Goldman's Currie Sees $16 Trillion Green Capex Driving Commodities Demand

The video discusses the constraints on commodity supply, highlighting the lack of investment in the old economy due to better returns in tech and ESG issues. It explores the energy transition's impact on metals like copper and the anticipated $16 trillion green capex. The demand dynamics are analyzed, showing a shift from high to low-income households, increasing commodity demand. The video also examines oil's role in the energy transition, noting that only short-cycle production is viable. Finally, it addresses inflation concerns, emphasizing demand-pull inflation and the need for hedging through commodities.

What are the main constraints affecting the supply of commodities mentioned in the text?

How has the investment trend shifted from old economy production capacity to new economy sectors?

What role do ESG issues play in the capital allocation for different sectors?

Discuss the time frame required to bring a new copper mine into production.

What is the projected capital expenditure associated with green energy transition over the next decade?

How does the current demand for commodities differ between low-income and high-income households?

What are the implications of the current stimulus on commodity prices and inflation?