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Why the world may be on the cusp of a new commodity super cycle

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    Why the world may be on the cusp of a new commodity super cycle

    These are the headlines circulating lately. Stimulus plus green new deal and FF (now starved for capital) to still do the heavy lifting for decades until the unicorns arrive.

    https://financialpost.com/executive/posthaste-why-the-world-may-be-on-the-cusp-of-a-new-commodity-super-cycle Posthaste: Why the world may be on the cusp of a new commodity super cycle
    Global decarbonization efforts are setting the stage for a new commodity rally


    I dont expect the leftys like chuck to understand physics nor economics, but in short, to electrify and decarbonize the economy will require more than a doubling of output of base metals and elements like copper, zinc, nickel, cobalt, uranium etc. All these reside in ancient rocks like we have in the shield and other spots.

    To do that will take nearly 2T in investment and will require permitting new mines or plants which can take a decade. To distribute this electricity will require a similar investment in the power grid infrastructure which can take a similar time to permit.

    Since renewable energy cant recreate itself (yet), that means oil needs to step in once again. Look to see oil prices head back into the triple digits.

    At the same time, consumers are going to get pinched hard with inflation. Electric cars are not going to get cheaper (many people will never be able to afford one), neither are your utility bills and consumer durables.
    Last edited by jazz; Jan 13, 2021, 11:08.

    #2
    With the green energy being heavily reliant on natural gas. Natural gas prices should get back to early 2000 prices. Just wait for a prolonged cold winter. I don’t think there will be enough storage to make it through a cold winter once all the coal plants are switched over to gas

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      #3
      Originally posted by TASFarms View Post
      With the green energy being heavily reliant on natural gas. Natural gas prices should get back to early 2000 prices. Just wait for a prolonged cold winter. I don’t think there will be enough storage to make it through a cold winter once all the coal plants are switched over to gas
      Yup....those darn facts will bite someone in the ass ..but much like the propane shortage in Quebec some people don't learn from stupidity because someone always feels sorry for the tards of the world...

      Remember. ..Wasn't it Alberta that sent them propane...

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