globalization. Everyone in America has witnessed the ever growing prevalence of products made in China within many of our major retail giants. One retail giant, Wal-mart, has a massive trading policy with the Chinese government. According to Jiang Jingling, Author of “Wal-mart’s Inventory of Stock Produced in China to reach $18 Billion.” Says, “More than seventy-percent of commodities sold in Wal-mart are made in China.” Every time an American consumer ventures into Wal-mart, or any other major retail store, and buys products from that business, they are helping the economy of China grow. America’s spending habits and China openness towards Multinational Corporations have helped these businesses to flood their shelves with products made in Chinese factories and this has helped China gain a massive export based economy that is on tract to produce consumer goods for the entire planet.
    The second factor that is driving China towards superpower status is currency manipulation. Currency manipulation is to artificially inflate or deflate a one currency against another currency and China has been doing this for years now and have benefited from it. According to Don Lee, author of “China Denies Charges of Currency Manipulation” says, “In written comments to the Senate Finance Committee last week, Geithner buttressed complaints that the Chinese kept the value of their currency artificially low, making their exports cheaper in the U.S. and giving them a bigger trade surplus.” The benefits of currency manipulation is that they can make more money from their exports and redistribute that money inwards to grow their domestic economy in regards to infrastructure, personal saving accounts, etc.
    The Third factor that is driving China towards superpower status is nationalism. Nationalism is loyalty to ones collective or nation. According to Professor Pranab Bardhan, author of “China Ascent” says, “As nationalism has replaced socialism as the social glue in this vast country, old memories of humiliation at foreign hands and current pride in phenomenal economic success generate popular resentment at what looks like external attempts to rain on the parade of China’s glorious Olympic moment.” Basically, China has had its sovereignty violated numerous times in the 19th and 20th century by foreign nations and by becoming a superpower it will be able to prevent this from happening again the future by staving off violators of its sovereignty.
    A fourth and final factor that is driving China towards super power status is the need for resources. Two continents in particular are key places where an abundant source of minerals and petroleum can be found for China to exploit; those continents are South America and Africa. In Latin America, China has just surpassed the US as Brazil’s largest trading partner. China has been making massive amounts of financial and infrastructure investments in many South American countries along with many contracts that give Chinese corporations free reign and are in the midst of creating massive trading hubs on the continent. According to Tyler Bridges, author of “China’s Big Move into Latin America” states, “Beijing’s main interest in Latin America has been guaranteeing access to the region’s raw materials – principally oil, iron ore, soybeans, and copper – to fuel its continued rapid growth.” China needs these materials to help keep its growing manufacturing base going and to maintain its own economic prosperity. In order to maintain this inflow of need resources, the Chinese government has been in the business of brokering alliances with the leaders of each country, regardless of their political standing in the world (I.e. Hugo Chavez in Venezuela). Another continent that is seeing a significant Chinese hunt for resources is Africa. Like Latin America, China is using its economic clout to bolster financial alliances via monetary investments in Africa. According to Jacques DeLisle, author of “Into Africa: China’s Quest for Resources and Influence,” says, “Major state-owned and state-linked Chinese companies are already on the ground or soon will be, largely through investments to develop Sudanese oil, Zambian copper, and other African resources for export.” The government of China uses aid as a carrot on a stick to needy countries in order to bribe them into allowing them open access to the large resource reserve within the African lands. China is also willing to deal with both democratic and dictatorial countries to get what they want and turn the other cheeck in regards to human rights violations in the countries they do business with. However, it was the need domestic need for energy resources and quest for new markets that helped propel the Western countries to super power status.
    One factor that will hinder China from becoming a super power is its massive wealth disparity. Despite its large economic growth and strength in the last couple of decades, there has been a growing wealth gap between the urban citizens and the rural inhabitants of the country. According to Ian T. Brown and Tao Wu, authors of “Chinese Economy Climbs, but Struggles to Spread Wealth,” says, “Education and healthcare systems are less available and of poorer quality, leading millions of rural Chinese to relocate to the city in search of better public services and economic opportunity.” The economic growth has raised as many as three-hundred million Chinese citizens into their equivalent of a middle class, but there is still large numbers of poor rural citizens who are left to play catch up with their higher income countrymen.
    Another factor that will hinder China from becoming a super power is the consequences of its one-child policy. In 1978 the Chinese government introduced the one-child policy in an attempt to decelerate population growth. The policy prevented an estimated 400 million births and lowered the fertility rate from five to two; however, this policy has also contributed to a growing demographic nightmare within the population of China. A BBC News Report titled “has China’s one-child policy worked?” Claims: “This will result in an increasing proportion of older people, a smaller workforce to look after them and a disproportionate number of boys to girls. “ Although China has a one billion plus population, its population will age eventually and with fewer births to take their place of the aged workers productivity will falter and so will its status as an economic super power. Secondly, the disproportionate number of boys to girls will have several consequences on China. First, is replenishing the aging population. Second, is internal strife over the scarcity of women, of which will possibly cause major societal problems for the government. Lastly, the Aging population will place a large strain on the few youth in the workplace. Unless China finds a way to solve this problem; they will not become a superpower via demographics.
    A third factor that will hinder China from becoming a super power is its effect on the environment. Although globalization has helped China’s economy grow, it has had negative effects on its environment. According to Carin Zississ, author of “China’s Environmental Crisis,” says, “About one-third of China’s population lacks access to clean drinking water. Its per-capita water supply falls at around a quarter of the global average. Some 70 percent of the country’s rivers and lakes are polluted, with roughly two hundred million tons of sewage and industrial waste pouring into Chinese waterways in 2004.” However, water quality is not the only environmental problem China faces. Desertification and soil degradation brought on by overgrazing and cultivating of farmland has created a massive dustbowl that engulfs many population centers, icluding the capitol city, Beijing. Massive amounts of green house gas emissions, mainly from the burning of coal and automobile emissions, which creates acid rain. Air quality stands out among the most prevalent environmental hazard in the country. On an average day, the smog created by industrial pollutants bloats out the sun with a thick, gray haze that fills the skies of many cities in the North. With over a billion people, in order to gain the amount of prosperity that the developed world now enjoys, China would have to further depredate its environment even further, which is something that is not feasible because every empire that has over burdened their surrounding environments has fallen.
    The fourth and final factor that will hinder China from becoming a super power is its massive dependence on energy. According to David Zweig and Bi Jianhai, authors of “China’s Global Hunt for Energy,” says, “An unprecedented need for resources is now driving China’s foreign policy. A booming domestic economy, rapid urbanization, increased export processing, and the Chinese people’s voracious appetite for cars are increasing the country’s demand for oil and natural gas, industrial and construction materials, foreign capital and technology. Twenty years ago, China was East Asia’s largest oil exporter. Now it is the world’s second-largest importer; last year, it alone accounted for 31 percent of global growth in oil demand.” China is so dependant on imported resources that if their delivery to the mainland China were to be disrupted many issues would surface. Resources such as fossil fuels and metals are becoming finite and harder to procure for the global economy. As growth continues, so will its hunger for resources. This puts China in a precarious situation, one in which it must choose between acquiring needed resources to maintain economic growth, or slip back into decline. Zweig and Jianhai go on to say, “Beijing’s access to foreign resources is necessary both for continued economic growth and, because growth is the cornerstone of China’s social stability, for the survival of the Chinese Communist Party (CCP).” China’s thirst for petroleum and other form of energy is putting it on track to surpass the US as the world’s largest oil importer. The CCP knows that to stay in power it must continue prosperity, and in that very same prosperity depends on easy access to energy resources. However, China is attempting to take measures to curtail their dependency on foreign energy, but will it be enough to help them will have to wait to be seen in the future.
    In conclusion, despite China’s economic growth, it still remains a very poor country marred by wealth disparity, environmental hazards and many other problems. However, China does stand out as an example to the developing world on how to rise up to become a developed nation. If a people aspire to help their nation achieve greatness, then there really is not any thing that can be done to prevent it, regardless of what kind of hindrances it might encounter while achieving that goal. China was a significant economic center for the western hemisphere during the last millennium and it may seem that it play the same role for the millennium that is just starting.

    Work Cited
    Bandow, Doug. “China Rising: The Next Global Superpower.” Antiwar.com 27 January 2007 http://original.antiwar.com/doug-bandow/2007/01/26/china-rising-the-next-global-superpower/

    Bardhan, Pranab. “China Ascendant – Part II.” Global Politician. 4 Apr. 2008 http://www.globalpolitician.com/24618-china

    Bridges, Tyler. “China’s big move into Latin America.” The Christian Science Monitor. 12 July 2009 http://www.csmonitor.com/2009/0712/p06s10-woam.html

    Brown T., Ian and Tao Wu. “Chinese Economy Climbs, but Struggles to Spread Wealth” Gallup 21 May 2009 http://www.gallup.com/poll/118567/Chinese-Economy-Climbs-Struggles-Spread-Wealth.aspx

    DeLisle, Jacques. “Into Africa: China’s Quest For Resources And Influence.” Foreign Policy Research Institute. Feb. 2007 http://www.fpri.org/enotes/200702.delisle.intoafricachinasquest.html

    “Has China’s one-child policy worked?” BBC News.com 2007. BBC News. 20 September 2007 http://news.bbc.co.uk/2/hi/7000931.stm

    JINGLING, JIANG. “Most (70%) of Wal-Mart’s Products Are Produced in China” Organic Consumers Association. http://www.organicconsumers.org/corp/walmartchina113004.cfm

    Lee, Don. “China denies charge of currency manipulation” Los Angeles Times 26 January 2009 http://articles.latimes.com/2009/jan/26/business/fi-china-geithner26

    Zissis, Carin. “China’s Environmental Crisis” Council on Foreign Relations. 4 August 2008 http://www.cfr.org/publication/12608/#p2

    Zweig, David and Bi Jianhai. “China’s Global Hunt for Energy” Foreign Affairs. October 2005 http://www.foreignaffairs.com/articles/61017/david-zweig-and-bi-jianhai/chinas-global-hunt-for-energy

    • Guido

      Fascinating work, Concerned Reader. You’ve done your homework. I’ve hoped for a long time China would be torn apart by its own internal contradictions, however they insure we rarely find out about their terrorists, riots, civil unrest, and other issues.

      The amazing thing for me is how slow people have been to perceive the threat of China. I’ve paid attention to their growing strength for many years and it seems insanely silly when people come to the realization now that China is a problem.

      I’m curious how China’s lack of women will affect their culture in the near future. I wonder if they will aggressively turn their wealth to importing women from overseas or if the ChiComs will try to remake the culture to permit multiple husband marriages? Or promote homosexuality?

      If your article is correct, can we expect China to export much of their wealth overseas importing food? Carroll Quigley stated that hungry nations are inevitably dictatorships, since the only way to keep a hungry population under control is with force. A hungry China could be a militant China and that makes for a very interesting SEAsia…

  • Economic growth in China is also creating significant wealth for American multinational corporations with operations in China. The issue here is not America versus China but the end of Middle Class America.

    There is nothing wrong with China having a larger GDP than the US. China does have a slightly larger population.

    China’s performance on the global economic stage will be shorter than most people think due to demographics (low birth rate) and rapidly developing economic bubbles that will collapse like anywhere else. Most long term economic forecasts for China should be ignored.

    The US industrial base is no longer large enough to support the US population or the US government. Our cowards in Washington have chosen to address this problem by surrendering to China and American multinational corporations.

    When unemployment eventually exceeds 30 percent, Americans may finally wake up and demand a new government.

    • Kalen

      Gutter I couldn’t agree more. China has only been allowing parents to have one child for at least 20 years. About 90% of those children are male. The population is going to decline rapidly over the next generation. The only reason their economy is as big as it has been is because of their population. Unless they drastically improve the quality of what they produce, the Chinese economy is not going to grow at all. If they do outpace us, it is because of the rate of our decline, no their growth.

      • Curtin

        90% are male?? Look at the latest census figures. 106 boys for every 100 girls. Not quite 90%. Actually, there are more women than men in China’s cities. More men than women in the rural areas. China is also overtaking Japan this year to become the world’s number one producer of luxury goods. China can make everything, not just cheap products. In the past we demanded cheap products so that’s what they gave us. People seem to enjoy China’s iPhone and iPad.

  • Ben Dover

    I have never been acused of being an environmentalist, but one would think the Chinese would have learned from the mistakes of USA in that USA has spent a fortune trying to clean up the messes that our early industrial revolution created.

    Pollution and demographics seem to be China’s achilles heels. Obviously the one child policy has been largely ignored or the population problem would have been corrected by now. The woman shortage should prove interesting.

  • Again and again and again: As long as Americans keep buying “Made in Somewhere” products nothing will change! On 4th of July a lot of people wear “patriotic” shirts, “Made in India”, “Made in China”, “Made in Vietnam”….
    Ghandi, the leader of the peaceful revolution in India set his country free in 1947, when he was telling his fellows to burn all the imported fabric and clothing from U.K. Millions of Indian farmers had lost they livelihood because of these imports! Now Millions of Americans are in the same situation! But they still keep buying all this stuff from somewhere!
    Look up some facts here and start to think! http://wearamerican.blogspot.com/

  • Richard

    To Europe – Dirty Cookies 4 Gary:
    The owner of this blog is very nationalistic, very sentimental and obviously hideously resentful of what the world has “done” to America. He wears his heart on his sleeve and reflects exactly the mood of the Average American. I have to have a box of Kleenex close-at-hand whenever I read his stuff. There is usually good information, though, (even if repeated endlessly) which is why I continue to read it.

    • from europe – DIRT COOKIES 4 Gary

      i agree. but weeping wont help any of you (americans). you gotta accept the realities.
      and that is, the US wont be number 1. living in memories past will hinder you enjoy the present and future.

  • Piglet

    I don’t have any bad feelings toward the Chinese. They’ve worked incredibly hard to get to where they are today. We, however, have been just pissing away both our present and our future with foolish political, economic, and foreign policies. Don’t blame the Chinese – we dug this hole for ourselves, and unfortunately it will become our grave.

    • Virgnia

      I tend to agree with you. Frugality and spartan living is a virtue but in the US if you life that way, you are considered odd and weird.

  • rayinseattle

    I think we should take the Gary2 advice and continue to tax businesses and the “rich” to catch up with the Chinese.

    O… wait a minute, the over taxing and regulating of businesses is what is causing this shift. Doh!

  • Even so called “military surplus”, if new, is “made in China”. In Eugene, Oregon the clerk at Action Surplus denied any of her store goods were made in China, when, in fact, it stated on the clothing that, indeed, it was “made in China”. Rothco is “made in China”.

    What was depressing was all the made in USA gear was either junk (after years of abuse) or expensive (due to high tax regulations).

    I hate to see the future, when most sheeple declare they have too shop at ChinaMart to save a buck – sad.

  • A Dodgy Bloke

    I get really tired of hearing about the Chinese Supermen who are going to gobble us up. Anybody out there who can remember the 1980’s and early 1990’s the same crap was said about Japan. The Japanese where buying up the planet (My dad said let them they can’t take it with them). The Japanese where world-beaters, young men where going to Japan to learn to “Think Japanese” (No I am not kidding) anybody remember Z Theory now look at the formally invincible Japanese.
    The Chinese have one of the fastest aging populations in the world, their one child policy has backfired horribly. The environment in China is being trashed, deserts are growing at an alarming rate. Goggle Ghosts cities China there are several cities in China with hardly a soul in them. If I can pull my production figures out of my A$$ I could look like a genius to. Zero Hedge, Financial Sense, and the John Batchelor Show has some very good insightful info on China.
    There are people out there with investment blogs who’s every other word out of there mouths is Gold and China. There are conservative talkers on FOX and on the Radio who need a bogey man China fits the bill and the ChiCom Government reads it own press clippings.
    Relax guys China is in just as deep of crap as the rest of the world, just that people ignore it.

  • GlennT

    Some of you folks have been misled by our wonderful propoganda machine.
    – Its not Americans buying “cheap Chinese products” that is the problem at all. This is a benefit. Firstly, your GOVERNMENT drove all our manufacturing out of the country with the worlds highest taxes, and secondly, MOST of those so called CHINESE companies are AMERICAN and Japanese and European companies that can no longer afford to compete in thier own countries.
    – The PROBLEM is that OUR government has been taken over by the FED and Wall street and, in conjunction with our out of control Military, is spending 1/2 of our federal budget on wars and useless spending pits like Homeland Security. 1/2 of ALL of our taxes, and then they borrow MORE that they don’t have. The 1/3 number you hear for military is bogus.

    The business of China is Business. The business of America is WAR. and this is what you get..your economy gets sucked dry while the cabal that owns the fed gets to play World Domination using OUR soldies as thier personal army. Think about it. Where did a US president EVER get the legal power to bomb a soveriegn nation without congressional approval?

    It doesn’t matter one bit that China is doing well, and they we get a better deal there. The questions you SHOULD be asking are : Why is our government giving Billions of our dollars to Afghastan and Pakistan while the lab teachers at our schools have to buy thier own equipment, and while our public services are getting stripped. Why does Obama still have a 55% approval rating when we voted him in to change the disastrous policies of that murderer BUSH, only to EXPAND on all of Bushes policies, and break every important election promise? But its NOT Obama who is to blame, he is just the salesman/deliveryboy.. (and he’s good!) its his owners calling the shots: the people who own and control the FED, the IMF and by proxy, most huge global corporations. Folks, there IS no two party system either, thats just for show. Nothing will ever change voting for either of those.

    • Nexus

      Actually mate I think you have been mislead by the propaganda – taxes in the US are no higher than other countries. Simple thing is that if you don’t produce goods/products you can not exchange them for foreign exchange so that you can then buy from others. If you are not producing products you have no jobs.

      The ‘elites’ (Wall Street, government policies in terms of supporting globalism, etc) of the US have deliberately pushed jobs off shore along with manufacturing facilities as they make a nice profit. Easier than employing and training Americans.

      I agree with you on the perpetual war and the treasury that is being poured away.

      • adeybob


    • I could have written every one of your words…many truths!
      I could almost find it humorous if it wasn’t so serious, that the American worker has been blamed not only for this trade deficit but the housing market and many other ills…let’s look behind the curtain.

  • Colin

    One of the reasons I think that China is succeeding is that their government is run by a single, powerful party. Our nation is governed by two political parties that have become more polarized in the last thirty years. These two parties are finding it harder and harder to work together at fixing our nation’s issues. We are a house divided, and like that proverbial house our nation may fall.

    • Guido

      No, you’re missing the forest for the trees. Both parties are more like two sides of the same coin; two wings of one mega-party. Don’t fall for the paradigm of two parties at each other’s throats til’ the end of time. After the kleig lights and the cameras are put away, the DC nomenklatura go to the same parties and restaurants and hang out together. They’re in it together against the rest of us. That’s why they’ve worked together to divvy up the gov’t and insure no 3rd party has a real chance.

      The real divided house is us. We’re angry about China and our weakening economy, but we shop for cheap Chinese junk. Our big money interests want to keep making money, which comes from selling us cheap Chinese junk, so they push the fedgov to tread lightly with China.

      • adeybob

        …very good reply.

  • Virgnia

    Great article! The Chinese are great mentors for the world stage. They work like hell for very little money, have a 1 child limit, they eat healthy, have very little obesity, they ride their bikes or walk and live spartanly and frugally. The are the global poster child for success. Hopefully the Chinese with all their economic success will not fall like we did into debt with no way out in the foreseeable future.

    • Guido

      Virginia, what are you talking about?
      I guess it’s easy to enforce “progressive” policies that limit children, insure there are few cars, insure your population is skinny and doesn’t eat too much when you’re a nation with widespread poverty ruled by a monolithic militaristic nepotistic communist party backed by a massive military apparatus and a brutally efficient secret police with a massive network of prisons and labor camps.

      If you read recent news articles, China is having an explosion of obesity as their population moves to eating more meat and junk food, now that they can afford it. They’re buying up cars and other comsumer items and they make identical copies of popular western cars. Their people are still forced to get abortions of “surplus” children, but human life doesn’t mean much when you have a billion people and change. Look up the Chinese slave labor camps some time and read about what they do to dissidents and prisoners, i.e. forcing prisoners to stand in vats of acid to acid-wash jeans. Look up the program where China is selling prisoner’s organs to wealthy westerners who fly in for transplants. It’s sort of like one of those restaurants where people can pick the lobster they want to eat from the tank in the front of the room.

      Virginia, when you tout China as a paragon of virtue, you’re revealing to the rest of us your utter lack of regard for human rights, democracy, and liberty.

  • bobinsherwood

    I dare anyone to name a purely Chinese Brand Name that they would deliberately buy for its’ quality.
    Yes, many American, Japanese, Taiwanese, South Korean Brand Names are manufactured in China because of the cheap labor but the Chinese still are not inventing ANYTHING! Just copying what others have created and not doing all that good a job with the copies.
    They can’t even make luxury goods that their own people will buy! They buy Samsonite luggage and all the big European Brand Names in luxury goods.
    China has very little clean water, much of their processed food is poisoned with cheaper chemicals, even Hong Kong suffers from some of the worst air pollution in the World.
    I’ve spent many years in China and my wife is Chinese. Most Chinese given the opportunity will do the same thing that many Taiwanese and Hong Kong people do when they get enough money. They will get the HELL out of China!

    • mondobeyondo

      Just like the Japanese did in the early 1960’s…

  • “#6 According to Stanford University economics professor Ed Lazear, if the U.S. economy and the Chinese economy continue to grow at current rates, the average Chinese citizen will be wealthier than the average American citizen in just 30 years.”

    Let me be perfectly clear here. China will NOT continue its current growth rate. Soon China is going to experience a mighty crash.

    Why? Why must it be that China will experience a mighty crash?

    1. China must mask its problems with a growth rate of at least 8%, or the regime could be at risk with millions of unhappy people entering the workforce each year. By “at risk” I mean in danger of collapse.

    Once, China was in a virtuous economic cycle. Yet the likely insolvency of the PBOC points to a critical flaw in the state-dominated economy: its trends are mostly self-reinforcing. Self-reinforcing trends are great when the economic cycle is in the up phase; they are disastrous on the inevitable downturn.

    Is the People’s Bank of China Insolvent? – Gordon G. Chang – New Asia – Forbes

    2. China’s economic system, state capitalism, is none other than the fascist economic model.

    The fascist economic model gives the illusion of private ownership, but includes heavy state control over the use and disposal of goods and property.


    3. China allocates capital on an inefficient basis:

    See the ghost cities of China. These are brand new cities that sit virtually empty.



    4. In China, the resentments are palpable. Many of the 300 million people who have risen out of poverty flaunt their new wealth, often egregiously so. This is especially so with the new class of rich, all but non-existent just a few years ago, which now includes some 500,000 millionaires and 200 billionaires. Worse, the gap between rich and poor has been increasing. Ominously, the bottom billion views as illegitimate the wealth of the top 300 million.

    China’s coming fall | National Post

    5. China resembles America right before the great depression.

    1) Massive disparity of wealth, income and education

    2) Rapid industrialization and displacement of labor

    3) Opaque and misleading economic and financial data

    4) Massive build-up of leverage across the “rising class”

    5) Bubbles in both residential real estate and fixed asset/infrastructure development

    6) Accelerating and uncontrolled growth in disintermediated credit

    7) Expected transference of economic growth to domestic demand.


    6. China’s demographic problem.

    Slower growth is matched by a dramatic ageing of the population. People above the age of 60 now represent 13.3% of the total, up from 10.3% in 2000 (see chart). In the same period, those under the age of 14 declined from 23% to 17%. A continuation of these trends will place ever greater burdens on the working young who must support their elderly kin, as well as on government-run pension and health-care systems. China’s great “demographic dividend” (a rising share of working-age adults) is almost over.



    7. Fitch Sends A Warning About China, But Everyone Is Ignoring It

    Fitch actually sent out a credit warning on China.


    Rating agency Fitch on Tuesday downgraded the outlook on China’s currency debt rating to “negative” from “stable,” and sustained the current rating at “AA-.”

    “The negative outlook reflects concern over the scale of sovereign contingent liabilities and risk to macro-financial stability arising from the very rapid pace of bank lending in recent years, especially against the backdrop of rising real estate valuations and inflation,” Andrew Colquhoun, head of Fitch’s Asia-Pacific sovereigns group, said in a statement.


  • China maybe US’s problem, but China do not have a problem, at least not yet. China can and will help small European countries but China’s economy is not big enough to help the US without hurting itself. China will not let the US dictate what it should or should not do. China knows what happened to Japan and try not to follow in its foot steps.

    We help Americans find jobs and prosperity in Asia. Visit http://www.pathtoasia.com/jobs/ for details.

  • M

    Unless there is some mystery unlimited fuel source hidden under the chinese fortune cookies. Their economic power house days are numbered already. Besides shutting off 10 % of their food supply and 25 % of their workers , simply by not exporting food . Along with no more hyperconsuming of their superflous crap . The chinese have already been beaten like a bitch dog that peed on the carpet , with a stick labeled AMERICAN DREAM. Twill be a real chinese fire drill comedy gold event when it dawns on them , that these are the best days of their lives. A few years and right back to the cabbage patch for most of them.

    • adeybob

      …yeah…hide your eyes and bury your head in the sand while you wave your flag out of your butt.

      • Geo-Lib

        Second that! I would give 5-1 odds that this guy watches the vanity service called Fox instead of real news.

  • Ser Korz

    How about charging the banks with entrapment , and forget all debts. ( Free Men would do that, slaves will just accept being a slave) start from 0 and start paying only for new items and services. Apply to all debt, all would be equal .

    • Hogan

      Give me a couple of days before you forget all debts, so I can borrow a couple million dollars.

  • mondobeyondo

    Giant Kung Fu Panda tearing all feathers off strong American Eagle…

  • Stan

    The problem is not in China, the problem is in US citizens. Who are the main friends for US people – money or neighbours? The answer is simple – money, of course. You betray your US citizens for money every day, don’t you? Chinease prices are lower this is why you supply them with jobs thus depriving US citizens of the jobs (betraying them).
    The situation can be improved in the ONLY case when your neighbours become dearer for you than money. Otherwise the USA will be destroyed completely.

    Good examples of US people supporting each other can be found in application of local currencies (time dollars, etc.). People accept each other’s debt bills as a means of payment and thus create jobs in their location. It is very simple, just start to support each other.


  • adeybob

    …aw bless.
    Didn’t the chinese buy loads of american bonds with all this ‘loot’?
    LOL!!! The fact is, American investors totally screwed tha ‘asian tiger’ economy, and got a hefty payout from the IMF for it via the banks.
    LOL! CHINA does it back, and what happens? LOL! Pretty-much the same greedy idiots saw the bubble forming in the american economy and pulled out.
    THAT’S what crashed our bloody markets and took away our ability to get back on our feet without TOTALLY SCREWING THE ORDINARY MAN OVER.
    If I wasn’t crying in frustration, I’d laugh
    until I burst.

  • Guido

    I’m sure we’ll drag them down with us when go, along with everyone else. This depression will have global implications we can’t even guess at. Thank you to whomever posted the link to zerohedge. I was reading a comment on there that scared my pants off-the idea that a massive currency shift could happen in a matter of seconds, thanks to computerized banking networks.

    Thanks to this thought, as well as the sudden explosion in urban anarchy this last week, I’m talking to my spouse about organizing a survival kit for both our cars, including a small jug of fuel in case some day, during an average workday, fuel prices suddenly fly into the stratosphere.

  • realist

    Another year, another call for an economic collapse in China. I could have swore people have been calling for a correction in the Chinese economy for close to half a decade now. Still waiting. (Granted, I do agree their breakneck pace growth WILL eventually slow).

    As an individual who has done business in China (and around the world) for 15 years, a few observations I will make are as followed:

    1. For those pointing to China’s demographic problems, I do acknowledge this as an issue. For instance, the factory/ blue collar labor pool is already set to peak in a few years.

    However a few key points that make their demographic issue not as problematic as people make it out to be:

    a) Poor men who can’t find wives domestically are already getting mail order brides from SE Asia, the Phillipines, North Korea, and in a few special cases, from economic basket cases in Russia and Eastern Europe.

    b) The “graying” of the population is not as bad in China as that of the US. The main reason for this is because the Chinese government do not have ponzi-scheme esqe handout programs like SSI and Medicare that eat up huge portions of their government balance sheets.

    In addition, many Chinese people work diligently well into their late 60s and 70s, which is a far cry from some of the entitled Americans who expect retirement at 61 followed by years of pension payments (public sector, I’m looking at you).

    c) Lastly, the eventual decrease in population might act as a silver lining for China simply on the basis that it help curb issues of over-crowding as well as limiting the pressure on limited natural resources. (Both of which are problems in China right now).

    2. Those trying to equate 1980s Japan to modern day China are missing a huge element that differentiate the 2. During Japan’s rise to power, they did not manipulate the Yen the same way the Chinese are manipulating the RMB. As a result, the Yen appreciated in value and exports from Japan became extremely pricey.

    3. As much flak as the Chinese government receive from Main Scream media and international press (rightfully so), their authoritarian nature does allow them to rectify problems and issues with roaring speed and efficiency. Meanwhile problems and issues that arise in the US are often met with gridlock and bureaucratic red tape. In the end, nothing gets fixed.

    Don’t get me wrong. I’m far from a “sinophile” and I do think China faces many problems, although not ones listed above (i.e. India in the south, inflation, rising Islamization in the west).

    However, the Chinese as a whole, are pragmatist and are not as susceptible to liberal fairy tale fantasies that the US government (Democrats and RINOs alike) seem to be so enamored with.

    From a strictly economic perspective, the average paper pusher clerk in the PRC probably knows more about economics than your average US Senator. (Scary fact: Our current CONgress have the LOWEST private sector experience ever recorded in US history.).

  • Countries all over the world must be praying for the US economy to collapse so that the criminally insane American government will be unable to continue it’s illegal and immoral wars or support its 750 plus military bases.

    I am Canadian and no doubt our economy will be adversely affected but it will be worth it if the murderous activities in Iraq, Afghanistan, Libya etc are necessarily ended. Roll on the collapse!!!

  • Howard T. Lewis III

    Those at the top have been lying to us and selling us out behind our backs for so long China knows the American people don’t deserve to be bombed. Thrown in a prison camp and made slaves to Walmart and the Clintons, perhaps. Maybe they would throw the Rockefellers and Bush people in there too, but it is not likely. A story exists that when China liberalized their economy right after Mao, they borrowed ‘X’ amount of dollars from the Rockefeller banks to facilitate and stabilize the change. Repayment was to be in cash by a certain date, or GOLD. China could not meet this obligation, so offered up a quantity of China White heroine. The acceptance of this drug into the U.S. was heralded by different music bands, especially in the Seattle Grunge music scene, and all that begat. The signifigance of Mao tse Tung being in the Skull and Bones Society at Yale during his college days got me curious. It is worth the look.

  • Renbe

    “We gave trillions to the Chinese instead of giving it to U.S. businesses and U.S. workers.

    You GAVE trillions to the Chinese? You didn’t give penny, the Chinese people worked hard to produce what you enjoy to buy cheap and preferably on credit. Now it is time to pay the bill…

  • laury

    The next time you “buy Chinese” to save a few cents, think about the real price you are paying.

    • I DO NOT want to buy chinese. but where i can find stuffs made in usa? In wal-mart?

  • Harry Johnson

    It is not government taxes that caused the problem, with all of the deductions and subsidies our businesses have the lowest actual rate of taxes paid in the world. It is not the Chinese that are beating us either. It is our own businessmen the so called investor class selling us out. Salesboy trash like the walton family and every two cent used car salesboy quick to sell out their country and neighbors to get and extra few bucks in commissions or profits. Instead of taxing these parasites, they need to be charged with treason for selling out their country and deported to China or Vietnam or wherever they tried to make their money. Confiscate their ill gotten fortunes and let them work in the sweatshops they love so well. financiers, salesboys and marketeering trash have been the death of this once great country.


  • Peter

    Basically Chinese are good business people.

    When China was under communist rule and cut off from the world… their overseas Chinese in Taiwan , Hongkong Singapore and other South East Nations e.g Malaysia, Philippines, Thailand , Indonesia (where Chinese mainly controlled the economy).

    So their successes are actually their work ethics. They do not have to be big in population to continue to dominate global economy. Look at Singapore, a small Island state is very rich.

    So even if their population falls, China by being the biggest economy and established manufacturing base will continue to grow. In fact we expect them to start expanding their manufacturing base globally.

    One thing about China… they went to look for market using money rather than guns (unlike the US)

  • monk

    Wait till you fellas find out about peak oil.

  • MosesTheRaven

    It would be great if Americans can do some soul searchings for a change. Pointing fingers at others is a bad habit. I wonder if this writer is truly a patriot or simply blowing up a smokescreen to distract from the real issues domestically.

    Anyways, imagine you are gonna set up a company in the US. Think about the obstacles you’ll face and the risks you have to take, e.g. regulatory redtapes and potential law suits. Think you can handle those, move on.

    Cost and quality of labor you can find in America. The main difference between the Chinese worker and their American counterpart is their attitude. The Chinese man is willing to compromise himself in order to get out of poverty and provide a better future for the next generation. On the otherhand, let me share a true story.

    A manager in an American factory tried to warn a bunch of very unproductive workers to buck up or risk losing their jobs. To which, the workers replied that they are unionized and there is nothing the company can do to them. Shortly after, the factory was closed and moved to Mexico.

    Actually, the problem in the US is way more serious then just a matter of importing cheap stuff from China. By the way, there are more than 200 countries in this world and most are more than happy to buy chinese made goods.

    It is dangerous and misleading to think that without the American consumers, China will collapse. China not only produces cheap merchandize for the general public, they also produce high end quality products. It all depends on how much you are willing and can afford to pay.

    China is not the problem and before you boycott chinese goods, please make sure you are self sufficient. Boycotting chinese is not the solution coz it’ll be like a self-imposed trade sanction and the ordinary folks will suffer for want of basic goods.

    Anyways, you can write a book just on this but the bottomline is, there is something fundamentally wrong within the USA itself. Most glaringly is the level of neglect to the people, educational system, infrastructure, etc. For some bizzare reasons, I recall George Orwell’s Animal Farm.

    I wish Americans all the best and hopefully, one day you will rise up to the expectations of your founding fathers and be a proud nation again.

  • Scots American

    I grew up in Scottish culture. I notice that Americans call anyone who saves “cheap”. Scots historically have been the 2nd largest millionaire group(though making up a very small percentage of the population compared to the English or Irish) in America and are unique in that 60% of Scottish millionaires make LESS than $100,000/year. It is simple. We never buy new cars. We save and value education. We make sure our kids are ready to work at 16 years of age and we do not spoil our children. We create our own scarcity mentality. What Americans call “miser” a Scot calls ‘frugal and “responsible”. Now that I think of it, Chinese are the same way. And debt is avoided if at all possible.

  • ThOrt

    It’s a big, scary world full of metaphysical value ($), where we’re all free to be profiteering, nationalistic consumers. The fact that we accept these realities is testament to our ineffectual moral cores. Maybe it’s the fairytale of Christianity, the guilt of genocide, or just the massive investment of personal awareness in other people’s babble that leaves us depleted and looking for someone to blame. Wriggle in fear you hollow, miserable consumers. Everyone else: have a nice day :)

    ….”Without fear, without haste, we will conquer the world.”

  • James

    Europeans are cowards ! They always rely on America to save them from the Germans or the Russians. They British are the most pathetic people in the world. Again they depend on America to save their lilly white asses but they are getting over ran by Pakistanis lol! AS far as China there are a lot of good people there but however , their government is all about making China number one in every aspect.
    tHERE NIMBER ONE TOOL HAS BEEN aMERICA , WE GAVE THEM ALL OF OUR MONEY ! wITHOUT aMERICA cHINA WOULDN’T EXIST!We made them what they are today through technology transfer and trade . They are as corrupt as anybody with their refusal to increase the value of the yuan and their toxic exports ! Funny how none of you asian and europeans cowards mention this ! Also China constantly steals technology from Americafor it’s technological and military advancement. The only thing the stupid europeans have going for them is CERN which most of you idiots have no idea what thast is ! The stupid British having nothing going for them everybody kick those parasitic bastards out of their countries ! SOuth Africa , Africa , AMerica , Carribean , Ireland <Scottland , India , Hong Kong !

  • James

    If you are American do not buy anything from Britain Russia Europe middel east (OIL) or from South America ! Never buy anything , ecspecially from China! One word for the rest of you foreign assholes ! F-22 Raptor F-35 lightening ! ost advanced aircraft in the world in your face ! And the Chinese J-20 isn’t shit. Proaganda communist bullshit which is anither sad attempt of typical lack of home grown Chinese innovation trying to even knock off and clone our military aircraft!

  • James


  • Wolf Sharp

    Time for a 2nd American Revolution! Start organizing people.

  • Commander Nod

    I read the text of a leaked speech that a Chinese general gave to the Chinese officer corp. The general said something like the chinese should “clean up” America using biological weapons and then colonize America with Chinese because the Chinese need living space. He liked the fact that America has forest along their hyways, blue skys with white clouds, and tap water that you can drink. While China hardly as trees even on its streets, brown smogy haze, and mostly polluted water. The general seemed quite serious, but I think he was just trying to entertain his audience with a fantasy. If the Chinese need living space, they can simply walk into Russia, but they need to get in a ship and cross a vast ocean to get to America

  • Simon

    This is the end. The end my friend.

    Sorry but Americans are displaying all the symptoms of loss of empire (or call it premiership).

    It has been said that the year was 2003 when the pivotal moment arrived.

    And you’ll probably blame some else. The fact is there are standard psychologies for all powers. Initially benevolant, a power takes on responsibilities beyond itself. Eventually the burdens build and the power peaks.

    A powerthen builds up debt to keep foing (sound familiar?). In order to disprove
    everyones criticism and demonstrate itself powerful still it gets sucked into needless wars.

    The power willconsider all of ibts contenders unworthy of taking the premiership role and will look down on them. To no avail. The debt builds and then there is a cgain pullinf moment when the new real power exerts its weight and the old suddenly recognises its demise.

    Its an old pattern: America is acting accordingly

  • In a word: ‘Judgment’

  • vettkrz

    Hey everyone that feel America deserves this from China or anyone else. Maybe just maybe we should cut all the countries that we give Billions of dollars in aid to. Maybe we should pull all of our military and support back to America! Japan had a major crisis and who gave their all to help! America. I can go on and on and on with examples but who gives a crap about us. The peanut gallery should read up on their history before making butt hole comments that we deserve this…keep buying there crap and some day maybe you too will be subserviant to the Chinese…one better…get the heck out of America and go live with the or where ever the heck you want…there is no ball and chain on your ankle! USA Forever…kiss our butts dopey!

  • Good points, but heres the takeaway

    Why does no on compare GDP per capita, or any of these other statistics?

    1. Work harder and smarter. This means, if you are a manager or CEO (a.k.a. American) and want to hire cheap labor (a.k.a. Chinese), thats fine; but always focus on strategy, not tactics. Didnt anyone notice that we produce 4x as much per capita as China? “China produced 19.8 percent of all the goods consumed in the world last year. The United States only produced 19.4 percent.” Where are the profits flowing? HERE. Yes, the middle class is getting cut out here by cheap overseas labor, so we need to reinvent ourselves a bit–no i dont want to work for $1 per day making shoe soles, and i dont want to pay $300 for a pair of shoes made here.

    2. Continue to limit govt. in increased taxation.

    3. Spend wisely, individually, and governementally.

    4. Stop worrying and focus on improving.

  • One response


    US GDP per capita: $47,000
    China: $7000

    and its been level for the past few years; inflation may rock that a bit

    “China is also the largest exporter and second largest importer of goods in the world” – they are buying machines too just like us.

    “in 2006, 10.8% of people still lived on less than $1 a day (purchasing power parity-adjusted).”

    it took 30 years for them to go from basically 2% purchasing power GDP (vs. USA) to 15%. okay so now they dont live in stick houses anymore, well some of the country at least.

  • House

    The better question to ask is how can the U.S. economy get back on track so that working Americans and the poor can compete and live? Can this happen without greed and excess and short-term profitablity? Why does the U.S. have to be the largest economy in the world — why can´t it simply be large enough to care for its citizens?

  • Marvin

    It is past time to get rid of the wothless un American in government. For the future of our children we must turn back to our own country. The American public must wake up and quit buying their cheap through away products.As Reagan said “Government is not the answer to the problem government is the problem.” Wake -up throw the bastards out.

    • Sean P Hamilton

      too late, its over.

  • Most “conservatives” I know buy the Party line of “blame the unions”, so no hope there……they wont even consider why industries and factories shut down that never had a union there to begin with……and these are the flag waving slogan shouters…..USA! USA! and all that…..

  • The US could even the trade balance if they would only sell the the Chinese some B-2 Stealth bombers ($2bn each) and F-22 Raptor fighter jets ($177m each). Throw in a few Patriot and Stinger missiles to sweeten the deal. They’ll go for it. No worries about national security – those things require constant maintenance and spare parts – just cut off the supply and they will be like the Iranians with their F-14 Tomcats – totally dysfunctional.

  • Our goverments sat by in 2009 when GMclosed the wndsor transmision plant ,saying it would be too expensive to retool .so they are buying their tranys from china.ford did the same closing their engine plant and Chrysler did the same .left us with only assembly plants for chinnese built cars .last week our provincial gov. announced an 80 m illion dolar gift to toyota and the fed equalled it for retooling some plant to asm imported pc.parts for autos. Those big companies were asking for hand outs 3 years ago and we sat by and watched as they retooled plants in Chana with our money to take the place of our jobs .

  • USCitizen

    this ia a quite complicate issue. there’re a few factors to be concerned.

    1st- US min. wage us$7(avg) vs. China us$1. Do u want to drop the min. wage to $1? Actually, there’re some other countries which pay less than $1.

    2nd- cost pf living. there’s TV, cars, insurance policy in every US family. but not in China.

    3rd- no matter what. US enterprises will train/educate foreign countries to take over the US job, in order to max. profit. If not in China, it’ll be in somewhere else as India, or Africa. Middle class/ working class is the one who suffer most.

    The conclusion:
    Less import(not none), more local production job with less pay & longer work hours, lower the basic living standard as medical insurance, babysitting, etc., encourage self help community services, make use of local resource as vancant gov. building or schools. Since most people doesn’t have much income$ anymore, exchanging services during the spare time, will still maintain the quality of life. It’s better than waiting at EDD. Middle class always pay check in & pay check out, to cover the basic daily expenses. It’ll be a long & painful experience at the beginning. And the most important is Fed./local Governemnt has to start it first, with tax incentives & regulations. Otherwise, no Corp. willing to do it.

    Ps. what wrong with selling bonds to others countries? The point is use $ wisely, not for luxury, So in the future, we depend less on import.

  • Geo-Lib

    We are failing because we seem hell bent on increasing the take to our decadent overclass. The solution is not income taxes but resource fee’s. This will stop the privilege the rich are encumbering our workers with, and at the same time freeing up hoarded resources, by not rewarding speculation. Principly this is commercial land.

    With 40% of the economy disappearing into the pockets of unproductive land owners, we are trying to race the Chinese with a load stone around our neck. They too are building a decadent class, but at least they are diverting significant amounts to infrastructure and general improvement.

    Here we are engaged in sucking the last bit of juice from the rind. I mean seriously our chief exports are beggining to look like a third world colony. Ie, labor is taxed so much (to protect privilege) that all the work is being moved elsewhere leaving only the raw material wealth to be shipped away.

  • I think it’s about the same here in the UK. The problem is, we were living in an age of decadence and kind of took it for granted.

  • William Randel

    Wake up People China has 300 Million Honor Students India 450 Honor Students that is more than the Population of America .and what do we have 7,000 kids dropping out of school a day 2.55 Million a year in ten years that is over 25 Million Dropouts.what damage will that do to America? America is going over a financial Cliff.and no one cares. I feel sorry for our kids and grand kids.they will have a lower standard of living ,and a National Debt they will never pay off.

    • Sean P Hamilton

      I only feel bad for the old folks who worked hard and saved their money and passed it and businesses down to their kids who wound up squandering it all.

  • Wakjob

    China is a bubble. China’s housing market is already collapsing. China’s 1-child policy will create a demographic nightmare in another 10 years. Think Japan is greying? Watch what happens to China when its 1.3 billion start to get old and only half that many youngs to support them. China can never become the dominant economy because its currency is not covertible. A lot of China’s GDP numbers come from useless building. Google “empty chinese cities”. This is fake economic growth. Americans are already waking up. GM today announced today it is brining 90% of its IT work back to the US from India. Foreign investment is pulling out of India like never before. CCP has been lying about its GDP numbers for decades in order to drive capital there. USA’s manufacturng sector is still 40% larger than China’s. Google it. Stop drinking the CCP propaganda Kool-Aid folks. China is a bubble created by wealth redistribution, not production.

    • Sean P Hamilton

      WHat the Chinese do or dont do is never the concern.

      It is the fact that Americans, with so much power and potential have decided to sit back for the last 25 years and allow Congress to strangle us and strip us of access to our own resources and independence is why the US has collapsed.

      The US already collapsed. The question is, can it be resurrected? I say no. Not with the people who make up the American people.