Economics - Markets Average annual price Nov 9, 2009: Hong Kong gold closes per troy ounce at all-time high of $1,107.50-$1,108.50 (U.S. dollars: Value fixed to year) Jan 8, 1980: Gold hits record $871.96 $875.80 an ounce following Soviet invasion of Afghanistan
$317.22
$343.82
$424.18
$387.81
$446.48
$444.74 $271.04
$161.04
1975
80
85
Source: Kitco Inc.
90
Dow Jones
95
2000
05
09
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Asset Bubble
On Monday, 9 of November, the Dow Jones Industrial average gained 200 points to close at 10,226.94. This is the highest mark of the year. If this trend continues this would confirm that the recovery is indeed “V” shaped rather than “W” shaped.
The World Bank and the IMF underlined this week in two reports that governments and central banks’ efforts to stimulate the economy may eventually contribute to an asset price bubble in stock and currency markets in Asia.
United States
China 2007 emissions 6.1bn tonnes
The International Energy Agency’s 450 Scenario proposes to reduce energy-related carbon dioxide emissions to 450 parts per million by 2030. This level is forecast to limit global warming to a rise of just 2ºC. Under the proposal, carbon dioxide emissions must decline by 13.8 billion tonnes compared to current projected increases
World’s biggest polluters
25
23%
8%
20
2007
2010
2015
Population 1,327m Share of world pop. 20% Share of world CO2 21% Per capita CO2 4.6 tonnes Cost 2010-2030 $2,437bn
9%
European Union
23%
2007 emissions 3.9bn tonnes
2020
World carbon dioxide emissions from consumption and flaring of fossil fuels
2025
11%
10%
(1980-2006)
1979: Landmark report by U.S. National Academy of Sciences pins greenhouse effect to climate change and warns “a wait-and-see policy may mean waiting until it is too late”
Population 496m Share of world pop. 7% Share of world CO2 13% Per capita CO2 7.8 tonnes Cost 2010-2030 $1,769bn
17% 29% 1992, Rio Summit: United Nations Framework Convention on Climate Change (UNFCCC) – which calls for voluntary cuts in greenhouse gas emissions to 1990 levels – signed by 189 governments
8%
7% 12% 56%
Population 142m Share of world pop. 2% Share of world CO2 5% Per capita CO2 11.1 tonnes Cost 2010-2030 $329bn
1997: Kyoto Protocol, which requires industrialised nations to reduce emissions by 5.2% by 2008-2012 compared with 1990 levels, is signed by 84 countries
19%
Population 1,123m Share of world pop. 17% Share of world CO2 5% Per capita CO2 1.2 tonnes Cost 2010-2030 $818bn Million tonnes of carbon dioxide 30,000
2005: Kyoto Protocol enters into force
Population 128m Share of world pop. 2% Share of world CO2 4% Per capita CO2 9.6 tonnes Cost 2010-2030 $399bn World total (2006) 29,195.43 Asia & Oceania
20,000
1988: NASA scientist James Hansen tells U.S. Congress global warming “is already happening” 1980
1981
1982
1983
1984
1985
1986
1987
1988
Picture: Getty Images. Sources: Met Office, World Resources Institute, Energy Information Administration, International Energy Agency
2004: Russia ratifies Kyoto Protocol. Moscow’s approval enables pact to take effect
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
10,000
5,000
2001
2002
2003
2004
2005
11,219.56
2006: China overtakes U.S. as world’s biggest producer of CO2
25,000
2001: IPCC declares evidence for global warming to be incontrovertible although consequences for climate change are difficult to pin down. United States, biggest single CO2 polluter, abandons Kyoto
41%
20%
9%
15,000
Issue 1532
2007 emissions 1.2bn tonnes
8%
18%
55%
Japan
2007 emissions 1.3bn tonnes
15%
25%
*Carbon capture and storage
India
9%
12%
13%
Due to rounding, percentages may not total 100%
32%
1988: Intergovernmental Panel on Climate Change (IPCC) is set up under UN auspices to forge scientific consensus on how to measure and analyse global warming
9%
37%
15%
Power-plant
2030
Russian Federation
2007 emissions 1.6bn tonnes
10%
Efficiency savings: End-user
2030: 26.4bn 450 Scenario limits rise to manageable 2˚C
Population 306m Share of world pop. 5% Share of world CO2 20% Per capita CO2 18.7 tonnes Cost 2010-2030 $2,395bn
44%
15%
Renewable energy Biofuel Nuclear CCS*
2020: 30.7bn Fossil fuel use peaks by 2018
43%
7%
10%
41%
8%
31%
If current policies are pursued (energy-related CO2, tonnes) 450 Scenario emissions % proportion of emissions by source 2030: 40.2bn Greenhouse gas Power concentration of 1,000ppm could 2020: 34.5bn Transport 40 billion cause temperature Current policies tonnes Industry to rise by 5°C would allow emissions to Buildings continue to rise Other 35 2007: 28.8bn
10%
9% 8%
50%
28%
Cutting global emissions
17%
9%
6%
2007 emissions 5.7bn tonnes
Africa Middle East
1,056.55 1,505.30
Eurasia
2,600.65
Europe
4,720.85
Latin America
1,138.49
North America
6,954.03
2006 © GRAPHIC NEWS
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