Filed under: Fossil fuel
CIBC World Markets, the Canadian-based international bank, has just released two very sobering forecasts.
Getting Off the Road: Adjusting to $7 Gas in America predicts $200-per-barrel oil by 2010. By 2012 Americans will cut their miles driven by 15%, as 57 million commuters crowd onto overtaxed public transport systems. Sales of oversize vehicles — SUVs and light trucks — will plummet 50%.
What will that do to the economy? Oil and Growth: That 70s Show Rerun predicts it will drive inflation and therefore higher interest rates. The result will limit real annual growth to about 1% — what economists call stagflation, where unemployment rates and inflation rates drive a rising “misery index.”
The only bright spot will be continued spectacular growth in renewable energy and electric transport. Better invest now.
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