China’s oil demand is projected by EIA to reach 14.2 million bbl/d by 2025, with net imports of 10.9 million bbl/d. This is a structural issue. ‘Domino Effect: How Did the US Financial Crisis Become a Global Epidemic ?’, Associated Content, 13 October 2008, [accessed in December 2008]; ‘Chaos Theory. ‘By 2020, China, India, Brazil, Indonesia and Russia will between them account for 30% of global GDP. By the 1980s, it was the turn of southeast Asian capital to out compete both the US and West European capital through the formation of a new kind of transnational business structure – a structure that was deeply rooted in the region’s history and geography, and that combined the advantages of massive, young, dynamic population with the flexible business networks. Dollar hegemony has always been critical to the future of American global dominance, even more so than its overwhelming military power. ‘Greenspan: Economy in ‘once-in-a-century’ crisis’,, 14 September 2008, [accessed in October 2008]. But in April to June 2008, it began to fall. Moreover, the development of specific GDP components and related indicators, such as those for economic output, imports and exports, domestic (private and public) consumption or investments, as well as data on the distribution of income and savings, can give valuable insights into the main drivers of economic activity and thus be the basis for the design, monitoring and evaluation of specific EU policies.

Asia, and especially East Asia, was already dominant for most of human history and remained so until very recently, that is less than two centuries ago.

It is not the result of some ‘mistakes’ or ‘deviations’, but rather it is inherent to the logic of the system. China and India, by contrast, possess the weight and dynamism to transform the 21st century global economy. It can hardly be overstated how crucial petroleum is to our modern industrial society. Every modern economic activity depends for their day-to-day activities on continuous borrowing and lending.

There may still be times when oil prices temporarily fall due to sharp decline in demand, mainly during the times of serious economic crisis like the current financial crisis in the Western economies, but the general long term trend is unquestionably upward in the price of crude oil. Japonia i Stany Zjednoczone: dane szacunkowe, 2018 r. Źródło: Eurostat (internetowy kod danych: naida_10_gdp) i … We are also witnessing the impact in the increasing scarcity and cost of food and other critical resources that rely on oil. To stop further collapse and to ward off total economic catastrophe, the US government made its most dramatic interventions in financial markets since the 1930s. China also runs a budget surplus and a very large current account surplus, and it carries little government debt. In his survey, Kennedy detects a pattern repeated over and over: ‘Wealth is usually needed to underpin military power, and military power is usually needed to acquire and protect wealth’. According to the same research, the banking sector is growing faster and stronger in the emerging economies comparing with the G-7 economies. WDI Tables. 83. Policies within the EU are increasingly setting medium or long-term targets, whether binding or not. The 2008 report of the US National Intelligence Council – which supports the Director of National Intelligence and is the centre for long-range analysis in the US intelligence community – published in November 2008, presents a detailed and comprehensive report on global trends to 2025. Economic growth slowed in America that ignited a sharp increase in the number of mortgage holders who could not afford the interest rates, and in the end there was a growing number of repossessions.

The current version, ESA 2010, was adopted in May 2013 and has been implemented since September 2014. Finance market is composed of endless strings of bilateral transactions involving an incredibly diverse array of high-risk financial instruments.

As such, the 1.6 % increase recorded for construction in 2015 (after no change in 2014) was the first annual growth in eight years and was followed by growth between 1.3 % and 3.8 % through to 2019.

A likely outcome of the crisis will be a severely declining role of the US dollar (as global reserve currency) in the global financial and trade system, which will be replaced by a basket of world’s main currencies. This is the result of ‘financialisation’ — the enormous increase in debt of all kinds.(38). There are limits, however, to how far economies can be sustained by debt that is not based on any real economic values created. China is currently the world’s second largest market for automobiles, after the US. * This designation is without prejudice to positions on status, and is in line with UNSCR 1244/1999 and the ICJ Opinion on the Kosovo declaration of independence. (64), Western business is not just shifting research work to Asia, because Indian and Chinese brains are young, cheap and plentiful. 10. Like any fixed non-renewable resource, oil is limited, and its consumption will rise, peak (the point beyond which oil production will irreversibly start declining), and decline. The world economy will become increasingly monopolised, and there will be numerous corporate takeovers.

Arindam Bhattacharya, ‘China and India: New Innovation and Talent Forces’, Business Week, 17 November 2008, [accessed in December 2008]. This has been the situation and the essential basis for the US economic hegemony since the 1970s. There are substantial downgrades for 2009 real GDP growth even for the emerging economies, which are expected to see overall growth of 5.1% in 2009, compared to 6.1% forecast in October 2008. Thus, the continuing dominance of the U.S. dollar is not a matter of simple economics, but is also ‘deeply rooted in the geopolitical role of the United States.’(43). In one stroke, the American President invalidated twenty-five years of currency agreements, and introduced a prolonged period of currency instability and inflation.(49). The Centre of Research on Globalization grants permission to cross-post Global Research articles on community internet sites as long the source and copyright are acknowledged together with a hyperlink to the original Global Research article. Productivity measures expressed in PPS are particularly useful for cross-country comparisons. 49. Most of the debate was centred on how much and what kind of regulation. The EU has a yearly cycle of economic policy coordination called the European Semester. Particularly, the Financial Services Modernization Act of 1999, known as the Gramm-Leach-Bliley Act, repealed the banking-activity restrictions of the Depression era Glass-Steagall Act that separated commercial and investment banking to control speculation and protect bank deposits, as a result of which the financial system has become increasingly volatile and unpredictable. 33. (26), It seemed, for the time, the economy was dragged out of recession, yet one can claim in retrospect that the same measures (this ‘cheap money, easy credit’ strategy) laid the ground for much more serious problems the system faces right now. Department of Treasury, ‘Jeddah, Saudi Arabia, Joint Statement: US- Saudi Arabian Economic Dialogue’, press release, 6 March 2002, It is the outcome of processes stretching back more than three decades. On 21 January a spectacular fall in share prices occurred in all major world markets, followed by a series of collapses. They produce credit money and credit systems to smooth the payments of debts.

The development of PPS figures during the past decade suggests that some convergence in living standards took place. The crisis will produce a handful of winners and help to reinforce global powerful monopolies or oligopolies controlling nearly all production, commerce and finance in the world economy. For some of these, the level of GDP is used as a benchmark denominator, for example, setting a target for expenditure on research and development at a level of 3.00 % of GDP (which is one of the Europe 2020 targets).

There was a two-year period beginning around July 2014 when wages rose in real terms – this was due largely to the fall in the price of oil causing prices to come down too. Mapping the Changing Contours of the World Economy, Sage, 2007, pp.379-409. At the same time, growth in demand is rising at an annual rate of 2.2 %. The dollar, no longer convertible into gold at a fixed price, entered into a process of prolonged decline. Michael Klare, Rising Powers, Shrinking Planet, pp.33-36 and 39-40. The dollar, however, enjoyed immunity from any currency instability, because it was pegged to the value of gold, which was fixed at $35.00 an ounce.