The Internationale Monetary Fund has issued a warning that Americans need to heed. America has gone through a lost decade of job, wage and wealth creation. This has occured due to an archaic tax/regulatory structure, fiscal irresponsibility and nations taking advantage of our trade naivete. China on the other hand has pursued a mercantilist economy policy and keeping it’s currency artificially low. The result has been a transfer of wealth and jobs, from America to China. The US thanks to it’s fiscal irresponsibility, also owes China money. The IMF is now stating that China will overtake America in 2016 as the world’s largest economy.
For the first time, the international organization has set a date for the moment when the “Age of America” will end and the U.S. economy will be overtaken by that of China.
And it’s a lot closer than you may think.
According to the latest IMF official forecasts, China’s economy will surpass that of America in real terms in 2016 — just five years from now.
It provides a painful context for the budget wrangling taking place in Washington, D.C., right now. It raises enormous questions about what the international security system is going to look like in just a handful of years. And it casts a deepening cloud over both the U.S. dollar and the giant Treasury market, which have been propped up for decades by their privileged status as the liabilities of the world’s hegemonic power.
Read the rest: IMF bombshell: Age of America nears end
China’s economy surpassing America’s is not anything bad in of itself. They have 4 times the population we do, so it was a matter of time before this occurred. What is worrisome is the rate of deterioration of our economic standing. Our government is currently pursuing a weak dollar policy to devalue our debt amount. Ben Barnanke’s QE2 program of monetizing the debt has caused a spike in inflation and a further decline in our purchasing power.
We are shooting ourselves in the foot with our irresponsible fiscal and economic policies. The Obama regime has no intentions of fixing this situation. They are more focused on redistributing the diminishing wealth of this nation. The political Eunuchs called the Republican Party led by Boehner, are too scared of the Progressive machine to confront Obama. This can’t continue and we should heed the iMF’s warning as a wake up call. We need to get our fiscal and economic house in order.