Chapter 2

Why the uranium price is set to soar

http://www.moneyweek.com/investments/commodities/why-the-uranium-price-is-set-to-soar.aspx

Summary
This article talks about the uranium price surged from $5 to $29 in just two weeks last year. China, India and Russia plans on to build new reactors and more reactors would cause a run on the limited supply of uranium. In the next 15 years, 130 new nuclear power plants will be built. Nuclear power provides about 16% of the planet's total annual electricity generation. France receives 78% of its electricity from nuclear power, Belgium gets almost 56% of its power from nuclear plants and Sweden's power is close to 50% that is nuclear.

Connections
In Chapter 2, the textbook talks about factors affecting demand and supply. The increase in demand of Uranium will result the demand curve to shift right. As more uranium being demanded, regardless of the price before. There will be a change in supply. As uranium increases in productions costs, the supply curve will result to shift left. Then the same amount of uranium will be supplied to the market at a higher price to earn profit.

Reflection
In my opinion, as the uranium price continues to rise in the future. Demand will increase, no matter what the cost is. Lot of countries are in need of uranium for power plants to produce electricity. People need electricity to survive, such as heat. The countries which uses uranium for electricity, need to find another way to get electricity due to the supply of uranium. As supply goes limited, demand rises.

Chapter 1

Water scarcity 'now bigger threat than financial crisis

http://www.independent.co.uk/environment/climate-change/water-scarcity-now-bigger-threat-than-financial-crisis-1645358.html

Summary
This article talks about facing a water bankruptcy which results a crisis even higher than the financial crisis. In the next 20 years, half of the world's population will be affected due to water shortages with millions of people dying and conflicts will increase. Some 60% of China's 669 cities are already short of water. By 2030, 2.8 billion people live in areas of high water stress. By that time, water scarcity could cut world harvests by 30% which is equivalent to all grain grown in the India and US. Gigantic water banks supplying 2 billion people in Asia are melting faster as global warming accelerates.

Connections
Water is a limited resource which we use everyday in our lives. We need to make wiser decisions on how we use it. Almost everything is scarce because very few things are available in unlimited quantities. China is running on short of water and we need to get the best possible decision on how to use the resource. Demand is high for water but supply is low. This is a great article that shows how water scarcity is increasing.

Reflection
In my opinion, I believe that people should use their water more carefully. Working together would make the world a better place. We need to contribute on these causes, but that's easy for people to say. Taking action would take a lot of effort, but would help in many ways such as saving people's lives by conserving water. Having a water crisis would increase the price of water and high demands will follow. Help do your part, save a life.