NEW! Members Only Forums!

Access more articles, news & discussion by becoming a PeakOil.com Member.
Register Today...
It's FREE!


Login



Peak Oil is You


Donate Bitcoins :-)


THE International Monetary Fund Thread (merged)

Discussions about the economic and financial ramifications of hydrocarbon depletion.

I Money Fund bombshell: Age of America Nears End

Unread postby Carlhole » Mon 25 Apr 2011, 11:54:38

MarketWatch (watch video at the link)
BOSTON (MarketWatch) — The International Monetary Fund has just dropped a bombshell, and nobody noticed.
For the first time, the international organization has set a date for the moment when the “Age of America” will end and the U.S. economy will be overtaken by that of China. And it’s a lot closer than you may think. According to the latest IMF official forecasts, China’s economy will surpass that of America in real terms in 2016 — just five years from now. Put that in your calendar.
It provides a painful context for the budget wrangling taking place in Washington, D.C., right now. It raises enormous questions about what the international security system is going to look like in just a handful of years. And it casts a deepening cloud over both the U.S. dollar and the giant Treasury market, which have been propped up for decades by their privileged status as the liabilities of the world’s hegemonic power.

According to the IMF forecast, whomever is elected U.S. president next year — Obama? Mitt Romney? Donald Trump? — will be the last to preside over the world’s largest economy.


Wow.
Last edited by Carlhole on Mon 25 Apr 2011, 14:17:51, edited 2 times in total.
User avatar
Carlhole
Master
Master
 
Posts: 5094
Joined: Mon 05 Jul 2004, 02:00:00

Re: IMF bombshell: Age of America Nears End

Unread postby JohnRM » Mon 25 Apr 2011, 12:18:31

I am just wondering why the average American should care.
"The world is my country, all mankind are my brethren, and to do good is my religion." -- Thomas Paine
User avatar
JohnRM
Tar Sands
Tar Sands
 
Posts: 152
Joined: Fri 04 Mar 2011, 00:36:44
Location: Eastern Pennsylvania

Re: IMF bombshell: Age of America Nears End

Unread postby pstarr » Mon 25 Apr 2011, 12:28:15

JohnRM wrote:I am just wondering why the average American should care.
They don't. They are maroons. 8)
Our great-great-grandparents burned wood and coal. Our grandparents burned oil. We burn natural gas. Our children will burn their furniture. :badgrin:
pstarr
Expert
Expert
 
Posts: 14858
Joined: Mon 27 Sep 2004, 02:00:00
Location: Behind the Redwood Curtain

Re: IMF bombshell: Age of America Nears End

Unread postby Carlhole » Mon 25 Apr 2011, 12:38:42

JohnRM wrote:I am just wondering why the average American should care.


Read the article and watch the video. It talks about American-style hegemony vs Chinese-style hegemony.

Once you end economic hegemony, you end the financial boons due to reserve currency status and all that. We will probably be walloped with inflation like we've never seen. It hasn't got so much to do with peak oil as it has to do with the aging of America and the relatively young, highly educated, extremely motivated (not to mention HU-phuking-MONGOUS) Chinese population.

It means Americans' standard of living will decline to affordable and manageable levels -- except for the elites, that is. Ouch.
User avatar
Carlhole
Master
Master
 
Posts: 5094
Joined: Mon 05 Jul 2004, 02:00:00

Re: IMF bombshell: Age of America Nears End

Unread postby FairMaiden » Mon 25 Apr 2011, 12:43:07

You might want to repost the link/video since sixstring's thread comes up as deleted...which is crazy bc second hit on my google search came up with that deleted post! haha.
User avatar
FairMaiden
Heavy Crude
Heavy Crude
 
Posts: 368
Joined: Thu 11 Aug 2005, 02:00:00
Location: Vancouver, BC

Re: IMF bombshell: Age of America Nears End

Unread postby Sixstrings » Mon 25 Apr 2011, 12:46:45

Carlhole wrote:Oops. Didn't notic six strings post same subject.


No prob Carl I deleted my thread no replies in that one yet.

Carlhole wrote:It means Americans' standard of living will decline to affordable and manageable levels -- except for the elites, that is. Ouch.


Which explains why the elites are invested in China. They're not stupid -- this place is going down, and the elites have wisely hitched their wagons to China. The die is cast and their will be no change.. our elites are already invested in Chinese success.
Last edited by Sixstrings on Mon 25 Apr 2011, 12:56:47, edited 2 times in total.
User avatar
Sixstrings
Master
Master
 
Posts: 6253
Joined: Tue 08 Jul 2008, 02:00:00

Re: IMF bombshell: Age of America Nears End

Unread postby mos6507 » Mon 25 Apr 2011, 12:46:58

So if the Age of America ends, do we still get our Carhole-predicted singularity?
User avatar
mos6507
Master
Master
 
Posts: 9505
Joined: Fri 03 Aug 2007, 02:00:00
Location: Boston Suburbs

Re: IMF bombshell: Age of America Nears End

Unread postby eXpat » Mon 25 Apr 2011, 12:50:18

FairMaiden wrote:You might want to repost the link/video since sixstring's thread comes up as deleted...which is crazy bc second hit on my google search came up with that deleted post! haha.

Link to the article posted earlier in another thread
http://peakoil.com/forums/us-economic-recovery-is-complete-expansion-has-begun-t60712-345.html
"I learned long ago, never to wrestle with a pig. You get dirty, and besides, the pig likes it."
George Bernard Shaw

You can ignore reality, but you can't ignore the consequences of ignoring reality.” Ayn Rand
User avatar
eXpat
Fusion
Fusion
 
Posts: 3803
Joined: Thu 08 Jun 2006, 02:00:00

Re: IMF bombshell: Age of America Nears End

Unread postby Carlhole » Mon 25 Apr 2011, 14:13:41

mos6507 wrote:So if the Age of America ends, do we still get our Carhole-predicted singularity?


I said: It is just as ridiculous to totally believe in The Singularity idea as it is to totally believe in the Olduvai Gorge scenario. But, of course, idiots like you and pstarr continually bring up some other bonehead notion.

SciTech only ever increases in crisis times. Witness WWII. There's nothing to indicate that there has been any reversal in the trend of rapidly advancing Science and Technology. You can't have an Olduvai Gorge if Science is racing ahead exponentially.

Predict when peak Science will occur and then come and argue with me. So far, nothing gives any indication that progress in Science & Technology is slowing down whatsoever.
User avatar
Carlhole
Master
Master
 
Posts: 5094
Joined: Mon 05 Jul 2004, 02:00:00

Re: IMF bombshell: Age of America Nears End

Unread postby Oneaboveall » Mon 25 Apr 2011, 16:04:26

Sixstrings wrote:Which explains why the elites are invested in China. They're not stupid -- this place is going down, and the elites have wisely hitched their wagons to China. The die is cast and their will be no change.. our elites are already invested in Chinese success.

In what way is this wise? It seems like something that could blow up in their faces.
When the banksters want something, our policymakers move with the speed of Mercury and the determination of Ares. It’s only when the rest of us need something that there is paralysis.
Oneaboveall
Heavy Crude
Heavy Crude
 
Posts: 420
Joined: Mon 01 Nov 2010, 16:56:45

Re: IMF bombshell: Age of America Nears End

Unread postby dsula » Mon 25 Apr 2011, 16:08:26

Carlhole wrote:Predict when peak Science will occur and then come and argue with me. So far, nothing gives any indication that progress in Science & Technology is slowing down whatsoever.

Tech needs energy. Peak energy results in peak science. Skewed of course, depending where society decides to allocates its resources.
User avatar
dsula
Intermediate Crude
Intermediate Crude
 
Posts: 810
Joined: Wed 13 Jun 2007, 02:00:00

Re: IMF bombshell: Age of America Nears End

Unread postby Carlhole » Mon 25 Apr 2011, 16:09:50

dsula wrote:
Carlhole wrote:Predict when peak Science will occur and then come and argue with me. So far, nothing gives any indication that progress in Science & Technology is slowing down whatsoever.

Tech needs energy. Peak energy results in peak science. Skewed of course, depending where society decides to allocates its resources.


Then make a prediction.
User avatar
Carlhole
Master
Master
 
Posts: 5094
Joined: Mon 05 Jul 2004, 02:00:00

Re: IMF bombshell: Age of America Nears End

Unread postby kublikhan » Mon 25 Apr 2011, 16:10:16

Carlhole wrote:It hasn't got so much to do with peak oil as it has to do with the aging of America and the relatively young, highly educated, extremely motivated (not to mention HU-phuking-MONGOUS) Chinese population.
China is aging faster than the US is. Further, unlike the US, China is getting old before it gets rich:

SINCE the 1970s China’s birth rate has plummeted while the number of elderly people has risen only gradually. As a result its “dependency ratio”—the proportion of dependents to people at work—is low. This has helped to fuel China’s prodigious growth. But this “demographic dividend” will peak in 2010.

It shows that from 1975 - 2010, China's one child policy helped create an economically-beneficial situation whereby the proportion of dependents in the population fell over time. Thus the country had increasingly more workers (producing economic output) per dependent (consuming output).

However, 2010 and onwards is when it's time to pay the piper. The proportion of elderly dependents will enter a multi-decade growth phase, whereby there will be increasing numbers of non-working dependents for each working-age person to support. Thus what was once a substantial tailwind reverses into a GDP-grinding headwind, starting next year.
China's Multi-Decade Worker Shortage Starts Next Year

For three decades China's one-child policy helped power this nation's economic rise. With fewer mouths to feed, families saved. Poverty fell. Living standards improved. But a social experiment that worked well in some respects is now threatening the country's hard-won gains. China's working-age population -- the engine behind its prolific growth -- will start shrinking within a few years.

Meanwhile, the ranks of elderly are projected to soar. By the middle of this century, fully a third of China's population will be age 60 or older, compared with 26% in the United States. China's projected 438 million senior citizens will outnumber the entire U.S. population.

With fewer workers to support an aging society in need of care, China faces the same demographic squeeze confronting Western nations. The difference: China's family-tinkering policy has accelerated a shift that the country is ill-prepared to manage and finance. "The problem is the age wave is coming while China is still relatively poor," said Richard Jackson of the Washington-based Center for Strategic and International Studies. "China may be the first major country to grow old before it grows rich."

Advances in family planning, nutrition and healthcare have resulted in longer life spans and fewer babies across much of the globe. The populations of developing regions such as Latin America and Asia are still much younger than those of U.S. and European societies. But they're aging much more quickly, lacking the time and resources to stitch together old-age social safety nets on par with those of rich, industrialized nations. Despite its dazzling economic growth, China is still a low-income country. Its per-capita GDP in 2008 was just over $5,000, one-ninth that of the United States.

there's no question that the one-child policy reduced fertility faster and sooner, a process some have dubbed "premature aging."
China's elderly will overwhelm the nation
The oil barrel is half-full.
User avatar
kublikhan
Light Sweet Crude
Light Sweet Crude
 
Posts: 1949
Joined: Tue 06 Nov 2007, 03:00:00
Location: Illinois

Re: IMF bombshell: Age of America Nears End

Unread postby Livewire713 » Mon 25 Apr 2011, 16:18:57

Oneaboveall wrote:
Sixstrings wrote:Which explains why the elites are invested in China. They're not stupid -- this place is going down, and the elites have wisely hitched their wagons to China. The die is cast and their will be no change.. our elites are already invested in Chinese success.

In what way is this wise? It seems like something that could blow up in their faces.


I agree, look what has happen to Fellowes. If the Elites start getting treated like second class citizens you know they'll come running home to mommy.
User avatar
Livewire713
Heavy Crude
Heavy Crude
 
Posts: 334
Joined: Fri 30 Sep 2005, 02:00:00

Re: IMF bombshell: Age of America Nears End

Unread postby Oneaboveall » Mon 25 Apr 2011, 16:25:29

Livewire713 wrote:I agree, look what has happen to Fellowes. If the Elites start getting treated like second class citizens you know they'll come running home to mommy.

I know. I'm the one who started the thread on Fellowes.
Last edited by Ferretlover on Mon 09 May 2011, 15:05:11, edited 1 time in total.
Reason: Excessive requoting deleted per COC.
When the banksters want something, our policymakers move with the speed of Mercury and the determination of Ares. It’s only when the rest of us need something that there is paralysis.
Oneaboveall
Heavy Crude
Heavy Crude
 
Posts: 420
Joined: Mon 01 Nov 2010, 16:56:45

Re: IMF bombshell: Age of America Nears End

Unread postby Green Energy Reports » Mon 25 Apr 2011, 21:25:34

This should be no big surprise when our government is so damn polarized that nothing ever gets done. Congress and political parties spends its time blaming one another. In China they only have one political party and seem to avoid the problem of polarization quite well. The Chinese people work like dogs and save 38% of their income. Theirs is not a perfect world, but we should give them some credit for their achievements and blame ourselves for exporting all those jobs overseas in the 70s and 80s. All we have left now is the best technology and medical facilities. I honestly don't see how we can ever take back the momentum from China, unless they suffer an economic catastrophe as we did.
User avatar
Green Energy Reports
permanently banned
 
Posts: 8
Joined: Mon 23 Aug 2010, 08:01:27

Re: IMF bombshell: Age of America Nears End

Unread postby Pops » Mon 25 Apr 2011, 22:55:57

Capitalism and easy, new money blows bubbles, and China has a doozy going I'd think. Any time a new employer comes to the sticks and pays the subsistence farmers to come to town and work in the factory things look good, for a while.

As for inflation, we have it pretty bad now - it shows up in everything except the official number, I think Keynes said a global currency would eliminate exactly the kind of inflation we are seeing right now - but that could be wrong.

At any rate, I don't think there is not enough cheap energy left for it to make much difference. With cheap energy goes cheap everything, actually it will be the end of a great number of things altogether and so massive international trade will slow to a crawl.

In another 20-30 years I'm thinking there just won't be nearly the need for a global currency and Americans won't care either way.
“Quite simply, we are looking at the highest average price since the age of oil began.”
-- Daniel Yergin

The only substitute for cheap energy is expensive energy. -- Me
Make a plan and work it. -- Me again
¡Where the heck are the pitchforks! www.MoveToAmend.org
User avatar
Pops
Moderator
Moderator
 
Posts: 11951
Joined: Sat 03 Apr 2004, 03:00:00
Location: My Grandkids' Farm

Re: IMF bombshell: Age of America Nears End

Unread postby AgentR11 » Tue 26 Apr 2011, 01:41:33

Thought experiment...

Why shouldn't a 1 billion person economy become larger than a 300 million person economy. Where both are industrially based, with modern outlooks, and significant natural resources at their commands, I see no reason to expect anything less.

OTOH, I think the fear mongering about China hegemony is just that. China isn't an expansionist power; and the territorial disputes they do have, are legitimate disputes, over relatively small and/or obscure parcels, requiring no malevolent intent to support on either side of the issues. Much less obnoxious than some of the claims the US made and won during the 19th century.

China is not a threat to the United States. Its just not. Our own Federal system might be a threat to a continuing economic prosperity; our own inefficiencies in consumption might be threats; or perhaps our given sense of entitlement might be... but a thriving economy in China can only be an asset and stabilizing force.
Yes we are, as we are,
And so shall we remain,
Until the end.
User avatar
AgentR11
Fission
Fission
 
Posts: 2916
Joined: Tue 22 Mar 2011, 08:15:51
Location: East Texas

Re: IMF bombshell: Age of America Nears End

Unread postby radon » Tue 26 Apr 2011, 17:22:55

Carlhole wrote:Predict when peak Science will occur and then come and argue with me. So far, nothing gives any indication that progress in Science & Technology is slowing down whatsoever.


I should say that I do not know when peak science will occur, and whether it will occur at all. We do not even know yet whether the volume of knowledge and information that our universe holds for us is finite or not. Any maths student will tell, though, that even infinite resources may peak, and that finite resources will always peak.

Nevertheless.

We can measure oil in barrels. Computer gurus invented bits and bytes to measure information. But how would we be able to quantify the pace of scientific development? A graph that you posted here attempts to introduce metrics for measuring it, by plotting the pace of achievements/discoveries against the timeline on a logarithmic scale.

A few thoughts in this regard, "criticisms":

1. There was only 8 years between the first space flight and first landing to the Moon. But to date, we have never seen a space flight to Mars or another planet, and even missions to the Moon have long been abandoned. Assuming an exponential pace of scientific development, one may argue that the space flight to Mars should have already happened by now, and absence thereof is an indication of slowing of the scientific development, and by extension - of peak science.

2. Why personal computer, that was introduced at the end of 1970s, is a greater scientific achievement than the landing to the Moon that happened much earlier?

3. Arguably, in order to objectively benchmark one scientific discovery against another in terms of their impact on the pace of progress, we need to know all possible scientific discoveries in advance. But this means that we have already discovered everything possible, a presumption which is false by default. Therefore in this graph of yours we just arbitrarily and subjectively plot the discoveries that we have already made against the timeline, and then call it exponential growth.

4. The graph to substantial extent reflects the evolution of species, and only at the very end we could see some signs of what we call "scientific progress".

5. Based on 1-4, one could argue that the metrics for the objective quantification of the scientific development should introduce a special unit for measurement of the advancement of any possible discovery/achievement relative to its peers, rather than plot the pace of factual evolutionary landmarks against the timeline.

6. The products of the scientific progress are arguably no different from those of the evolution: in principle: machines, airplanes and computers empower humans in the same way as wings, legs, eyes etc empowered species in various stages of their development.

7. The Dark Ages came after the fall of the Roman Empire. Was the discovery rate faster during the Dark Ages than it was during the Roman times and antiquity?

8. Exponential scientific progress, if true, should necessarily lead to the development of a fusion reactor or another source of abundant energy in the near future. This will make the die-off redundant. The human population will be able to continue to grow, and the humans will be able to reach other worlds to get access to their resources once the Earth is exhausted.

Based on the above, a skeptic could argue, your graph actually measures evolutionary trends which have been generally in line with the species/human population growth trends. And that therefore what you call "scientific development" is in fact necessarily proportional to the evolution and human population growth, rather than their counter-trend independent from them. Some argue that this means that nowadays the scientific progress is therefore a function of the fossil fuels availability.

But I am not the skeptic. I tend to agree that the scientific development is possible on its own terms, though not necessarily exponentially.

I have not had a chance to read all your posts or other related writings, where the criticisms above may already have been addressed.

However, in my view, the perceived conflict between the potential danger of the overpopulation and the unstoppable scientific progress is somewhat misleading as a concept (that conflict, according to the theory that you described, should be resolved by a birth of a new planetary life form).

The scientific progress does falter now, and very seriously, and the points above illustrate it. What is now perceived as a rapid advancement of the scientific development is in fact mostly restricted to the consumer-related fields: number of functions in your held hand device, broadband connection speed etc. And to some military applications. This is why some observers talk about the "law of diminishing returns of technological advance", quite justifiably.

By contrast, the areas crucial to the fates of the humanity remain underdeveloped. But this is not as much a scientific problem as it is a human resource/management one. The existing organizational arrangements appear to be structurally unable to advance these areas.
radon
Intermediate Crude
Intermediate Crude
 
Posts: 627
Joined: Fri 05 Nov 2010, 01:50:28

Re: IMF bombshell: Age of America Nears End

Unread postby Keith_McClary » Tue 26 Apr 2011, 23:14:42

Also, it seems that superpowers can't get reliable stooges these days:
Washington on the Rocks -An Empire of Autocrats, Aristocrats, and Uniformed Thugs Begins to Totter
By Alfred W. McCoy and Brett Reilly
Across the Greater Middle East from Tunisia and Egypt to Bahrain and Yemen, democratic protests are threatening to sweep away subordinate elites crucial to the wielding of American power. Of course, all modern empires have relied on dependable surrogates to translate their global power into local control -- and for most of them, the moment when those elites began to stir, talk back, and set their own agendas was also the moment when it became clear that imperial collapse was in the cards.
...
When civilian presidents proved insubordinate, the Central Intelligence Agency went to work, promoting coups that would install reliable military successors --replacing Iranian Prime Minister Mohammad Mossadeq, who tried to nationalize his country's oil, with General Fazlollah Zahedi (and then the young Shah) in 1953; President Sukarno with General Suharto in Indonesia during the next decade; and of course President Salvador Allende with General Augusto Pinochet in Chile in 1973, to name just three such moments.
...
As U.S. power and influence declined, Washington’s attempts to control its subordinate elites began to fail, often spectacularly -- including its efforts to topple bête noire Hugo Chavez of Venezuela in a badly bungled 2002 coup, to detach ally Mikheil Saakashvili of Georgia from Russia’s orbit in 2008, and to oust nemesis Mahmoud Ahmadinejad in the 2009 Iranian elections. Where a CIA coup or covert cash once sufficed to defeat an antagonist, the Bush administration needed a massive invasion to topple just one troublesome dictator, Saddam Hussein.
...
For more than 50 years, Washington has been served well by a system of global power based on subordinate elites. That system once facilitated the extension of American influence worldwide with a surprising efficiency and (relatively speaking) an economy of force. Now, however, those loyal allies increasingly look like an empire of failed or insubordinate states. Make no mistake: the degradation of, or ending of, half a century of such ties is likely to leave Washington on the rocks.
===============================================================
They seem to believe that if they say "Bakken, Brazil, offshore, tar sands, technology" enough times in a row, it will make $100-a-barrel oil go away.
- Kurt Cobb
User avatar
Keith_McClary
Fusion
Fusion
 
Posts: 3269
Joined: Wed 21 Jul 2004, 02:00:00
Location: Suburban tar sands

PreviousNext

Return to Economics & Finance

Who is online

Users browsing this forum: No registered users and 10 guests