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Why this time - it really is different,[ the commodity supercycle ]

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  • #31
    Re: Why this time - it really is different,[ the commodity supercycle ]

    Originally posted by rjwjr View Post
    There may be a limited supply of oil, but there is not a limited supply of energy creating resources. Ethanol may not be as efficient as petroleum based fuels in powering our cars, but I don't know that you can make an argument that corn is in limited supply, nor wind, nor solar. They are not today's best options, but once oil runs out or becomes too expensive, we move on to what's next...and not all of those choices are limited.
    What do you grow your maize from after you've run out of fertilizer? The world will run into a shortage of nitrogen and phosphorous that can be used by crops. Further more, energy crops compete for land with food crops. If you want to offset a significant amount of oil imports by energy from crops, the price of food will sky-rocket.

    So in short, there's no easy alternative for energy/minerals, at least not on short term. To avert the upcoming resources/energy crisis, rather than focus on alt-e right now, attention should be shifted towards reducing the energy/resources footprint. Some suggestions:
    - reduce energy needs for transportation by making people live closer to work, or by increasing teleworking (I wonder what the daily energy uses are of teleworking compared to transport to work btw).
    - reduce food consumption to levels needed to sustain a healthy body rather than to become/stay obese.
    - improve longelivety of consumer goods. Labour for repair and high quality goods are too expensive compared to the current price of energy and resources. Higher quality of goods can be sanctioned by laws/regulation, labour can be subsidized if it doesn't come down enough due to the current depression.
    - change the mentality of society to become less focused on material needs and more towards spirituality? No idea if this can be changed directly or if it is an effect of other factors.
    - Shift political thinking to long-term (50-100+ years). I fear that also implies that current worldpowers will start wars over resources and energy in e.g. Africa.

    That said, I think there are plenty of business opportunities by selecting waste containing soon-to-be-depleted minerals from western society and storing it until extraction/recycling becomes profitable.
    Last edited by FrankL; May 12, 2009, 03:02 AM.
    engineer with little (or even no) economic insight

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    • #32
      Re: Why this time - it really is different,[ the commodity supercycle ]

      we have, they will be the ones paying $200++ for a barrel of oil

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      • #33
        Re: Why this time - it really is different,[ the commodity supercycle ]

        Originally posted by charliebrown View Post
        we have, they will be the ones paying $200++ for a barrel of oil
        I was going to say about the same thing in response to rjwjr

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        • #34
          Re: Why this time - it really is different,[ the commodity supercycle ]

          A few years ago we were running out of NG here. High prices led to new technology and the discovery of massive amounts of gas trapped in shale rock.

          http://www.dailymarkets.com/contribu...t-7-year-lows/

          Since we haven't explored much of our east and west coasts with modern technology there's no teliing what we would find if we lease and explore these areas. But alas green is in and black is out.

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          • #35
            Re: Why this time - it really is different,[ the commodity supercycle ]

            Any chance of human ingenuity slowing the impending commodity super cycle?

            http://www.sciencedaily.com/releases...0601085918.htm

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            • #36
              Re: Why this time - it really is different,[ the commodity supercycle ]

              Originally posted by goadam1 View Post
              I've talking about "trash mining" for 20 years. I mostly get cross eyed responses.
              I get the same response when I talk of buying an old junkyard and "retiring on all that rust, baby."

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              • #37
                Re: Why this time - it really is different,[ the commodity supercycle ]

                Originally posted by Dirk Diggler View Post
                I get the same response when I talk of buying an old junkyard and "retiring on all that rust, baby."

                Hey Dirk, hook me up with rollergirl!

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