Fascinating thought … REVERSE Globalization … this was the topic in a recent entry by Tyler Hamilton in the Clean Break Blog in the greenliving network … Tyler commented on the idea that the global energy outlook was being driven by our present financial crisis causing decreased demand, lower investment in needed infrastructure, and the drying up of funding for alternative fuel sources … this will all contribute to an even larger crisis developing when the global economies pick up … by the way, the pickup happening is simply a question of when and not if …
Former CIBC chief economist Jeff Rubin, whose new book Why Your World Is Going to Get a Whole Lot Smaller hit the market this week. He proposed that peak oil production has already been reached and the world situation in the near future is getting increasingly dim because of the introduction of the $2000 car by Tata of Indian and the insatiable appetite of the Chinese for automobiles. Rubin further believes that the scenario will be playing itself out in the near term … fuel prices going back to triple digits, inflation putting pressure on the economy like the 70’s, and a shift towards urban living with collapses in housing in the suburbs. Proximity supply will be the only answer to the skyrocketing costs of transportation. The shift will occur that will effectively become the deathblow for the globalization that has run rampant for the last 40 years … no longer will the cheap production rule the pricing as the shipping component becomes the dominant driver.
“Oil prices are destined to once against skyrocket into triple-digit territory, and the impact will be inflation on everything, including our food and the fuel we use to drive our cars and heat/power our homes. In fact, gas prices will become so high that people will be forced to ditch their cars, housing prices in the suburbs will plunge, urban areas will grow more dense, and there will be a renaissance in local agriculture and urban farmers’ markets …”
Next topic … urban farming …
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