Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Silver Long-term Trend Analysis - 28th Nov 21
Silver Mining Stocks Fundamentals - 28th Nov 21
Crude Oil Didn’t Like Thanksgiving Turkey This Year - 28th Nov 21
Sheffield First Snow Winter 2021 - Snowballs and Snowmen Fun - 28th Nov 21
Stock Market Investing LESSON - Buying Value - 27th Nov 21
Corsair MP600 NVME M.2 SSD 66% Performance Loss After 6 Months of Use - Benchmark Tests - 27th Nov 21
Stock Maket Trading Lesson - How to REALLY Trade Markets - 26th Nov 21
SILVER Price Trend Analysis - 26th Nov 21
Federal Reserve Asks Americans to Eat Soy “Meat” for Thanksgiving - 26th Nov 21
Is the S&P 500 Topping or Just Consolidating? - 26th Nov 21
Is a Bigger Drop in Gold Price Just Around the Corner? - 26th Nov 21
Financial Stocks ETF Sector XLF Pullback Sets Up A New $43.60 Upside Target - 26th Nov 21
A Couple of Things to Think About Before Buying Shares - 25th Nov 21
UK Best Fixed Rate Tariff Deal is to NOT FIX Gas and Electric Energy Tariffs During Winter 2021-22 - 25th Nov 21
Stock Market Begins it's Year End Seasonal Santa Rally - 24th Nov 21
How Silver Can Conquer $50+ in 2022 - 24th Nov 21
Stock Market Betting on Hawkish Fed - 24th Nov 21
Stock Market Elliott Wave Trend Forecast - 24th Nov 21
Your once-a-year All-Access Financial Markets Analysis Pass - 24th Nov 21
Did Zillow’s $300 million flop prove me wrong? - 24th Nov 21
Now Malaysian Drivers Renew Their Kurnia Car Insurance Online With Fincrew.my - 24th Nov 21
Gold / Silver Ratio - 23rd Nov 21
Stock Market Sentiment Speaks: Can We Get To 5500SPX In 2022? But 4440SPX Comes First - 23rd Nov 21
A Month-to-month breakdown of how Much Money Individuals are Spending on Stocks - 23rd Nov 21
S&P 500: Rallying Tech Stocks vs. Plummeting Oil Stocks - 23rd Nov 21
Like the Latest Bond Flick, the US Dollar Has No Time to Die - 23rd Nov 21
Why BITCOIN NEW ALL TIME HIGH Changes EVERYTHING! - 22nd Nov 21
Cannabis ETF MJ Basing & Volatility Patterns - 22nd Nov 21
The Most Important Lesson Learned from this COVID Pandemic - 22nd Nov 21
Dow Stock Market Trend Analysis - 22nd Nov 21
UK Covid-19 Booster Jabs Moderna, Pfizer Are They Worth the Risk of Side effects, Illness? - 22nd Nov 21
US Dollar vs Yields vs Stock Market Trends - 20th Nov 21
Inflation Risk: Milton Friedman Would Buy Gold Right Now - 20th Nov 21
How to Determine if It’s Time for You to Outsource Your Packaging Requirements to a Contract Packer - 20th Nov 21
2 easy ways to play Facebook’s Metaverse Spending Spree - 20th Nov 21
Stock Market Margin Debt WARNING! - 19th Nov 21
Gold Mid-Tier Stocks Q3’21 Fundamentals - 19th Nov 21
Protect Your Wealth From PERMANENT Transitory Inflation - 19th Nov 21
Investors Expect High Inflation. Golden Inquisition Ahead? - 19th Nov 21
Will the Senate Confirm a Marxist to Oversee the U.S. Currency System? - 19th Nov 21
When Even Stock Market Bears Act Bullishly (What It May Mean) - 19th Nov 21
Chinese People do NOT Eat Dogs Newspeak - 18th Nov 21
CHINOBLE! Evergrande Reality Exposes China Fiction! - 18th Nov 21
Kondratieff Full-Season Stock Market Sector Rotation - 18th Nov 21
What Stock Market Trends Will Drive Through To 2022? - 18th Nov 21
How to Jump Start Your Motherboard Without a Power Button With Just a Screwdriver - 18th Nov 21
Bitcoin & Ethereum 2021 Trend - 18th Nov 21
FREE TRADE How to Get 2 FREE SHARES Fractional Investing Platform and ISA Specs - 18th Nov 21
Inflation Ain’t Transitory – But the Fed’s Credibility Is - 18th Nov 21
The real reason Facebook just went “all in” on the metaverse - 18th Nov 21
Biden Signs a Bill to Revive Infrastructure… and Gold! - 18th Nov 21
Silver vs US Dollar - 17th Nov 21
Silver Supply and Demand Balance - 17th Nov 21
Sentiment Speaks: This Stock Market Makes Absolutely No Sense - 17th Nov 21
Biden Spending to Build Back Stagflation - 17th Nov 21
Meshing Cryptocurrency Wealth Generation With Global Fiat Money Demise - 17th Nov 21
Dow Stock Market Trend Forecast Into Mid 2022 - 16th Nov 21
Stock Market Minor Cycle Correcting - 16th Nov 21
The INFLATION MEGA-TREND - Ripples of Deflation on an Ocean of Inflation! - 16th Nov 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Protect Your Portfolio From Global Emergencies in Energy, Water, Food, Climate and Debt

Stock-Markets / Investing 2010 Jan 23, 2010 - 04:55 PM GMT

By: Sean_Brodrick

Stock-Markets

Best Financial Markets Analysis ArticleThe global economy is an amazing study in contradictions. China and India both seem to be booming again, while our economy and nation has some serious problems.

America’s problems include a huge and growing national debt, stubbornly high unemployment, a Congress that is for sale to the highest bidder and more. These problems should continue to weigh on America’s economic recovery, and should steepen any real market correction.


Meanwhile, commodity prices are climbing — again! While they continue to zig and zag, prices of oil, gasoline, and industrial metals are trending higher, and some customers are being priced out of the market.

And scientists tell us that in the longer term, crises in food and water could come to a head.

It seems to me like America is in the crosshairs of five deadly emergencies — energy, water, food, climate and debt. The good news is you can protect your portfolio and even profit from these powerful forces.

Here’s the down-low …

Emergency #1: Energy

Oil prices are on the devil’s own roller coaster, but the big picture is that we are still in a head-on collision with peak oil. What’s more, the cheap, easy-to-pump oil is fast being used up. 

To be sure, there were plenty of oil discoveries in 2009, especially in Brazil and the Gulf of Mexico. A whopping 10 billion barrels of oil was added to reserves, the highest rate since 2000. However, the world is consuming around 83 million barrels a day, which equates to 31 billion barrels a year. So, even in a good year, we barely replaced one third of the oil we consumed.

The world is producing 83 million barrels per day, but production at existing wells is declining at up to 8% a year. That means we have to add more than 6 million barrels per day every year to keep production flat. Five years down the road, we’ll have to replace 30 million barrels of production. That’s more than three times the amount of oil (8.1 million barrels per day) that Saudi Arabia produced in 2009. 

That means we have to drill a lot more wells. And the oil we find is very deep and therefore very expensive. Oil companies are now putting drills down 4,000 feet in the Gulf of Mexico to then drill through 35,000 feet of rock. These wells are deeper than Mount Everest is tall! Assuming that significant finds are made, it will still be 7 to 10 years before the wells go into production.

Demand Is Rising

Meanwhile, demand is rising in emerging markets including China and India. Demand is being driven by car sales — in March, car sales in China overtook those in the U.S. for the first time, and sales are averaging 1.1 million new units a month. This is roughly twice the level of China’s 2005 car sales.

In the auto-loving United States there is a little less than one car per person in the country, but China’s ratio is a little over one in 10. If China starts to approach our level of car ownership, the increase in fuel consumption will be huge.

Emergency #2: Water

For most Americans, water is less expensive each month than cable television or having a cell phone. And yet the World Bank reports that 80 countries now have water shortages that threaten health and economies while 40 percent of the world — more than 2 billion people — have no access to clean water or sanitation.

Here are some other water facts …

  • More than 1 billion people lack access to clean, drinkable water, according to The World Health Organization. About 5 million people die each year from poor drinking water and poor sanitation.
  • A prime cause of the global water concern is the ever-increasing world population. As populations grow, industrial, agricultural and individual water demands escalate. According to the World Bank, worldwide demand for water is doubling every 21 years.
    More than a billion people lack access to clean, drinkable water.
    More than a billion people lack access to clean, drinkable water.
  • Only 3% of all the water in the world is fresh water. However, of that 3%, two-thirds is locked up in icecaps and glaciers. In the end, we can only consume 1% of the world’s water supply.
  • It takes 14 gallons of water to grow a pound of grain, 435 gallons to grow a pound of beef, 2,000 gallons of water to make one gallon of milk, nearly 20,000 gallons of water is needed to make one ton of steel. 
  • In dry Northern China, the water table is dropping at over 3 feet per year. Some Chinese rivers are so polluted that they catch on fire. In India, water tables in some dry regions are also dropping very quickly.

And while you can substitute various alternate fuels for fossil fuels like crude oil, there is no substitute for water. This is a crisis that is spinning out of control around the world. 

Emergency #3: Food

Right now, America has a surplus of food. The U.S. government predicted that record global production will boost inventories of corn and soybeans to a nine-year high in 2010. Global output in the year that ends May 31 will total 676.1 million metric tons, behind only last year’s record 682.7 million, the U.S. Department of Agriculture said in a Jan. 12 report.  Meanwhile, stockpiles of wheat are forecast to jump 19 percent to 195.6 million tons.

However, all we need are a few bad harvests to turn this around. That’s what happened in the 1970s, when the world went from an abundance of food to large numbers of people starving.

The World Bank is already warning that some rice producing countries are facing shortages, and cereal prices could rise very quickly. Also, food prices tend to rise with fuel prices.

Looking down the road, experts say that global food production will have to double to stave off a repeat of the food riots seen in 38 countries worldwide in 2008.

Climate change will cause shorter crop growing seasons and the world’s under-developed farming sector is ill-prepared to make up for the shortfall.

Emergency #4: Climate

Many people believe climate change is a crock, dreamed up by a cabal of scientists who somehow make money off of scaring people. In fact, there is a lot more money to be made criticizing global warming studies — for example, a think tank funded by ExxonMobil has sent letters to scientists offering them up to $10,000 cash on the barrel to call global warming a lie.

According to NASA data, 2009 was the second hottest year on record. This is despite bitter cold felt in parts of North America and Great Britain. How is this possible? As NASA climate scientist James Hansen explains in his paper, “If It’s That Warm, How Come It’s So Damned Cold,” regional short‐term temperature fluctuations are an order of magnitude larger than global average annual anomalies. In other words, the gradual warming trend is interspersed with brief, regional cold snaps. 

In any case, for whatever reasons, the Arctic ice cap is thinning drastically, and is now near record lows.

After a steep plunge in 2008, Plantinum has just barely scrabbled its way back to 2007 prices. It could go a lot higher.

This warming of the Arctic is releasing vast quantities of methane, a greenhouse gas that can hold 20 times more heat than carbon dioxide. Scientists say methane emissions from the Arctic have risen by almost one-third in just five years. This, in turn, reinforces the warming climate cycle.

Whether you believe in global warming or not, one thing is for sure — governments around the world are going to be throwing money at global warming for years to come. You can ignore that flood of cash, or you harvest some of those potential gains yourself with investments in select stocks and funds.

Emergency #5: Indebtedness

Whether you’re conservative or liberal or in-between, you’ll probably agree that our country has a lot of problems that need fixing. Too bad we’re flat broke, and don’t have money to tackle half the problems bearing down on us.

A lot of the figures I’m about to throw at you can be found at the U.S. debt clock here: http://www.usdebtclock.org/.

Some of America’s debt numbers are quite stunning. The U.S. National Debt recently topped $12.2 trillion. That’s debt per citizen of $39,854 and debt per taxpayer of $112,648.

The U.S. National Debt recently topped $12.2 TRILLION — 84% of the nation's GDP.
The U.S. National Debt recently topped $12.2 TRILLION — 84% of the nation’s GDP.

And then there’s consumer debt. From 2000 to 2008, U.S. household debt grew by $6.8 trillion. Recently, it has been falling. Total consumer credit card debt fell to $2.46 trillion in November, and non-revolving credit — auto loans, personal loans and student loans — fell to $1.59 trillion.

The problem with debt is that it makes it more difficult to deal with other crises. If the debt is big enough — and America’s is now 84% of GDP — then it can make dealing with other crises impossible.

There are different ways of dealing with enormous government debt.  The way that I think is most likely — one that has been the preference of governments in the past — is by devaluing the currency.

One way to help protect yourself against that is by owning physical gold and silver. But there are other options as well.

My Solution: Crisis Profit Hunter

As one crisis after another bears down on the U.S. and the world, you can hide under your bed or confront them head-on. You can help protect yourself from the worst of the emergencies. And there are profits to be made for the brave and the bold.

That’s why I’m launching a new monthly newsletter, Crisis Profit Hunter. It is a newsletter that recognizes …

  • A big commodity bull market is in place, and there are truly huge profits to be made there.
  • The U.S. dollar is in big trouble, as is our banking system. While there may be short-term rallies, you should use those to prepare for the next down-turn.
  • The torch of leadership in the global economy may be passing from America to the emerging markets — and there are profits to be made on that mega-trend as well.
  • America is at the intersection of multiple crises that we haven’t seen in our lifetimes, if ever. And there are ways to invest to help protect and profit from those crises.
  • There are actions you can take as an individual to protect yourself, along the lines of my new book, The Ultimate Suburban Survivalist Guide.

You’ll find all this and more, every month, in Crisis Profit Hunter.

And now, for a very short time, I’m offering a special subscription price — just $99 for one year.

I believe 2010 has the potential to be a very exciting year. The bad news is it might be scary exciting. The good news is there are profit opportunities all over the place if you know where to look, can stomach some market ups and downs, and have an eye on the longer term.

Please join me in my greatest adventure yet — hunting the world over for profits, in all kinds of economic weather. Sign up for Crisis Profit Hunter today — CLICK HERE.

Yours for trading profits,

Sean

P.S. Sign up for Crisis Profit Hunter today, and I’ll send you four FREE reports just for signing up. Those special reports are “Gold and Silver Superstars,” “Pipeline to Profits,” “Income Gushers,” and “Water — the Most Valuable Resource of the 21st Century.”

The recommendations in these reports, plus the picks in the first issue of Crisis Profit Hunter, are designed to kick off your portfolio with a bang. 

But time is wasting, and this offer is limited. Get your subscription to Crisis Profit Hunter TODAY.

This investment news is brought to you by Uncommon Wisdom. Uncommon Wisdom is a free daily investment newsletter from Weiss Research analysts offering the latest investing news and financial insights for the stock market, precious metals, natural resources, Asian and South American markets. From time to time, the authors of Uncommon Wisdom also cover other topics they feel can contribute to making you healthy, wealthy and wise. To view archives or subscribe, visit http://www.uncommonwisdomdaily.com.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in