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Originally Posted by tenniels
I live in Alberta Canada and I have seen the severe ups and downs living in an oil rich place can create. The growth here has been banana's and while that can be good, there are always down sides. The cost of a house here has gone up so much it's insane, builders can't keep up and landlords keep raising rents due to the contstant demand for a place to live.
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Yeah, I've heard the stories. There will always be downsides to a free-market economy. Companies can't find workers... workers can't find homes. Crazy.
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Originally Posted by Nimetic
The India/China thing keeps coming up.
I think people have to realize that their growth rate is due to their low base. Growth rate, ultimately is not the question. It's overall use (per head) that matters.
And I challenge anyone who visits China/India to say that they are culturally dominated by the west.
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(Emphasis mine.)
This is so true. It's amazing the inroads China is making in terms of exporting their culture. Think of movies alone. If not for the sheer volume, look at the quality of some of their productions. They put many Hollywood filmmakers to shame. (I'm not even going to discuss Bollywood.)
The growth of China and India has a huge impact on the world economy... (if you are invested in the right resource stocks, congratulations.) This includes their demand for oil products, I'm sure. But one thing to keep in mind is that places like China are not immune to the common trends of economics. They've had double-digit growth for far too long. According to the most fundamental principles of economics, this is unsustainable and, if overheated enough, could spell trouble one day. Hyperinflation is a bitch.
It's incredible the potential impact the Chinese population has on the world. Can you imagine the Chinese per-capita demand for goods and services becoming even close to that of the U.S.? This goes beyond just oil.