By 2035, income per person in China will reach the current U.S. level. If they spend that money like American do, here's how the resource picture will look in about twenty years' time.
In 2035...
China's 1.38 billion people will use 80% as much paper as is produced globally today. That will leave 20% of the paper for the remaining 84% of the population...Hello, forestry boom.
China would also need 1.5 billion tons of grain annually to feed those 1.38 billion people. That's 70% of what the world produces annually. Will the remaining 30% of grain be enough to feed the remaining 7.1 billion people in the world?...Hello, agriculture boom.
China will also have 1.1 billion cars by then. That's as many as are currently in the world, so imagine every car in the world today being in China...To host that many cars, China would needs roads, highways, and parking lots currently equal to 66% of the land it uses to grow rice. If it has to pave all that land, how will it meet its demand for all that grain? ... Hello, infrastructure boom.
Finally, the most revealing statistic and the reason we're all here...
By 2035, China would need 85 million barrels of oil per day. That's about equal to the TOTAL daily global production. Yes, China will need all the oil in the world...Hello, oil boom.
The Point
Of course, the point is to prosper as all this plays out.
You do that by investing in the glaringly bright bull markets highlighted above. Buy forestry, agriculture, infrastructure, and energy.
We focus mostly on the latter, but all are thoroughly intertwined. Cheap energy makes industrial forestry, agriculture, and infrastructure possible and profitable. You can't have one without the other.
And that's why, as we approach this resource crunch, all forms of energy will be on the table. Oil (conventional and unconventional), natural gas (fratured or otherwise), nuclear, and renewables are all in for a groundswell.
The entire world will be battling for these resources.
http://www.energyandcapital.com/articles/global-resource-crunch-china/1794
Related: Sell Gold, Buy Farmland
In 2035...
China's 1.38 billion people will use 80% as much paper as is produced globally today. That will leave 20% of the paper for the remaining 84% of the population...Hello, forestry boom.
China would also need 1.5 billion tons of grain annually to feed those 1.38 billion people. That's 70% of what the world produces annually. Will the remaining 30% of grain be enough to feed the remaining 7.1 billion people in the world?...Hello, agriculture boom.
China will also have 1.1 billion cars by then. That's as many as are currently in the world, so imagine every car in the world today being in China...To host that many cars, China would needs roads, highways, and parking lots currently equal to 66% of the land it uses to grow rice. If it has to pave all that land, how will it meet its demand for all that grain? ... Hello, infrastructure boom.
Finally, the most revealing statistic and the reason we're all here...
By 2035, China would need 85 million barrels of oil per day. That's about equal to the TOTAL daily global production. Yes, China will need all the oil in the world...Hello, oil boom.
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What China is teaching us is that the western economic model — the fossil-fuel-based, automobile-centered, throwaway economy — will not work for the world. If it does not work for China, it will not work for India, which by 2035 is projected to have an even larger population than China. Nor will it work for the other 3 billion people in developing countries who are also dreaming the “American dream.” And in an increasingly integrated global economy, where we all depend on the same grain, oil, and steel, the western economic model will no longer work for the industrial countries either. |
The Point
Of course, the point is to prosper as all this plays out.
You do that by investing in the glaringly bright bull markets highlighted above. Buy forestry, agriculture, infrastructure, and energy.
We focus mostly on the latter, but all are thoroughly intertwined. Cheap energy makes industrial forestry, agriculture, and infrastructure possible and profitable. You can't have one without the other.
And that's why, as we approach this resource crunch, all forms of energy will be on the table. Oil (conventional and unconventional), natural gas (fratured or otherwise), nuclear, and renewables are all in for a groundswell.
The entire world will be battling for these resources.
http://www.energyandcapital.com/articles/global-resource-crunch-china/1794
Related: Sell Gold, Buy Farmland
