Mankind is about to confront numerous challenges that are capable of retarding or drastically subjecting the global economic growth to race-consuming levels; An era mankind will be attacked by their own machines and will no longer be able to generate enough employments for billions of world inhabitants to meet their basic necessities. For many centuries, mankind has grown from the stone age (era that was a little intellectually above other mammals) to a digitalized technology age (a more sophisticated and complex age of intellectual maximization), however, mankind has literally become its own worst enemy.
The economic and financial challenges of; China, Crude oil, Global warming, Currency devaluations, North Korea/Russia, Middle East/ Africa, and global migrant crisis are grossly tiny when compared with the humanity-ending challenge of robotics and artificial intelligence technologies.
China, China’s consecutively slowing economic growth has created a level of increasing concerns to many countries, why? Needless to say that all economic indicators are now pointing towards a hard-landing for China’s economy, and a global recession by the 4th quarter of 2016; however, if urgent global financial actions are not quickly coordinated to avert the impending global recession, then colossal economic disenfranchisement must take place in the coming years. China was very instrumental in bringing mankind out of the 2008 global recession, but due to our digitalized world of diminishing job-creating ability, mankind has not fully recovered from the 2008 financial carnage, meaning that the next global recession might be terribly severe. China with over a 10 trillion dollar economy is the second largest economy that can dangerously disenfranchise the global economy if its growth slows to 3% or less. Anytime the first or second largest economies of either China or America sneezes, the entire world catches a severe cold, but this time around, it might be more severe than the dreaded Ebola virus because of the many headwinds confronting mankind today. Both economies are finding it very difficult to grow economically and change the trajectory of the increasing global economic slowdown; how long will such global economic slow-growths continue without terrible financial consequences?
Crude oil, The recently concluded COP21 Parish 2015 gathering of over 150 nations, just signed a death warrant on crude oil and other major environmental pollutants in an all out effort to save our fragile global village from further chemical bombardments that are becoming very hazardous to our environment. The discovery of crude oil helped mankind escalate the globalization project, because so many wealthy individuals and nations were directly and indirectly created, and many industries that employed billions of global inhabitants came into existence. The wealth and millions of jobs that came about because of crude oil will gradually start fading away, never to be replaced again. Watch out for a global banking crisis because of the surging mountains of toxic assets resulting from the unabated and mindless sell-offs in crude oil. Expect quick rally in crude oil and other commodity prices, but the overall price trajectory still remain bearish, because crude oil has not gotten to $25 per barrel. For more details read, “Crude World of Oil” a book I authored in 2012
Global warming, Global warming has been identified as one of the most deadly and credible threats approaching mankind, and if well coordinated global control mechanisms are not quickly instituted to minimize the ongoing environmental degradation, then man has authored its own death warrant. Expect crude oil price to slide below $25 per barrel as the relevance of the most cherished nature’s gift to mankind is quickly being replaced by clean energy. Expect more economic and financial nightmares as crude oil prices painfully skid to $25 per barrel. More details on the below link; https://wordpress.com/post/cokoliblog.wordpress.com/91
Crude oil was offensively responsible for majority of global wealth, and it will be regrettably responsible for global famine, because the global banking sector that was overly exposed to oil and gas industries will soon start counting their mountain of debts with increasing toxic assets.
Currency devaluations, Efforts to reverse China’s economic slowdown is now creating the unplanned outcome of a global currency war among nations. Expect the currency war to get very ugly as nations scamper to have control of the greatly diminishing global export market. Those pointers need to be closely examined by countries that want to come out of the challenges with minimal bruises. African countries must pay serious attention to these global challenges, because when added to the surging problems of religious militancy, ethnic agitations, chronic poverty and huge unemployment figures in the continent, then God probably has to show up and personally deliver the continent. I am mulishly bullish that US Fed will sooner or later come out with another round of creative Quantitative Easing (Q E), because America will not continue to be the only good house in a bad neighborhood.
North Korea/ Russia, The world should not completely forget the dangers and upcoming challenges that might come from North Korea. Nuclear and cyber-war threats are most likely to emanate from such parts of the world as long as US Federal Reserve is bent on shrinking the over $21 trillion balance sheet, which will help to reduce over $224 trillion global debts. The global village is being enveloped by surging debts and declining economic growths, emerging economies that start financial and economic restructuring early enough, will come out of the global economic madness with minimal damages.
Middle East/Africa still remain a volatile and unpredictable part of the global village, which requires close monitoring for any unusual actions- Saudi Arabia and Iran growing cold war. The increasing economic collapse in Africa really requires another global coordinated financial assistance and technological transfer to help kick-start any further meaningful economic activities in the continent. Many economies in Africa and the Middle East are crazily and offensively exposed to crude oil and commodities, so any hope of a magical economic turn-around in such regions might just be mere wishful thinking, except God performs a miracle out there.
Global migrant crisis, As long as crude oil (one of man’s greatest discoveries) is about to proceed to gradual and diminishing relevance in our global quest for cheap and clean energy, financial and painful economic crisis will push more middle class and poor families into migrations that would create further migration crisis especially in Europe. The ongoing migrant crisis in Europe is just a prelude to the major and consuming migration nightmare that would help to push humanity into a deep global recession and state of confusion. Expect demographical changes in Europe in the next thirty years. Expect more Mexicans to start heading to America as the global economic meltdown continues.
Robots and artificial intelligence technologies; I am fearfully but convincingly presenting robots and artificial intelligence as much bigger threat than the previously mentioned challenges, because of the increasing dangers they pose to the human race. It is becoming increasingly difficult for governments and private sectors to create jobs in the global village now, because of robots and artificial intelligence technologies. Robots and artificial intelligence have made our lives more enjoyable than ever- from the auto navigational systems, talking phones, drones and other electronic gadgets to the tractors and mechanical humans that are bringing down cost of productions. Today, the unintended consequences of the digital age will definitely surprise many people in the coming years, since the quest for productivity encouraged governments companies to ignore human basic needs. The quest for productivity escalated the growth in creative innovation, and now that creative innovation is leading mankind to mechanical human beings (Robots), and mechanical birds (Drones), how soon will the man-made destruction starts? Robots are gruesomely disenfranchising human beings by taking their jobs, from cleaning, auto-assembly, packaging, farming, drilling, cashiers, attendants, bankers, etc, all these job-killings by robots are the unintended consequences of capitalist quest for increased productivity.
A farming tractor, can in some hours, do the same task, that should have been done by 1,000 men in a week. A company with 2 human-cashiers and 10 programmed self-checkout cashiers can now do the same jobs that would have been required to be done by 30 employees in a year, and one robot can monitor an entire area that would have required the services of over 20 people, etc… God warned mankind to do everything in moderation, and now that mankind is set to reproduce humans in mechanical forms, God is closely monitoring this generation. The mechanical human beings (robots) might eventually be reprogrammed to come down hard on real human beings in no distant time. The cost-cutting mechanism of mankind (productivity) is increasingly putting millions of people out of work and endangering the lives of millions of families.
I really do not want to sound immodest, but it is beginning to look as if mankind has challenged his creator (God) and certainly God will soon respond in a way that would convince the world that the response is from God. No matter how negative, promising, informing or disappointing this article might appear to you, please share with other people that might be open enough to see its contents.
Christopher Okoli (Nigerian-American based Investment Advisor) 02/01/2016
Subscribe with just your email address to receive all the upcoming articles.
Crude World of Oil, Africa – Emerging or Tapering Continent, African Dilemma and Nigerian Promising Era.