My take too. China will need, and I believe build, millions of affordable living units.
The east cannot raise interst rates as it would raise the rupee and yuan and so hurt exports even with India running 7.5% inflation and China about 5.5%. So Asia must play chicken with inflation. For China, less than 9% GDP growth could mean civil unrest.
Asia running about 9% GDP growth and modernizing their civilizations. That takes cement, steel, copper, and energy,
The west on the other hand is teetering on the brink of a deflationary depression and cannot stop the printing presses or QE.
And 7 billion people is too many people for the planet, but it is what it is, and they must be fed. And now because of monster money creation by the west and east, they have that money to buy the essentials of life: food, sheltor, warmth and mobility. And those things are not very elastic.
And we see right now almost all commodites at or near record levels.
What few see, I think, is just how powerful the demand from Asia is going to be. Because people generally cannot conceptualize what 7 billion people consumming really is. The amount of food and commodiites.
I always use this as a guide to see levels of consumption. China imports 2 billion chicken feet a year for protein. |
