The Near Term Economic Effects of Peak Oil

sparky · Tar Sands Joined: Apr 09, 2007 Posts: 77

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A farmer who go broke is a farmer who borrowed ,
as Mr bill said

" But what the genuine farmer cannot afford to do is to pay those inflated prices if long-term he has to generate enough of a return on that land to pay back his or her credit using only income generated from the farm. So in the short-term he may be out bid. "

while farming will easily outbid the city folk for oil products they can't out-bib them for cheap credit . I'm not quite sure why Surprised

but the price differential between urban land and farm land is a good indicator , it's probably around 50 / 1 , being re-zoned is for the land owner like winning the lottery ,
a belt of vegetable producers around the big cities was a common feature until the age of oil AKA... the transportation revolution
It made distance a lesser factor than labor price .

An Australian ( ? ) saying
the fastest way to loose a fortune is gambling ,
the nicest is women
the surest is farming

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4tangent · Coal Joined: May 10, 2008 Posts: 2 Location: England

I am a confirmed peak oil believer and I watch every day as the oil price climbs and wonder if this is the beginning of it. Ofcourse it could fall back and the true beginning of the peak oil event may not start for another 10 years.That is what is so fascinating. How will you know when it is really kicking off? What will be the signs? And then what should we do when it starts to get ahead of the game.Getting a smaller car is obvious. But what about the impact on international travel costs.How soon does it become uneconomical to buy Chinese goods for instance How soon does imported food dry up.Will the value of my money slowly decline or will it crash. What can the individual do?

Ludi