At the recently concluded 22nd Annual Joint Commodities Conference in New Bern, the economic speaker was Dennis Gartman, economist, former commodities trader and author of the Gartman Letter, LLC. Gartman says, in broad strokes, the recession is over:
“Clearly, we were in one of the most egregious recessions the world has seen since the 1930’s, and we are clearly out of it, no question about it. Here in the United States, it might not feel that way, but around the rest of the world, growth is almost everywhere. Europe, perhaps is still having difficulties, but South America is unbelievably strong, Africa is in fact getting strong, and Asia is unbelievably strong, and it is going to get unbelievably stronger over time.”
While the Chinese GDP and ergo the rising middle class will at some point surpass the United States, Gartman says this is nothing to fear:
“The best thing that’s going to happen in the United States and to our economy is that per capita incomes in China are moving from the lower left to the upper right, and are tipping higher and higher are have now passed $5,000 and going to $10,000 in the not very distant future. Couple of things in this world you can count on; people’s incomes when they rise demand better food and better clothing, and more of each.”
China, in recent years, has become unable to support their own food and production needs, and Gartman says that will only continue, and eventually they’ll become a net importer of American grown raw products.
Dennis Gartman, Gartman Letter, LLC.