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There will be great challenges to the global economy in 2008. You will see enough strain on resources to shift the economy of many countries. Water will have a huge effect on the economies of many countries. Drought will cause a chain reaction of problems around the world. You will have many countries running out of water. There will not be enough water for people to drink, much less water crops. With crop prices at all time highs, the lack of water will only work to drive prices higher. Many will find that the costs are spiraling out of control. For example, a cattle rancher who can no longer afford to feed his cattle because of the high price of grain. He will sell all his cattle and not replace them.
This will drive up the price of meat in stores and restaurants. In America, the average price of a meal in a restaurant will be about $35. People will no longer be able to eat out, crippling the restaurant business. Milk will cost two times a gallon of gas. Worldwide commodity demand will flourish, starting with water. Water will become a major issue in the world by April. No water, no crops. No crops, no cattle. No cattle, no food. This year is just the beginning of a worldwide commodity bubble.
QUESTION: How does the average person hedge against this rising cost of food and water?
ANSWER: The average person could always invest in commodities to hedge, or could cut back in certain areas of their diet, like dairy products and grains, like cereals and another trend that will increase is gardens at home growing vegetables. Greenhouses will see a surge in sales.
QUESTION: What are the best commodities to invest in for the coming year?
ANSWER: Water would be at the top of the list and most mainstream grains like wheat and corn. Sugar is also good, and anything that China is lacking and the U.S. has.
QUESTION: Where in the U.S. will the be biggest concern for water this year?
ANSWER: In the U.S. the southeast will have great water challenges.
QUESTION: What other countries in the world will have sever water shortages this year?
ANSWER: Canada, the Ukraine, and Turkey.
QUESTION: What is the grain that China will have the highest demand for from the U.S.?
QUESTION: If $35 will be average price for a restaurant meal, what percentage increase is from today’s prices?
ANSWER: The average meal will increase 50%.
QUESTION: In spite of this serious drop-off of the restaurant business, what restaurants will thrive on this?
ANSWER: (NEWS proof) The middle segment of the restaurant business will suffer the most. The high-end restaurants will survive, due to wealthy people dining there and corporate expense accounts. The low-cost fast food restaurants, like McDonalds, will see an increase in business.
QUESTION: Will this be the end of Starbucks?
ANSWER: Starbucks will be forced to adjust prices and offer incentives.
QUESTION: When you say that this is the beginning of a worldwide commodity bubble, what commodities are an exception to that?
ANSWER: (NEWS proof) Oil will stabilize or even go down the third quarter of 2008.
QUESTION: (NEWS proof) What will be the highest price oil will reach in 2008 before stabilizing?
ANSWER: $120 a barrel without political turmoil, which could drive oil up to $150.
QUESTION: What will change to cause oil to stabilize?
ANSWER: When people can no longer afford to drive to work, then the government will step in and curb prices.