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Global economic growth in 2018 on track to be fastest since 2011


The global economy is set to grow by almost 4% in 2018 in purchasing power parity (PPP) terms, adding an extra $5 trillion to global output at current values, according to new projections in PwC’s Global Economy Watch.

The main engines of the global economy – the US, emerging Asia and the Eurozone – are expected to contribute almost 70% of economic growth in 2018 compared to their post-2000 average of around 60%.

Growth in the Eurozone is predicted to be above 2% in 2018, as PwC expects the peripheral economies to outpace the core for the fifth consecutive year. Of the larger Eurozone economies, the Netherlands is expected to lead the way with economic growth at around 2.5%. By contrast, uncertainty relating to Brexit is expected to drag on UK growth, which is predicted to be 1.4% in 2018.

Barret Kupelian, senior economist at PwC, comments:

‘In 2018, we expect global economic activity to grow at its fastest rate since at least 2011, with the three main engines of the global economy-the US, Eurozone and Asia-growing in tandem. However, there are some downside risks businesses should monitoring including the progress of the Brexit negotiations, key elections in large economies and protectionist tendencies in some nice sectors of the economy’

China, the world’s largest economy in PPP terms, could grow by 6-7% in 2018, slower than previously, but in line with expectation. Amongst the 17 economies that will grow faster than China are India, Ghana, Ethiopia and the Philippines, pointing to broader based growth in Africa and Asian economies. Eight of the ten fastest growing countries in 2018 could be in Africa according to PwC’s analysis.

With the fastest level of growth for several years, 2018 is predicted by PwC to be the most energy hungry on record too. Almost 600 quadrillion British Thermal Units of energy could be consumed by the global economy in 2018, the highest level on record and double that of 1980. India and China alone are expected to consume 30% of global energy.

Despite this, PwC’s outlook predicts oil prices are set to remain broadly stable in real terms, with OPEC and its allies extending its 1.8 million barrels per day supply cut until the end of next year.

Other influences and factors to watch in 2018 include PwC’s Global Economy Watch include:

The European Central Bank could reduce its monthly asset purchases in 2018, but a dramatic shift in monetary policy in Japan is unlikely.
Across the G7, the unemployment rate is predicted to hit a 40 year low, at around 5% or 19 million workers.
Wage growth will post a modest uptick in some advanced economies where spare capacity is limited but remain below pre-crisis levels.
An extra 80 million people are likely to be added to the world’s population in 2018, but as a percentage increase this would be the slowest since 1950. For every 10 people added to the world’s population, PwC predicts nine will be located in either Africa or Asia.
Source: PwC (Pricewaterhousecoopers International Ltd)

45 Comments on "Global economic growth in 2018 on track to be fastest since 2011"

  1. MASTERMIND on Sat, 30th Dec 2017 8:04 pm 

    Almost 4 percent…That means 3% something.And about half of that growth is through financial which doesn’t really produce any goods or services. So fail…

  2. Sissyfuss on Sat, 30th Dec 2017 10:28 pm 

    Is it still considered economic growth if it is contained within a world of Ponzinomics and financialization?

  3. Cloggie on Sat, 30th Dec 2017 11:07 pm

    Holland has 8 million jobs, is handwringing looking for 2 million people. My current employer regularly sends emails and begs its employees to bring in acquaintances. I have never seen anything like this. My home increased 30% in value in a matter of 2 years.

    6 out of 7 in Europe:

  4. MASTERMIND on Sat, 30th Dec 2017 11:35 pm 


    Stop spamming this site with fake news you imbecile. you are as dumb as madkat. you cherry pick an media story you like that proves your agenda. you never have posted an actual study just bite on every fake news ‘Good News” story you find…learn to question things you read you gullible faggot. Hey clogg I have some magic beans I would love to sell you..CNBC said they were a winner!

  5. MASTERMIND on Sat, 30th Dec 2017 11:40 pm 

    Hey Clogg

    How is your econoy going to grow with oil shortages coming soon and super high prices make a big comeback..Heinberg party’s over 2008 style!

    As M. King Hubbert (1962) shows, Peak Oil is about discovering less oil, and eventually producing less oil due to lack of discovery.

    IEA Chief warns of world oil shortages by 2020 as discoveries fall to record lows

    Peak Oil Vindicated by the IEA

  6. Outcast_Searcher on Sat, 30th Dec 2017 11:47 pm 

    More empty whining and crying by MM, because he can’t stand to hear about growth in the real world. Fast crash doomers are so predictable.

  7. Makati1 on Sun, 31st Dec 2017 12:31 am 

    “China, the world’s largest economy in PPP terms, could grow by 6-7% in 2018, slower than previously, but in line with expectation.

    Amongst the 17 economies that will grow faster than China are India, Ghana, Ethiopia and the Philippines, pointing to broader based growth in Africa and Asian economies.”

    West down. East up.

  8. Cloggie on Sun, 31st Dec 2017 12:35 am 

    “Hey Clogg

    How is your econoy going to grow with oil shortages coming soon and super high prices make a big comeback..Heinberg party’s over 2008 style!”

    As we have already discussed, in his latest book, Heinberg pleads for a 100% renewable energy base.

    This is the future:

    This is real:

  9. Cloggie on Sun, 31st Dec 2017 5:09 am 

    “Hey Clogg

    How is your econoy going to grow with oil shortages coming soon and super high prices make a big comeback..Heinberg party’s over 2008 style!”

    I spelled it all out for you in detail how the Netherlands (and others in NW-Europe) are going to tackle the energy problems, how we are going to have a near 100% renewable energy base by 2050, as well as own large new wealth creating energy businesses with which we are going to replace all the global old oil and gas glory of the 20th century and will be richer than ever before:

  10. Davy on Sun, 31st Dec 2017 6:05 am 

    “Holland has 8 million jobs, is handwringing looking for 2 million people. My current employer regularly sends emails and begs its employees to bring in acquaintances. I have never seen anything like this. My home increased 30% in value in a matter of 2 years.”

    It’s called a bubble Tulip and you Nederlanders are good at bubbles. Just look at your overpopulation as one example. You forget that you are part of a global system that is a bubble and part of the Euro system and all this is feeding into Northern Europe in excess. You are sucking resources out of the less prosperous regions of the world including other parts of Europe. These other areas will take you down a notch or two eventually. You can’t live in isolation. Just be patient Tulip, hard times will likely be ahead for you and your very overpopulated little region. At least you are not as bad as what mad kat faces. The Nederlanders are resourceful and organized people.

  11. Davy on Sun, 31st Dec 2017 6:45 am 

    I don’t think now is the time to brag about growth. This article is not balanced and just another example of the imbalance of our late term civilization. I agree there is lots of growth but there is also a lot of bad growth and no growth. There is so much debt and unfunded liabilities that is ignored and pretended away. We have huge overcapacities and undercapacities. Profit seeking does these things, otherwise called greed. We have problems requiring huge investments when the world is likely at its limits of what it can afford. The global economy is facing peak oil dynamics which I imagine will kick in noticeably in the next 2 years. Renewables are a false promise. They will help but the issue is behavior and technology. They can never do what is needed and required by a human behavior that is mostly unmanageable. The technology at its zenith is too expensive and scale too large for what is demanded.

    We cannot properly manage market based capitalism supported by liberal democratic idealism. It manages us and its motivation is growth at any cost including its own welfare. We have to have draconian efforts at population control and demand management. That ain’t going to happen with a corrupted market based capitalism supported by fake liberal democratic idealism. This especially true now that cooperative efforts are becoming more competitive as the world’s problems compress. We have reactionary politics from the hyper conservative science deniers. We have skydaddy worshipers running wild with fantasy. These two groups will ensure needed change is stymied.

    We are in a catch 22 of multiple traps on all levels. Yet, we want our cake and eat it. We don’t want to sacrifice but it is ok that others do and this is called wealth transfer. If there is growth today it is at the expense of the environment and an economy somewhere else. New people are added to the global population daily and this is destabilizing multiple locations all at once. This causing strains with energy, food, and water. All three of these needs are competing from within regions and from outside regions competing with each other. At the same time the whole carbon system is being forced. We have long term processes and short term ones and none of them are good. We will likely swim through a swamp of problems leading into a dangerous and deadly ocean of predicaments. Perhaps the ocean will be for the young among us (poor bastards) but remember a hurricane from hell could open up at any time and take down our brittle and extended late term civilization.

    I would not trust articles like this or our board techno optimist. I would look more to those who approach this process with level headedness and say we are in a dangerous situation but we have efforts that can make it less deadly. Sure we have strong global supply and demand and it will likely continue if we don’t ruin it with war. Yet, don’t think for a minute this can just continue because we are a finite planet and a linear civilization with a destiny with collapse. We will be forced into the cyclical world of nature and the results will be a sharp fall in economic activity and population. It’s called success or for you economist the business cycle. For skydaddy types the friggen rapture.

    How bad, when and the duration of this decline are anyone’s guess. We see the trends and we know plenty of the warning signs. What we lack is the wisdom to be proactive and effective. What we will do is be reactive and irrational. Economic abandonment, dysfunctional networks, and irrational policy come from random decline. Random decline is everywhere along with growth. Many will suffer needlessly because we can’t manage ourselves. We are still developing where we should not be. We are still promoting behaviors we should not be. We are locked into our behavioral problems because the economy cannot change much without failure. It is the economy that is our hope for making things less worse.

    Anyone overly optimistic like the techno optimist on this board are part of the problem. This is a unwise social narrative of optimism and techno salvation. We worship those who are optimistic and promote technology. Technology is our god but this god is really a demon. Growth now is essential and it is deadly. Try to find a compromise with that and you then see we are trapped.

  12. onlooker on Sun, 31st Dec 2017 7:00 am 

    Economic Growth is counterproductive to the long term interests of our species. But of course some on this planet are not interested in our species per say or its long term interests. Tragedy of the Commons

  13. deadly on Sun, 31st Dec 2017 7:37 am 

    Well, the economy is bound to grow when you clear-cut forest in North Carolina, process the timber to wood pellets, load them on to a ship, haul the wood pellets originated from North Carolina to a power plant in England, burn the wood pellets that emits more CO2, and it is all good because it is renewable and green. Such progress!

    You get a two-fer, clear-cut forest that removes CO2 from the atmosphere and increases emissions.

    Renewable energy at work the fake green way, greenwashing included.

    Humans are insane and never learn. Even with an ever increasing body of knowledge, they still do really stupid things and are extra stupid to believe it all.

    There is no limit to human stupidity, the universe is a tiny speck in God’s eye when compared to the infinite amount of human stupidity available.

    If you want a growth industry, stupidity is it.

    No limit to the industrial output of human stupidity.

    Green energy gives stupidity a green light to continue ad infinitum ad nauseum.

    Uff da.

  14. onlooker on Sun, 31st Dec 2017 7:47 am 

    Well said Deadly. As you and others have said we are our own worst enemy

  15. ____________________________________________ on Sun, 31st Dec 2017 12:20 pm 

    So if my calculations are correct pussy grabbins will increase by a whoopin 69%

  16. dave thompson on Sun, 31st Dec 2017 12:56 pm 

    Yea wow, just what we need is more growth on a finite planet.

  17. joe on Sun, 31st Dec 2017 1:36 pm 

    Yeah, all very good, but with millions of refugees coming, increased interest rates and low wages growth, its hard to see certainty in such predictions.

  18. Cliffhanger on Sun, 31st Dec 2017 2:22 pm 

    Notice I scared the Rockman far, far away from this blog now….He isn’t getting payed enough to fuck with the Cliffhanger! Rockman will be the first over the cliff!

  19. Hello on Sun, 31st Dec 2017 4:37 pm 

    >>>> handwringing looking for 2 million people

    Europeans won’t be filling those, that’s the problem Clog.
    Economy always wins, welcome the chineese and indian engineers. And welcome the 3rd world workers.

    Except for negros, those are too stupid and need help from whitey to even fill out a “request for gov handout” form.

  20. Cloggie on Sun, 31st Dec 2017 4:55 pm 

    Thank God there is no housing

  21. Cloggie on Sun, 31st Dec 2017 5:16 pm

    Happy 2018!

  22. Duncan Idaho on Sun, 31st Dec 2017 6:14 pm 

    “Holland has 8 million jobs”

    Isn’t that about what LA County has?
    And lets not talk about the rest of the State—-

  23. Duncan Idaho on Sun, 31st Dec 2017 6:23 pm 

    Pricewaterhousecoopers International Ltd

    Global Trust Bank Ltd and DSQ Software[edit]
    India’s accounting standards agency ICAI is investigating partners of PwC for professional negligence[187] in the now-defunct Global Trust Bank Ltd. case of 2007. Like Satyam, Global Trust Bank was also based in Hyderabad. This led to the RBI banning PwC from auditing any financial company for over a year.[204][205][206] PwC was also associated with the accounting scandal at DSQ Software[207] in India. Following the Satyam scandal, the Mumbai-based Small Investor Grievances Association (SIGA) has requested the Indian stock market regulator SEBI to ban PwC permanently and seize its assets in India alleging more scandals like “Ketan Parekh stock manipulations.”[208]

    Transneft Russia case[edit]
    Upon the completion of the construction of the ESPO (East Siberia-Pacific Ocean) pipeline by Transneftin December 2010, an official report of the Audit Chamber of the Russian Federation suggested that $4 billion was stolen by Transneft insiders.[209] One Federation Council Speaker, Sergei Mironov, called for an investigation. Alexei Navalny, a minority Transneft shareholder and lawyer, accused the company of wrongdoing in his personal blog, and criticized PwC, Transneft’s auditor, of ignoring his warnings. PwC denied wrongdoing, stating that, “We believe there are absolutely no grounds for such allegations, and we stand behind our work for OAO AK Transneft.”[210]

    Northern Rock[edit]
    In 2007, PwC was criticised by the Treasury Select Committee of the Parliament of the United Kingdom for helping Northern Rock, a client of the firm, to sell its mortgage assets while also acting as its auditor.[211][212] In 2011, a House of Lords inquiry criticized PwC for not drawing attention to the risks in the business model followed by Northern Rock, which was rescued by the UK government during the financial crisis.[213][214]

    JP Morgan Securities audit[edit]
    In 2012, the Accountancy and Actuarial Discipline Board (AADB) of the UK fined PwC a record £1.4m for wrongly reporting to the Financial Services Authority that JP Morgan Securities had complied with client money rules which protects client funds. The accountants neglected to check whether JP Morgan had the correct systems in place, and failed to gather sufficient evidence to form opinions on the issue, and as a result, failed to report that JP Morgan failed to hold client money separate from JP Morgan’s money. It is the greatest penalty administered to a professional accountancy firm in the UK.[215]

    Water privatisation in Delhi[edit]
    PwC was found to be unethically favored by the World Bank in a bid to privatize the water distribution system of Delhi, India, an effort that was alleged as corrupt by investigators.[216] When bidding took place, PwC repeatedly failed in each round, and the World Bank in each case pressured PwC to be pushed to the next round and eventually win the bid. The effort at privatization fell through when an investigation was conducted by Arvind Kejriwal and the non-governmental organization (NGO) Parivartan in 2005.[216] After submitting a Right to Information (RTI) request, Parivartan received 9000 pages of correspondence and consultation with the World Bank, where it was revealed that the privatization of Delhi’s water supply would provide salaries of $25,000 a month to four administrators of each of the 21 water zones, which amounted to over $25 million per year, increasing the budget by over 60% and water taxes 9 times.[217][218]

    The Delhi Jal Board (DJB), which administers the water system of Delhi, was first approached by Parivartan in November 2004, following a report by the newspaper The Asian Age, where the scheme was revealed to the public for the first time.[217][218] The DJB denied the existence of the project, but after an appeal, the RTI request was granted. The documents revealed that the project began in 1998, in complete secrecy within the DJB administration.[217][218] The DJB approached the World Bank for a loan to improve the water system, which it approved, and the effort began with a $2.5 million consultation loan. The Delhi government could have easily provided the money, and the interest rate of 12% that was to be loaned by the World Bank could have been raised on capital markets for 6%.[217][218] Following the consultation, 35 multi-national companies bid, of which six were to be short listed. When PwC was in 10th place, the World Bank said that at least one company should be from a developing country, and since PwC made the bid from its Kolkata office, it was dubbed an “Indian” company, and its rank was dropped to 6th.[216] When PwC failed in the second round, the World Bank pressured the DJB to start over with a fresh round of bidding. Only one company succeeded in the new round that was not PwC, and the World Bank had the lowest marks from an evaluator thrown out. The contract was awarded to PwC in 2001.[219] Following the investigation by Parivartan, a campaign was waged by Kejriwal, Aruna Roy, and other activists across Delhi, and the DJB withdrew the loan application to the World Bank.[216][217][218]

    In 2013 Cattles plc brought a legal action against PwC in the UK in respect of the 2006 and 2007 audits claiming that they had failed to carry out adequate investigations.[220] Cattles, a UK consumer finance company, later discovered control weaknesses which caused its loan book to be materially overstated in its balance sheet; having been listed as a FTSE250 company, it subsequently lost its listing. PwC disputed this legal claim.[221] The claim was settled out of court on undisclosed terms.[222]

    The Financial Reporting Council (FRC) issued a fine of £2.3m on PwC and ordered the firm to pay £750,000 costs following their investigation of the 2007 audits of Cattles and its principal trading subsidiary. PwC admitted their “conduct fell significantly short of the standards reasonably to be expected of a member firm” in respect of the 2007 financial statements. The FRC said that PwC had insufficient audit evidence as to the adequacy of loan loss provisions.[223]

    PCAOB report on audit inspections[edit]
    The Public Company Accounting Oversight Board (PCAOB) report on audit work carried out by PwC in 2014 in respect of US public companies identified significant deficiencies in 17 of 58 audits examined.[224] The PCAOB report on work carried out in 2015 identified significant deficiencies in 12 of 55 audits examined.[225]

    Quinn Insurance[edit]
    PwC Ireland is being sued by the joint administrators of Quinn Insurance Limited (QIL) for €1bn. Having been audited by PwC for the years 2005 to 2008, QIL went into administration in 2010. The administrators allege that PwC should have identified a material understatement of QIL’s provisions for claims.[226] [227]

    Connaught plc[edit]
    Connaught plc, a UK former FTSE 250 Index outsourcing company operating in property maintenance for the social housing and public sector, was put into administration on 2010 after reporting material losses. In 2017, the Financial Reporting Council (FRC) severely reprimanded PwC and its audit partner following an investigation of their conduct in respect of the 2009 audit of Connaught. PwC was fined a record £5 million plus costs.[228]

    In 2014 Tesco, a UK retailer, announced that it had overstated profits by £263m by misreporting discounts with suppliers. The Financial Reporting Council started an investigation into accounting practices at Tesco and into the conduct of PwC in carrying out its audits in 2012, 2013 and 2014.[229] Two members of Tesco’s Audit Committee, responsible for monitoring Tesco’s relationship with its auditors, had themselves previously worked for PwC, including its chairman, Ken Hanna; he later stood down.[230] In 2015 PwC were replaced as auditors of Tesco, ending a 32-year engagement, following a tender process to which they did not participate.[231] In June 2017 the Financial Reporting Council said there was no “realistic prospect” that a tribunal of the UK’s accountancy watchdog would rule against the auditor PwC concerning its involvement in Tesco’s 2014 case.[232]

    Bank of Tokyo-Mitsubishi UFJ[edit]
    In 2014, The Bank of Tokyo-Mitsubishi UFJ was investigated by New York banking regulators over its role in routing payments for Iranian customers through its New York branch in violation of U.S. sanctions. It was found that PwC had altered an investigation report on the issue; PwC itself was fined $25 million in relation to the matter.[233]

    I could go on, but the list would be quite long—-

  24. Cloggie on Mon, 1st Jan 2018 1:35 am 

    ”Holland has 8 million jobs”
    Isn’t that about what LA County has?
    And lets not talk about the rest of the State—-

    The EU has 2.5 times the number of Europeans as compared to the US or 3.5 times if you include the Slavic world. Keep counting yourself rich, Duncan from Idaho.

  25. Davy on Mon, 1st Jan 2018 3:59 am 

    More is not better anymore in regards to population. This is 20th century thinking. The right amount is related to carrying capacity. That carrying capacity continues to reflect smaller populations as we get into every more tight resource arrangements.

  26. Cloggie on Mon, 1st Jan 2018 4:22 am 

    Carrying capacity is one thing, defense another. If The Others refuse to restrain themselves and threaten to overwhelm us, you cannot just preach the lowest possible birth rates for ourselves and set yourself up to become the next American “Indians”, destined to live in reserves. Within the correct alliance structure we have no carrying capacity problems.

    Here some Dutch fool thinking that sharks are to play with:

    Typical 1968 careless hippy attitude that loves to think that the entire world is one giant Love Parade, totally denying the competitive Darwinian aspects of life. This fool probably has the same attitude towards imperial Muslims: “Just come in and take a seat! Wanna beer?”

  27. Cloggie on Mon, 1st Jan 2018 4:34 am 

    Interesting site:

    Just register and follow a few of those ships:

    There are almost 300 of them, almost all operating in European waters as a consequence of the energy policy of the European Union.

    Every day I receive a few emails of arrival/departure events of these vessels. Usually one vessel can carry 4-6 complete windturbines:

    This means that every day perhaps 10 or more 4-6 MW wind turbines are installed in the North Sea, day in, day out, year in, year out, decade in, decade out

    In the 2nd half of this century the entire North Sea will probably be plastered with these turbines and the EU will have a renewable energy base.

  28. Cloggie on Mon, 1st Jan 2018 4:44 am 

    The real work, not just an artist impression video:

  29. Cloggie on Mon, 1st Jan 2018 4:58 am 

    There are three offshore wind hubs in the Netherlands:

    1. Eemshaven in the North
    2. Rotterdam in the West
    3. Vlissingen (“Flushing”) in the South

    Eemshaven [3:36]



  30. Antius on Mon, 1st Jan 2018 6:32 am 

    World GDP growth 1961-2016:

    Growth has been on a declining trend since 1980 and has been particularly weak since 2010. Even so, a spike to 3-4% would not be unusual in a recent historical context. But this is a projection, not measured growth.

    This article discusses the US economy in the 1920s:

    Take a look at figure 1. Notice that 1928 was actually quite a good year in terms of GDP growth. They must have thought they were doing really well.

    The warning signs can be seen in sliding CPI in the years since 1925 (Figure 2) a clear sign that domestic demand for goods was weakening.

    Global inflation dropped into deflationary levels in 2010 and has remained there ever since. This in spite of interest rates effectively zero and relatively low oil prices since 2011. This is the harbinger of depression because it is a symptom of weak consumer demand.

  31. Makati1 on Mon, 1st Jan 2018 6:35 am 

    “… But this does suggest that those who live within the present empire—the US—will be the last to truly understand that the game is all but over. Americans seem to be hopeful that the dramatic decline is a temporary setback from which they will rebound.

    Not likely. Historically, once an empire has been shot from its perch, it’s replaced by a rising power—one that’s more productive and more forward thinking in every way….

    Meanwhile, the other major powers of the world are going full steam ahead to ensure that, when the US and EU reach their Waterloo, the rest of the world will carry on independently of the dying empire….

    China, Russia, and the rest of the world, when faced with American threats and bluster, will not simply fold their tents and accept that the US must be obeyed. They will, instead, create alternatives. And they are doing so exceedingly well and quickly. At this point, the overreach of the US is not only enabling other powers to rise, it is forcing their hand to literally create the next full-blown empire.”

    I think 2018 is going to be a very exciting year. Buckle up!

  32. Cloggie on Mon, 1st Jan 2018 7:16 am 

    Meanwhile, the other major powers of the world are going full steam ahead to ensure that, when the US and EU reach their Waterloo, the rest of the world will carry on independently of the dying empire….

    I too believe that 500 years of total white planetary dominance are over and that Samuel Huntington was right with his prediction of a rising identitarian multi-polar world, where the European-American part formerly known as the West will be merely one of many “poles”. The desastrous white infighting (WW1/WW2), both instigated by the Anglos, have only hastened that process but was probably inevitable in the long run anyway.

    In contrast to makati I’m absolutely not pessimistic about the future of the European world, but we need to get rid of the egalitarian Anglo-Zionist empire as an overlord first, in order to revert to conservative/right-wing values and begin to repair European civilization from the immense damage inflicted by the “progressive” Anglo-Soviets, most of all in the realm of family politics and immigration.

    Russia clearly wants to become a European nation and we Europeans should let them in and accept them as a great nation, on par with France and Germany (not as the new overlord [*]), and Russia will accept that. Together with Russia we can put America in the shadow

    [*] Russia is still economically “backward” as compared to western Europe and they know it. They may have the most people and territory, but income is still low. EU has GDP $19T, Russia $4T. Germany and France represent Europe of 500 million, Russia represents the 200 million of the Slavic world. France has ca. 300 sub-launched ICBMs/warheads, Russia 7000. It doesn’t make much difference anyway as nukes are the great equalizer. That’s why Russia will accept being the equals of France and Germany, in terms of political influence/weight. These three will constitute the future inner circle of European civilization. In the future their will not be such a thing as “empire”, but only “Huntingtonian culture circles”.

  33. Cloggie on Mon, 1st Jan 2018 7:29 am 

    In his new years address, president Macron has outed himself as standing in the Gaullist tradition (meaning: anti-Atlanticist, pro-Russia).

    Macron called for a French Renaissance and described France as a “Grande Nation”, loyal to the European project.

    With Britain retreating, France under Macron has clearly taken over the European leaderships-role from Merkel, who politically is as good as dead, thank God. It is very symbolic that Macron invited Putin first, before everybody else.

    Tonight Putin has invited Macron to visit France.

    Things look good for Europe.

  34. Antius on Mon, 1st Jan 2018 9:29 am 

    Russian GDP is closer to $1.2 trillion, having declined from ~$2 trillion in 2014.

    China is building more nuclear power plants than the rest of the world combined. However, it’s coal and oil production have both peaked, hydropower is maxed out and they are scaling back investment in other renewable energy sources. Economic growth is ultimately a function of energy supply and China’s is shrinking.

    Add into that a climbing debt-GDP ratio (approaching 300% now), falling working age population and stagnating wages. The Chinese economy is perfectly positioned for a 1929 style crash.

    Most likely, the entire world is going to face difficulties in the decades ahead. We have collectively growth beyond our resource base.

  35. MASTERMIND on Mon, 1st Jan 2018 9:54 am 

    The Great Depression 1929-1940 Economic Growth GDP (1%)
    The Great Recession 2006-2017 Economic Growth GDP (1.5%)

    The Great Recession 2006-2017 Economic Growth GDP Per Capita (0.4%)

    OCED Economic Growth GDP Per Capita 1970-2015 (0.5%)

  36. Cloggie on Mon, 1st Jan 2018 10:44 am 

    Russian GDP is closer to $1.2 trillion, having declined from ~$2 trillion in 2014.

    GDP-2017 estimate


    Normal people are rightly more interested in PPP than nominal.

  37. Davy on Mon, 1st Jan 2018 12:26 pm 

    “Normal people are rightly more interested in PPP than nominal.”

    yea, you and mad kat. Do you know the difference?

  38. Cloggie on Mon, 1st Jan 2018 1:51 pm 

    Stop delegating questions to others. Use google, wiki, anything.

  39. MASTERMIND on Mon, 1st Jan 2018 3:41 pm 


    Clogg and Madkat have no idea how economics work….And when Collapse hits and goons beat their faces in! I hope they remember me!

  40. Davy on Mon, 1st Jan 2018 4:02 pm 

    Agenda peddlers like PPP becuase it often diminishes the US economic position. This is not about reality for these swindlers. It is about a packaged personal agenda. They do the same thing with Per Capita. These frauds likes to compare nations in a similiar fashion. Big nations, small nations doesn’t matter but what matters is the effect of the disproportionality that can be gleaned.

  41. MASTERMIND on Mon, 1st Jan 2018 4:49 pm 

    As M. King Hubbert (1962) shows, Peak Oil is about discovering less oil, and eventually producing less oil due to lack of discovery.

    IEA Chief warns of world oil shortages by 2020 as discoveries fall to record lows

    Saudi Aramco CEO sees oil supply shortage coming as investments, discoveries drop

    Peak Oil Vindicated by the IEA and Saudi Arabia

  42. Makati1 on Mon, 1st Jan 2018 5:56 pm 

    PPP: Perspective

    Doctor’s visit in the US = $50+
    Doctor’s visit in the Ps = $12

    Haircut in the US = %12+
    Haircut in the Ps = $1.50

    Tooth crown in the US = $1,250+
    Tooth crown in the Ps = $120

    1 Hour labor in the US = $15+
    1 hour labor in the Ps = $1.50

    PPP puts buying power in perspective. US Dollars are inflated to popping levels. When it bursts it will be worth the same as the Peso in buying power, if Americans are lucky. Maybe worth nothing. Think Zimbabwe.

  43. Makati1 on Mon, 1st Jan 2018 5:57 pm 


  44. Davy on Mon, 1st Jan 2018 6:04 pm 

    P’s gdp – similar to the State of Missouri with 16 times the population. LOL, no wonder.

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