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Re: its the economy stupid!

Author: Liang2a
Date: 02-18-12 17:10

bean wrote:
so when we put things into perspective its perfectly normal and affordable for china to have a increased defense budget that WSJ/janes claims. china's GDP is going to double of what it is today in approx 10 years so it's not going to break a sweat to have a defence budget that equals all of asia's defence budgets combined. afterall IT'S THE ECOMOMY STUPID!
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Not only can China double its military budget in yuan terms within 10 years, it can easily triple or even quintuple it. China's GDP can reach some 100 trillion yuan by 2020 by growing at 8% per year. (China's 2011 GDP was 47.2 trillion yuan.) If China allocates some 3% of GDP to military then that is 3 trillion yuan. This is nearly 5 times more than the 601 billion yuan of 2011 military budget. And at 3 trillion yuan and 3 yuan per dollar it is $1 trillion or some $100 billion to $400 billion more than the US military budget. If the US wants to double its military budget to $2 trillion then that is fine with China. With a $2 trillion military budget the US will soon go the way of the USSR and disintegrate itself. But since China's $1 trillion military budget is only 3% of its very big GDP, it can live very comfortably with it. It can even be a healthy stimulus to its domestic economic growth during the time of reducing exports.

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