Food Shortages Coming, Buy Commodities:
By: Antonia Oprita Associate Web Producer, CNBC.com
The financial crisis is likely to lead to food shortages in a few years because the agriculture sector is in dire need of funds, legendary investor Jim Rogers told CNBC Friday.
Buying distressed commodities is a better way to make money than investing in stocks, according to Rogers.
"The fundamentals (for agriculture) have gotten better," he said. "The inventories are now at the lowest they've been in decades, not in years."
"Sometimes in the next few years we're going to have very serious shortages of food everywhere in the world and prices are going to go through the roof."
Triple digit oil and the economic change that it would bring is something that intrigues, and will have a cascading impact on the real economy and globalization.
It is not that we will be running out of oil. Rather, we will be running out of cheap oil, light sweet Arabian crude, to be replaced eventually by synthetic oil rendered from tar sands and shale. The implication is $200 per barrel oil and $7.00 per gallon gasoline.
Demand for oil is peaking in developed nations like the US and Canada, and may never exceed the levels of the past few years. But demand growth in the developing nations is increasing, and perhaps dramatically.
World gasoline production has not grown in the past four years.
The oil shock may hit the economy within 12 to 15 months according to Jeff Rubin.