by phaster » Tue 27 May 2014, 01:03:19
$this->bbcode_second_pass_quote('americandream', '')$this->bbcode_second_pass_quote('Mesuge', 'T')he timeline and sequencing of trigger points is still not certain. I do follow majority of the prominent energy depletion and economic forcasters/analysts and the prevailing order could flip by 2015-17 as well as 2020-25, can't be predicted with razor sharp accuracy.
Whats your guess at a likely date? I tend to watch China. Global capitalism is heavily invested in that factory and once they start to pull out en masse, the end is nigh.
A strong contender for such a trigger point IMHO, will happen next June in 2015. That is when the US government accounting rules change and must take into account public employee pensions:
http://articles.latimes.com/2014/apr/09 ... a-20140410From what I can gather, it seems "returns" have been modeled to be too optimistic, and payouts are very generous
http://www.city-journal.org/2013/23_1_calpers.htmlBasically a realization will occur here in the US credit markets that "credit" can't be paid back (because debts will be put onto a balance sheet), which will in turn cause the public to not have confidence in the economy and make people save what they have instead of spending what have or use credit.
Right now those with access to credit are looking at their savings not earning much, so what I've seen is some asset classes like real estate (in prime areas) are being bid up in price (for example in NY city, San Francisco and even my home town of San Diego). Basically the global investor class is looking to invest in "prime" real estate in the USA because so it seems to be a "political" safe haven, and relative economic bargain (for example prime real estate in Hong Kong is 10x as expensive as it is in California).
China too has a problem in mal-investiment, but the difference is its a central planned economy, they are a creditor nation (they hold lots of US bonds), and don't keep "open books" (which unlike the USA has some rules and regulations which can be used as a benchmark)
Japan and Europe, are not great places to invest because they both have aging populations and social welfare programs in place that are going to be a drag on the economy as time goes. Further more, both Japan and the EU are going to be net importers of energy (or said another way both areas are going to be even more dependent on outside regions for "raw" energy stock)
The USA by contrast does have "raw" energy reserves, but won't be able to get the working capital needed to build the infrastructure needed to extract an process the raw energy stock, and political infighting will prevent anything being done in a timely manner.
If you want to glimpse what the future will be like in the USA, just look to be big divide between the rich and poor in the Philippines and Brazil for example. Historically economic elites in the third world operate by inbreeding (i.e. political connections) rather than by merit, sadly I see a trend where this is happening all too often here in the USA.