Stephen Leeb, the author of this book, has a BA in Economics, MSc in Mathematics and a Ph D in Psychology. He edits the prestigious newsletter 'The Complete Investor'.
In 2004, Leeb wrote the book "The Oil Factor", in which he predicted that oil will cost $100 a barrel. A few months ago, the book's prediction was prophetic!
In 2006 he came out with this book predicting the 'coming of an economic collapse' again emphasising on the risks of an ever-increasing oil price . His prediction is that if the addiction to oil is not addressed by the development of alternative energy, this civilisation will collapse. He reasoned that several previous civilisations (the Romans and the Pacific Islands communities) had collapsed due to the depletion of commodity resources that helped sustain those communities. And depleting oil resources to feed especially from the demands of emerging Chindian economies and a neglect in the development of alternative energy, to his mind, will be the cause of collapse of the current civilisation.
Leeb, I believe, belongs to the same school of investors, like Jim Rogers ( the commodities guru), who advised that we should be investing in commodities ( gold and other precious metals as a hedge to increasing inflation), agriculture and, since oil will be a depleting resource, in alternative energy.
Today we are facing an economic collapse..but it is not from a depleted oil supply. It is collapsing from a financial crisis brought about by the subprime mortgage failures! And oil price seems to be falling. Does his arguments still stand?
I belive so. you have to read the book to make your own conclusions.
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