The great commodities “boom” of the 21st Century

Commodity prices will “boom” and the environment might just go “boom”, too. I manage money, not environmental practices, but I recognize that I might be soiling my own nest, as it were.

That said, here is an interesting quote from the International Energy Agency’s (the European counterpart of the U.S Department of Energy’s EIA) lates World Energy Outlook:

“The increase in China’s energy demand between 2002 and 2005 was equivalent to Japan’s current annual energy use.”

Readers of my blog know that world-wide crude oil production is down nearly 2 MILLION BARRELS PER DAY since May 2005 when compared to August 2007, yet Chine has increased their consumption, to say nothing of India, Viet Nam, etc… dramatically. It follows by mathematical necessity that someone else lost oil to ChIndia, Inc.

That would be the U.S., among others, and that is why the price of oil, and everything else, is going to much, much higher, while the purchasing power of your currency, and the real value of your financial assets are going much, much lower.

Don’t blame the politicians, the oil companies, or any other part of the cold cruel world… You have been forewarned, and you are now forearmed.

I received an email from a rather bright, investment banker type (and, no, that is not an oxymoron… I said bright, not ethical) incredulously asking me if I really felt crude oil prices would rise past $300 sometime in the next several years… to which I responded:

“Welcome to the conversation”

Yours for a better (post-industrial) world

Mentatt (at) yahoo (d0t) com