Chinese Blackouts Are Revealing Something Much More Important About The Global Economy
Economics Explained
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The Unrecognized Global Currency
A dollar in china buys you more than a dollar in the united states, especially when it comes to manufactured goods and electricity. If we balance this purchasing power, then china's industrial output goes from being about 30% higher than america's to almost 200%. In effect, they are genuinely making a lot more stuff than America - is just that the stuff is worth a lot less in the chinese market. This adjusted figure means that china does still use more electricity per dollar in manufacturing output than the us. But not by much. And if we assume that the actual electrical output figures are overstated by some degree, they might genuinely be on parody. Energy is really unique in
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