What is driving the commodities super cycle ?

1.Population The 21st Century is going to experience the largest population growth in history of human kind.The united nations estimates that world wioll add a little fewer than 1 billion people during each of the first five decades of the 21st century. This means that the global population will grow to about 10 billion people by 2050. Ok why is it that suddenly we have adopted a tone of a demography scientist ????? Elemantary my dear watson! Siginificant growth in population growth translates into greater global demand for commoditoes, could Add QED and close this booklet here.....



Humans are the most voracious consumers of raw materials on the planet( Americans are also nowadays considered to be humans though) and is the only one who pays for it either by cash,kind, government contracts or credit cards. As the number of humans in the world increases, so will demand for natural resources. After all,people need food to eat,houses to live,vehicles to travel-and all this requires raw materials.(Ratan tata and his one lakh car team i am sure will agree , although only to an extent).THIS LARGE POPULATION GROWTH IS THE KEY DRIVER FOR INCREASING DEMAND FOR COMMODITIES,which will continue to put upward pressures on commodity prices and hence inflation and hence the seats of harvard educated finance ministers who fail to understand this and tell people who dont have bread to eat cakes.



2. The new exodus: Urbanization

In the begining of the 20th according to the united nations,less than 10% of the Global population lived in cities by 2005 that number shifted to 50% and by the year 2030 nearly 66.66 % of the population would live in urban areas.

The number of large metropolitan areas with 5 million or more popeluation is sky rocketing and will continue for the rest of the century.



Urbanization is highly significant for commodities becayse people who live in urban centers consume a lot more natural resources than those who loive in rural areas.Significantly additional amount of natural resources are required to expand the size of the citires as more people migrate to urban areas from rural areas.More natural resources are required for roads,cars and personal appliance that are the staple of city life.



3. Industrialization and the Modern BRIC economy china & India