Former CIBC economist Jeff Rubin couldn’t make it to Lisbon for the Portuguese launch of Why Your World Is About to Get a Whole Lot Smaller: Oil and the End of Globalization.
But he’s taking the opportunity to harp on peak oil. The past week’s chaos could become standard when rising prices make air travel impractical.
[It’s] not just people who aren’t able to get around. A good chunk of the global food supply chain also relies on air transport to ensure worldwide distribution. Think of all the havoc caused by broken supply chains in our interconnected global economy. From fresh pineapple from Ghana to fresh flowers from Kenya, Northern Europe’s already beginning to notice the disruption from the loss of air freight. The Freight Transport Association in the UK recently warned that British supermarkets could soon start running out of imported fruit and vegetables if the air embargo continues much longer.
Of course, the wind could change or the volcano could suddenly stop belching and all could quickly return to normal. But while it lasts, take careful note. It may well be a dress rehearsal for what lies ahead. What volcanic ash is doing today, triple-digit oil prices will do tomorrow.
Rubin expects triple-digit oil by year end, so get used to being stranded.
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