Water: A Critical Resource in Danger

Developed countries like the U.S. have, for the most part, done an admirable job of cleaning up water supplies -- such as lakes and streams -- of the pollution that was once common.  It is time for the same to occur in other countries.  Usable water is quickly becoming the number one limiting resource on the planet.  There continues to be plenty of water but, it isn't always in the right place and frequently is unusable.

Pollution makes quarter of China water unusable: ministry

Growing up in an area where water is considered precious, I have always known that it is a resource to be protected.  The rest of the world is beginning to see the issue for what it is.  Just ask those city dwellers who are increasingly placed on water rationing due to shortages.  Those shortages don't just occur in the desert Southwest -- just ask citizens of Atlanta.

Here's a related article:

In midst of river cleanup, supporters are divided

The Prime Indicator

Energy consumption is the number 1 indicator of economic activity.

China Passes U.S. as World's Biggest Energy Consumer

Some interesting quotes from the article:

"Highlighting how quickly its energy demand has increased, China's total energy consumption was just half the size of the U.S. 10 years ago."

"The U.S. is still by far the biggest energy consumer per capita, with the average American burning five times as much energy annually as the average Chinese citizen...."

"...said China requires total energy investments of some $4 trillion over the next 20 years to keep feeding its economy and to avoid power blackouts and fuel shortages."

"...China is expected to build over the next 15 years some 1,000 gigawatts of new power-generation capacity. That is about the total amount of electricity-generation capacity in the U.S. currently...."

And this just in (updated 7-20-10)....

China denies IEA label as world's top energy user

I guess that want us to think they are making huge leaps in energy conservation measures.

Escalating Food and Fuel Costs Create Security Concerns

What would happen if escalating fuel and food costs created widespread unrest in China? The first thought is that the government would crack-down in a very harsh manner to stop any political unrest. A second possible scenario is that their eyes would turn elsewhere -- perhaps to the perceived source of their woes. The United States? No. The Middle East. Oil prices are driving the other problems.

With the taste of capitalistic advances in the economy, the Chinese people will not be satisfied with a heavy-handed state policy to force them to "absorb" fuel price increases without some resistance. The size of the Chinese population is such that unrest could quickly grow to a size that would be difficult to handle by the internal police and military. So, the logical approach for the Chinese government is to attempt to redirect that energy. A destabilized China would be a dangerous thing indeed.

Chinese Wealth Threatens Global Markets

One would normally think that you could never have too much money in the bank. The Chinese government is finding otherwise. Chinese reserves are projected to reach $2 Trillion (U.S.) this year. This situation makes it difficult for the Chinese government to control inflation. It will be interesting to watch their response. The rest of the world needs to be concerned because a mismanaged response by the party loyal (the funds are managed by bureaucrats, not financially trained managers) could have serious repercussions throughout the global markets. My greatest fear is that this unprecedented level of wealth will be spent on the military. If China is unable to secure their energy needs by peaceful means, the Middle East and Siberia need to be very wary.

Chinese Gasoline Subsidies

Is it possible that the oil markets are being manipulated in an effort to cripple the economy of China? After all, the Chinese government subsidizes gasoline prices within their country. Those subsidies artificially lower the cost of fuel and therefore increase the quantity demanded by motorists in that country over what should be the demand if their gasoline price was driven by a free market. As the price of oil soars, the cost of that subsidy increases, putting pressure on the Chinese to reduce or remove subsidies which they are reluctant to do because of the fear of slowing or reversing the growth of their economy. It's something to think about.

China's Drive for Energy

Energy is the currency of the world economy. The growth of China has been one of the driving forces behind the surge in energy costs throughout the world. They are working to secure their energy future by various means -- including the development of oil resources in Africa. In the U.S. we, sometimes at least, speak of moral responsibility that comes along with treating with foreign governments. China isn't hindered by such thoughts. Should they be?