The IMF announced that the GDP of China has now exceeded the GDP of the USA. In this interview I explain some of the “back story” on this topic and also alert listeners of the implications of the current world currency war and looming economic crisis.
“In the US, the GDP growth has been driven largely through a process of large government deficits and the burgeoning national debt,” he said. “An unprecedented radical monetary policy of keeping interest rates very low” also contributed to an unsustainable economic growth, Thornton told Press TV on Wednesday. The American economist said China’s growth policies are also questionable and will not be sustainable in the future. “They (China) have a lot of planned investment in infrastructure, housing, office space and the building of giant skyscrapers and they have a lot of inventory of all those products and under utilization of infrastructure investment,” he noted. China remains the biggest foreign holder of US government debt, holding an estimated $1.27 trillion in US Treasury bonds. The United States accuses China of lowering the price of its exports by manipulating its currency. “Growth is a good thing, but in the case of China and the US, we have to question whether it’s natural, sustainable,” Thornton said.
