The biggest piece of economic news is that the next American president will be the last to preside over the world's largest economy, as the International Monetary Fund predicts China will surpass the US in 2016. America's dominance as the world's largest economy is coming to an end sooner than had originally been projected. According to the International Monetary Fund, the United States will be eclipsed by China in 2016, The prediction comes amid growing concern over American national debt and a US dollar that appears to be heading into considerable decline.
All of that is sending the greenback crashing and because it's in freefall, the price of food and fuel in the US is climbing.
There is also speculation coming out of China that China should start selling off its US reserves, and when that happens, it will send the dollar even lower. If that happens, the dollar may well lose its reserve currency status but then, what would you replace it with?
The shock waves for the US – and indeed any country that has allied itself politically and monetarily to the superpower – are troubling because no country in the modern era has come close to matching the might of America's economy. We are entering uncharted waters.
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