Comments on: Beware of distorted markets http://blogs.reuters.com/breakingviews/2012/02/24/beware-of-distorted-markets/ Mon, 26 Sep 2016 03:26:00 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: libertadormg http://blogs.reuters.com/breakingviews/2012/02/24/beware-of-distorted-markets/comment-page-1/#comment-8893 Mon, 27 Feb 2012 01:06:51 +0000 http://blogs.reuters.com/breakingviews/?p=9648#comment-8893 Under the radar and out of sight, there is a huge macro trend going on today to own the right to develop natural resources. This huge economic tsunami is going on virtually undetected. To a great extent, technology has now identified where these remaining resources are located. Technology has changed and continues to advance to that now allows us to mine and develop heretofore unprofitable deposits. The global mad rush to own the option to develop these precious raw natural resources in the future has become a stampede today. The incalculable leverage that these long dated oil, gas and mineral leases offer the savvy multinational corporate investors/traders is mind boggling. Unbelievable amounts of serious money is being wagered on leases that will produce earth’s remaining copper, silver, gold, oil, natural gas, and other commodities. This is not your garden variety speculation, this rush to lock-up the earth’s mineral treasure virtually ensures that currency debasement lies around the corner and guarantee’s that natural resources will be the lead-pipe-cinch natural hedge against inflation. This might sound a tad doomsday but the evidence suggests a world ever more short of the basic materials necessary for an industrialized economy. I hope I am wrong but I don’t think so.

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