Peak Oil: An Inflationary & Deflationary Perspective

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Nicole M. Foss is co-editor of The Automatic Earth, where she writes under the name Stoneleigh. She and her writing partner have been chronicling and interpreting the on-going credit crunch as the most pressing aspect of our current multi-faceted predicament. The site integrates finance, energy, environment, psychology, population and real politik in order to explain why we find ourselves in a state of crisis and what we can do about it. Prior to the establishment of TAE, she was previously editor of The Oil Drum Canada, where she wrote on peak oil and finance.

Her academic qualifications include a BSc in biology from Carleton University in Canada (where she focused primarily on neuroscience and psychology), a post-graduate diploma in air and water pollution control, the common professional examination in law and an LLM in international law in development from the University of Warwick in the UK. She was granted the University Medal for the top science graduate in 1988 and the law school prize for the top law school graduate in 1997.

On this week’s Financial Sense Newshour, Nicole Foss and host Jim Puplava discuss the deflationary aspects of peak oil that Nicole sees coming in the years ahead. Nicole writes under the name Stoneleigh for her blog, The Automatic Earth.

Jeff Rubin, after twenty years as Chief Economist for a North American investment bank, it was time to seek a larger audience for the story he needed to tell. Jeff’s predictions of steadily rising oil prices over the last decade, including his call for $100-per-barrel oil by 2007, had flown in the face of conventional wisdom.

Among other things, Jeff’s track record on predicting rising oil prices demonstrated that the traditional laws of supply and demand were no longer working for one of the economy’s most basic and essential commodities. And when they stopped working, the consequences for the economy would be severe. It wasn’t subprime mortgages but triple-digit oil prices that brought down the world economy. And unless that economy started to wean itself off an ever-depleting supply of affordable oil, there would be other recessions to follow as economic recoveries would simply push oil prices right back into triple-digit range. But weaning our economy off oil meant, at the same time, making fundamental changes in the way we live.

This is not the kind of message investment banks want their chief economists delivering these days, to either governments or investors. But the urgency of this message grows with every passing day.

On March 31, 2009, Jeff Rubin resigned his position as Chief Economist and Managing Director of CIBC World Markets to deliver this message in his book, Why Your World Is About To Get A Whole Lot Smaller: Oil and the End of Globalization.

This week on the Financial Sense Newshour, Jeff Rubin joins host Jim Puplava to discuss peak oil. Jeff, an energy economist who writes the blog SmallerWorld, discusses the recent ASPO conference, and other significant peak oil issues.

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About James J Puplava CFP