How many ports across how many countries does a piece of “fresh” salmon pass through before it lands on our dinner table? What is the cost of steel imports, not in terms of Chinese labor but in terms of the energy costs required for transport from China?
Jeff Rubin, former chief economist at CIBC, joined us to discuss the impact of oil scarcity on globalization and to promote his new book, “Why Your World Is About to Get a Whole Lot Smaller.” Rubin predicts that oil prices will return to triple-digit ranges within twelve months of economic recovery and will consequently alter our current oil-intensive world economic structure. With high oil prices, the amount of food and other commodity goods we get from abroad will be curtailed and long distance travel will be rare. Globalization is energy intensive and cannot continue along current trends. Such change, Rubin insists, is not apocalyptic, but rather should serve as our wake-up call to create local and sustainable lifestyles.
Listen to the complete audio recording here.