Comparing US State GDPs with countries.

[ArcticGabe]

SamuelRSmith said:

Yes, true, I even made that comment earlier in the thread. However, China's currency won't stay valued that low for long, China has some severe inflation woes, and letting go of currency controls will be a route that they have to take. So, yes, this will mean that in the Normal measure, China will make huge gains on the USA as the conversion rate favours China.... but the matter of the fact is, the rate of growth will drop, and so it will still take longer for China to catch.

Also, PPP measure favours emerging markets as commodity prices are relatively cheap, as these countries develop, the gap between the Normal and PPP measure shrinks

The inflation rate is actually not that bad in China compare to other emerging markets, CPI in China in 2010 was less than 4% with the GDP grow 10.3%. India's GDP growth about 8.5% and a CPI about 8% in 2010.  UK's CPI was 3.7% in Dec 2010.

The rate of growth will drop for China, but will sure surpass 8% in the next decade, If  another economy downturn happened in the USA in the next decade, China will sure take the lead within 10 years.

I expect China's and USA's Normal GDP will be about equal in 2020, and China willll take the lead in 2025.