EGYPT and Middle East Tensions Global Imbalances

Egypt is the Future

With massive global imbalances remaining in the economy due to central bank money printing and bailouts, FutureMoneyTrends.com believes the civil unrest that we have seen in Greece, France, Spain, Egypt, and other regions will continue to spread across the globe. The headlines are different, but the fact remains that the catalyst for civil unrest is the result of pure economics, high unemployment and a rising cost of living. A few weeks ago the Tunisian President had to flee his country, regardless of their political system or anyone else's, Tunisia had a recipe for disaster, high unemployment and rising food prices.

Trend Alert!

Lithium is the future when looking at the world’s energy needs. Lithium is a future trend that is going to be a must have if the world wants to be more energy efficient. With the world nearing $100 barrel oil and gasoline nearing $4 a gallon in the states, lithium is going to be front and center. Whether our politicians are demanding independence from foreign oil or cleaner energy, lithium companies are positioned perfectly to help meet the needs of the world. The U.S. currently spends 300 billion on foreign oil and whether you believe in peak oil or not, the fact is demand for oil is on a course that will eventually out pace supply. In the next few years, Mexico will officially become an importer of oil meaning the U.S. will lose its 3rd largest oil supplier. GM just announced that for the first time they sold more vehicles to China than the U.S. Currently, China has one tenth of the number of vehicles per capita as the U.S., however if they were to reach par with the U.S., the world would need 7 more oil fields the size of Saudi Arabia’s. This is one of the reasons China is looking to invest around $15 billion in electric cars over the next 10 years.

Energy Trend

• China recently set a target to have 9% of vehicles to be electric by 2020
• The U.S. recently invested 2.4 billion in the development of electric car technology
• The official U.S. goal is to have a million electric cars by 2015
• The UK is offering to cover 25% of the cost of an electric vehicle
• We have recently seen Ford, GM, BMW, and Nissan take huge steps in providing electric cars. The Nissan Leaf, in our opinion, is going to change the way Americans think about electric cars forever.
• Tesla Motors has recently taken over 1,000 reservations for its lithium powered vehicle.

The energy market is HUGE and when it comes to replacing oil, lithium is one of the few realistic replacements. The potential for lithium to increase its market share is enormous. Lithium is used to make powerful, fast charging lithium-ion batteries that will eventually replace gasoline powered engines. Now, we are not saying that lithium is the “new oil,” we are just trying to be as realistic as possible about what can “cost effectively” replace our complete dependence on oil and gasoline powered engines.

When it comes to inflation, lithium is a two edged sword because lithium is a natural resource that will keep up with inflation in general. However, if inflation really spikes, this will push oil potentially past $150 causing the future demand for lithium that we are predicting to be accelerated, especially for nations that are heavy importers of oil like the United States.