Why commodities will rise

Discussion in 'Economics' started by DT-waw, Sep 7, 2011.

  1. DT-waw

    DT-waw

  2. morganist

    morganist Guest

    People will die before that happens. That is what is happening in the third world now. They are not creating enough resources to feed the growing population.
     
  3. m22au

    m22au

    The global fertility rate (babies born per woman) hit a peak in about 1960.

    If we assume that peak oil is here (or here within 10 years)
    http://www.elitetrader.com/vb/showthread.php?s=&threadid=201790

    then its reasonable to assume that the fertility rate will drop (especially in developed countries) due to the rising cost of food and energy.

    Furthermore, another unfortunate impact of peak oil is a general decline in living standards, which approximately equates to a decline in health of those affected. This would result in shorter life expectancy.

    A declining birth rate coupled with shorter life expectancy = slowing rate of population growth, and possible even population decline.

    Some countries such as Japan are already experiencing a greying of their population.
     
  4. morganist

    morganist Guest

    Also you need oil to make food. You need 10 grams of oil for every gram of food. They need it to make fertiliser.
     
  5. m22au

    m22au

    Setting aside financial markets for a moment, one of the many unfortunate things I've read about peak oil (and indeed "peak everything") is that the decline of the fertility rate is slowest in the poorest parts of the planet.

    So although living standards in those parts of the world are low, and (if you believe peak oil to be true) food prices will rise, the world's poorest are the ones who are making the smallest change to their birth rate.
     
  6. m22au

    m22au

    correct - as you are probably aware, stocks like POT MOS MON and so on have done quite well in the last 5 to 10 years compared to the S&P 500.
     
  7. I question that property rights will be honored when we run head first into the resource contraints wall.

    Isn't China already fragmenting the oil market with its acquisitions in Africa?
     
  8. morganist

    morganist Guest

    Yeah. Arctic oil will be the next one.
     
  9. Food commodities will never rise above inflation

    Look at how they grow vegetables and fruits now, it costs so much less because of hormones steroids and chemicals but there is no taste anymore

    now organic produce is a different story
     
  10. The world cannot sustain that many people. The human population will reach an equilibrium with the world's resources. Widespread famine due to lack of production and transportation will stop the population from reaching such preposterous numbers.
     
    #10     Sep 8, 2011