I guess the Beijing Olympics are going to be pretty amazing. I'm already looking forward to the opening ceremony. I imagine that no expense or effort will be spared to make it the most spectacular event of all time - and an indication that China is a force to be reckoned with. Will we see more and more of a shift East this year? I notice that China, Japan and the US are all building up their militaries in the Pacific. What do other people think?

=The price of oil will soar, especially in dollars.
=The dollar will drop.
=Countries with oil will keep some for themselves.
=Wars to control oil will fail.
=The UN will try to ration oil so that every country gets a basic minimum.
=Overheated economies will fall.

Without doubt, the world's multidimensional water crisis, which includes climate change, is going to make headlines around the world on a regular basis. In the near future, the true wealth of any country will be defined by its freshwater resources. Any country without economical access to water for ecosystem support, agriculture, drinking water, and manufacturing - will be a desperate country.
Therefore, I predict that 2008 will be a year when water will be recognized and respected as an undeniable source of true wealth and health for any region of the world.

Each year has brought its weather-related disasters, and 2008 will likely be no different. Not knowing which specific disasters will take place obviously makes prediction difficult. Drought-instigated forest fires? Hurricanes? Coastal flooding?

It is likely, however, that the media will thrust environmental oddities into mainstream attention. Culturally, we are having difficulty grasping and responding to our global climate crisis. As we search for ways to individually witness and collectively raise consciousness around the inevitable climate impact, we should expect to see flooding, fires, and tropical storms making the front pages in 2008 like never before.

The upcoming 2008 Presidential elections in Taiwan will be significant. Depending on who wins, Frank Hsieh of the DPP or Ma Ying Jeou of the KMT, could significantly impact cross strait relations between China and Taiwan (for the worse or for the better). In tandem with this, the people of Taiwan will also be voting on a referendum on whether Taiwan should have a seat in the United Nations as "Taiwan" instead of "Taiwan, R.O.C." Depending on how this vote goes as well, this could strain relations with China. And ultimately, depending on how China reacts to Taiwan, the United States may somehow get involved in order to ease any tensions between the two, lest it be drawn to some type of open conflict.

Iran-US relations will thaw as a result of Iran moving upward once again on the US list of Mideast priorities, which will cause the US to take a more practical/thoughtful approach to its diplomatic affairs in this regard. The US/international approach will likely be to increase sanctions in large and small ways, most likely leading to a kind of technological war with Iran (affecting international investments, etc.), with the use of nuclear weapons being taken off the table completely. As for China, they will continue to rise at a similar pace and international standards/regulations will be less and less favorable to them. They won't make any major steps in joining the fight against global climate change (more effective pressure won't come until after 2008), but other countries will take a more robust approach to reducing their own carbon footprint (especially the US). North/South Korea relations will warm very slightly. Putin will continue to lead Russia through 2008 in a less conspicuous executive position. The dollar will fall but the mortgage lending crisis will be attacked with legislation that should reduce its impact. Oil prices will stay around US$100/barrel as China consumes more and more and as the US pulls back from Iraq and changes its offensive stance in the Mideast to a more open posture (both events serving to offset each other).

I expect that the West will relax the sanctions on Iran. George Bush last week during a press conference in response to the release of the NIE stated "..Many companies are fearful of losing market share in Iran to another company". European and Asian countries have been assisting Iran with Liquified Natural Gas projects (Iran has the second largest reserves of natural gas in the world). Earlier this week, China's Sinopec signed a two billion dollar deal to develop the Yadavaran (estimated 12 to 18 billion barrel) oil field (Iran holds Ten Percent of the world's oil reserves). There is simply too much oil and gas in Iran for the American administration to get in the way of Western Oil exploration and development Interests, and the orderly products distribution to world markets through the Persian Gulf.

Google StreetView will quickly change the way people navigate the world in 2008. Rather than just sending directions to a friend, you'll send directions that tell people how to get to your house, and what your house looks like.

The beginning of the year will yield an overwhelming agnst among U.S Citizens as we watch our foreign policy as a whole continue to spiral out of control while an ever weakening dollar continues to weaken, even as oil prices begin to plateau. Our faith in the current presidential advisory staff will continue to fall as more reports begin to appear that seemingly discount the current president's fear tactics of the past 4 years as they relate to foreign policy. Mid year however, as the Olympics are in full swing, we will look inward as the election approaches and we will try to decide what we want in a president; someone to fix the runaway train we call a sub-prime meltdown? someone to heal our harsh foreign policy? someone to make a war in Iraq go away? or someone who has the audacity to enact public healthcare. All of these issues are important in their own right and I can't help but think in December we will all be talking about the first female president and her uphill road to the whitehouse, even while China's economy comes crashing down (I mean correcting itself)faster than ours after the Olympics

The year 2008 will usher in greater social consciousness by governments, businesses, and individuals, whether small or large, to address the impact of climate change and other high impact societal issues. Toward that end, I predict the following:

• Green technology—from products which make energy cleaner to those which reduce chemical contaminates in water supply and land run off—will gain widespread usage in developed countries predominately, but developing countries will realize the need to prevent rich-country problems. We will learn from each other’s mistakes.

• Financial products will incorporate green investing, marketing, and product development into their strategies. Green will overshadow, as well as bridge diversity issues.

• Green or sustainable practices are here to stay and will gain more traction as we learn how they relate to address a host of different problems, ie., global warming, weather pattern changes, sustainable development,etc. A combination of both sophisticated and simple solutions will be used to address societal problems.

• New infrastructure projects regardless of country will be built with sustainable principles in mind. Infrastructure projects may become more high-profile as community and governments share power over decisions with enviro-savvy citizens leading the way. More large cities and states will realize that their buying power and leadership can effect sustainability for wiser use of resources, and to reduce their carbon footprint.

• European-U.S. relations will continue to warm as geo-political or economic-induced threats change from the Middle East to Russia, China, and other independent hot spots, bringing our interests closer together.

• The pace of globalization in 2008 will temporarily slow down as the U.S. financial market’s meltdown works through international investors, psychologically and strategically. Later in the year, the dollar will stabilize with the a new president elected, whether Democrat or Republican. A Democrat president will cause dollar wobbles—a Republican will effect a slow, steadily strengthening dollar.

• The volatility witnessed in U.S. financial markets will cause new thinking about retirement security in both private and public sectors. Risk/return tradeoffs will begin to resemble more rational thinking, ie., that financial innovation cannot hedge risks to the degree many theorists or sophisticated investors believed due to excess risk-taking not being incorporated into the models. Everything old becomes new and many things new become history. The Wild West of financial markets gets tamed until another day.

from Jennifer Warren

China will increasingly - and very quietly - buy natural resources from other countries. (I believe that they already own large expanses of Canada's fresh water.)

China will also, along with other Asian and Middle Eastern countries, purchase large stakes in Western financial institutions. If regulation permits it, China could own at least one major US bank by the end of 2008.

Water, as others have noted, will become an increasingly precious commodity - perhaps the most precious commodity, ultimately.

The Euro will at least match the dollar's influence in world markets. China in particular will diversify its foreign currency holdings to a far greater extent.

The US housing market will reach relative stability by the end of 2008, but only after huge injections of liquidity from the Fed and probably the collapse of at least one major US bank.

Iraq will hopefully achieve a degree of stability for its people - but only if the US can accept some kind of diplomatic rapprochement with Iran.

A Democrat, I pray, will be headed to the White House. And one with the strength and compassion to restore the sense of hope that the US had under Clinton's presidency.

2008 will yield paradigm shifts in thinking worldwide as it relates to the environment. New market niches will emerge as R&D departments worldwide continue to rev into high gear. Formerly invisible geocompanies grow exponentially as the world releases its grip on the myth that climate change is a cyclical inconvenience. China continues to spread its economic wings transglobally as it reaches the boiling point of it robustness. It reaches its height of worldwide envy as the Olympics approach. Lets not forget about the emerging engineering marvel known as Dubais. As Middle East conflicts soften and the court of public opinion accepts the UAE as a viable vacation spot, expect a surge of tourism as Dubais plans to create more opportunity in the transportation industry. As long as the grand scale and brisk pace of the Sheik's dream hasn't diluted the talent and resources in the regional construction industry, expect more exponential growth in the economy.

Very interesting to hear Al Gore's comments at Bali. It looks like 2007 is going to end without the US signing up to an international agreement on climate change which will have any real results. Perhaps we'll have to wait til November 2008 for this to happen? Or perhaps individual states will sign up to agreements and by-pass federal government. I see the European Union is getting more and more impatient with the EU on this issue, so perhaps we'll see more disagreements between the two in 2008.

From: Charles Heyman - Editor: Armed Forces of the United Kingdom

NATO does not have enough troops in Afghanistan and it is wishful thinking to believe that the Afghan National Army will be able to ensure security - even in the longer term.

Without effective security there can be no meaningful reconstruction.

Our only longer term option is to talk to the Taliban. It is absolutely vital for our longer term security that we avoid the disaster of a Russian style withdrawal.

Watch for an economic train wreck immediately before or shortly after Beijing. Stagflation brought on by over a decade of laissez faire monetary policy in the US, fierce competition for energy and water resources, and general displeasure in developing nations over their progress will overshadow the short run spike of Beijing. The US global war on terror will further polarize developing nations, Europe, and China against the worlds consumer engine and if national myhts and legends become drivers for policy - watch out. I hope I'm wrong!

Sorry to reply to myself here but is anybody OUT THERE? Conditions are deteriorating everywhere (according to the collective news reports in US) but I can count the number of tents going up in my community since November 2007 and it's staggering. But the number of Christian Temples of Bling-Bling are increasing new construction-multi million $$$ projects as the number & ranks of poor displaced people increase. Come on PRI, these are very tough times and the Bush Compassionate Conservatism seems to be consolidating and excluding!

Iraq will see a spike in violence initially, but will begin to trend back down as the hard core terrorists find themselves unable to develop the same traction in the northern part of Iraq than they did before in Anbar and Baghdad.
Africa will continue to be ignored by the media while the most important events of humanity continue to play out unheard.
-Somalia will drift into greater chaos while neighboring states begin to feel the pressure of terrorism (Ogaden and Kenya). Tomorrows Bin Laden is setting up shop there now.
-Nukunda will begin to negotiate with DRC Govet. (again) due to UN and EU peacekeeper "pressure"
-Darfur drifts to the sidelines as the ethnic cleansing ends. Janjaweed wins. Mistrust between south and Norths grows.
-Islamic terrorism increases in North and West Africa. As AFRICOM keeps trying to set up shop.
-opposition pulls out of talks with Mugabe.
-Still progress begins to sprout from Sach's Millennium Villages Projects as early success begin to build on itself, occurring more rapidly than originally thought. Many variations begin to emerge as people finally understand poverty reduction starts from the bottom up.

I am sure the world will see new insights, new advanced technologies, new world leaders, new democracies, more new civil rights, new every thing, and we in the Arab World will be still led by the same individulas or families who have no interests whatsoever in their people's prosperity.

Faisal

Well said; the word is spreading in western democracies about your plight and behaviors are changing albeit too slowly. The US has to dampen Israel's threats to the region and drive a solution for the Arab & Palestinian conflict with Israel. Everyhting must be on the table vis-a-vis territory, autonomy, and negotiations with all parties-no matter history, legends, myths, and most of all blood. Both sides have spilled enough unjustly that universal guilt by all exists. So the way forward has to be no retaliatory responses to anything by anyone. Maybe the first to reject violence as a response can start a way forward, WWIII is a reality and no one should accept or consider that option at all.

We soon will have a world wide recession. This so called "war on terror" is depriving citizens all over the world of health care, education, and infrastructure rebuilding in the name of making the world safe. This is pure nonsense told to benefit the neo-cons, and many people are stupid enough to believe it!

Thank You,
Dr.Stuart Schaller, PhD