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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: RockyBalboa who wrote (25018)	11/30/2009 8:32:48 AM
From: Real Man	Read Replies (1) \| Respond to of 71406

China will have to do "Japan" at some point, but I don't think we are there yet. Perhaps, it's GDP will have exceed that of US and Europe first. At this rate BRIC GDP will exceed the GDP of US or Europe within a few years, and Chinese GDP will exceed US GDP some time early next decade. That said, everyone knows you can't continue parabolic charts to infinity -g- Currently Chinese nominal GDP (in USD) is growing 28% annually, so, US and Europe have about 6-8 years until China becomes the King of the globe. Note that their share will jump instantly if they allow Yuan to appreciate. It's interesting how the currency dynamics played a major role here - even as Japan's bubble burst in 1990, the nominal USD GDP continued to soar with the Yen (Yen peaked in the mid-90-s). So, from the point of view of USA, it's not USA that had a lost decade, it was a decade of a major global boom during which US saw a major erosion of it's share of the global pie. -g- google.com Now, a really depressing chart - Zimbabwian USD gdp is now lower than in 1975. This chart shows the long term effect of hyperinflation on real GDP. It's even more depressing if you remember how much purchasing power USD lost since 1975, perhaps, 95-97% of it. google.com