Demographically, across the developed world robust growth is not in the cards . From Chris Hamilton at economica.com:
Once upon a time, skeptical analysts cross checked stated growth versus energy consumption…looking for discrepancies as fluctuations in energy consumption are a good proxy for the changes in real economic activity.
Nowadays, the model of printing highly politicized and/or skewed economic data has gone very global. So, today I offer a couple broad variables to gauge global economic activity; 1) total primary energy consumption data by region, cross checked against 2) their consumer bases (the 0-65yr/old populations). I break the world down into four different regions to gain a better vantage of the purported global recovery, as follows:
- OECD (List of 35 nations) representing 17% of global population & 43% of total energy consumption
- Combined Africa / S. Asia (S. Asia = India, Pakistan, Afghanistan, Bangladesh, Nepal, Bhutan, Sri Lanka, Maldives) representing 41% of global population & 9% of total energy consumption
- China, representing 19% of global population & 22% of energy consumption
- “RoW” or Rest of the World, representing 23% of global population & 26% of global energy consumption
The first chart below shows total global primary energy consumption in quadrillion BTU’s from 1980 through 2015 according to the EIA (US Energy Information Administration). The flattening in consumption since 2012 is plainly visible in the upper right and clearly detailed in the year over year columns in the lower right. The arrows highlight minimal growth or outright energy consumption declines that were associated with recessionary periods. The weakness of the current period since 2012 is unparalleled from 1980 on…and even more significant than the sharp but brief downturn of 2009.
To continue reading: Why This Is About To Get Far Worse…
STRAIGHT LINE LOGIC 