Tuesday, May 3, 2011

Good Article on Commodities

I came across this little report recently that reaffirms some of my long term views about the future. The single largest problem our world faces is population growth and the demand on resources this presents. Oil production is really the major factor that has allowed world populations to grow at the rate they have grown. The developments in seeds and fertilizers are also responsible. I think we are going to find that we will soon be, (if we haven't already) experiencing limits to oil and fertilizer production that simply cannot keep up with expanding population growth. China realizes this. They invest heavily in trying to maintain their future supplies of these resources. This is going to mean long term prices are going to be going up, and in my opinion probably a large drop in standard of living for the next generation.

Read the article. It's worth your time.

Link to article

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