January 18, 2020
Evidence of the US Economic Boom in the Early 2020s
In my previous post in October, 2019, I said that an economic boom period might actually happen in the US and that there might be no recession in it during the next few years even though the world is still in an economic depression or deep recession period of this long wave as I described in 2007 in a Letter to the Editor of Infinite Energy and previously in 1989 and 1990 according to my economic model of economic depressions based on my paradigm shift theory as described in various articles and in my book.
I explained in the post below several months ago that this possible period of rapid growth and prosperity in the US is due to recent changes in the world economy such as the US energy production boom, American manufacturing advancements, and recent policies implemented by Trump. However, I think other advanced economies in the world may face a period of deep recession or depression including China and big mainland European countries.
The debt loads that the world’s countries took on during the past 12 years in an effort to stave off depression, stimulate their economies, and provide work and resources to their unemployed, such as the approximately 13 to 14 trillion added by the American government, did get the world out of the deep world depression, but the economies of the world are still in a long wave technological acceleration trough period caused by the process innovation in industry that leads directly to reduction of human labor, oligopoly formation, and high corporate debt loads as I predicted for this time in the 1990s.
In the speech at the signing of the US-China trade agreement, Trump said that with the opening of new pipelines, American oil production will surge another 22 percent. If this happens, US oil production may double or triple within the next few years. It is already far greater than any other country’s. Along with this, the US is having a big boom in ethanol production and other sources of energy.
The China-US trade agreement along with the USMCA agreement will increase this production boom in the US as industries move back and companies around the world relocate production to the US. That the stock market just surpassed the 29,000 point level on the day of the Phase 1 China trade agreement is evidence of the economic boom being underway as I predicted a few months ago.
However, other countries will probably be having recessions or depressions. The rapid advance of automated and robotic production will lead to higher labor unemployment in the next few years, and the advance in computer technology will also lead to the reduction of service and office workers in many countries.
Possible US Space Industrialization and Mining
If US private space ventures and NASA succeed in their announced plans of putting Americans on the Mars by 2023 or 2024 as Trump is planning and begin space mining and industry, this may add to US production in the next few years.
October 28, 2019
Economic Boom Possible in the US in the Next Few Years
There have been a lot of quick economic changes in the last few years since about 2015. On top of the already huge and quickly growing debt, the money creation, and the forces towards automation, oligopoly, and labor layoff associated with this technological acceleration stage of industrial development that we’ve been in since about the year 2000, President Trump’s policies are causing great changes in the world economy as America has become the leading energy producer and is reindustrializing. So I’m starting this “Economics News Updates” blog to describe what is happening for people.
Perhaps Recessions, Depressions Around the World and Prosperity in the US
I think many of the world’s economies will feel the effects of the deep recession/depression soon though the US and some other countries might prosper from this due to recent changes in the world such as the big US energy boom and manufacturing resurgence.
In 2019, the US produces about 40% to 50% more oil than does Russia or Saudi. The chart above is for 2018 production, and US production of oil in 2019 is even higher. It is expected that production will continue to increase as new oil fields, pipelines and other sources for oil are being created now.
The US is now the biggest producer of natural gas, and natural gas production is also increasing. Other sources of energy such as coal, solar, and nuclear are also increasing.
A deep recession or depression is unavoidable for most countries simply as a result of their debt creation and the nature of development of industry now that is primarily driven by process innovation, oligopoly formation, automation, robotization of production, and shifting away from the use of human labor for manufacturing and service work. The substantial debt creation temporarily staved off the recessionary/depressionary effects that began to be experienced around 2009 to 2015.