China Is Now The World's Number One Economy, The U.S. Has Fallen To Second

We now have the rank as number two in the world economy. At the rate we are going, how long will we maintain second place. How soon will we fall into third or even fourth place. 
Of course, we are continually being told by the Obama administration that all is well and we are in economic recovery. Really? Nobody believes that. 
Perhaps B.O. thinks that the race based protests and riots are distracting the electorate from noticing just how bad things are on both the domestic and foreign policy fronts.

Contrary to what Professor Gruber may think, Americans are most certainly not stupid. They can see their power of purchase not only declining, but in many cases, practically in free fall. 

The links below will help you wade through the complexity. 

• What has Government Done to Our Money? - By Murray Rothbard 1963, 1985, 1990- This 60+ page book is well worth your time. It puts all the government sponsored hocus pocus into perspective. 
  

• A Brief History of Central Banking in the United States - By Edward Flaherty 2003 - This 24+ page primer gives you a straight forward historical time line of central banking in the U.S. 
  

• Great Myths of the Great Depression - By Lawrence W. Reed 2000 - Don't be too surprised with the similarities to today's economy and politics. This 16 page article is short, sweet, and clearly explains the events that lead up to and perpetuated the Great Depression.
  

• The Biggest Myth About Money - By Hans F. Sennholz 2003 - This 3 page article explores the myth that declining prices are somehow dangerous. Think about declining computer prices compared to growing computer sales volume. Deflation in this industry has been great for the consumer despite the fact that the Fed continued to inflate the money being used to purchase them.
  

• The Hubris of the Central Banker and the Ghosts of Deflation Past, Part I - By Richard M. Ebeling 2003 - This 4 page article explores 3 different types of deflation. 
  

• The Hubris of the Central Banker and the Ghosts of Deflation Past, Part II - By Richard M. Ebeling 2003 - This 4 page article is a follow up to the one above. It explores expansionist bubbles and the inflationary effects of Federal Reserve policy. 
  

• Deflation Cure Sickens Dollar - By James Grant 2003 - This 1 page article from Forbes explores the Fed's most likely direction.....as they attempt to help us....again. Registration may be required.
  

• How much is that worth today? - This is the purchasing power calculator I used for the chart information. It was created by Economic History Services 
  

• States' Rights vs. Monetary Monopoly - By Thomas J. DiLorenzo - This 2 page article recalls the history of central banking at the state level and how the states fought to keep control away from Washington. 
  

• Infinite Pains - By Sean Corrigan - This 3 page article throws cold water on the long standing fallacy that infinite money equals infinite prosperity.
  

• The Federal Reserve Board - Frequently asked questions from the Federal Reserve Bank web site.
  

• Economic Liberty and The Constitution Part 10 - By Jacob Hornberger - This 7 page article is an analysis of the Supreme Court cases (Gold Clause, 1934; and Legal Tender, 1870) used to systematically shift control of our money from the free market to the federal government. 
  

• Money, Banking and the Federal Reserve Board - This is an outstanding 42 minute video featuring Ron Paul, Hans-Hermann Hoppe, Joseph Salerno, and Lew Rockwell. This is an excellent video and should be on The History Channel.  source

IT’S OFFICIAL: AMERICA IS NOW NO. 2

There’s no easy way to say this, so I’ll just say it: We’re no longer No. 1. Today, we’re No. 2. Yes, it’s official. The Chinese economy just overtook the United States economy to become the largest in the world. For the first time since Ulysses S. Grant was president, America is not the leading economic power on the planet.

It just happened — and almost nobody noticed.

The International Monetary Fund recently released the latest numbers for the world economy. And when you measure national economic output in “real” terms of goods and services, China will this year produce $17.6 trillion — compared with $17.4 trillion for the U.S.A.

As recently as 2000, we produced nearly three times as much as the Chinese.

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