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Economic Breakdown Starts In East Asia due to Collapsed Births & Childbearing Populations

Economic Breakdown Starts In East Asia due to Collapsed Births & Childbearing Populations

The floor under the East Asia neighborhood (consisting of China, Japan, South / North Korea, Taiwan, & Mongolia) is about to fall away.  These nations (combined) equal slightly more than 20% of the global population and consume 27% of total global energy.  From 2000 through 2016, this region (spearheaded by China) represented 48% of the global growth in total energy consumption.  So, when I tell you these countries are economically entering long-term domestic declines (or perhaps outright collapses), the impacts will reverberate everywhere.
Why domestic economic decline or collapse?  This is simply following a massive population decline which has already taken place (past tense).  The chart below details the 44% fall in births since the double peaks seen in East Asia in ’67 and ’89.  This is an ongoing birth dearth of over 14 million fewer annually, since 1995.  Now this birth dearth will be compounded by the rapidly falling childbearing population of 15 to 39yr/olds, represented by the red line below (I exclude the 40+yr/olds because they simply have so few children as to simply create distraction).  By 2035, the East Asia child bearing population will decline by 30% or -202 million (no estimation, this population is already born and will just shift forward).  Absent some seismic shift (or turning away from the inflationary urbanization underway?), births will continue to tumble and national populations will ultimately likewise crumble.
Noteworthy above is the low water mark of just 15 million births in 1996…and the muted L shaped aftermath.  Those born in 1996 will be 23 years old in 2019, or generally entering adulthood.  On an annual basis, this is a relatively sudden 50%+ decline in new adults, new potential employees, new potential parents, new potential consumers entering the economy…and this is just the start of the “new normal”.

 …click on the above link to read the rest of the article…

GPM Global Forecast (01-18-16)

GPM Global Forecast (01-18-16)

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Iran Enters a New Era as Nuclear Sanctions are Lifted

Background

The United States and EU have lifted economic sanctions on Iran following confirmation from the United Nations that the country is following through on its obligations set out in last year’s nuclear accord.

Outlook

Implementation Day arrived earlier than many expected, probably because the Iranian government wanted to rush sanction relief ahead of February elections, which won’t just determine the next parliament but also the Assembly of Experts – the clerical body that might be called on to pick Iran’s Supreme Leader should Ayatollah Khamenei die or step down in the next eight years.

One immediate impact of sanction relief is an increase in global oil supply. Iran used to be OPEC’s second-largest producer, and although its energy infrastructure is aging and investment-starved after years of sanctions, the country expects to sell an additional 500,000 barrels a day right out of the gates. The lifting of sanctions caused an immediate plunge in the stock markets of oil-producing Gulf states, with Saudi Arabia seeing a drop of 5.4% and Qatar 7% in Sunday trading.

While EU companies will now be free to trade and invest in Iran, many US sanctions will remain in place beyond the full implementation of the deal. These pertain to Iran’s status as a state sponsor of terrorism and its human rights record. New sanctions are also a possibility following Iran’s recent ballistic missile tests. As a result, in the global rush to get a foothold in Iran’s untapped market of some 80 million people, US companies will be at a distinct legal disadvantage vis-à-vis their European and Asian competitors.

The nuclear deal and the future tone of US-Iran relations will feature prominently in the upcoming US presidential race, evident in Hilary Clinton’s declaration that she supports new sanctions against Iran mere hours after the deal was officially implemented.

…click on the above link to read the rest of the article…

Olduvai IV: Courage
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