[kabar]

Using the PPP metric, China is the world’s largest economy. A failing Chinese economy will have global repercussions, including on the U.S. China has replaced the U.S. as the engine of the global economy.

[politicket]

A failing Chinese economy will have global repercussions

Exactly - they are the first domino in the global recession we all face over the next decade.

[Zhang Fei]

[Using the PPP metric, China is the world’s largest economy. A failing Chinese economy will have global repercussions, including on the U.S. China has replaced the U.S. as the engine of the global economy.]

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PPP is a coping mechanism for poor countries. It was used to show us how the decrepit Russian empire under the hammer and sickle was really massive and within striking distance of the US. Then it fell apart and the Russian economy, the most dynamic part of the empire, with half its population, remains at 6% of the US economy 30 years after it adopted a semblance of a market economy. PPP is a shining example of how, when you start throwing in fudge factors, garbage numbers are the inevitable result. The real bottom line is gas stations only take exchange rate, not PPP, dollars.