Good morning, Leaders! It’s Friday!

Last week I heard a speaker talk about three things that are changing drastically and will change the future for everyone.

His name is Peter Zeihan. His opinions are highly sought after, his conclusions are based on facts which make them hard to refute and he has studied these areas long enough to be considered a foremost expert on what the combination of all of this global intelligence means.

The areas he believes are changing the future are:
1. Geopolitics -the reassertion of, as the rules by which the world operates compared to the free trade we’ve enjoyed over the last 70 years.
2. Demographic Inversion that will change the capital structure of the planet.
3. Shale energy is creating energy independence for the United States.

Areas most deeply affected by these changes are:
•Finance
•Manufacturing
•Agribusiness

So, is this boring, is it too much to absorb or is it so scary that people don’t want to hear it?

Recently quoted facts:

Regarding geopolitics,
•The US has over 16,000 miles of navigable inland waters and since it costs only ~8% of what it takes to transport goods by land, the US is able to transport goods very inexpensively.

Regarding demographics,
•Most consumption comes from people in their 20’s and 30’s – buying cars, homes, goods, etc. When a country’s population ages, the economies slow and it takes at least 25 years to reverse the trend. For instance, China, in November of 2013, came out with a policy that states it’s ok to have two children rather than one, under the right circumstances. (It will take decades to reverse the trend created by the former, one child policy).

Regarding Shale (oil and gas) production impacts,
•New York City has converted a considerable amount of fuel oil consumption over to natural gas recently. The city now consumes more than the country of Belgium, exceeding 9 Billion cubic meters. Imagine not having to occupy Middle East countries or feeling like we have to referee centuries old wars just to buy “cheap” oil.

So, geography plays a big part in our quality of life. More than you think and probably more than you can possibly imagine.

Leaders – elevate your position, change your perspective, look at the bigger picture and take action.

Have a blessed weekend!