Please excuse the repetition. There are so many new readers over the last weeks, I am sure that our longtime loyal readers will understand.
At the turn of the 20th Century, there were about a billion people on Planet Earth. By 2011 the earth's population is expected to be close on 7 billion. Life expectancy has increased dramatically. Today 60 years old is regarded as young (I hope). As the century ages, and in spite of advances in all spheres of existence, one word comes to mind....SHORTAGES. As Asia and South America come of age, basics like food and clean water, raw materials and land will be in demand. Another essential will be in short supply...SAFETY, both physical and financial. So the key to the economic future lies in recognising where and what the shortages will be, to invest in these shortages, while at the same time, preparing for a rainy day. So during the year 2011, we will follow the money and attempt to connect the dots.
1.For the last thirty years and more, the major world shortage has been energy. This has been leveraged into a political and military weapon that has changed the face of the world. There is even a faint (or not so faint) suspicion that the war(s) in Iraq might have been for this reason. Clearly oil is no longer a weapon. Just another commodity. Now we have a new material that appears to be one of the next generation shortages.
Rare Earth Elements. Please read "The Middle east has Oil, China has Rare Earths" on this blog from Oct 15th and "Rare Earth Revolution" from 15th Nov. Enuff said.
2.Gold. The dye is cast. Five thosand years of history is shouting from the rooftops and making its way into our living rooms. The rush is on. Does it really matter that we have all these primitive thoughts? After all what is it that the barbarians knew that we don't? The only currency not corrupted by man, is gold. Every financial system in history was based on some type of gold standard. It has proved the test of time. Another form of financial safety. Remember that word as the century moves on.
3.As most of you know, I don't always agree with Thomas Friedman of the New York Times, but this time he has hit the bulls eye. "In recent years, I have often said to European friends: So, you didn’t like a world of too much American power? See how you like a world of too little American power — because it is coming to a geopolitical theater near you. Yes, America has gone from being the supreme victor of World War II, with guns and butter for all, to one of two superpowers during the cold war, to the indispensable nation after winning the cold war, to 'The Frugal Superpower' of today. Get used to it. That’s our new nickname. American pacifists need not worry any more about 'wars of choice.' We’re not doing that again. We can’t afford to invade Grenada today." The times, they are a changing......
4.The only way to pay off the huge US Debt and stimulate the US economy is to devalue the American Dollar. And you can take that to the bank. The other alternative is the mother of all depressions. The best way for the world to compete is to join the party. And what a party it is! Man-made central banks are supplying the booze and everybody is dancing the twist. So for as long as the world accepts the US currency as its reserve currency, the party will continue. Keep the Advils handy.
5.And the biggest revolution of this century? Women! Yep, they are participating more and more. The universities are choc-a-bloc with women, the future lawyers, doctors, scientists, politicians and leaders. As for the oppressed women of the world (you know, the ones being forced to hide their faces from the infidels), patience ladies. Help is on the way. How do you think these countries will compete with only half the work force active?
Life is tough, but its tougher when you're stupid - John Wayne
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