Many countries are in trouble. According to the Wall Street Journal Australia, Austria, Bulgaria, Estonia, France, Germany, Italy, Latvia, Lithuania, Russia, Singapore and South Korea have all started some kind of benefit program to increase the nation’s birth rate.

The U.S. birthrate is just above the 2.1 number thanks to the huge number of immigrants. Unfortunately these are in the less educated and lower income groups.

When the people in the industrialized countries are given a chance they opt for fewer children. The reason is very simple. The cost of raising a child in the U.S. according to the Department of Agriculture is between $118,000 and $250,000. It is commensurately as high in other developed countries. Parents prefer to spend those dollars on themselves rather than a huge brood of kids.

As these lower numbers of individuals mature it means a lesser income for the central government as fewer people will be working, creating new enterprises and paying taxes. It also means fewer children for the next generation. The spiral continues down.

The European countries are scared because they had invited in “temporary” workers from many countries who are of different races, cultures and religions. Temporary has become permanent as they don’t know how to deport them. They also have found the new residents play by different rules.

The great debate in the U.S. is over illegal immigration said to be in the many millions. Some want them forcibly deported and other want to grant full amnesty. There are strong arguments for each side meaning that nothing will be done. It also means that because of their higher birth rate they will slowly take over the present culture.

Because the numbers of current earners will be declining starting in 2008 and 2009 as they come to retirement the overall economy will slow and the standard of living decline. The stock market will be negatively affected for many years.

There will be more sellers than buyers in the stock market as Boomers will need cash for daily living expenses. Stocks will be passed over in favor of bonds and IPOs (Initial Public Offerings) not looked upon with favor.

China’s One Child Policy will change the face of conflict. Shooting war will not be the choice as mothers will not want to send their only son to combat. Economic war will replace bombs and bullets. It has already started.

No more millions for aircraft carriers and tanks. Instead education for all citizens as people will be the backbone for a country’s defense.

Al Thomas' book, "If It Doesn't Go Up, Don't Buy It!" has helped thousands of people make money and keep their profits with his simple 2-step method. Read the first chapter at http://www.mutualfundmagic.com and discover why he's the man that Wall Street does not want you to know. Copyright 2006 All rights reserved.

Copyright 2007 Albert W. Thomas All rights reserved. Author of "IF IT DOESN'T GO UP, DON'T BUY IT!"