Financial Cataclysm Now! by John Piper

Author:John Piper
Language: eng
Format: epub
Tags: markets, ftse, dow, market crash, john piper, the way to trade, financial, nasdaq, recession, depression, money, qe, charts, elliott wave theory, buying oppotuinites, property markets, currency debasement
ISBN: 9781781661871
Publisher: Andrews UK Limited 2012
Published: 2012-07-16T00:00:00+00:00

This takes us to...

Resource Sustainability

To achieve sustainability, the combined effects of mineral exploration and technology development must create known resources at least as fast as they are being used.

Historic data teaches the important lesson that this has regularly occurred, and continues to occur, with most minerals. Reserve margins for metals, stated in terms of multiples of current use, have been continuously replenished or - more often - increased. On average, real prices for metals have tended to fall over time.

It is important to recognise - with any commodity at any time - that one should never expect to see known economic resources of more than a few decades because exploration will only take place if companies are confident of making a financial return. The prospect of return is usually dictated by strong prices flowing from the prospect of imminent undersupply. When this happens, there tends to be a strong surge of exploration effort yielding significant new discoveries.

The purpose of this part of the book is to set out the main problem areas that I see we face at this time. The choice for our main sources of fuel for industry and our homes would seem to be fairly clear but what is not clear is...

Fuel for our Cars

We are all very used to having personal transport ready at our whim. 99% of these use oil based fuels but these are running out, there is also the pollution aspect. I believe the planet will deal with the pollution problem and it is, in any case, not a problem that seems to worry the vast majority of us. If it does worry us we show absolutely no sign of giving up our precious cars to do anything about it.

When it comes to cars there are two types of user. The majority just want a means of transport but there is also a minority who enjoy cars and get a lot of recreational fun out of them beyond there being mere transport. These two groups are not mutually exclusive and much intermingling takes place but those who use cars recreationally will want fairly powerful machines and the current problem with cars using alternative power sources, battery packs for example, is that they do lack power. But given that we have 40 years or so in which to develop alternative sources I do not perceive this as a huge problem. Maybe we will all have mini nuclear packs in 40 years time.

Conclusion

We are primarily concerned with economic matters in this book but energy impacts hugely on economics. If oil is indeed running out that will push the price up having a possibly devastating effect on the bottom line of many businesses. Also if we then need to switch to an alternative source of power that involves a huge investment plus possible disruption as the switching takes place. Also this situation brings uncertainty which is never looked on kindly by investors.

It is counter-intuitive, and may be considered bizarre, that a factor as vital as energy

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