Mr. Jeff Rubin, former CIBC Chief Economist and author of the business book, Why Your World Is About To Get  A Whole Lot Smaller, spoke at Vancouver’s CFA Day on June 9.  Mr. Rubin is well regarded for his strong views and bold predictions on the price of oil, interest rates and the Canadian dollar. 

Central to Mr. Rubin’s economic thesis is that that global economic growth and increased demand for oil are indivisibly linked.  Any spike in oil prices poses a threat to economic growth.  Also key to Mr. Rubin’s outlook is that demand for oil and other key commodities will continue to outstrip new supply.  The result will be higher oil and commodity prices and a dramatic flow of wealth away from nations who are net importers of oil and commodities towards the net exporters. 

For Canada, such trends will push the Canadian dollar above $1.20 per $US.  Mr. Rubin also postulates that high oil and commodity prices will elevate inflation and as a result he is very bearish on long-term bonds. 

Mr. Rubin’s presentation sparked plenty of questions and debate.

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