7/07/2014

EYE OPENER

Theoretically….  Yeah right…


Washington, D.C.—Global meat production and consumption have increased rapidly in recent decades, with harmful effects on the environment and public health as well as on the economy, according to research done by Worldwatch Institute’s Nourishing the Planet project for Vital Signs Online. Worldwide meat production has tripled over the last four decades and increased 20 percent in just the last 10 years.

Implications:
  • Large-scale meat production also has serious implications for the world’s climate
  • Dirty, crowded conditions on factory farms can propagate sickness and disease 
  • A diet high in red and processed meats can lead to a host of health problems, including obesity, diabetes, cardiovascular disease, and cancer.


Put Into Perspective:

If global demand has increased in this area then it would be logical to assume that global demand has or will increase in other areas as well.  Why? 

London, 6th October, 2011: World-leading research company TNS has today unveiled the results of the biggest global study into the attitudes and investment priorities of the affluent - painting a timely picture of wealth, post global recession.

While the United States still ranks as the world’s most prosperous country, with 31m affluent households, the study reveals that the emerging economies of India and China have overtaken many European countries in this measure of consumer wealth.

Based on interviews with 12,000 people across 24 markets including China, Brazil and India, TNS’s Global Affluent Investor study shows that the growth of developing economic powerhouses is already starting to impact personal fortunes, among households with more than $100,000 investable assets.  Read more:  


Until very recently, the world of luxury remained the exclusive bastion of wealthy consumers from Western Europe, America, and Japan, who not only desired the best, but also possessed the cash to afford it. However, this well-heeled club now has some new members: millions of consumers from emerging markets. These freshly minted shoppers in Asia, Latin America, Russia, and the Middle East have greater levels of disposable income than ever before, making them a significant force in the global luxury market as they snap up iconic cars, haute couture, watches, leather goods, jewelry, fragrances, cosmetics, wines, spirits, and even specialized hotel services as a way to show off their wealth among their peers.    Read More...

Conclusions Drawn:

As global affluence increases so too will there be a corresponding increase in global demand.  As global demand increases there will be an increase in the scarcity of those products demanded and a corresponding increase in prices.  The global seller and their suppliers (not counting the middle men) will be the only ones that benefit.

However: 

theoretically, as demand increases, so too will supply according to the economic models (left) of the free market enterprise system; although, shortages would help explode prices.

The rest of us, you and I, will suffer…

Timeline:  

Probably in the next 7-10 years, maybe even in the next 3-5 years.

No comments: