A recent article says China has just now passed America as the leading economy.

Before anyone cashes in and moves the kids to Peking, it may be wise to note the info is based on International Monetary Fund statistics, using a ‘cost-of-living’ fudge factor.

Investor’s Business Daily, however, advises China’s GDP for this year will be less than half what IMF ‘calculates’, so…someone’s ‘fudge factor’ smells more like raw sewage.

The cause of the over-inflated GDP numbers may lie somewhere in this pull-quote: “China’s recent decision to bring gross domestic product calculations in line with international standards has revealed activity that had previously gone uncounted.”

“…bring (GDP) calculations in line with international standards…”  ?

“…revealed activity that had previously gone uncounted…”  ?

Anytime ‘international standards’ help to find ‘uncounted activity’…reality suffers.

According to IBD’s article, our GDP will be over 2 times greater than China’s this year.

What possible ‘uncounted activity’ by ‘international standards’ could have over-inflated the numbers, making China’s gross domestic product appear to be twice its reality?

China’s population is 4.3 times larger than ours…maybe its leaders decided to count the production of belches and bowel movements, or the recycling of used Pampers?

(Talk about GROSS Domestic Product…!)

Bottom line? Don’t move mom and the kids anytime soon. Question #1 for such stories:

What’s the analyst’s invested position in the nation being hyped?