Yesterday I asked you to identify the next economic bubble or artificial shortage that is likely to form. You did better than I expected. The winning suggestion: WATER.

In order to have a good artificial shortage you need several things to be true:

  1. The commodity must be essential.
  2. There is a plausible "natural" explanation for the shortage.
  3. Only large companies have the resources to increase supply.
  4. The government is involved in some way.
  5. The media hasn't yet obsessed about it, but could.
  6. Inventions to solve the problem are noticeably absent.
  7. There are futures contracts for it.

Water has it all, except for the existence of futures contracts, as far as I can tell. Once you see a market for water futures forming, bend over. That's when the manipulation will begin. Crooks prefer manipulating financial markets over building reservoirs.

The plausible explanation for the worldwide shortage is that the population is growing faster than the supply of clean water. Add global warming to the mix and you have plausible explanations for worldwide droughts. That's the cover story. It's true enough to mask the artificial shortages that will be caused by the speculators and hedge funds.

So how can you invest and make money in water now, before the bubble tops?

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Jan 15, 2009
Artificial shortage of water is precisely the evil plan of the bad guy in the recent James Bond's Quantum of Solace movie... Is it possible that your readers' imagination is unconsciously affected by recent media exposure, and that water shortage came first in the list as a result of Hollywood-triggered mass thinking instead of the consensus of many bright individuals?
Of course that argument assumes that most of your readers have seen the movie, but, hey, it's James Bond, you have to have seen it....
Jan 15, 2009
Oh... never mind. I see that jaxim already beat me to it.

You see? We're all just moist robots serving some other will. I need to go eat a shard-filled doughnut now.
Jan 15, 2009
Nothing to do with water here, but thought you'd appreciate further proof that you're right -- we're living in some sort of created reality:

"According to Craig Hogan, a physicist at the Fermilab particle physics lab in Batavia, Illinois, GEO600 has stumbled upon the fundamental limit of space-time - the point where space-time stops behaving like the smooth continuum Einstein described and instead dissolves into "grains", just as a newspaper photograph dissolves into dots as you zoom in. "It looks like GEO600 is being buffeted by the microscopic quantum convulsions of space-time," says Hogan.

If this doesn't blow your socks off, then Hogan, who has just been appointed director of Fermilab's Center for Particle Astrophysics, has an even bigger shock in store: "If the GEO600 result is what I suspect it is, then we are all living in a giant cosmic hologram."

Link to article:

Now let's see how many other people send this to you as well.

Jan 15, 2009
Forget it Jake - it's Chinatown!
Jan 15, 2009
Sorry Scott, you aren't the first to think of this. It was actually part of a documentary called The Corporation. Here is an article I found with a quick Google search. http://www.thenation.com/doc/20050214/shultz
I'm sure you are right, someone will try this again and again until it sticks.
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Jan 15, 2009
I get my water from a well in my yard. Hopefully my property value will soon increase. Perhaps I can screw my self by over selling futures in my well.

If anyone would like I will happily promise to deliver 500 gallons next year for the small sum of $375.23 now. You have to come and get it.
Jan 15, 2009
http://www.businessweek.com/magazine/content/08_25/b4089040017753.htm?chan=magazine channel_top stories

It's already started. "T. Boone Pickens thinks water is the new oil—and he's betting $100 million that he's right".

The futures market for water is in fact the property market. Speculators simply need to start acquiring property with water rights and *boom* they own our asses.

It may be tough to spot this bubble because property is a much "darker" market than even the futures and CDO. (If you don't believe that then how the hell do you think things got so out of control in the last few years?)

People in Dallas are going to feel this first and it's gonna hurt.
Jan 15, 2009
You can invest in water now if you'd like:

<a href="http://www.invescopowershares.com/products/overview.aspx?ticker=Pho">PowerShares Water Resources Portfolio</a>

and it seems there's already "water" indexes such as the Palisades Water Index that tracks these companies.

Good luck!

0 Rank Up Rank Down
Jan 15, 2009
I thought you'd be interested in that yet another of your theories is shared by an "intelligent" expert.

Physicists Believe Our Universe Is One Big Hologram, And They May Have Spotted the Pixels...
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