Even Walser

Can China Take Up Consumption Slack From the U.S.?

I am so tired of China's GDP being quoted in PPP terms. It is my opinion that too many poor overseas investment decisions have been made because of the BS that is PPP. China's real GDP is only 1.3 Trillion not 4 Trillion or 7 Trillon as many like to quote. PPP does not count when it comes to purchasing globally important goods. PPP really only applies to good produced locally for consumption such as food. That said oil is in dollars, tanks and airplanes are in dollars, minerals are in dollars, fertilizers are in dollars. PPP is BS plain and simply. If you want to take a real look at the size of the adjustment headed China's way rework the numbers with real GDP. A train wreck is coming to China plain and simple.