Failure by design

Ok so taking time from my recent development in Market modeling for currency, learning about chaos mathematics and fractals, plus a bunch of consumptions models for commodities I decided to commit one of a common raids on the Jeff Mclarty blog and see what he was up to.  Instead of writing a giant comment on his page I decided to dedicated a post and kick start this blog back up.

So water, everybody needs it but no one really cares all that much about it…here, but no country has a more acute water problem than China. With over a fifth of the world’s total population (1.8 billion) sharing only 7% of the earths water they have one of the lowest volumes of water per capita in the world. But scarcity is not the biggest problem. China has developed so quickly that their infrastructure and policy has proved inadequate at best. Most of the country’s rivers are so polluted they cannot support aquatic life, much less human life.

Over half of China’s population consumes drinking water contaminated with biological waste that exceeds levels set by the WHO, giving China the highest liver and stomach cancer death rates in the world. Clean water, therefore, is the ultimate China play. It is ineleastic, and a requisite for a strong economy. There are 2 possible solutions: import water (see Great Lakes) or clean their own water (infrastructure). I personally only see filtration as viable only in rural areas and with much of China’s population moving toward urban areas, I think equipment makers will show strong promise domestically. It doesn’t make much sense for 20 million people to have filtration facilities at each of their homes, when infrastructure is already there.

Now that unclean water has become a serious ECONOMIC issue in many developing nations, government agencies and private corporations worldwide are springing into action. The U.S., alone, will spend $1 trillion over the next two decades to upgrade its decrepit water infrastructure. I recently read that 40% of the US water pipes will require replacement within 10 years. (Seems high)  For these I am looking at WTR and NWA. 

I am thinking CWW, ETF traded on the TSX with 3/4 of it’s exposure outside North America. I need to look into it more but it looks promising.

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