[hillsidedigger]

No way.

[Tanada]

If every male in Chindia attained a car this would come true, but where would the fuel come from?

[The_Toecutter]

The world could not sustain this unless the cars were rarely driven(say, once a week for recreational purposes).

The world's governments will support using every last resource if it will enlarge their coffers, especially in the form of an expensive internal combustion engine. If there were 3 billion cars on this planet used regularly, the traffic and the amount of real estate required to sustain it would be a nightmare to contend with.

[Ferretlover]

$this->bbcode_second_pass_quote('Tanada', 'I')f every male in Chindia attained a car this would come true, but where would the fuel come from?

[Mike Morin]

$this->bbcode_second_pass_quote('Ayoob', '[')url=http://www.economist.com/printedition/displayStory.cfm?Story_ID=13783014]link[/url]
$this->bbcode_second_pass_quote('', 'G')M’s demise should not be read as a harbinger of doom for the car industry. All around the world people want wheels: a car tends to be the first big purchase a family makes once its income rises much above $5,000 a year, in purchasing-power terms. At the same time as people in developing countries are getting richer, more efficient factories and better designs are making cars more affordable. That is why the IMF forecasts that the world will have nearly 3 billion cars in 2050, compared with around 700m cars today. In the next five or six years the Chinese will overtake the Americans in terms of annual car sales: in 40 years’ time the Chinese will have almost as many cars as exist in the whole of the world now. Indeed, GM’s own experience abroad shows the promise of emerging markets. Brazil has long been a source of profits, and GM has a leading position in China.

[TheDude]

$this->bbcode_second_pass_quote('Tanada', 'I')f every male in Chindia attained a car this would come true, but where would the fuel come from?

[DantesPeak]

Yes, the International Monetary Fund can and just did print up a huge amount of new money, just like the Federal Reserve has been doing for almost two years.

Yes, this will add to worldwide inflation.

No, I am not an expert of all aspects of the IMF and SDRs, so I might not be able to answer all your questions. [The currency value of the SDR is determined by summing the values in U.S. dollars, based on market exchange rates, of a basket of major currencies (the U.S. dollar, Euro, Japanese yen, and pound sterling). The SDR currency value is calculated daily and the valuation basket is reviewed and adjusted every five years.]

However I do view this as inflationary for the world in general, since many poor countires will now have additonal foreign exchange reserves to spend as they pelase, and this will probably contribute to the long term decline in the value of the US dollar (as dollars, a key 40% proportion of SDRs value, are sold for imports countries want).


$this->bbcode_second_pass_quote('', 'I')MF Injecting $283 Billion in SDRs into Global Economy, Boosting Reserves

August 28, 2009
• SDR allocations to supplement IMF members' foreign exchange reserves
• Outstanding stock of SDRs to increase nearly ten-fold
• Low-income countries to benefit significantly
With much of the world still mired in recession, the IMF took action to bolster its members’ reserves through an allocation of SDRs, or Special Drawing Rights.
The allocation, equivalent to $250 billion, was made on August 28 and will be followed by an additional, albeit much smaller, allocation of $33 billion on September 9. With the two allocations totaling roughly $283 billion, the outstanding stock of SDRs would increase nearly ten-fold to total about $316 billion.

[mattduke]

They're preparing for the post dollar world.
$this->bbcode_second_pass_quote('', 'L')ow-income countries to benefit significantly

[SeaGypsy]

$this->bbcode_second_pass_quote('', 'T')he International Monetary Fund (IMF) has been slammed by its own watchdog, the Independent Evaluation Office, for failing to predict the global financial crisis.

In a report, the watchdog says the IMF provided few clear warnings about the risk of the GFC, instead sending a message of continued optimism.

The office also claims the fund ignored a warning from its chief economist in 2005.

Raghuram Rajan warned new financial products, low interest rates, and less regulation could leave the world more exposed to financial sector turmoil.

"We should be prepared for the low probability but highly costly downturn," he cautioned.

University of New South Wales finance professor Fariborz Moshirian says the IMF relied too much on the data and analysis of the US authorities rather than its own economists.

"They followed Ben Bernanke's line of argument rather than their own advisers," he said.

The report says the IMF endorsed policies and financial practices that were seen as fostering rapid innovation and growth.

Professor Moshirian says such claims offer a fair assessment of the IMF's activities.

"The whole policy of IMF prior to the global financial crisis was to liberalise the market, particularly in emerging economies," he said.

"And so they couldn't offer any prescription which was contrary to what they advised to their members in the past."

IMF managing director Dominique Strauss-Kahn has welcomed the report and says he broadly endorses the findings.

"Like any other organisation, the IMF has learnt its lesson and now they are going to operate in such a way that they can provide early warning to national authorities," Professor Moshirian said.

He says the IMF has to rely on national regulators to provide it with adequate and accurate data.

"What they do with the data that they obtain is also an important issue," he said.

[49th Parallel]

Came across this article this evening:

$this->bbcode_second_pass_quote('', 'N')EW YORK (CNNMoney) -- The International Monetary Fund issued a report Thursday on a possible replacement for the dollar as the world's reserve currency. The IMF said Special Drawing Rights, or SDRs, could help stabilize the global financial system.

[M_B_S]

http://www.reuters.com/article/2011/04/ ... 9720110407

WASHINGTON, April 7 (Reuters) - The International Monetary Fund on Thursday warned that the global economy was entering a period of scarcer oil that could drive prices up rapidly.

With no end in sight to unrest in the oil-producing Middle East, oil prices climbed above $120 a barrel this week for the first time since 2008. Brent crude LCOc1, a global benchmark oil contract, rose almost $8 a barrel over the past five days to $122.30 on Wednesday. [ID:nN06206555]

The IMF's research comes as a new Reuters poll of 32 major oil traders predicted on Wednesday that oil prices will soar above $130 a barrel by late 2011.
*******************************
5 years after Peak Oil (EWG) and DMP in 2011

Look @ : Oil Barrel Pyramid Model by M_B_S

US Driving Season ahead! 4-5$ per gallone is coming.

US and a global economy crash No.2 is coming

++++Warning Warning Warning ++++

M_B_S

[dukey]

You can thank the American war machine for starting another war in yet another oil rich country.

[dolanbaker]

Brent is fast approaching $125 now.

[KevO]

$this->bbcode_second_pass_quote('dolanbaker', 'B')rent is fast approaching $125 now.

[diemos]

Weird. You might almost think that there wasn't quite enough to go around.

[kmann]

$142 was unjustified in '08 (as the subsequent crash to $38 showed) and $130 now is also unjustified, as the coming crash will also show.

[diemos]

$this->bbcode_second_pass_quote('kmann', '$')142 was unjustified in '08 (as the subsequent crash to $38 showed) and $130 now is also unjustified, as the coming crash will also show.

[kmann]

$this->bbcode_second_pass_quote('', 'E')conomic activity tries to expand past the amount of oil available to sustain it. The price of oil goes up. The economy contracts. The price oil goes down.

[Daniel_Plainview]

$this->bbcode_second_pass_quote('kmann', '')$this->bbcode_second_pass_quote('', 'E')conomic activity tries to expand past the amount of oil available to sustain it. The price of oil goes up. The economy contracts. The price oil goes down.

[diemos]

$this->bbcode_second_pass_quote('kmann', '$')142 to $38 range within a six month period cannot be justified by supply and demand alone.