So when does the world dump the dollar as the reserve currency?

While China is officially Communist, in many ways they are more capitalistic than the US is now.

"America, if you like your ranking, you can keep your ranking."

One word...

Manufacturing

Yup.
Hope & Change, baby.

Or, as I like to say, "You voted for it, Comrade!"

Only America would export much of its industrial base and know-how to an enemy, whom is busy building weapons and stealing our secrets.

Wow, O is pretty good at what he does, took less than seven years to bring the country to its knees. Someone (china, a muslim country, russia) certainly got their monies worth.

Haven't you ever watched an episode of Firefly where everyone speaks some words of Chinese? A glimpse of the future.

Well, I am not too sure I really care. China does not qualify in my mind as a Communist society any more than the US is. They just use the label and the structure to impose their own version of a dictatorship on the masses, and they have all the failings of our "capitalist" system, just about 3x the size. There was a thing here in the news last week where they arrested some official and "found" a bunch of gold, silver and currency stashed in his house. Is that any different than the congressman from Louisiana last year or so who just "happened" to have a 100,000 in his freezer? They just have their politicians a little bit different in their corruption, but still the same.

If you are a business that manufactures anything in the USA then try this little experiment. First make a survey location in your local malls. Then create 1000 pcs of your product in boxes clearly marked "Made In USA", and 1000 in a box that has no clear markings on it but does show "Made in China" on the box. then put them out on a kiosk with a price difference of just 50 cents. See the results and then you will have the fact that a small price difference makes the difference in sales. It is simple economics for basic income people. The lowest price wins, and that is why the manufacturing has moved to other countries like China, especially when they manipulate the value of their products to make them cost less, and take a smaller profit on them to control the market share.

Now I am not sure how many of you will remember the concept, but it is better to make a nickle a billion times than to $5 a 1000 times... and with a dollars price difference in cost of manufacturing the sales goes to the cheaper labor, and add the quality of product into the equation, you will sell cheaply made cheaply price products ten times for every one of the top quality type.

But hey I am not one of the top ten percent of income bracket, so what do I understand about this. Does 10 years of engineering school and 17 years in business of manufacturing mean anything, not in this economic environment.

My opinion on the subject

Interesting side comment, in Las Vegas BEFORE you can open ANY business, you need prior approval from the city that your business is covered by one of their categories. Meanwhile, Putin is trying to free up Russian regulations to allow businesses more freedom, and its easier to start a business in China than it is here. No wonder we are failing as a superpower.

why is anyone surprised. it has been 25 plus years of companies from all over the western world to include the usa, canada, europe and even japan getting product made in china. government motors (GM) has 11 or 13 factories there. but keep in mind that since the usa and europe are the biggest consumer market in the world going down hill the manufacturing that was going on in china is also going down hill. without a manufacturing base every nation will go down hill.

Step 2 of Obamas' destruction of America complete...
Two more steps to go and it will be complete!!!

Then comes the "Transformation" of America from a free country to a "Slave" country!!!

I have no problem with this -- because as Chinese individuals become wealthier, it will become harder and harder for the government to keep them unfree. At some point either the Communists will crack down again and stop the economic progress, or the progress will sweep them away.

Indeed, poor countries are the biggest threat to freedom and stability in the world. It's good that many of them are finally starting to become rich, in spite of the best efforts of Soros and the CFR to prevent that from ever happening. (Remember, they're not there yet -- China still has 5 times the population of the US, so their per-capita wealth is proportionally smaller.)

This kind of sounds like America's Trust by Murray McDonald.

We are basically a Chinese colony. Which in a strange way, may protect us from a Red Menace style invasion. After all, if the Chinese invaded us, they'd lose their primary market and go bankrupt.

That said, when you have taken over a significant part of another country's economy, you have effectively conquered it.

I am not surprised at all. For our small company, we just CANT AFFORD to buy from american companies (and most of them get their stuff from China anyway). Its so easy to trade with the Chinese- they give good customer service, excellent prices, fast response to orders and questions. These are all things American companies have been very bad at, and they are paying the price. In addition, hiring american workers (as in legal ones) is a real pain and a drag on business. They feel entitled ($15/hr minimum wage for example), dont really want to work, and refuse to compete with lower paid workers (illegal aliens and other countries). If I want to stay in business, I HAVE TO BUY FROM CHINA no matter what.

I am for fair trade not free trade. Our government over the years negotiated poor trade agreements but on top of that they did not enforce the agreements. China violated the agreement by manipulating their currency. A company I owned, Signicast, had to overcome a price differential of 50% due to the the yuan's undervaluation. Signicast could over come most of this differential because we were heavily automated. Many US companies could not compete and either reduced their out put or moved to China. All we ask from our government is give us a level playing field.

People wring their hands and ask were all the US jobs went. My answer is look at the label stupid.

The Chinese might have achieved this #1 status, not by their own hand as we achieved ours, but by means our temporary faulter. When we eventually shrug off the leftists, then it's all over for the Chinese. They will eventually fall by their own weight when we once again lead the world with our enlightenment and our ingenuity.

Oh, bullshit...

Falk's Twenty-Eighth Law:
No matter what happens...
•28a ... there is always someone ready to tell you that it happened according to his or her pet theory.
•28b ... there is always someone ready to misinterpret what it means.
•28c ... there is always someone who says they predicted it all along...
•28d ... there is always someone who won't believe it until they have "the proof" in their own hands or unless they "saw it with their own eyes..."
•28e ... there is always someone who will blame it on some kind of conspiracy...
•28f ... there is always someone who won't believe it at all, no matter what kind of proof is presented...
•28g ... there is always someone who will feel offended by it...


Guys and gals, have you forgotten that there are TEN TIMES as many people in China as there are in the US?! If their GDP or stock market valuation or price of manure exceeds that of the US, on a per capita basis, they're doing ONE TENTH as well as we are.

What part of that did you miss in the MSM's screaming blather.

Yeah, we've got shitloads of problems holding US back, mostly self-inflicted.

For years I've been trying to get people to understand that manufacturing ALWAYS goes to the low-COST provider, and as Japan began to outsource to China and China started to 'offshore' to Vietnam and now India, Malaysia and so on, the LAST domino in that line would be Sub-Saharan Africa! And that has recently been reported to be the newest location for 'cheap manufacturing labor' that corporations are looking at.

The 'problem' with that fear-mongering theory is this: After Japan, China, Vietnam, Malaysia, India and Sub-Saharan Africa, WHERE CAN THEY GO NEXT?

Nowhere. As ALL of those economies grow and start creating middle-class aspirations and market demands, ALL salaries and manufacturing costs MUST rise to some kind of equilibrium, although it may take a few more decades to get there. I will happen.

Or you can go on believing what you believe and ignoring everything I say. It's been done before. Enjoy!

Forget everything I said...

The author has taken ONE part of how such things are judged and put it out as if that decides it.
I commented on another forum that he himself points out what the rest of the world uses as a guide and that he then dismisses it as unimportant without any evidence or reason.

You will note: this is a Communist Power, using partially capitalist methods on a base of socialist efforts for decades.

It has a very short shelf-life - it cannot sustain itself. No communist or socialist system ever lasts more than 50 years without resorting to cannibalizing their neighbors (China's already done that as far as we'll let them) or resorting to capitalism (which they have already started doing), but they still collapse within 75 years.
Thousands of experiments around the world have been tried - they've all failed; hundreds in my state alone (Texas).

When you see this article on the Wall Street Journal or some other major source, then worry.

Now it's more like Baghdad Bob whining in the dark about the success of Iraq's forces against the Americans in the last war.

It's meaningless.
Glad to see China is seeing some prosperity - after all the garbage they've dealt with, the people deserve it.

No worries at all.

The author of the article claims that “purchasing power parity” (or PPP), is the best measure of economic strength. I'm thoroughly unqualified to confirm or dispute that, but we should all be hyper-skeptical of anything coming from the IMF.

Is it pertinent that China has many times our population or does the PPP account for that - or is that irrelevant because we're concentrating on total economic power without regard to population?

The inevitable has happened. If you don't like being #2, how you gonna feel if we're number 3,4,0r 5?