You can’t believe much of what the mainstream media says, and you certainly can’t believe much of what the Chinese government says. So when the Chinese government reports, through their media, that their their economy is even larger than originally thought, you have to wonder. They beat out Italy for sixth place (not that that is any great shakes), and I suspect the announcment is just for PR (pun intended). According to the report, the Chinese economy is double the size because they forgot to include their “service” economy.
The US used to say we were transitioning to a service economy, but all that meant was we weren’t exporting as much as we used to, and they needed some plug to keep the GNP figures looking pretty. Then our savings rate hit the skids – we wind up mired in debt at all levels – all to pay for those double skim lattes.
The Chinese better be careful what they wish (and pitch) for.