Even though it was just over three months ago that I predicted that China
would soon overtake the United States as the largest and most powerful economy
in the world (see http://jamaicatory.blogspot.com/2014/07/brics-challenging-status-quo.html)
to be frank I was still shocked to see an IMF report last week
declaring that the People’s Republic of China was now the world’s number
economic power ending 142 years of US
economic dominance
According the latest statistics the Chinese economy is worth
$17.61 trillion compared with $17.4 trillion for the U.S. taking a lead in
industries such as manufacturing, finances, services, trade etc, which of
course means that the margin is not a very large one right now, but given that
the US has allowed anyone to overtake them says much about the state of the
American economy.
Let’s face it, the writing has been on the wall for years
and anyone who thinks differently is only fooling themselves, the fall of
America and the subsequent rise of China is due to actions on the part of each
nation and their governments. The simple fact of the matter is while the
Chinese economy continued to strengthen, the US has been in decline this is due
to several factors including the decline in US manufacturing with the
outsourcing so many jobs that were once in the US, the raising of the debt
ceiling (who can forget the shutdown of Congress late last year), the massive
debt that they now owe to China in particular and the rise in unemployment just
to name a few. China on the other hand has been strengthening it’s economy by
large scale manufacturing funded by cheap labour, having tight controls on its
currency which keeps it artificially lower than market value, extensive exports
which leads to massive trade surpluses with every country that it has trading
relations it and also taking the initiative to forge new links into previously
untapped markets making China a success story overnight.
It goes without saying that this latest revelation by the
IMF may of course have serious implications for the structure of global
politics, if the US is no longer the global economic superpower as it once was
how will this affect it’s global standing? As former president Ronald Reagan
once state weakness at home leads to weakness abroad. The implications that this
could have for America’s position in the world could be detrimental, if it is
they cannot even command control of the global economy anymore, how can America’s
allies truly trust that it can live up to its other obligations?.
Of course I could be very much pre-mature in my judgment here
(although I highly doubt it), when the United States first became the world’s
top economy in 1872, The British Empire still held sway over much of the world
where it was said that the Sun never sets in the Empire and Britannia still ruled the waves, it took
nearly 75 years after this for the world to start truly seeing the decline in
British political and military power regardless of the fact the US economy was
still outperforming that the UK itself, perhaps
the same situation might play out again or perhaps this time the decline
will take place even faster. After
all let’s face it while the Chinese economy is growing at an exponential rate,
it is also said that this growth is unsustainable given how it rose in the
first place, let’s also consider that Chinese have truly been interested in
pursuing global hegemony but focused primarily on it’s own economic interest (a
key ingredient of it’s economic success) which of means that regardless of now
having the world’s strongest economy, the Chinese may have no intention of
taking on a global leadership world unlike US which has a foreign policy of American exceptionalism seeing
itself as leader of the free world and the like.
Regardless of the efforts of liberals to defend the
presidency of Barack Obama it is quite clear from the figures here and all is not
so white in the White House, in fact it was reported that the White House was
completely caught off guard by the news, it was as if they didn't know what hit
them, yet liberals still continue to harp on their story that President Obama’s
economic policy is better than Reagan, really? How they can come to such a
ghastly conclusion only heaven knows, but one thing is clear however, if I did
know before what a set of blind idiots liberal advocates and Obama apologist
are then last week certainly cleared up any misconceptions I had in that regard.
With USA and the rest of the world focusing on either
happenings in Middle East with regards to ISIS or on the Ebola crisis on
Africa, economic concerns certainly seems to take a backseat concern however the
implications of this are not to be taken lightly as many pundits are now
beginning to class the 21st century as the Chinese (just as how the
19th century had belonged to the British and the 20th to
the Americans), it remains to be see how the US will now respond to this extremely real threat to it's "global superiority" or is it a case that the days of US hegemony are numbered and it's time to make way for the rise of a new superpower.