Monday, March 24, 2014

Coming soon

Coming up in the coming 1-2 weeks will be historical data as well as forecasted future developments of the geostrategic index itself, the underlying variables of the index and not the least,  the geographic movement of the centroids (center of gravity) over time.
It might be that the results from those calculations will be rolled out and published in step wise fashion. As previously, in those upcoming calculations, i will use credible open source data from institutions such as the IMF, World bank etc and make as little own predictions as possible, to further validate my results.

Risks for USA and China

The big challange for USA going forward is the debt levels (see world debt map) that have been built up for some time and really accelerated since the financial crisis broke out 2008. US debt levels have not yet reached unsustainable levels and so should be possible to bring under control if the national leadership is there. The debt levels is not explicitly part of the geostrategic power index but of course the cost of servicing the debt is something that indirectly feeds through and into a lower GDP growth rate  than would otherwise have been possible to achieve. However at the moment this cost is manageable due to the low interest rates charged on US debt which to a large degree in itself is depent on the US dollar being the Worlds reserve currency and so the USD is very sought after in times of turmoil keeping the interes rates low and the currency stable. In short depending on the will and ability of US leaders to bring balance to the national finances the USA holds its own future in its own hands to a very large degree which must be considered a good thing. 
China on the other hand have an altogether different level of risk. These risks are not part of the geostrategic power index and will not be included in the coming forecasts so they must be evaluated separately and complementary to the geostrategic power index. These risks include the tremendous economic inequality built up in the last years, massive urbanisation, massive and fast demographic change with aging of the population, massive water shortages in the North and spreading desertification, massive environmental issuess,
These are some of the challenges confronting China and looking back at the chinese history with its history of frequent rebellions, regional power centers and uprisings it is no wonder the chinese leaderships all overriding concern is and will be to keep the domestic peace at all cost. This is of course also of vital importance in order for the communist leadership literally to keep their heads on their shoulders.  

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