Putting China in Perspective

Current-dollar GDP, the market value of a nation's output of goods and services. 2004: U.S. $11,994.8 billion, Eurozone $9,805.6 billion; Japan $3,582.0 billion, China $1.644.8 billion @ 8.3 yuan/dollar. China's GDP is less than 14% of our GDP, if you believe their numbers.

In 2004, $1.884.0 billion of our GDP (15.8%) went towards fixed domestic investment which provides infrastructure. Federal and State government spent $2,183.9 billion (18.2%), both figures are greater than the total GDP of China.

China spent $844.25 billion of their GDP towards fixed domestic investment, that is over 51% of GDP. In other words, the state is busy spending over 50% of its GDP keeping people employed on public works projects. Not a good sign. Percentage growth looks impressive, but the numbers tell the real story.

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