Posted on 05/19/2013 10:28:55 AM PDT by blam
Commodities Boom to be Driven by the Urbanisation of 1 Billion More People
Commodities / Demographics
May 18, 2013 - 07:11 PM
By: Richard Mills
Many, many years ago during a lengthy argument with a friend he told me to 'give it a doubt' - he meant I was wrong.
The herd is convinced the commodities boom is over. Doom and gloom, the sky is falling, the bears argument sounds convincing - growth has stopped, economies are slowing. Looking at the TSX.V's performance (most of the world's mineral exploration firms call the Venture Exchange home) it's as if people are convinced the need to search for, develop and mine new mineral deposits is over.
According to Bloomberg the U.S. economy may cool to a 1.6 percent pace in the second quarter, after growing at a 2.5 percent rate in the first three months of 2013.
U.S. industrial production fell by the most in eight months - a gauge of factories in the New York area fell to minus 1.4 this month from 3.1 in April.
"The drop in factory output, which accounts for more than 70 percent of industrial production, was broad-based and in keeping with data earlier this month that showed factory payrolls failed to expand last month.
Industrial capacity utilization, a measure of how fully the nation's mines, factories and utilities are deploying their resources, dropped sharply from a more than 4-1/2 year high." Reuters,Factory, wholesale price data flag economy's woes
Manufacturing has been hit hard by the $85 billion in across the board spending cuts - the 'fiscal cliff' that started in March. U.S. GDP growth is predicted at 1.9 percent for 2013.
There's a record six quarter recession in Europe, GDP growth there is expected to contract by 0.1 percent, GDP growth for Japan is predicted at 0.8 percent for 2013.
Sounds ominous, it's obvious the commodities boom has gone bust and economic growth has disappeared.
Give it a doubt.
In the Latin American and Caribbean region 2013 GDP growth is predicted at 3.5 percent, in the East Asian and Pacific region growth is predicted at 7.9 percent. China's GDP growth outlook for 2013 is 8.6 percent while India's outlook clocks in at 6.1 percent.
(snip)
And turn “our” blood sucking entitlement recipient masses into “farmers” (slaves). We’re almost there.
i dont know about you and i but they are definitely
Goldbug ping.
down
down
down
down
http://www.youtube.com/watch?v=jbkSRLYSojo
The fact is, a majority of the human race has figured out that they don't have to be poor. This is a very good thing. No guarantees, however, that the transitions required will be easy.
China by the end of the next decade will not only have the world's largest economy; it will have a middle class population larger than the entire population of the U.S.
And within another ten years, China will be eclipsed by India.
The fact that, in the long term, we will continue to use commodities seems rather unexceptional.
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