“We’ll obviously see a lot less immigration in countries like Canada the U.S. and Europe. We’re going to see a return of the local economy, a resurgence in manufacturing and agriculture. We’re going to see a shrinkage of the financial sector.”
Jeff Rubin has a message for all the economists and central bankers out there, waiting with baited breath for rock-bottom interest rates to kick the world economy into high-gear: it’s not going to happen, and the sooner you realize that, the better.
As the straight-shooting former chief economist of CIBC World Markets argues in his new book, The End of Growth, triple-digit oil prices are here to stay — a reality that will make it impossible for developed economies to return to the glory days of rapid expansion built on cheap credit and affordable fuel.
But as Rubin sees it, that’s not all bad news. Though he predicts permanently tepid growth will push Greece and Portugal into default, he also says it will reverse globalization, stop climate change in its tracks — and put a limit on oil sands expansion.
It’s a view he concedes might not be very popular among those in the financial industry where he made a name for himself. But he says that’s because they’re still using a playbook that no longer makes sense.