Debt, Global Competition and  America’s Future John N. Doggett, JD, MBA, Senior Lecturer Global Management, Entrepreneursh...
Strategic Inflection Points Are Scary
We Have Entered a S.I.P.
It Won’t Be Easy . .  .
But We Can Beat This Thing
Because Failure Is Not An Option
This is What I Believe <ul><li>We live in an amazing country. </li></ul><ul><li>We have overcome challenges that would hav...
Where We Are Today?
PIIGS GET SLAUGHTERED
On the Brink of Bankruptcy
TOO BIG TO FAIL OR BAIL!
 
 
Deficits Forever . . . ?
This Math Doesn’t Add Up
This is a Serious S.I.P.
US Deficit Is At Civil War Levels
Don’t Show This to Children
We Are Stuck in Neutral
Are We Entering A Lost Decade?
Can We Borrow Our Way Out of Debt? <ul><li>On 9/30/00, our debt was $5.674 trillion. </li></ul><ul><li>Today, it is $14.5 ...
A Warning From The Future? <ul><li>The Chinese Professor </li></ul><ul><li>http://www.youtube.com/watch?v=OTSQozWP-rM </li...
Just The Facts, Jack  (Billion US$) <ul><li>May 2008 </li></ul><ul><ul><li>C hina = $506.8 </li></ul></ul><ul><ul><li>Japa...
So, How Do We Pay Down The Debt? <ul><li>Today, we borrow 40 cents of every dollar we spend.  That is unsustainable. </li>...
We Have Assets We Can Sell
Cell Phone Penetration <ul><li>China </li></ul><ul><ul><li>15 million users in 1997 </li></ul></ul><ul><ul><li>703 million...
We Are  Not  Rome
Let’s Look at Our Competition
Be Careful What You Wish For <ul><li>We told the world that our way of life was better than Communism or Socialism. </li><...
Birth of the BRICs <ul><li>In 2001, as the Internet Bubble was collapsing and the stock market was imploding, Goldman Sach...
The Axis of the Future
Was Goldman Sachs Crazy? <ul><li>6,100% Annual Inflation (1994) </li></ul><ul><li>Collapse of the Ruble (1998) </li></ul><...
National GDP in 2010  (purchasing power parity) <ul><li>Country GDP Real Growth % </li></ul><ul><li>United States $ 14,660...
Elephants Emerging from the Mist <ul><li>Total World Population = 6,928,198,253 </li></ul><ul><li>BRIC Population = 2,868,...
Could China Pass the US? <ul><li>Goldman Sachs said that China could become the largest economy in the world by 2035 by gr...
Could India Close The Gap? <ul><li>Goldman Sachs said that  India could challenge the US for #2 by 2040 by growing by 6% a...
The BRIC Middle Class Is Exploding <ul><li>Goldman Sachs predicts the BRIC Middle Class could  grow from 250 million to 1 ...
How Far China Has Come <ul><li>In 2006 the G7 (the US, Japan, Germany, France, Britain, Italy & Canada) held $1,253,900,00...
Chinese Banks and The World
The IMF Says . . .  <ul><li>China could pass the United States as the largest economy in the world by 2016. </li></ul>
The Conference Board Says . . . <ul><li>China Could pass The United States BY 2012!  </li></ul><ul><ul><li>Source: The Con...
WHILE WE WERE SLEEPING, THEY WERE RUNNING <ul><li>Remember,  WE  Won the Cold War </li></ul>
A Swarm of Inflection Points Dr. P. Konana, McCombs Business School, University of Texas at Austin 1964-70 1989-94 2000-2005
What is Your Image of Brazil? (c) - Andre Havt from www. woophy.com
This is a Brazilian Super Tanker
An Orange Juice Super Tanker
Competing With Innovation
Inside Air Canada’s Embraer 190
Add A Large Dash of Oil . . .
What is Your Image of India? www.woophy.com
Bangalore, India
Infosys
This Is the  New  India
Indigo Airlines
Tata Motors People’s Car
Tata Motors’ Newest Ride
Tata Motors’ Newest Ride
California Dreaming? WSJ - June 25, 2007, Page A1
Welcome to the New China copyright - John N. Doggett, 2008
Growth at Warp Speed
China has 6 of the 15 Tallest Buildings
Building Skyscrapers Like Crazy <ul><li>China is building 24 of the 50 skyscrapers to be completed worldwide in the next s...
The People’s Republic of Communist China?
Shenzhen in 1979 www.lenbracken.com/images/china31
30,000 people lived here in 1983 Source: http://en.wikipedia.org/wiki/Image:57440.jpg
The Chinese Market Is Taking Off <ul><li>Boeing says China Will Need 5000 New Planes by 2030 at a cost of more than $600 b...
China Is Boeing’s #1 Export Market
Say Hello to the C919
China Will Enter This Market in 2016 <ul><li>Commercial Aircraft Corp. of China (Comac) will roll out the C919 in 2016. </...
We  Won the Cold War <ul><li>With the C919, China aims to satisfy some of its domestic demand and boost exports, initially...
Progress Comes at a Steep Price Source:  New York Times, 8/25/2007
This “Air” Doesn’t Stay in China The Guardian - June 20, 2007  Peter Parks/AFP
The Chinese People Hate Dirty Air
The Chinese People Hate Dirty Water
The Clock is Ticking
We Are #2!
US Secretary of Energy Chu <ul><li>“ The leaders of China are all saying, ‘This is a very big deal for us. If we continue ...
Becoming a Renewable Energy Giant <ul><li>China is building six massive wind farms across the country. </li></ul><ul><ul><...
Growing @ the Speed of Wind <ul><li>China’s Installed Wind Capacity </li></ul><ul><ul><li>2008 = 5 th  largest in the worl...
China Drawing High-Tech Research  <ul><li>Mark Pinto, Chief Technology Officer of Applied Materials moved to Beijing in Ja...
Applied’s New Xi’an R&D Plant
Will This Be China’s Century?
From China with Love <ul><li>Thermal Power Research Institute is China’s world-leading laboratory on cleaner coal, has jus...
2007 Shanghai Millionaires Ball
A Coal Baron Son’s Wedding
Job Fair for 150k College Graduates
How Long Will They Wait?
How Long Will She Wait?
How Long Will They Wait?
THIS IS THE GREATEST TIME TO BE AN AMERICAN!
Impact of MIT Alumni Entrepreneurs <ul><li>MIT Alumni founded 25,800 currently active companies in 2009. </li></ul><ul><li...
“ Recruit” The Right Immigrants <ul><li>Immigrants started 25% of U.S. public companies that were venture-backed. </li></u...
A Great Time To Be a Farmer! <ul><li>The world’s appetite for farm products will soar. </li></ul><ul><li>The world will ha...
WE  “OWN” CREATIVITY!
WE CAN  APPLEIZE  AMERICA <ul><li>The iPhone, which did not exist before 2007, now generates 2/3 of Apple’s revenue. </li>...
WE CAN REINVENT MANUFACTURING <ul><li>The Chevrolet Sonic is Transforming the face of American Manufacturing </li></ul><ul...
Made in Detroit
IMPORTED FROM DETROIT <ul><li>http :// www.youtube.com/watch?v=SKL254Y_jtc&feature=player_detailpage   </li></ul>
Additional Slides If we only had time
Oil Fuels America’s Deficit
Small Hydro Projects <ul><li>Putting many small hydro dams on rivers to generate 5 to 10 MW of power. </li></ul>
Shale Gas = 50% Supply in 2020
Shale Gas Everywhere You Look
Algae to Oil
French Tidal Power Plant Online in 1967 http://en.wikipedia.org/wiki/Image:Rance_tidal_power_plant.JPG
300 in NYC’s East River by 2013
Real Projects; Real Power <ul><li>1,320 MW Incheon Tidal Power Station built around islands west of Incheon.  Construction...
Ocean Wave Power
Capturing Waves
Sea Dog Pump = 22% Conversion
Cheap, Available Fresh Water <ul><li>What happens to global stability if every country with access to the sea can get all ...
Ocean Powered Fresh Water
Ocean Currents
Ocean Thermal Power Potential
Ocean Thermal Power
Apple Made 2X Profit of the “Others”
Oh My
Shale Gas Is Revolutionary <ul><li>Shale Gas increased America’s gas reserves by 40% in this decade. </li></ul><ul><li>Sha...
Small Reactors to the Rescue?
Baby Nuke Self Contained Design <ul><li>Tennessee Valley Authority, First Energy Corp. and Oglethorpe Power Corp., on 2/17...
240 MW on a Truck (c) - General Atomics - WSJ - 2/22/2010
Pocket Nuclear Reactor <ul><li>240 MW reactor that will be built in factors and shipped to sites on trucks or trains. </li...
Power From the Ocean <ul><li>The European Energy Association estimates that, globally, the oceans could yield more than 10...
Real Products; Not Just Dreams
Tidal Power Growth <ul><li>45 Wave and Tidal prototypes will be tested in 2011 and 2012.  Only 9 were tested in 2009. </li...
GOD  HAS  BLESSED AMERICA
Narrow Body Jets Rule <ul><li>There are over 4,500 737s currently in service, with 2,016 orders yet to be filled. </li></u...
Narrow Body Jets Rule <ul><li>Global demand for narrow bodies (737 and A320s) over the coming two decades will be 21,160, ...
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Debt, Global Competition and America's Future, UT Texas Enterprise Speaker: MBA Professor John Doggett, Sept. 8, 2011

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In the next 15-20 years, China is on track to become the world's largest economy. India will be "neck and neck" with the U.S. in second place. How did this happen? How will this affect our lives? Is it too late to change the course? What can we do about it?

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  • Debt, Global Competition and America's Future, UT Texas Enterprise Speaker: MBA Professor John Doggett, Sept. 8, 2011

    1. 1. Debt, Global Competition and America’s Future John N. Doggett, JD, MBA, Senior Lecturer Global Management, Entrepreneurship & Sustainable Energy McCombs School of Business @ The University of Texas at Austin [email_address] www.jndoggett.com September 8, 2011
    2. 2. Strategic Inflection Points Are Scary
    3. 3. We Have Entered a S.I.P.
    4. 4. It Won’t Be Easy . . .
    5. 5. But We Can Beat This Thing
    6. 6. Because Failure Is Not An Option
    7. 7. This is What I Believe <ul><li>We live in an amazing country. </li></ul><ul><li>We have overcome challenges that would have destroyed other countries. </li></ul><ul><li>We face serious problems and serious problems equal great opportunities. </li></ul><ul><li>God has blessed America with more freedom and potential than any other country in the world. </li></ul><ul><li>If we take the revival of America’s competitiveness as seriously as we take college football, we cannot fail. </li></ul>
    8. 8. Where We Are Today?
    9. 9. PIIGS GET SLAUGHTERED
    10. 10. On the Brink of Bankruptcy
    11. 11. TOO BIG TO FAIL OR BAIL!
    12. 14. Deficits Forever . . . ?
    13. 15. This Math Doesn’t Add Up
    14. 16. This is a Serious S.I.P.
    15. 17. US Deficit Is At Civil War Levels
    16. 18. Don’t Show This to Children
    17. 19. We Are Stuck in Neutral
    18. 20. Are We Entering A Lost Decade?
    19. 21. Can We Borrow Our Way Out of Debt? <ul><li>On 9/30/00, our debt was $5.674 trillion. </li></ul><ul><li>Today, it is $14.5 trillion </li></ul><ul><ul><li>23% of the World’s GDP </li></ul></ul><ul><li>We will add $1.4 trillion in debt in 2011 </li></ul><ul><li>Congress just agreed to increase the debt by $2.3 trillion by 2013. </li></ul><ul><li>Today, net payments = 1.4% of GDP </li></ul><ul><li>CBO says this could be 3.4% by 2020 </li></ul><ul><ul><li>From $197 billion today to $778 in 9 years </li></ul></ul><ul><ul><li>This is as much as we spend on national defense. </li></ul></ul>
    20. 22. A Warning From The Future? <ul><li>The Chinese Professor </li></ul><ul><li>http://www.youtube.com/watch?v=OTSQozWP-rM </li></ul>
    21. 23. Just The Facts, Jack (Billion US$) <ul><li>May 2008 </li></ul><ul><ul><li>C hina = $506.8 </li></ul></ul><ul><ul><li>Japan= $575.3 </li></ul></ul><ul><ul><li>Caribbean Banking Centers = $104.5 </li></ul></ul><ul><ul><li>Oil Exporters = $164.2 </li></ul></ul><ul><ul><li>UK = $271.2 </li></ul></ul><ul><ul><li>B razil = $151.4 </li></ul></ul><ul><ul><li>Russia = $63.7 </li></ul></ul><ul><ul><li>Luxembourg = $75.2 </li></ul></ul><ul><ul><li>H ong Kong = $61.4 </li></ul></ul><ul><ul><li>T aiwan = $38.9 </li></ul></ul><ul><li>June 2011 </li></ul><ul><ul><li>C hina = $1,165.5 </li></ul></ul><ul><ul><li>Japan = $911.0 </li></ul></ul><ul><ul><li>UK = $349.5 </li></ul></ul><ul><ul><li>Oil Exporters = $229.6 </li></ul></ul><ul><ul><li>B razil = $207.1 </li></ul></ul><ul><ul><li>T aiwan = $153.4 </li></ul></ul><ul><ul><li>Caribbean Banking Centers = $140.5 </li></ul></ul><ul><ul><li>H ong Kong = $118.4 </li></ul></ul><ul><ul><li>Russia = $109.8 </li></ul></ul><ul><ul><li>Switzerland= $108.2 </li></ul></ul><ul><li>http://www.treas.gov/tic/mfh.txt </li></ul>
    22. 24. So, How Do We Pay Down The Debt? <ul><li>Today, we borrow 40 cents of every dollar we spend. That is unsustainable. </li></ul><ul><li>In Washington, all they talk about is raising taxes and cutting spending. </li></ul><ul><li>I have a better idea. </li></ul><ul><li>We must grow our way out of this crisis. </li></ul><ul><li>We must sell “assets” owned by the federal government. </li></ul>
    23. 25. We Have Assets We Can Sell
    24. 26. Cell Phone Penetration <ul><li>China </li></ul><ul><ul><li>15 million users in 1997 </li></ul></ul><ul><ul><li>703 million users in 2009 </li></ul></ul><ul><ul><li>875 million users by end of 2010 </li></ul></ul><ul><ul><li>1.2 billion+ users by 2014 </li></ul></ul><ul><ul><li>Added 9.4 million new users in May </li></ul></ul><ul><ul><li>Adding 303,226 new users per day ! </li></ul></ul><ul><li>India </li></ul><ul><ul><li>340,000 users in 1997 </li></ul></ul><ul><ul><li>525 million users in 2009 </li></ul></ul><ul><ul><li>827 million users by end of 2010 </li></ul></ul><ul><ul><li>1 billion+ users by 2012 </li></ul></ul><ul><ul><li>Added 19 million new users each month in the first four months of 2011 </li></ul></ul><ul><ul><li>Adding 633,333 new users per day! </li></ul></ul>
    25. 27. We Are Not Rome
    26. 28. Let’s Look at Our Competition
    27. 29. Be Careful What You Wish For <ul><li>We told the world that our way of life was better than Communism or Socialism. </li></ul><ul><li>CNN and Hollywood showed the world an irresistible vision of American Life. </li></ul><ul><li>Then the Unthinkable happened. </li></ul><ul><ul><li>On November 9, 1989, the Berlin Wall Fell </li></ul></ul><ul><ul><li>On Christmas Day, 1991, the USSR ceased to exist. </li></ul></ul><ul><li>We had won the Cold War. </li></ul><ul><li>And most of the world wanted to live like US . </li></ul>
    28. 30. Birth of the BRICs <ul><li>In 2001, as the Internet Bubble was collapsing and the stock market was imploding, Goldman Sachs predicted that four countries would dominate global economic activity in the 21 st Century. </li></ul><ul><li>B razil </li></ul><ul><li>R ussia </li></ul><ul><li>I ndia </li></ul><ul><li>C hina </li></ul>
    29. 31. The Axis of the Future
    30. 32. Was Goldman Sachs Crazy? <ul><li>6,100% Annual Inflation (1994) </li></ul><ul><li>Collapse of the Ruble (1998) </li></ul><ul><li>Two Weeks of Foreign Reserves (1991) </li></ul><ul><li>The Cultural Revolution (1966-1976) </li></ul>
    31. 33. National GDP in 2010 (purchasing power parity) <ul><li>Country GDP Real Growth % </li></ul><ul><li>United States $ 14,660,000,000,000 2.8% </li></ul><ul><li>China $10,090,000,000,000 10.3% </li></ul><ul><li>Japan $ 4,310,000,000,000 3.9% </li></ul><ul><li>India $ 4,060,000,000,000 10.4% </li></ul><ul><li>Germany $ 2,940,000,000,000 3.5% </li></ul><ul><li>Russia $ 2,223,000,000,000 4.0% </li></ul><ul><li>United Kingdom $ 2,173,000,000,000 1.3% </li></ul><ul><li>Brazil $ 2,172,000,000,000 7.5% </li></ul><ul><li>France $ 2,145,000,000,000 1.5% </li></ul><ul><li>Italy $ 1,774,000,000,000 1.3% </li></ul><ul><li>Mexico $ 1,567,000,000,000 5.5% </li></ul><ul><li>South Korea $ 1,459,000,000,000 6.1% </li></ul><ul><li>Spain $ 1,369,000,000,000 - 0.1% </li></ul><ul><li>Canada $ 1,330,000,000,000 3.1% </li></ul>CIA World Factbook – September 5, 2011
    32. 34. Elephants Emerging from the Mist <ul><li>Total World Population = 6,928,198,253 </li></ul><ul><li>BRIC Population = 2,868,060,586 ( 41.4% ) </li></ul><ul><li>Total World Land Area = 174,814,000 sq. km. (- oceans) </li></ul><ul><li>BRIC Land Area = 38,471,715 ( 22%) </li></ul><ul><li>Total World Gross Domestic Product = $63.17 Trillion (Official Exchange Rate) </li></ul><ul><li>Total World Gross Domestic Product = $74.54 Trillion (Purchasing Power Parity) (p.p.p.) </li></ul><ul><li>BRIC Gross Domestic Product (p.p.p.) = $ 18.55 Trillion (24.88%) </li></ul>Source: CIA World Factbook – September 5, 2011
    33. 35. Could China Pass the US? <ul><li>Goldman Sachs said that China could become the largest economy in the world by 2035 by growing by 5% a year. </li></ul><ul><li>What does our world look like when China’s economy is 9x larger it is today? </li></ul><ul><li>What opportunities does this represent for your firm? </li></ul>
    34. 36. Could India Close The Gap? <ul><li>Goldman Sachs said that India could challenge the US for #2 by 2040 by growing by 6% a year. </li></ul><ul><li>What does our world look like when the Indian economy is 12x larger than it is today? </li></ul><ul><li>What opportunities does this represent for your firm? </li></ul>
    35. 37. The BRIC Middle Class Is Exploding <ul><li>Goldman Sachs predicts the BRIC Middle Class could grow from 250 million to 1 billion in this decade </li></ul><ul><li>McKinsey says the Chinese middle class will grow from 80 million in 2007 to 700 million by 2020. </li></ul><ul><li>Goldman says that the BRIC Middle Class could grow from 250 million in 2005 to 3.5 billion by 2050* </li></ul>Jim O'Neill, Managing Director & Head of Global Economic Research, Goldman Sachs, 5/06 McKinsey & Company, Inc.
    36. 38. How Far China Has Come <ul><li>In 2006 the G7 (the US, Japan, Germany, France, Britain, Italy & Canada) held $1,253,900,000,000 in FOREX </li></ul><ul><li>By the end of 2007 China’s FOREX reserves had passed $1,500,000,000,000 </li></ul><ul><li>China spent $65 billion for the Olympics. 5x the cost of the Athens Olympics. </li></ul><ul><li>China then invested $200 billion to create the China Investment Corporation </li></ul><ul><ul><li>CIC will get an additional $200 billion to invest this year </li></ul></ul><ul><li>Today, China has over $3,400,000,000,000 in FOREX reserves. </li></ul><ul><li>America’s debt, on the other hand, will increase by $1,400,000,000,000+ in 2011. </li></ul>
    37. 39. Chinese Banks and The World
    38. 40. The IMF Says . . . <ul><li>China could pass the United States as the largest economy in the world by 2016. </li></ul>
    39. 41. The Conference Board Says . . . <ul><li>China Could pass The United States BY 2012! </li></ul><ul><ul><li>Source: The Conference Board Report issued on November 10, 2010 using Purchasing Power Parity (PPP) </li></ul></ul>
    40. 42. WHILE WE WERE SLEEPING, THEY WERE RUNNING <ul><li>Remember, WE Won the Cold War </li></ul>
    41. 43. A Swarm of Inflection Points Dr. P. Konana, McCombs Business School, University of Texas at Austin 1964-70 1989-94 2000-2005
    42. 44. What is Your Image of Brazil? (c) - Andre Havt from www. woophy.com
    43. 45. This is a Brazilian Super Tanker
    44. 46. An Orange Juice Super Tanker
    45. 47. Competing With Innovation
    46. 48. Inside Air Canada’s Embraer 190
    47. 49. Add A Large Dash of Oil . . .
    48. 50. What is Your Image of India? www.woophy.com
    49. 51. Bangalore, India
    50. 52. Infosys
    51. 53. This Is the New India
    52. 54. Indigo Airlines
    53. 55. Tata Motors People’s Car
    54. 56. Tata Motors’ Newest Ride
    55. 57. Tata Motors’ Newest Ride
    56. 58. California Dreaming? WSJ - June 25, 2007, Page A1
    57. 59. Welcome to the New China copyright - John N. Doggett, 2008
    58. 60. Growth at Warp Speed
    59. 61. China has 6 of the 15 Tallest Buildings
    60. 62. Building Skyscrapers Like Crazy <ul><li>China is building 24 of the 50 skyscrapers to be completed worldwide in the next six years. </li></ul><ul><ul><li>This will double the number of Chinese skyscrapers. </li></ul></ul><ul><li>McKinsey say that China could build enough new skyscrapers to equal one new Chicago every year until 2030. </li></ul><ul><ul><li>More than 1,500 new buildings over 30 stories </li></ul></ul>
    61. 63. The People’s Republic of Communist China?
    62. 64. Shenzhen in 1979 www.lenbracken.com/images/china31
    63. 65. 30,000 people lived here in 1983 Source: http://en.wikipedia.org/wiki/Image:57440.jpg
    64. 66. The Chinese Market Is Taking Off <ul><li>Boeing says China Will Need 5000 New Planes by 2030 at a cost of more than $600 billion. </li></ul><ul><ul><li>Last year, the estimate was 4,330 planes for total spend of $480 billion. </li></ul></ul><ul><ul><li>Boeing delivered its 800 th plane to China in July, 2010 </li></ul></ul>
    65. 67. China Is Boeing’s #1 Export Market
    66. 68. Say Hello to the C919
    67. 69. China Will Enter This Market in 2016 <ul><li>Commercial Aircraft Corp. of China (Comac) will roll out the C919 in 2016. </li></ul><ul><li>The C919 should be at least 15%-18% more fuel efficient, with a faster cruising speed (Mach 0.785) and longer range than the 737 or the A320. </li></ul><ul><ul><li>It will also be wider than the 737 and A320. </li></ul></ul><ul><li>For pilots, the C919 will have basically the same fly-by-wire flight control system as Boeing’s upcoming 787, courtesy of Honeywell. </li></ul>
    68. 70. We Won the Cold War <ul><li>With the C919, China aims to satisfy some of its domestic demand and boost exports, initially in Asia. </li></ul><ul><li>Comac expects to sell 2,509 C919s over 20 years. </li></ul><ul><li>Without the C919, Boeing and Airbus expected to sell 3,450 narrow body planes to China during the same time period. </li></ul><ul><li>That’s a decrease of 73%. Ouch. </li></ul>
    69. 71. Progress Comes at a Steep Price Source: New York Times, 8/25/2007
    70. 72. This “Air” Doesn’t Stay in China The Guardian - June 20, 2007 Peter Parks/AFP
    71. 73. The Chinese People Hate Dirty Air
    72. 74. The Chinese People Hate Dirty Water
    73. 75. The Clock is Ticking
    74. 76. We Are #2!
    75. 77. US Secretary of Energy Chu <ul><li>“ The leaders of China are all saying, ‘This is a very big deal for us. If we continue business as usual, continue to grow our carbon emissions, it would be devastating for the world, devastating for China.’ But they also say, ‘This is our great economic opportunity.’ And for that reason, they’re investing over $100 billion a year in the clean energy economy.” </li></ul>
    76. 78. Becoming a Renewable Energy Giant <ul><li>China is building six massive wind farms across the country. </li></ul><ul><ul><li>Each has the generating capacity of 16 large coal-fired plants </li></ul></ul><ul><li>Each of the six projects “totally dwarfs anything else, anywhere else in the world,” </li></ul><ul><ul><ul><ul><ul><li>Steve Sawyer, the secretary general of the Global Wind Energy Council, an industry group in Brussels. </li></ul></ul></ul></ul></ul>
    77. 79. Growing @ the Speed of Wind <ul><li>China’s Installed Wind Capacity </li></ul><ul><ul><li>2008 = 5 th largest in the world </li></ul></ul><ul><ul><li>2009 = 3 rd largest in the world </li></ul></ul><ul><ul><li>2010 = 2 nd largest in the world </li></ul></ul><ul><ul><li>2011 = largest in the world </li></ul></ul><ul><li>Since May 2010 Gansu Province has been installing 40-MW of wind power every day! </li></ul><ul><ul><li>This is equivalent to one new 300-MW coal plant a week in just one of seven regions that are developing at least 10,000 MW of wind power. </li></ul></ul>
    78. 80. China Drawing High-Tech Research <ul><li>Mark Pinto, Chief Technology Officer of Applied Materials moved to Beijing in January </li></ul><ul><li>Applied Materials is building its newest and largest research labs in China </li></ul><ul><li>Applied held its annual shareholder’s meeting in Xi’an, China in 2010. </li></ul><ul><ul><li>Applied’s global headquarters are in Santa Clara, California </li></ul></ul>
    79. 81. Applied’s New Xi’an R&D Plant
    80. 82. Will This Be China’s Century?
    81. 83. From China with Love <ul><li>Thermal Power Research Institute is China’s world-leading laboratory on cleaner coal, has just licensed its latest design to Future Fuels in the US. </li></ul><ul><ul><li>Future Fuels will pay about $100 million to import from China a 130-foot-high maze of equipment that turns coal into a gas before burning it. This method reduces toxic pollution and makes it easier to capture and sequester gases like carbon dioxide under ground. </li></ul></ul><ul><ul><ul><li>Future Fuels will ship the equipment to Pennsylvania and have Chinese engineers teach American workers how to assemble and operate it . </li></ul></ul></ul>
    82. 84. 2007 Shanghai Millionaires Ball
    83. 85. A Coal Baron Son’s Wedding
    84. 86. Job Fair for 150k College Graduates
    85. 87. How Long Will They Wait?
    86. 88. How Long Will She Wait?
    87. 89. How Long Will They Wait?
    88. 90. THIS IS THE GREATEST TIME TO BE AN AMERICAN!
    89. 91. Impact of MIT Alumni Entrepreneurs <ul><li>MIT Alumni founded 25,800 currently active companies in 2009. </li></ul><ul><li>The firms employed 3,300,000 people. </li></ul><ul><li>These firms generated annual world revenues of $2,000,000,000,000. </li></ul><ul><li>If currently active firms founded by MIT graduates were a country in 2009 they would have been the 11 th largest economy in the world. </li></ul>Economic Impact of MIT Alumni Entrepreneurs - Entrepreneurial Impact: The Role of MIT, Roberts and Eesley, MIT & Kauffman Foundation for Entrepreneurship, February, 2009
    90. 92. “ Recruit” The Right Immigrants <ul><li>Immigrants started 25% of U.S. public companies that were venture-backed. </li></ul><ul><li>The market capitalization of publicly traded immigrant-founded venture-backed companies in the U. S. exceeds $500 billion. </li></ul><ul><li>40% of U.S. publicly traded venture-backed high-technology manufacturing companies were started by immigrants. </li></ul><ul><li>50%+ of the employment generated by U.S. public venture-backed high-tech manufacturers has come from immigrant-founded companies. </li></ul>
    91. 93. A Great Time To Be a Farmer! <ul><li>The world’s appetite for farm products will soar. </li></ul><ul><li>The world will have more than enough cash to buy what we grow </li></ul><ul><li>Farm support payments will no longer be necessary </li></ul><ul><li>Quotas, tariffs and other market protections will no longer be necessary </li></ul><ul><li>We will be able to sell everything that we can grow and process. </li></ul>
    92. 94. WE “OWN” CREATIVITY!
    93. 95. WE CAN APPLEIZE AMERICA <ul><li>The iPhone, which did not exist before 2007, now generates 2/3 of Apple’s revenue. </li></ul><ul><ul><li>Apple made more profit on the iPhone than all of its competitors combined! </li></ul></ul><ul><li>The iPad generates $1 billion more revenue than the Mac. </li></ul><ul><ul><li>The iPad is less than 2 years old. </li></ul></ul><ul><li>Apple = 20% of All Sales Growth of Publically Traded Retailers in 2011. </li></ul><ul><ul><li>1 st Quarter 2011 sales went up 80% Y.O.Y. </li></ul></ul>
    94. 96. WE CAN REINVENT MANUFACTURING <ul><li>The Chevrolet Sonic is Transforming the face of American Manufacturing </li></ul><ul><ul><li>The plant is 50% smaller </li></ul></ul><ul><ul><li>Wielding Robots are clustered together instead o being spaced along the line </li></ul></ul><ul><ul><li>The first coat of rust proofing is 1/100 as thick </li></ul></ul><ul><ul><li>Many employees make $14 an hour instead of $28 an hour . . . With the UAW’s blessings. </li></ul></ul><ul><li>All of this so the Sonic can be manufactured in Detroit instead of Mexico. </li></ul>
    95. 97. Made in Detroit
    96. 98. IMPORTED FROM DETROIT <ul><li>http :// www.youtube.com/watch?v=SKL254Y_jtc&feature=player_detailpage </li></ul>
    97. 99. Additional Slides If we only had time
    98. 100. Oil Fuels America’s Deficit
    99. 101. Small Hydro Projects <ul><li>Putting many small hydro dams on rivers to generate 5 to 10 MW of power. </li></ul>
    100. 102. Shale Gas = 50% Supply in 2020
    101. 103. Shale Gas Everywhere You Look
    102. 104. Algae to Oil
    103. 105. French Tidal Power Plant Online in 1967 http://en.wikipedia.org/wiki/Image:Rance_tidal_power_plant.JPG
    104. 106. 300 in NYC’s East River by 2013
    105. 107. Real Projects; Real Power <ul><li>1,320 MW Incheon Tidal Power Station built around islands west of Incheon. Construction will start in 2017. </li></ul>
    106. 108. Ocean Wave Power
    107. 109. Capturing Waves
    108. 110. Sea Dog Pump = 22% Conversion
    109. 111. Cheap, Available Fresh Water <ul><li>What happens to global stability if every country with access to the sea can get all the fresh water it needs? </li></ul><ul><li>What happens to global agriculture and hunger if every country with access to the sea can get all the fresh water it needs? </li></ul><ul><li>What happens to global economic growth if every country with access to the sea can get all the fresh water it needs? </li></ul>
    110. 112. Ocean Powered Fresh Water
    111. 113. Ocean Currents
    112. 114. Ocean Thermal Power Potential
    113. 115. Ocean Thermal Power
    114. 116. Apple Made 2X Profit of the “Others”
    115. 117. Oh My
    116. 118. Shale Gas Is Revolutionary <ul><li>Shale Gas increased America’s gas reserves by 40% in this decade. </li></ul><ul><li>Shale Gas reserves outside of North America could increase the world’s gas reserves by 50% to 160%. </li></ul><ul><ul><li>That is equal to 211 to 690 years’ worth of gas consumption in the United States at current levels. </li></ul></ul>
    117. 119. Small Reactors to the Rescue?
    118. 120. Baby Nuke Self Contained Design <ul><li>Tennessee Valley Authority, First Energy Corp. and Oglethorpe Power Corp., on 2/17/10 signed an agreement with McDermott International Inc.'s Babcock & Wilcox subsidiary, committing to get the new reactor approved for commercial use in the U.S. </li></ul><ul><li>Made in plants in Indiana, Ohio or Virginia. </li></ul><ul><li>125 to 150 MW </li></ul><ul><li>1/10 the cost of big nukes = $750 million </li></ul><ul><li>Built with all of the fuel needed to run it for 60 years. </li></ul><ul><li>All waste stored in plant for 60 years. </li></ul>WSJ - 2/18/2010
    119. 121. 240 MW on a Truck (c) - General Atomics - WSJ - 2/22/2010
    120. 122. Pocket Nuclear Reactor <ul><li>240 MW reactor that will be built in factors and shipped to sites on trucks or trains. </li></ul><ul><li>Helium cooled reactor would use operate at temperatures as high as 850 degrees Centigrade. </li></ul><ul><ul><li>This makes it an attractive “combined cycle” energy source for desalinization of water and other industrial uses. </li></ul></ul><ul><li>Fuel source is spent nuclear fuel from large conventional nuclear plants. </li></ul><ul><ul><li>“ spent fuel” contains more than 90% of its original energy </li></ul></ul><ul><ul><li>Enough nuclear waste to build 3,000 of these reactors </li></ul></ul><ul><li>12 year development timeline </li></ul>WSJ - 2/22/2010
    121. 123. Power From the Ocean <ul><li>The European Energy Association estimates that, globally, the oceans could yield more than 100.000 terawatt hours a year if the technology to harness that power can be perfected. </li></ul><ul><li>That is more than five times the electricity the world uses in a year. </li></ul>
    122. 124. Real Products; Not Just Dreams
    123. 125. Tidal Power Growth <ul><li>45 Wave and Tidal prototypes will be tested in 2011 and 2012. Only 9 were tested in 2009. </li></ul>
    124. 126. GOD HAS BLESSED AMERICA
    125. 127. Narrow Body Jets Rule <ul><li>There are over 4,500 737s currently in service, with 2,016 orders yet to be filled. </li></ul><ul><li>The Airbus A320 has almost 3,400 in service </li></ul><ul><li>The 737 series is the best selling jet airliner in history. </li></ul><ul><li>According to FlightGlobal, there are on average 1,250 737s airborne at any given time, with one departing or landing somewhere every five seconds. </li></ul>
    126. 128. Narrow Body Jets Rule <ul><li>Global demand for narrow bodies (737 and A320s) over the coming two decades will be 21,160, according to Boeing estimates. </li></ul><ul><li>That’s $1.7 trillion worth of aircraft that, at present, Boeing and Airbus would expect to snag more than 90% of the orders. </li></ul><ul><li>Embraer of Brazil is #3 </li></ul>

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