FX.co ★ 10 Real Threats to World Welfare

So, the well-known strategist pointed out that the big problems are the decrease in the rates of GDP growth in the United States of America, as well as the balance in the developed world. It is noted that the number of the workforce is diminishing - the population is aging, resources are becoming scarcer, the ratio of the number of poor to rich is becoming more significant. And the efficiency of GDP, explain many economists, shows a decline.

Grantham also notes that today, not to mention the future, the abundance and cheapness of resources has come to an end. The British investor explains that the cost of commodities will vary in the future, but it is unlikely that the economy will return to the trend of a general decline in commodity prices.

Oil also became a member of the Jeremy Grantham's list. He does not deny that this raw material is the tip of the iceberg of the commodity pyramid, but the Britishman is sure that in the future it may happen that the cost of extracting black gold will exceed the amount of energy that can be produced from this raw material.

Climatic issues are a rather global problem of the future. Ecology of today's world fixes significant changes, the investor notes in his address. Some countries are trying to balance carbon dioxide emissions into the atmosphere, but the climate continues to change. The letter says that climatic metamorphosis affects the weather as a whole - droughts, storms, hurricanes - all this is due to significant changes in nature.

Due to a significant increase in the world population, in China, in particular, the world food shortage may soon occur. And this fact, noted in the letter, can affect the amount of meat consumed. All this can put pressure on the production of cereal crops and soy. Moreover, the world's water resources are also limited.

Income inequality of the population in the modern world is a global problem. It is noted that in the United States such figure is the highest. Moreover, in America a society with very modest social mobility has been formed - people simply can not change their low financial position to a more worthy one. Grantham gives a link in a letter to the work "Capital in the Twenty-First Century", in which the author of the book Piketty highlights this point in detail.

Grantham also pointed to the fact that economic elites and other significant coalitions, business representatives, have a tremendous influence on US policy. And the simple strata of the population, on the contrary, do not have this influence.

The issue of the Fed deficiencies was also included in the investor's report. The main idea of this argument is that the Fed's activity today is absolutely unproductive and is being implemented at a low level.

Bubble in the real estate market in the US, as well as in Spain and Ireland is another problem. Moreover, Grantham writes that the real estate market in Australia also looks like a bubble, it differs for the better from the situations in the above states.

Grantham mentioned that he fears for the economy because it may not be able to keep pace with the current situation. He writes that the planet lacks food and a lot of other things, but the world is governed only by imperfect homo sapiens.

Nevertheless, the British investor is confident that the world can be saved due to new useful future technologies that will be available in the field of energy and agriculture.