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1 Billion Reasons To Invest In Resources

The last decade has seen tremendous changes in the global economy. The US superpower has increasingly taken on debt. Then they have turned around and monetized that debt. The result long term will be a greatly devalued currency. Inflation will also be a concern when the economy rebounds a little. This may lead to questions around the validity of the USD as the reserve currency. And that could be very interesting. Contrary, China has been slowly building its economy. With over 1 billion people, China is poised to be a resource black hole. That gives you 1 billion reasons to invest in resources.

Resources cycles tend to move in a very long fashion. But that super cycle can be exploited. People who were investing in resources when the industrial revolution was taking off did very well. But now the US, and other developed nations, are debt laden and waning. China, however, is on the verge of its own revolution.

Per capita GDP has to fall in the range of about $3000-$5000 for an economy to garner a consumer, middle class. Once that happens, resource needs start accelerating as the economy starts developing. That means that China, with 1.3 billion people, will start consuming more and more resources. It’s hard to wrap our minds around the enormity of that kind of consumption. But let’s make a comparison of the US and China.

The US tallies about 310 million residents thereabouts. China, as we’ve already seen, weighs in at about 1.3 billion residents. Oil usage in the US runs around 68 barrels per capita. China, on the other hand, runs around 5. Think about the demand side of things when China starts moving to 5, 7, 9 barrels. And we’re talking 1.3 billion people here. And that’s not even considering all the other resources that China is stockpiling. Likewise, we haven’t mentioned India’s economy. Though I believe India will lag behind China.

The story is the same with electricity. The US consumes around 12 kWhr per capita. China currently consumes 1 kWhr per capita. Again, the story remains the same with other resources like copper, silver, steel, uranium, etc. And a look at China’s nuclear facility proposal would make you blush. It’s very,very aggressive. Any way you slice it, resource demand is going to go through the roof.

Resources are great because they are tangible goods. They have intrinsic value. Yes, resources are volatile in the short term. But the super cycle of resources is set and ticking. Once China and India move to prominence, resource usage is going to sky rocket. It would be prudent for an investor to consider resources in one’s portfolio.

Five Reasons the Economy is Fantastic For Small Business

1. Corporate Downsizing by large multi-national companies. If you are a small company, this is the best time to pursue talent within your industry who have great contacts, experience, and competitive intelligence. Many well networked professionals who may have been unaffordable in the past are now looking beyond the corporate giants to entrepreneurial small businesses. Those with decent severance packages in hand can justify taking a salary cut and investing in your company’s growth plan and potential.

2. Large companies reducing staff run the risk of diminishing service quality to their clients. Reduced staff and fewer resources could mean that existing clients accustomed to premium service might be disappointed to learn that the representatives whom they always dealt with are gone. It’s a great time to pursue these clients who might now consider moving their business to your small business and deal directly with the owner.

3. Public support. In this era of corporate bailouts, outlandish corporate salaries and rollercoaster stock dips, the strength of small business and a customer’s access to the actual business owner is comforting to the public and consumer market. The public has far more trust in the mom and pop shop businesses than the corporate giants responsible for the plummeting stock market.

4. Small business is nimble and reactive. Corporate giants have thrown down their anchors in their attempts to ride the economic storm. Millions of “No More Spending Memos” have been sent across North America, corporate layoffs, salary rollback, no more travel, no more client lunches, dinners etc… Large corporations are making it harder for their sales staff to close new business. Small business can strategically target key clients traditionally held by the corporate giants. Small business can react and create innovative approaches, incentivise their sales reps to travel the red-eye and take advantage of every opportunity available to close new deals.

5. Global Thinking. Small business can initiate and launch into new markets, globally, where consumer markets want or need their products. Large corporations require significant re-structuring, re-tooling and significant capital to pursue new markets. Small business can decide tomorrow if they want to expand globally. No red tape required, small business comes with the freedom to hire an agent or a representative in China or India to sell their products via agent agreement and become international overnight.

So let the newspapers continue to grow their businesses and sell newspapers with negative stories of rampant layoffs, restructurings, large business contract cancellations and the decline of the corporate giants. It is all good news for small business.

Car Seat Covers Are Worth the Investment for Your Vehicle

Car seat covers are utilized by many car owners. They come in many various colors and fabrics. Car owners use them mainly to preserve the wear and tear on seats. Each and every time you enter your car you are causing wear to the seats.

Weather you have leather seats, vinyl or fabric they will eventually wear out. In order to assure that you get the most out of your car seats, covers are a terrific idea. In addition, for resale value the condition of the interior of your car is just as important as preserving the exterior.

If you have small children and pets many feel that seat covers are definitely a must. When transporting either of these, you can expect wear and tear. Small children often have accidents with drinks, snacks or their little shoes have mud, snow or dirt. You are not able to clean their shoes each time they are placed in car seats and sitting in car seats or booster seats puts their small shoes directly on the car seat. Animals are just as rough for a car interior. Instead of 2 feet you have four feet and dog hair or cat hair.

Many recommend sheepskin car seat covers. Sheepskin car seat covers have several benefits. They are comfortable and great insulators. The will keep your seats warm throughout the winter months and cooler during the summer heat. Even the driver gets an additional layer of support that some drivers need. However, there are disadvantages.

Sheepskin covers can be fairly expensive compared to other forms of car seat covers. If you decide to bypass a uniform type of cover and go for covers manufactured specifically for your car you can expect to pay quite a bit. Looking at two bucket seats in the front and a bench seat cover in the back, universal covers usually cost a reasonable amount for all of the seats in the car. If you can afford custom made covers, you can expect to pay exceptionally more.

If you are driving certain vehicles that have side airbags that are not standard, you may not be able to have standard sheepskin covers. There are several manufacturers that need to modify the covers to allow for the side airbags.

Dirt can be difficult to remove from sheepskin covers. You can spot clean the covers but if you need an overallscrubbing, it can be problematic. Washing sheepskin covers the wrong way can wreck the covers.

Most car owners choose cloth covers for seats if you plan on washing repeatedly. They are available at many retailers and online rather inexpensively. If these are ruined for whatever reason, replacing them is less than a tank of gas in most cases.

Car seat covers are excellent for retaining the interior of your car. A small financial investment that you will find returned when you sell your car or to extend the life of the vehicle. Investments ultimately worth your car’s longevity in the long run.