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China is so rich that it can now dictate the economic policy to the rest of the world including the USA

By M.S.Shah Jahan

“When China wakes, it will shake the world” – Napoleon Bonaparte. Yes he warned 200 years ago. Truer words were never spoken. Chinese dragon has awakened now and it is about to shake the world to its foundations – starting with the United States.

Mahinda Rajapaksa at the opening of Nelum Pokuna Theatre, 15thDec, 2011-People’s Republic of China funded the cost of the building-pic news.lk

Everybody knows that China is on the move. Even despite of the recent global slowdown and what many have been saying that China’s economic explosion is over, China’s economy is still growing more than seven times faster than that of America

But what most Americans do not know – what the American media steadfastly refuses to admit is, that China is already so rich and it can now dictate economic policy to the world; even to the United States of America . This fact may be hard to believe.

The International Monetary Fund has just dropped a bombshell that by 2016 the United States will no longer be the world’s number one economic power. That means China will be richer than America in less than five years. For the first time, the IMF has set a date when the ‘Age of America’ will end and the U.S. economy will be overtaken by China.

Not everyone accepts this view. The prestigious Peterson Institute and the University of Pennsylvania said the IMF is wrong and the Chinese economy will not surpass America ’s by 2016, nor will it happen in 2017 or even in 2020 for that matter. But they do admit that China is already the world’s #1 economic power.

In the year 2010 the U.S. economy produced goods and services valued at $14.6 trillion. But China ’s Gross Domestic Product soared to $14.8 trillion. China ’s economy is already larger than America ’s. And what is worse is, the United States is falling farther behind every day.

The U.S. has about 160 million workers. China has 810 million workers — 5 times more than the United States . 97% of all Chinese workers are employed. But 14 million U.S. workers are either unemployed or underemployed. In China ’s urban areas, wages rose 7.6% in 2011 — and the increase was about double that in rural areas. Meanwhile, inflation-adjusted wages for U.S. workers dropped 1.7%.

China’s military is state-of-the-art: It just unveiled the J-20 — its first stealth fighter. It also has spy satellites, modern battle tanks, aircraft carriers, nuclear attack submarines, cruise missiles, and more. China has the largest army in the world with 2.2 million active-duty military personnel — 600,000 more than America has.

China’s nuclear arsenal is especially worrying: while the U.S. has been steadily reducing its stockpiles for nearly 30 years, China continues to build up its forces and refuses to even begin talks on nuclear arms reduction. While the U.S. is cutting its military expenditures, China has increased military spending every year for more than 20 years … and is still boosting it by an average of 11.8% per year. And while the U.S. is winding down its space program, China is preparing to put a man on the moon.

China’s Tianhe-1A super computer is the fastest in the world, capable of processing more than 2.5 thousand trillion calculations per second. American technicians don’t even know how that kind of speed could be possible.

Further China ’s burgeoning economic power becomes even more unsettling. Because of the fact, Beijing has become so powerful; it can now dictate economic policy to the U.S. According to the official figures from both Washington and Beijing , the U.S. economy grew about 1.7% in 2011. But China ’s economy grew 9.2%.That’s more than seven and one – half times faster; fast enough to nearly double the size of China ’s already-massive economy each decade.

While Washington ’s tax revenues are dramatically down due to the sluggish U.S. economy, China ’s total tax revenues are up nearly 30% from a year ago.

China is now the world’s #1 mine operator … #1 car maker … #1 manufacturer … #1 exporter. Its insatiable hunger controls vast mineral and food resources all around the world. Even the resource rich Canada is turning to China for growth after decades of reliance on the U.S. China consumes 41% of the world’s copper … 41% of its nickel … 43% of its steel … 45% of its tin … 46% of its lead … nearly 47% of its zinc … and huge amounts of most other natural resources

The investment facts are even more startling. Securities valued at more than $6 trillion trade on Chinese exchanges every day and that number is growing by leaps and bounds. China enjoys the largest foreign capital inflows of any nation on earth, surpassing the United States as the world’s favorite place to invest.

In the size of its economy and economic growth … in science … in technology … in the scholarship of its students … in the growth of its military … in every conceivable area, China is already the world’s most dominant nation. A study by The Program for International Student Assessment ranked Chinese students #1 in the world. American students were ranked fourteenth.

When high end shopping is concerned the Nanjing Road shopping district in Shanghai puts New York and Beverly Hills to shame. So does the New Shanghai Shopping City in the Pudong financial district. These are only two of eight massive, world-class, state-of-the-art shopping districts in this one city alone.

Macau has become gamblers’ heaven recently. Las Vegas topped the world with its luxury hotels and entertainment. But today even Vegas’ biggest and best cannot hold a candle to the world’s largest hotels and casinos in Macau . Of course most of them are owned or run by Americans.

Because of China ’s newfound status as the world’s #1 super power, it is now ready, willing and able to dictate economic policy to the rest of the world including America . China is already the nation on the way up. While sadly, the U.S. is the nation on the way out

The “official” U.S. national debt is over $15 trillion —nearly three times more than the most indebted nations in Europe combined. But when the debts Washington owes to veterans, seniors and government pensioners are added up, the total amount is a staggering $145 trillion – nearly ten times the total value of the goods and services the U.S. economy produces.

The Beijing government has almost no debt. It has $3.2 trillion in cash and its cash reserves are growing ever larger, month after month. But Washington has almost no cash on hand and has to borrow nearly half of every dollar it spends — much of it from China . Without this loan the entire U.S. government would go bust. Washington would become a virtual ghost town. Millions of Americans who count on government checks would be financially destroyed.

Make no mistake: the Chinese know they are in the driver’s seat. People’s Liberation Army Senior Colonel Liu Mingfu recently said, “To save itself, to save the world, China must prepare to become the world’s helmsman.” This is compelling evidence that China is not satisfied to merely surpass the U.S. economy; it has already begun a campaign to dominate the U.S. economy. So, the entire world — including the United States — must bow to China ’s superior economic power — the greatest the world has ever seen.

How could such a magical turn around, within four decades was possible for a poverty stricken –famine prone poor nation that had one of the lowest GDP until half a century ago? It is chiefly America that dug her own grave. As the cost of manufacturing was spiraling, western companies turned to low cost labor in China , ruining their own industries but amassing huge profits. As Napoleon said the Chinese dragon has now awaken and breathing fire all over. Can’t help it.

Finally, I recall a cartoon decades ago in a Sri Lankan newspaper. Mr. Silva, who was reading a Sunday paper on an easy chair, turned inside to his wife and said “you know, Gamini our domestic worker who went to the Middle East has come. He says he has bought our house”. This is the world!

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