18,000,000 Cars

The Chinese people are expected to buy 18 million new cars next year whereas the demand in the U.S. will be about 11.5 million.  Other developing countries are also on the upswing of energy consumption.  We are currently in the shoulder months for gasoline and natural gas but the oil prices have remained firm.  It appears that the market understands the increasing demand of the Far East and the inability to substantially increase global production of oil.

I expect an oil shock of some point within the next 48 months.  Suddenly the market will wake up to the fact that demand continues to outstrip supply.  As the price of oil rises, other energy prices will rise as well.  Energy supports growth, lack of energy resource restricts it.  The price of oil relative to other commodities has shown a strong correlation to U.S. economic cycles as being a primary reason for the rise and fall of the economy.

It took 24 months for the electorate to determine if Obama could turn this economy around.  All indications are that the time is up and tonight will tell the story.  Economies do not “turn on a dime” but sustained unemployment and fear of recession cause society to demand change.  The problem is that neither Democrats nor Republicans have the answer.  The mindset of the American people must change.

The Far East wants a standard of living similar to the rest of the world.  The problem is that the rest of the world attained the current standard with cheap energy and cheap food.  These commodities are no longer cheap.  The current infrastructure will no longer support the ways of the past.  Mankind must change.  Our Heavenly Father has all the answers and His Love will release those answers for the good off men whether they are His friends or enemies.  Our focus and direction should be toward His Heart.  His elect will have the answers as they mature into their calling.

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