China's Financial Impact

When people ask me why do I beleive a crash is coming its hard to tell them the truth because most of the time they want to be told everything is fine and your living standards will keep improving. They would like me to say its great that you have moved into your big new house complete with a 50 year mortage, its no problem.
They want to be happy and secure in that belief that nothings wrong.
The government politicials keep telling them its fine nothing to worry about. What lies they tell to keep you in the dark.
I still believe China will be the key player of the next decade because they are cash rich. There vast foreigh curreny reserves are now rising at an annual rate of $500 billion dollars a year.This is at a time when the West is going in the opposite direction.

The Property Bubble continues

Where will this bubble take us. Further and further into a black hole. I wish people paying these record high prices would stand back and ask the question is this property that we are looking at worth years and years of slaving away at work, working longer and longer hours and for more years than ever.

It is not realistic to sign up for a 40 year mortgage, even if you are 25 years old your be an old man before your loans are paid.
Be patient the prices will correct themselves in time.
This advice also applies to the U.S housing market.

The U.k already suffers from water shortages

Drinking water is already in short supply in the south of England with every year suffering hose pipe bans drought orders. Already this year on the 2nd of May my garden is very dry with cracks appearing every where with no rain in sight.

Many people keep asking the water companies why don't we desalinate sea water, and the answer is cost £££££.
It costs 9 times more to process sea water than using river or underground supplies. Who is perpared to pay such an increase.
Also the electricity generating companies could not keep up with demand if we elected to go down this route.

The U.S Wars Resource Wars part 2

Drinking Water Why We should Be worried
Hi guy's,
I thought that the resource wars was such a big issue that I would break it down into 2 parts, so here goes the second section.
The coming new resource to fight over will be Fresh Water, yes that's right fresh water not oil. Now everybody must be thinking he's gone mad I can turn my tap and out comes lovely drinkable water. That's now in 2007, turn the clock forward 10 years and it will be a different picture.

Only 3 percent of the worlds water is fresh non salty and 2 percent of that is locked up in the polar ice caps leaving 1 percent for us. The problem is the worlds population is rising at such a fast rate especially in India and China that there will not be enough drinking water to go around.

Already China employs 30,000 people to make rain. They use rockets fired from the ground and aeroplanes, both to seed the clouds passing over there country to make rain.

The problem with this issue is they are taking rain from falling somewhere else. Now if its out to sea there's no harm done but if it was meant to fall on a another country that was also suffering drought then a conflict could occur.

China already has a drought and 300 million Chinese have no access to fresh drinking water and are suffering with poor health.
Still its not a problem we can desalinate sea water to drink and create pipelines to supply inland. This would require a massive energy shift to free up enough power to supply these new desalination stations and then be able to pump this water inland.
Global warming springs to mind. President Kennedy stated in 1961 that whoever can extract fresh water from the sea without using massive amount of energy will create the biggest break through for mankind.
Sadly I think that Government politics are some way off achieving that goal, because the industrialised world has not bothered to look at the future requirements of mankind but forcus on short term visions.

Oil currency

More Oil producing countries around the world will refused to accept U.S dollars as payment for there oil. This process will acelerate the devaluation of the dollar. Some countries already have changed to euro's to protect there investments.

The U.S Resources Wars

Future American governments will have to place a greater emphasise on its Oil, gas and even fresh water supplies than previous administrations. Now I no America has always looked after its interests above everything else, but the coming years will see military conflict around the globe fighting over precious resources.

The U.S will have no option but to use its military might either as a veiled threat or in direct action to secure its supplies.

The problem with taking this action for the U.S will be the lack of finance to fund a large conflict. As we are seeing in Iraq the cost of 2 years occupation fighting a guerrilla war is mind bogging $200 billion for the first year alone.

People might say what's difference from the previous wars, well America's main creditors ie China and Japan will be the countries that the U.S will be up against in its race to secure the resources it needs. These will have a big stick to hit America, which has been handed to them by the U.S government.

Any conflict that the U.S is engaged with can only last 3 months because the U.S strategic reserve can only last that long. So this is there time frame for any military action to start and finish.

Oil Production Peaking

Oil production will peak this year, that means the world can no longer increase consumption which China and India are currently doing. Something has to give in a free market which usually means higher prices hence oil at $70 a barrel which will rise to $100 in the coming years.

The U.S has for too long consumed more than its fair share of the precious black gold found deep under ground, to power its gas guzzling motor cars. What a waste of a precious natural resource this has been for the human race and the planet.

Future generations will look back at the greed the U.S politics have had when squandering a natural asset that cannot be replaced and the conflict and wars that have been created in the past and the future just to power there waste full life styles.