Dear Jim,

It matters more what 1.3 billion Chinese who have a growing middle class think now and in the future than 350 million Americans with a declining middle class! Cheap gold and silver is a thing of the past. The share shorts are in for a religious experience very soon.

Best,
CIGA BT

China to lead world economy
Tim Colebatch, Canberra
April 25, 2011

CHINA is about to overtake the United States as the world’s biggest economy, creating profound changes in the balance of global power.

In forecasts inserted quietly on its website in recent days, the International Monetary Fund has projected that, by 2016, China will overtake the US in real economic output – the first time in the modern era that any country has done so.

Economic historian Angus Maddison estimated that the Soviet Union at its peak produced only a third as many goods and services as the US; Japan’s economy at its peak was still less than half the size of the US economy.

China’s ascension has been startlingly different, in speed and size. If it grows at anything like the 10 per cent rate it has averaged since 1980, its economy will be far bigger than that of the US within a generation.

Australian National University professor of strategic studies Hugh White said the looming end of US economic dominance marked a turning point for the world, and had serious implications for Australia.

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