China becomes richest country in the world

Discussion in 'Economics' started by bearice, Jan 23, 2011.

  1. China has foreign reserves of $1,950 billion, the world’s highest, Mr Yu Wenzhe, Chinese Ambassador in Ghana, said on Tuesday at a press briefing to highlight China’s socio-economic development during the past 60 years.

    He said China’s foreign exchange reserves rose from a mere $1.577 billion in 1978 to $1,950 billion in 2008 to rank first in the world, adding that the “opening up policy” adopted by China accelerated its socio-economic development.

    Mr Yu said China’s GDP rose from 67.9 billion Yuan in 1952 to 30,067 billion Yuan, about $4,397.7 billion in 2008.

    He said estimates indicate that China’s contribution to the world’s economic growth exceeded 20 per cent in 2008.
  2. cokezero


    $1950 billion is $1.95 trillion.

    In two years time with two quantitative easying the fed monetarized over 1 trillion of debt that's half the size of china's wealth. Not to mention it expanded its balance sheet for over 2 trillion during the 2008 subprime crisis.

    So the fed created 4 trillions out of nothing in 3 years while china accumulated $1.95 trillion over 30 years.

    Now tell me which is the richest country in the world?
  3. By your metric, probably Zimbabwe.
  4. Now China foreign reserves is $2.85 Trillion. The above article was posted in 2009.
  5. cokezero


    Yes if no one wants the dollar. That day may or may not come but at this moment it's not here yet.

    Remember the chinese reserve is also in dollar so we're comparing apple to apple. The fact is the amount of dollar the fed created in the last three years is twice the size of the chinese reserve accumulated over 30 years. It gives us a perspective of how big a $2 trillion dollar reserve really is. It was really big - until the fed started to write some checks.

    The fact that the fed could do that without turning america into zimbabwe speaks for itself. America is so rich that printing a few trillion dollars in such a short period hadn't seriously damaged the confidence in the dollar.

    But you're right, if the fed keep doing this even the richest country in the world WILL turn into zimbabwe.
  6. Seems part of our "getting away with it" is the the rest of the world just swallows hard and takes it... as there is no viable alternative at this time to serve as the world's reserve currency.
  7. cokezero


    Completely agree.
  8. China's $3 Trillion foreign reserves is hard earned money.

    USA can print $10,000 Trillion and purchase/acquire all the world real estates, world gold, world stocks, world banks, world industries, world forex. But is this possible? I think the answer is "no".

    Whereas USA "printed money" is easy and copy paste money.
  9. the1


    The money the Fed creates is debt. That is not a form of wealth. The theory that the US is the wealthiest country in the world is nothing more than an illusion.

  10. For those not old enough to remember or have been lax in their study of world financial history....

    When the $USD was fully convertible to gold and the US Government got jiggy with reckless spending, holders of Dollars did indeed "redeem them for gold", thus depleting US reserves.

    The US Government didn't like having it's "feet held to the fire" in this manner, so Nixon officially removed gold's backing from our currency... (Prolly saying something like, "I'll shown THEM sons-a-bitches".)

    Once again, government doing TREMENDOUS LONG-TERM HARM to the US for politicos' own short-term, short-sighted, greedy, "WE DON'T GIVE A CRAP ABOUT THE US CITIZEN NOR THE COUNTRY" political gains.

    :mad: :mad:
    #10     Jan 23, 2011