What do subprime mortgages, Atlantic salmon dinners, SUVs and globalization all have in common? They depend on cheap oil.
According to Jeff Rubin, we are poised on the brink of massive change. Dependent as it is on cheap oil, our global civilization is about to get the shock of its life.
Systems of trade, of finance, of shipping and manufacturing, of labor and international relations are all about to be rearranged. Get ready for a new world -- one in which domestic manufacturing will be reinvigorated and the products and services we still enjoy will start coming from places much closer to home. There will be winners as well as losers when the age of globalization comes to an end. Distance will soon cost money, and so will burning carbon -- both will bring long-lost jobs back home.
We may not see the kind of economic growth that globalization has brought, but local economies will be revitalized, as will our cities and neighbourhoods. Whether we like it or not, our world is about to get a whole lot smaller.
Jeff Rubin was Chief Economist at CIBC World Markets for almost twenty years. He was one of the first economists to accurately predict soaring oil prices back in 2000 and is now one of the world's most sought-after energy experts. Rubin published Why Your World Is About To Get A Whole Lot Smaller: Oil and the End of Globalization in 2009.
Economist Jeff Rubin says that triple-digit oil prices will affect more than consumer behavior at the pump in the coming years. Rubin predicts that the rising price of oil will spell the end of the globalization boom that cheap oil has fueled over the past few decades.