letterstomycountry:

The concept of a millionaire Communist might not sit well with Mao’s Little Red Book, but it appears to be just fine with the modern Chinese Communist Party. The Forbes China 400 Rich list revealed this week that ‘over 90% of the 1,000 richest people tracked by the Hurun Report are either officials or members of the Chinese Communist Party.” The list reinforces the view that the CCP has become more of a cartel or, in some cases, a criminal enterprise than a true political party. Communist officials are routinely accused of breathtaking corruption and use of state power to force peasants from their land in development schemes.

Hmmm, nobody could have predicted that the consolidation of political power within a Vanguard party under the guise of centralized state power was actually counterintuitive to achieving the theoretical goals of Communism .

woops.

Ha! Great caption.

jnomics:

But they’re miscounting. They’re only comparing the gross domestic products of the two countries using current exchange rates.

That’s a largely meaningless comparison in real terms. Exchange rates change quickly. And China’s exchange rates are phony. China artificially undervalues its currency, the renminbi, through massive intervention in the markets.

The comparison that really matters

The IMF in its analysis looks beyond exchange rates to the true, real terms picture of the economies using “purchasing power parities.” That compares what people earn and spend in real terms in their domestic economies.

Under PPP, the Chinese economy will expand from $11.2 trillion this year to $19 trillion in 2016. Meanwhile the size of the U.S. economy will rise from $15.2 trillion to $18.8 trillion. That would take America’s share of the world output down to 17.7%, the lowest in modern times. China’s would reach 18%, and rising.

Just 10 years ago, the U.S. economy was three times the size of China’s.

J N O M I C S