7: The impact of the Russia-Ukraine war, or more importantly,
11: the varied international response to it, has been changing the global balance of power.
17: The global definition of “have” and “have not” is beginning to change. A “have” country would be one
24: that has a highly educated society and workforce, has upscale industries and a sophisticated
30: financial system, and incorporates the use of advanced technology. Today such a definition
37: is nothing without also referencing access to sufficient natural resources and raw materials.
45: The Russia-Ukraine war could have resulted in a peaceful settlement within months of its
50: commencement. Peace negotiations were already underway and had the potential for success,
57: but eventually the priority shifted. The European Union (EU) led by the U.S. and U.K.,
63: ultimately decided that Russia should be punished and its economy be effectively destroyed,
69: in order to change its behavior. This goal has not worked out as expected.
75: The supply of energy and food became jeopardized globally, and this danger may not only persist
82: for years to come, but escalate to the point where we do have a series of global crises.
89: Ironically however, strong climate change initiatives are still underway,
94: directed at reducing the use of traditional energy re sources but also targeting agriculture.
101: These actions will only make the supply of various essential commodities worse.
107: There are currently no viable energy replacements in sufficient quantity to substitute for fossil
114: fuels, yet the mentality is predominantly, “let us get rid of the fossil fuels first,
119: and we will figure out the rest later” as though some unforeseen technical advances will solve
126: the problem in a matter of months. Solar panels for example, will not produce sufficient energy
132: in the northern hemisphere, where strong sunshine is only available during the summer months.
138: In the latter half of the 20th century, we would look with amazement if not ridicule,
144: at the Chinese whose primary form of transportation in cities such as Beijing
149: being the bicycle, while we have, in the western hemisphere, gas powered vehicles. Today,
155: China has gas powered vehicles while many in the western nations may one day be pushed to bicycles,
161: as gas-powered vehicles are gradually being banned through legislation,
166: we will no longer access to traditional energy sources, and electric vehicles will become
172: unreliable as our electric grid is overwhelmed and produces blackouts. Our food supplies will
179: also be limited as farmers will no longer have access to diesel to run farm equipment, if not
185: already put out of business due to legislation attacking various forms of gas emissions.
191: Many have forgotten the value of commodities and these are now becoming more expensive,
197: as the EU in particular is beginning to see. Food and sources of energy are important. No country
204: has an endless supply of money to continue buying from others when not produced at home. Countries
211: that supply commodities under today's environment will prosper tremendously. These commodity
217: producing nations will be able to exercise greater political power on the world stage and more
223: substantially direct the course of events. Check out our video: The Western World's
229: Disconnect from Reality. You will find the link in the description below.
How the Russia-Ukraine war is affecting the commodities markets.
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