The IMF (International Monetary Fund) just posted probably their most controversial prediction ever on their website which most of the world are not even aware of yet. This organization has actually set a date when the age of America will end and be overtaken by China. This is the first time that the IMF actually puts a time frame on their prediction and therefore this news is like dropping a bombshell. According to their forecast on their website, the age of the United States will end in 2016 when China’s economy will fully take over the might of the American economy.
This would mean that the next president after the 2012 election will be the last President of the United States that will preside over the world’s largest economy. The age of America is coming to an end much sooner than the world had originally projected. This is due the growing concern over America’s national debt and the declining US dollar.
The IMF itself had already warned the United States to derive and implement a “credible strategy” which would solve their rising national debt. But in the meantime, China being the number one country with the most population in the world is improving its populace and accelerating the nation’s economy forward. The US population, compared to China’s is only a quarter the size.
With a remarkable speed, China is about to meet the US economy as the later continues to drop. Dailymail.co.uk writes:
- China, on the other hand, has been accelerating towards the U.S. with remarkable speed. Just 10 years ago, the U.S. economy was three times that of China’s.
- It’s a staggering statistic, even when taking into account the fact that the U.S. economy has been dropping down to meet China’s meteoric rise.
Although the world is aware that the world’s economic power is shifting from the west to the east, until IMF’s official forecast recently nobody had any clue as how soon the eastern economic power will come to rise, surpassing that of the west. IMF’s prediction that the US will end in 2016 has caught many economists by surprise as most of them has predicted that it will at least survive until 2020.
The forecast was quietly posted by the IMF two weeks ago and nobody noticed it when it did. Somehow the mainstream media overlooked this news or just bluntly pretended that the forecast was not there… until alternative news channels picked it up.
According to the IMF the Chinese economy will expand from $11.2 trillion this year to $19 trillion in 2016. The US economy will rise only to 18.8 trillion from 15.2 trillion. In 2016 that would take America’s share of the world output down to 17.7% which is the lowest in modern times. China’s economy, however, by 2016 would be reaching 18% and rising.
Although naturally all forecasts are fallible, no matter how accurate it may seem in the beginning. But this time the outcome of IMF’s forecast is scarcely in doubt. Brett Arend fromMarketwatch.com writes:
This is more than a statistical story. It is the end of the Age of America. As a bond strategist in Europe told me two weeks ago, “We are witnessing the end of America’s economic hegemony.