Global Water Crisis: Why Michael Burry is Investing in Blue Gold
Summary
TLDRThis video script delves into the global water crisis, highlighting the looming shortage by 2030 and the critical role water plays in various sectors. It discusses the limited availability of fresh water, the drastic decline of water levels in key reservoirs, and the escalating demand for water by 2050. The script also explores the potential of capitalism and technological advancements to address the crisis, including desalination and historical weather manipulation projects. It concludes by encouraging viewers to question scare tactics related to water scarcity and to trust in innovation and market-driven solutions.
Takeaways
- 🌍 The world is facing a significant water crisis, with a projected 40% shortfall in freshwater supply by 2030 according to a U.N. Water conference.
- 💧 Globally, more than 4 trillion cubic meters of freshwater are used annually, which is equivalent to 264 gallons per cubic meter.
- 🏞️ 71% of Earth's surface is water, but only 2.5% of it is freshwater, with 0.65% being accessible for human use such as drinking and agriculture.
- 🔄 A major source of freshwater comes from rivers, lakes, and reservoirs, with groundwater aquifers contributing the remaining 25%.
- 📉 Key reservoirs like Lake Mead and Lake Powell have seen critically low levels, dropping significantly from full capacity in 2000 to about 25% today.
- 🌾 70% of freshwater withdrawals are used for agriculture, 20% for industrial use, and the remaining 10% for domestic use.
- 📈 Water demand is expected to increase from 20 to 30% by 2050, with the population living in severely water-scarce areas expected to rise from 1.9 billion in 2010 to 3.2 billion by 2050.
- 💡 Investment opportunities in water are emerging, with strategies including purchasing water rights, investing in water-rich farmland, and investing in water utilities, infrastructure, and equipment.
- 🌊 Desalination is a significant technological solution for water scarcity, with the process removing salt and impurities from seawater to produce potable water.
- 🏭 Large-scale desalination plants, such as the one in Carlsbad, San Diego, demonstrate the feasibility of producing millions of gallons of freshwater daily.
- 💡 The cost of desalinated water has decreased over time, and globally, more than 300 million people rely on desalination plants for their water supply.
- 🤔 The script suggests a critical view on potential 'water crisis' narratives, encouraging skepticism and consideration of technological and capitalistic solutions to water scarcity.
Q & A
What is the potential threat to the U.S. mentioned in the script that could be caused by a water crisis?
-The script suggests that a water crisis could be a significant threat to the U.S., as it could potentially be used as a means of attack, highlighting the importance of water availability for the country's security and stability.
According to the U.N. Water conference, what is the projected shortfall in fresh water supply by 2030?
-The U.N. Water conference projects a 40% shortfall in fresh water supply by 2030, indicating a significant challenge for global water security.
How much fresh water is used worldwide annually, and what is the significance of this figure?
-Worldwide, more than 4 trillion cubic meters of fresh water is used each year. This figure is significant as it underscores the scale of global water consumption and the potential strain on water resources.
What percentage of Earth's water is fresh water, and how is it distributed?
-Only 2.5% of Earth's water is fresh water, with 0.65% being the fresh water used for drinking and other human activities. This highlights the scarcity of fresh water resources in comparison to the total water available.
What are the primary sources of fresh water withdrawal in the U.S.?
-In the U.S., 75% of fresh water is withdrawn from rivers, lakes, and reservoirs, while 25% comes from groundwater aquifers, indicating the reliance on these sources for water supply.
How has the water level in Lake Mead and Lake Powell changed from 2000 to the present day?
-The water levels in Lake Mead and Lake Powell have significantly decreased from being full in 2000 to approximately 25% today, reflecting the severity of water scarcity issues.
What percentage of water withdrawn in the U.S. is used for cooling electric power plants and irrigation?
-In the U.S., 80% of water withdrawn is used for cooling electric power plants and irrigation, showing the major consumers of water resources.
What is the expected increase in water demand by 2050?
-Water demand is expected to increase by 30% by 2050, indicating a growing pressure on water resources due to population growth and other factors.
What is the current global trend in freshwater scarcity, and which regions are most affected?
-The global trend in freshwater scarcity shows that regions such as Northern Africa, the Middle East, and South Asia are most affected, with a score of 100 on the scarcity index, indicating severe water shortages.
What is the controversy surrounding Nestle's water extraction practices in the U.S.?
-The controversy lies in Nestle's extraction of water from areas like Michigan and California, where it has been reported to take more water than its rights allow, especially during times of local water crises, raising ethical and environmental concerns.
What are the three ways to invest in water as mentioned in the script?
-The three ways to invest in water are by purchasing water rights, investing in water-rich farmland, and investing in water utilities, infrastructure, and equipment.
What is the process of desalination and how is it used to address water scarcity?
-Desalination is the process of removing dissolved mineral salts from water, primarily applied to seawater to obtain fresh water for human consumption or agriculture. It involves several steps including intake, screening, pre-treatment, reverse osmosis, post-treatment, and supply, turning seawater into potable water.
How has the cost of desalination changed over the past few decades, and what does this mean for its viability as a solution to water scarcity?
-The cost of desalination has dropped by more than half in the last three decades, making it a more viable and accessible solution to water scarcity, especially in regions where fresh water is scarce.
What is the significance of the statement 'only the paranoid survive' in the context of the water crisis?
-The statement 'only the paranoid survive' is used to encourage critical thinking and skepticism towards potential scare tactics related to the water crisis. It suggests that individuals should question narratives that may be used to manipulate or control them.
Outlines
🌊 The Looming Global Water Crisis
The script begins by posing the hypothetical scenario of a country under attack, but instead of conventional warfare, it suggests a water crisis as a potential threat. It highlights the limited time humans can survive without water and introduces the concept that water scarcity could be a significant global issue. The speaker references the movie 'The Big Short' and investor Michael Burry's focus on water as an investment, indicating a growing awareness of water scarcity. The United Nations is cited, predicting a 40% shortfall in freshwater supply by 2030, emphasizing the scale of the problem. The script also provides statistics on global water usage and the distribution of Earth's water, pointing out that only a small percentage is fresh and accessible for human use.
🌍 The Reality of Freshwater Scarcity and its Impact
This paragraph delves into the sources of freshwater, explaining that the majority comes from rivers, lakes, and reservoirs, with a significant portion from groundwater. It discusses the critical situation of water levels in major U.S. reservoirs like Lake Mead and Lake Powell, illustrating the tangible effects of water scarcity. The script also addresses the use of water in the U.S., particularly for cooling electric power plants and irrigation, and the rapid increase in water demand since 1960. The paragraph further explores the global freshwater scarcity trend, noting regions with the most severe issues and the potential implications for future conflicts over this vital resource.
💧 Capitalism and Technological Innovation in Water Solutions
The third paragraph discusses the role of capitalism and entrepreneurship in addressing the water crisis. It presents the perspective that companies and individuals negatively impacted by water scarcity will be motivated to find solutions. The speaker cites Michael Burry's investment strategy, focusing on food grown in water-rich areas as a means of water investment. The paragraph also touches on the potential of technology, such as desalination, to alleviate water shortages. Desalination is described as a process for converting seawater into freshwater, with examples of large-scale plants in Israel and the U.S. The script acknowledges the growth of desalination globally since the 1960s and the reduction in associated costs, suggesting a positive trend in addressing the water crisis.
🛠 The Debate Over Desalination and Future Outlook
The final paragraph presents a more critical view of desalination, noting its downsides such as high energy use, environmental impact, and the production of brine as a byproduct. It mentions California's stance against desalination due to environmental concerns. The speaker expresses trust in capitalism and technological advancement to overcome these challenges, citing examples of innovative water production methods and historical instances of weather manipulation, such as Operation Popeye. The script concludes with a call to question the use of crises for control and encourages viewers to consider the long history of human ingenuity in solving water scarcity, ending with a reminder to subscribe for more content on related topics.
Mindmap
Keywords
💡Water Crisis
💡Cyber Warfare
💡Bio Warfare
💡Nuclear Warfare
💡Fresh Water
💡Desalination
💡Water Scarcity
💡Water Rights
💡Water-Rich Farmland
💡Desalination Plants
💡Operation Popeye
Highlights
A potential enemy could attack the U.S. by exploiting a water crisis, emphasizing the importance of water security.
The average human can only survive three days without water, highlighting the critical nature of water availability.
By 2030, the world is expected to face a 40% shortfall in freshwater supply, according to a U.N. Water conference.
Globally, more than 4 trillion cubic meters of freshwater are used annually, with 71% of Earth's surface covered by water, mostly saltwater.
Only 0.65% of Earth's water is fresh and suitable for drinking and other uses, with 75% of it withdrawn from rivers, lakes, and reservoirs annually.
Lake Mead and Lake Powell, major U.S. reservoirs, have experienced critically low levels, dropping from full capacity in 2000 to roughly 25% today.
80% of water withdrawn in the U.S. is used for cooling electric power plants and irrigation, indicating the scale of industrial water use.
Investor Michael Burry, known from 'The Big Short', is focusing on water as an investment commodity due to the growing water crisis.
Desalination is a process that removes salt from seawater to produce fresh water, with the largest plant in Israel producing 137 million gallons daily.
The cost of desalinated water has dropped by more than half in the last three decades, making it more accessible for water-scarce regions.
Saudi Arabia produces 20% of the world's desalinated water, with 60% of its water supply being desalinated.
Investing in water can take various forms, including purchasing water rights, investing in water-rich farmland, and water utilities infrastructure.
Operation Popeye was a U.S. military cloud-seeding project during the Vietnam War, demonstrating the potential for weather manipulation.
Technological advancements and capitalism are trusted to find solutions to the water crisis, with companies and entrepreneurs incentivized to innovate.
The speaker encourages skepticism towards scare tactics related to the water crisis, advocating for critical thinking and questioning motives.
The video concludes with a call to action for viewers to subscribe and engage with the content, promoting further exploration of topics like vertical farming.
Transcripts
so if I was to ask you right enough an
enemy wanted to attack our country U.S
let's just say how would they do it you
may say well Pat they're going to do
cyber they're going to do bio Warfare no
they're going to do nuclear what if I
told you they could do it with water if
U.S had a Water Crisis and you and I
don't have water you know how long we
can go without water three days some say
up to a week but most studies say three
days and one of the biggest crisis we're
dealing with right now worldwide is what
a crisis when I show you some of the
statistics on what it's looking like
when you watch the movie Big Short if
you remember the movie Big Show with
Michael burry one of the biggest
investors at everybody worldwide follows
he's got this hedge fund called Scion
hedge fund that I think he manages
nearly two billion dollars you know
what's what it said at the end of the
movie they said Michael burry his next
investment and commodity that he's
focused on is only one thing and what do
you think it was water we're gonna take
a deep dive why so many people around
the world are worried about the Water
Crisis
thank you
okay so if you get value out of this
video give it a thumbs up subscribe to
the channel let's get right into it
according to a U.N Water conference the
world faces a 40 shortfall in fresh
water supply by 2030 and when we break
down water on how much we use worldwide
we use more than 4 trillion cubic meters
of fresh water per year and just to kind
of put that in context on how much 4
trillion cubic meters is one cubic meter
equals 264 gallons of water one cubic
meter so now let's continue Pat what do
you mean by all this water don't we have
all this water the ocean why should we
be worried about water 71 of earth's
surface is covered by water that should
be good news no well there's a
difference between what kind of water we
drink watch this 97 of Earth's water or
salt water two percent is fresh water
trapped in glaciers point six five
percent is the fresh water that we use
for everything such as drinking let's
focus on this 0.65 where do we get this
fresh water from here's what it looks
like 75 of it is withdrawn on each year
from rivers lakes and reservoirs 25
percent comes from groundwater aquifers
and 80 percent of water withdrawn in the
U.S is used for cooling electric power
plants and for irrigation so I just want
to give you a visual here when you look
at to the reservoirs the largest
reservoirs we have in U.S you'll see
Lake Mead and Lake Powell and if you
look at these pictures both of them have
experienced critically low levels
recently here's what it looks like in
2000 versus today in 2000 these two
reservoirs were full 95 they were full
today they're roughly 25 percent said
Brad Udall a watering climate scientist
at Colorado State University it's hard
to overstate how important the Colorado
River is to the entire American
southwest now you may say I'm not a math
cat look 95 just 23 years ago today 25
no matter what the numbers that's not a
good thing on what the numbers are
looking like where we've gone to where
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month so now let's take a look at how
much water we domestic basically have
been withdrawn since 1960 when you look
at this chart here's what it shows if
you look at the dark blue it's domestic
and Industrial then total irrigation and
livestock so obviously 600 increase
since 1960 that's 73 years ago to today
that's not a good thing to see however
70 percent of freshwater withdrawals are
used for agricultural purposes 20 for
industrial use the rest of the 10
percent used for domestic you and I
drink in Water by 2050 water demand is
expected to increase from 20 to 30
percent and by the way when we're saying
2050 I want to show you what the
comparable was of where we were in 2010
and what they're expecting to be by 2015
2010 1.9 billion people lived in
severely water scarce places and this
number is expected to increase to 3.2
billion by 2050. so now if you wanted to
find out where is the freshwater
scarcity Trend worldwide here here's
what we would look at if we look at this
chart here you will look at the numbers
to the right that says 100 so Northern
Africa 100 Middle East South Asia
they're not in a good place and second
Wars will be East Asia and you could
look at Southern Africa and if you were
to say which ones are the best you got
North America South America and
Australia Pacific all at 25 now when you
look at this you know the issue with
water there's been many scandals of
water over the years I'll give you one
of them especially with Nestle when it
was discovered that Flint Michigan's let
tainted pipes created a local Water
Crisis the government originally gave
out free bottled waters but it
eventually ended and at the same time
Department of Environmental Quality had
a prudent Nestle's request to increase
the amount of water it pumps from the
great lakes in the same month the state
decided to stop giving free bottled
water to Flint it was effectively
deciding to give away millions of
gallons to multinational corporation
besides a one-time five thousand dollar
permit application fee under Michigan
law Nestle the largest food and beverage
company in the world must pay the state
only 200 every year administrative fee
to bottle and sell 400 gallons a minute
of Michigan groundwater and that's just
Nestle in Michigan now let's look at
Nestle in California Nestle has
maintained that its rights to California
Spring Water date back to 1865 but a
2017 investigation found that Nestle was
taking far more than its share in 2020
the company Drew out about 58 million
gallons far surpassing the 2.3 million
gallons a year it could validly claim
according to the report Nestle has taken
on average 25 times as much water as it
may have a right too according to the
story of a stuffed project and
environmental group that has been
fighting to stop the bottle Water
Company's operation in California for
years while California is facing record
droughts and wildfires so now every time
there's a crisis there's opportunity why
because a capitalist or an entrepreneur
can come in and say let's solve this
problem if we can solve this problem
there could be a lot of incentives for
it as well so watch what's been
happening with this Matthew deseri the
president and co-founder of the hedge
fund water Asset Management that's
literally what it's called called the
U.S water business the biggest Emerging
Market on earth a trillion dollar market
opportunity in matter of fact like I
told you earlier even Michael burry at
the end of the movie and big short said
that his Focus had become on one
commodity and that is water here's what
he said in an interview in 2015.
transporting water is Impractical for
both political and physical reasons so
buying up water rights did not make a
lot of sense to me what became clear to
me is that food is the way to invest in
water that is grow food and water-rich
areas and transport it for sale in water
poor areas this is the method for
redistributing water that is least
contentious and ultimately can be
profitable which will ensure that this
redistribution is sustainable and he
said the following about wine those of
you guys that drink wine you ready for
this a bottle of wine takes over 400
bottles of water to produce the water
embedded in food is what I have found
interesting so it just tells you guys
that are thinkers they're going to see
opportunities to fix this problem which
means that's a good thing for us long
term there are three ways to invest into
water number one purchasing water rides
number to invest in water Rich farmland
and number three is invest in water
utilities infrastructure and equipment
so now one of the technologies that can
solve the problem is a process called
the desalination which is a process by
which the dissolved mineral salts in
water are removed currently this process
applied to seawater one of the most used
to obtain fresh water for human
consumption or agriculture purposes so
if you look at this flow here step
number one is seawater intake step
number two the intake screening facility
then it's pre-treatment filters then
it's reverse osmosis membrane units
remove salt and other impurities from
water in them step number five is post
treatment to drinking water standard
then you got step number six drinking
water supply tank and last but not least
step number seven seawater concentrate
Outlet all of this process turns
seawater into drinking water it looks
like a technical process but one of the
largest desalination plants in the world
is soric desalination plant is located
south of Tel Aviv Israel and it produces
137 million gallons of potable water a
day and the largest plant we have in the
U.S is in Carlsbad San Diego which
produces is roughly 50 million gallons
of water per day so this is all good
news because once you know the world
found out that this was a problem people
started looking into us and this started
in 1960 and if you look at this chart
here you'll see the growth of
desalination globally from 1960 to 2020
it's climbing and the cost of
desalinated water has been coming down
as a technology of all matter of fact in
the last three decades the cost of
desalination has dropped by more than
half and even globally more than 300
million people now get their water from
desalination plants from the U.S
Southwest to China but there are some
that focus on more than others such as
Saudi Arabia which produces 20 percent
of the world's desalinated water with a
9 million cubic meters produced per day
60 of its water is desalinated and
according to statista if you look at
this Saudi Arabia is investing heavily
in desalination here's what it's looking
like if you look at the left you'll see
Saudi Arabia at the top then it's UAE
Dennis Jordan Egypt Oman Morocco Tunisia
Algeria Kuwait and others so when you're
looking at this of course any way we see
as a solution you think about it and say
okay the future looks bad there's people
that are working on this now there's
certain people that say there's
downsides to desalination with one of
them being it uses a lot of energy could
be bad for the environment it hurts to
fish desalinated water is more expensive
than imported water and for every gallon
of fresh water created one and a half
gallons of salt water was created and
sent back into the ocean and some argue
that this is a problem and the state of
California has increasingly taken an
anti-disalination position citing
environmental reasons so so final
thoughts on this water on how I'm
processing it number one I trust
capitalism what I mean by capitalism
whoever is going to be negatively
impacted by this has to fix this so
let's look at drink companies who would
be negatively impacted by this coffee
relies on water so that's who Coffee
Bean Starbucks 7-Eleven soda is going to
be impacted by this which is who
Coca-Cola Pepsi all the other guys that
got to figure this out water companies
are going to be impacted there's so many
companies that are going to be impacted
by this if it got so bad they would all
gather their resources to figure out a
way to fight against the Water Crisis so
that's one there's too much money
involved that there's no way they're
going to allow this to happen number two
technology advancement I was at Harvard
one guy sitting there from Lagos and he
says here's what we created we're
raising money right now each plant is a
hundred million dollars and we're able
to raise this much money and if we do
this this is how many gallons of water
we can produce on a daily basis like
okay this is good it was a creative way
that they were doing it creating clouds
and all this stuff now very interesting
the way he was doing it it was very
different than desalination but outside
of that I only give you a project an
operation that the CIA worked on in the
60s called operation Popeye I don't know
if you've heard about this or not but
we've known how to make rain fake rain
look real for decades and we've kept it
kind of on the hush hush and we use
words such as allegedly but let me kind
of read this to you so you can kind of
get an idea what this operation Popeye
was about it wasn't about the Popeye
with the big Forum you're talking about
it's a different kind of a Popeye so
operation Popeye was a military cloud
seeding project carried out by the U.S
Air Force during the Vietnam War in 1967
to 72 the highly classified program
attempted to extend the monsoon season
over specific areas of the Ho Chi Minh
trail in order to disrupt the North
Vietnamese military supplies by
softening roads surfaces and causing
landslides the former U.S Secretary of
Defense Robert McNamara was aware that
there might be objections raised by the
international scientific Community but
said in a memo to the president that
such objections had not in the past been
a basis for prevention of military
activities considered to be in the
interest of U.S national security and
the chemical weather modification
program was conducted from Thailand over
Cambodia Laos in Vietnam and allegedly
sponsored by Secretary of State Henry
Kissinger and the CIA without the
authorization of then Secretary of
Defense Melvin Laird who had
categorically denied to Congress that a
program for modification of weather for
use as tactical weapon ever existed so
remember keyword allegedly right
allegedly that this happened but if
that's something they did back in the
days and it turned into a story like
this that means there's plenty of people
that have the technology that if they
really wanted to create rain and even
Michio Kaku had on the podcast before we
interviewed him he was once sitting down
and I think it's with good morning USA
Good Morning America whatever the show
is and he's explaining to them how
through Laser Technology they're able to
manipulate to create rain and this has
been around for a long time and we can
do this today so again advancement I
trust it's out there capitalists I trust
are going to figure out a way through
using technology and I just want to put
this one thought in your head for you to
be thinking about because I truly
believe only the paranoid survived which
is what Andy Grove said FDR once said
the following in politics nothing
happens by accident if it happens you
can bet it was planned that way why am I
saying that quote to you if in the
future you all of a sudden find yourself
with news that's being shared to you to
scare you with Water Crisis and this is
why we have to whatever shut down eat
you know mosquitoes or eat this or eat
that or whatever way they're going to
try to figure out to scare the hell out
of you always go back to wait a minute
we've been able to create rain we've
been able to do all this stuff for so
many different decades why are you using
the scare Tech they just go back to you
know what the solutions are put that
together don't use another crisis to be
able to control me and scare the crap
out of me so I can vote for you be
tempted to question and push back when
somebody uses that crisis against you
having said that if you got value out of
this video give it a thumbs up and
subscribe to the channel if you've never
seen the video we did on a vertical Farm
an Incredible video we did on vertical
farming it's another crisis that has to
do with farming if you've not seen it
click here to watch it take care
everybody bye bye
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