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Commodities, Supply-Chains and Structural Changes in Demand
COMMODITIES, SUPPLY-CHAINS AND STRUCTURAL CHANGES IN DEMAND Talk of a new commodity super-cycle may be premature Once GDP growth returns to trend, commodity demand will moderate Fiscal and monetary relief are key to maintaining growth and demand Structural changes in energy demand will prove more persistent As the spectre of inflation begins to haunt economists, […]
New bull chart for $30,000 copper price: porphyries nearly mined out
New bull chart for $30,000 copper price: porphyries nearly mined out Bad moon rising over porphyry deposits. Radomiro Tomic, Chile. Image from Codelco. Predictions for copper at double or triple today’s level is a fairly recent phenomenon – and bears still outnumber bulls as to what’s next for the bellwether metal. Wall Street natural resource […]
Overcapacity / Oversupply Everywhere: Massive Deflation Ahead
Overcapacity / Oversupply Everywhere: Massive Deflation Ahead The price of a great many assets will crash, out of proportion to the decline in demand. Oil is the poster child of the forces driving massive deflation: overcapacity / oversupply and a collapse in demand. Overcapacity / oversupply and a collapse in demand are not limited to the […]
Is an Increase in Demand Key for Economic Growth?
IS AN INCREASE IN DEMAND KEY FOR ECONOMIC GROWTH? Whenever the so-called economy shows signs of weakness most experts are of the view that what is required to prevent the economy sliding into recession is to boost the overall demand for goods and services. If the private sector fails to increase its demand then it […]
All US Homes Are Overvalued
All US Homes Are Overvalued Dorothea Lange Children and home of cotton workers at migratory camp in southern San Joaquin Valley, CA 1936 My long time pal Jesse Colombo, now at Real Investment Advice, recently linked on Twitter to a Zero Hedge article, which quoted CoreLogic as saying more than half of American homes are […]
The Oil Curse Comes to Washington
The Oil Curse Comes to Washington Prices rise and prices fall. So, too, they fall and rise. This is how the supply and demand sweet spot is continually discovered – and rediscovered. When supply exceeds demand for a good or service, prices fall. Conversely, when demand exceeds supply, prices rise. Producers use the information communicated […]
Carnage in US Natural Gas as Price Falls off the Chart
Carnage in US Natural Gas as Price Falls off the Chart All eyes are on Chesapeake. The price of natural gas in the US has gotten completely destroyed. The process started in July 2008, at over $13 per million Btu and continues through today, at $1.77 per million Btu. In between, natural gas traded at […]
Perfect storm heads for fossil fuel assets
Perfect storm heads for fossil fuel assets A natural gas refinery next to a cemetery in New Mexico, US. Image: Christina Xu via Flickr Coal, oil and gas sectors warned that trillions of dollars of assets could be stranded if a global agreement on limiting climate change is reached at the UN summit in Paris. LONDON, 25 November, […]
America Waiting to Explode: “If Supply Lines Go Down… Millions of FDA-Approved Drug Addicts Go Psycho”
America Waiting to Explode: “If Supply Lines Go Down… Millions of FDA-Approved Drug Addicts Go Psycho” How bad can things get? Preppers know the scenarios – any major crisis from economic breakdown, to civil unrest and riots, an EMP, natural disaster or plain out martial law can bring things to a halt with shocking quickness. […]
The Boundaries and Future of Solution Space – Part 3
The Boundaries and Future of Solution Space – Part 3 Energy – Demand Collapse Followed by Supply Collapse As we have noted many times, energy is the master resource, and has been the primary driver of an expansion dating back to the beginning of the industrial revolution. In fossil fuels humanity discovered the ‘holy grail’ […]
Drilling Efficiency To Keep Oil Prices Low
Drilling Efficiency To Keep Oil Prices Low Economics 101 tells us that prices in a free market are set by the interaction of supply and demand. The world oil markets have gotten a graphic lesson in that truth over the last year, as the dramatic surge in US oil production has met stagnant demand. This, […]
Why the Hysteria Over Oil Prices Is Overblown
Why the Hysteria Over Oil Prices Is Overblown Wild stormy weather stops us in our tracks. Factories close. Offices are abandoned. School is cancelled. After the rush to stock up, stores are shuttered. And when the storm hits, it’s all we can think about — especially if the power goes out. It can seem like […]
