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They Are Who we Thought They Were

A wise man once said:

“if you want to crown them, then crown their ass! But they are who we THOUGHT they were! And we let ’em off the hook!”

I am not ready to crown their asses just yet.  And their asses, in this instance, happens to be China.  In a piece today, The Economist argues that China will overtake the USA in economic size by the end of the year:

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The problem is, they’re adjusting for purchasing power parity to get at this view.  It’s not an inaccurate view, but a little misleading when viewed through the lens of more traditional indicators like real GDP, which, as Graeme Wearden of the Guardian shows us, is not even remotely close:

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There’s no doubt that China will one day overtake the USA in terms of total economic size.  So this is not a matter of if, but when.  But let’s not be so eager to crown them just yet.

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