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Many of us have heard a number of the conspiracy theories and often dubbed "scaremongering" concepts and predications about how China will rule the world by 2017...no 2021....or is it 2025?
Indeed I'm surprised that Hollywood has not totally caught on to the particular theme of encapsulating in a thrilling production of a world ruled by China...just yet!
Frankly there are pros and cons to every system and scenario. However a careful glance of the realities as they stand - lets consider some comprehensive real data:
The World Bank has just released the latest purchasing power
parity (PPP) estimates of GDP. These estimates are published once
every 5 to 6 years, based on the elaborate survey of prices across the world
conducted by the International Comparison of Prices (ICP) project. The new data affords an opportunity to revisit that hardy perennial
of global policy questions: To what extent is the Chinese currency
undervalued? (since clearly severe undervalue would suggest significantly greater PPP ratios, hence the monetary ability to purchase much more than most of us could ever dream of!
However, the Wall Street Journal informs us that the latest results from the World Bank leave us with the following facts: "We can
say with some confidence that the Renminbi is now fairly valued, which is a
striking change from even 2005, when the currency was undervalued by nearly 30
percent. This change possibly heralds the end of nearly two decades of China’s
mercantilist development strategy based on boosting exports by keeping the
currency artificially low...." Thus: chances are nobody is buying out anybody 'lock, stock and barrel,' any time soon!
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