Saturday, October 31, 2009

Understand one of the 5Es - the transfer of wealth and power from west to East that is underway

In this update, I am going to describe in more detail one of the evaluation factors of the 5E-valuation Framework; it is “the transfer of wealth and power from west to East” in response to a recent CNBC series Trade the Globe.

I suggest that you understand the historic shifts now underway in the Asia Pacific region including China and how these shifts can create alternative wealth creating opportunities. The world is changing dramatically and the emerging markets will potentially provide some light at the end of the tunnel.

For example, from an auto market perspective, China and India caught and passed the US, the European Union, and Japan in 2008 as the world's largest auto market. And the gap has even widened during this recession ... while the heads of the US auto makers were in Washington pleading with the US Gov't for a bailout.

Cars don't run in a vacuum. They need roads, gasoline stations, oil, and gasoline ... this requires a lot of building materials and oil. Currently, each person in the US consumes about 25 barrels of oil per person per year. Oil consumption in China and India is tiny (about 1.5 per person annually in China and India's consumption barely registers on the scale) compared to the US consumption, so one can only imagine that as these economies grow and take up more of a share of the global economy, their oil consumption will rise exponentially.

Finally, China already has more than 160 cities (the US has 9 and the UK has 2) with populations of over 1 million. In China, they plan to build 97 new airports, 500 additional coal fired plants, and 30 nuclear plants over the next decade.

Imagine the commodities that are in demand (yet in short supply in China) to support this growth ... these include items such as soybeans, potash, copper, natural gas, uranium, bauxite (important in making aluminum), chromium (a steel additive), and manganese (important for making stainless steel).

I trust this post and associated articles provide a little more insight as to why emerging markets with a demand for things that are in short supply represent alternative wealth creating strategies.

The entire article can be found here .

The entire article that describes the 5Es Framework can be found here .

I favor a recent quote from Steve Forbes. Forbes says “financial education, and the resulting literacy and empowerment, will open our eyes to alternative wealth creating strategies, and these are the keys to recovery from this ongoing financial crisis.”

As a former engineer with General Dynamics and management consultant at Deloitte … I am on a mission to empower individuals by increasing their financial literacy, improve their ability for personal sustainability, and contribute to the program that has a goal of creating 100 Millionaires by 2012.

Until the next time, I invite you to learn more about me and my various activities by me checking me out at the links below.

Meet me at Facebook :

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Watch me on YouTube : and

Join my venture at aspenIbiz as I pursue alternative wealth creating strategies and generate multiple income streams.

When not traveling for business or pleasure, Mike operates his own internet marketing company and consulting firm from his home in the mountains of Colorado.

Finally, if you are an entrepreneur, a business owner, employed in an 8-5 job, or recently retired, yet still wanting to be plugged-in to the next wave of economic prosperity, you can join me in pursuing the lifestyle you want to live (follow "join my venture" link above) in pursuing opportunities in the Internet Marketing industry.

You can watch my video update of this article here .

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