great paradigm shift from declining prices to rising prices so jeremy grantham is looking at the fact that all these commodity prices are rising and he he looks at it and you see that compound growth in a world of finite resources is not possible we have to give up on that we have to start learning how to basically make ourselves more efficient use less energy and adapted. but are you sure of the chart here if you look at this yes it's a chart from for the last hundred ten years and from one thousand nine hundred to two thousand you see those declining prices of commodities and this is commodity index measuring thirty commodities and they were declining at an average of one point two percent annualized over seventy percent real terms up until about two thousand two thousand and two for that he says that if you see that rise all that again of the past hundred years a commodity price falling is now wiped out in eight years right so the trend that we've seen over the past hundred years the thaw in prices due to innovation due to technological innovation due to globalization due to advanc

in the first few professional money managers like the university of texas mine gold we've got jeremy grantham and gina mo in boston talking about the problem of scarce resources we're starting to see the first few escapees from the world of nominal and they're starting to face up to the world of real. all right well another factor in this of is the percentage of income that people spend on food and energy now in the developing world that number is quite high they make very little money and a huge amount of it is spent on food and energy like fifty sixty percent in some cases in the united states and in other developed countries up until recently that number was almost negligible so due to the growth of the fianna currency period after the one nine hundred seventy one and the ill and the income that was derived from the bond market and the stock market and the artificially inflated housing market this component of the household income was ignored but now it's coming back with a vengeance at what point does it do we start to see parity between the developed world and the developing world we're