[DesuMaiden]

I'm 24 years old. I was born in the early months of 1990. I was wondering when oil will become too expensive for the ordinary person to use. When will driving a car or traveling in a plane become too expensive for the average person? Will I be able to see that day?

I feel rather unfortunate being born near the end of the age of oil. If I was born in the 1950s, I would be born in the middle of the age of oil, so I wouldn't be too concerned about the end of the age of oil. Or if I was born in the 1930s, I would be in the golden age of oil. And I would never have to worry about the end of the age of oil because I would be dead by the time we run out of cheap oil.

But unfortunately, I was born in 1990, so I will have to experience the full consequences of the end of cheap oil. I will experience the economic depression that follows the end of cheap oil. I will see the civil unrest that will happen as billions of people starve to death as there will no longer be enough food. There will be drastic decreases in food production when we run out of cheap oil, so I expect mass starvation sometime in my life time.

Will I be able to see the end of the age of cheap oil??

[Loki]

The end of cheap oil was about 6 years ago.

There will be no single date that marks when regular folks can no longer afford gas/diesel. Those at the bottom of the economic ladder already have a hard time affording it, and eventually won't be able to afford it at all, while those at the top will likely be buying it without worry for the rest of your lifetime.

I wouldn't worry too much about mass die off, that's fantasy stuff. Be more worried about staying employed. When you become unemployed and are unable to find another job, that's when you can no longer afford gas. So develop as many employable skills as possible.

[DesuMaiden]

$this->bbcode_second_pass_quote('Loki', 'T')he end of cheap oil was about 6 years ago.

There will be no single date that marks when regular folks can no longer afford gas/diesel. Those at the bottom of the economic ladder already have a hard time affording it, and eventually won't be able to afford it at all, while those at the top will likely be buying it without worry for the rest of your lifetime.

I wouldn't worry too much about mass die off, that's fantasy stuff. Be more worried about staying employed. When you become unemployed and are unable to find another job, that's when you can no longer afford gas. So develop as many employable skills as possible.

[DesuMaiden]

$this->bbcode_second_pass_quote('pstarr', 'W')hat is not obsolete is motivation and guidance. You can find neither on the internet, rather you will find diversions like this place. And dirty pictures. What a waste. 10 years of my life wasted on this dribble. I shoulda got a degree. What was I thinking?

[GregT]

Human beings have lived happy, healthy, and productive lives for tens of thousands of years before the 'oil age'. There is no reason why you cannot do the same.

Learn a trade. An Electrician comes immediately to mind. Learn how to be as self sufficient as possible. Learn how to grow your own food. Get involved at a community level. If that is not a possibility where you live, then move.

In all likelihood, petroleum will not be available to most people within your lifetime. You do have an advantage though. The fact that you are thinking about the implications, puts you miles ahead of the masses. Do your homework. You need to figure out what makes the most sense for you. Keep your head up, and you will find a positive outcome. Life isn't all about oil.

[alokin]

Isn't it a good thing that oil is running out? With our quest for growth and consumption we are destroying the planet and with it our souls. There has never been a higher rate of drug abuse, prescription or illegal, mental illnesses, broken families and unhappy people than now. Our pursuit of happiness did not succeed as it was driven by destruction. Man, I would like to be a bit younger than I am!

[vtsnowedin]

$this->bbcode_second_pass_quote('alokin', 'I')sn't it a good thing that oil is running out? With our quest for growth and consumption we are destroying the planet and with it our souls. There has never been a higher rate of drug abuse, prescription or illegal, mental illnesses, broken families and unhappy people than now. Our pursuit of happiness did not succeed as it was driven by destruction. Man, I would like to be a bit younger than I am!

[KaiserJeep]

I'm 63 years old, I was born in the late months of 1951. As late as 1970, you could still fill your tank for less than $0.20 per gallon of regular grade gasoline, complete with Tetra-ethyl lead additive which was great for avoiding spark knock and lubricating valve seats.

IMHO oil passed affordability in 1971 when it blew by $0.20/gallon in the MidWest. I mean, you used to be able to sit in your car while a bevy of uniformed attendants checked under the hood, put air in the tires, cleaned the glass, and then gave you change for your single $5 bill.

I remember when "gasoline filling station" owners painted a "1" on their mechanical pumps when the unheard of, never before imagined spector of gasoline costing MORE THAN A DOLLAR A GALLON appeared. They had to modify the pumps for 4-digit prices, we have always sold gas in $0.001 price increments.

Today down on the corner near my house, it would cost me $4.369 a gallon, and I remember the price peak of $5.359 a gallon a few years ago. Today filling the wife's Jeep Grand Cherokee can break the $75 mark if the tank is empty.

Understand that although oil does cost more today than in the 1970's, the primary reason that the price of gasoline has surged 3000% in my lifetime is that our currency is inflating. As a penniless college student, I saved loose change to fill the tank of my thirsty V-8 Chevy Malibu, today I swipe a credit card in an electronic gasoline dispensing machine and the profit margins are so small, they make me pump it myself, while wincing at the total.

I remember candy bars that cost a nickle and loaves of bread that set you back $0.15. First class postage cost you $0.03 per letter and brand new American cars were UNDER $1000.

The main effect of a government that spends more than it brings in as revenues is currency inflation. It is the central economic factor you have to deal with, in the future as it is today, or back in the 1950's.

I'm just about to cash in the house I have lived in for 28 years, the prime asset I own, and the third time I had a 30-year mortgage. Then I will pay far too much money for a few very expensive acres on the shore of Lake Michigan, and build a house that will cost more than TEN TIMES what I paid for my first home, which me and my wife both worked to pay for, and could barely afford.

Learn to live in a world with elastic currency is all I can tell you. In a world where the value of my house went up 600% while I lived in it, my salary only increased 500%, and I could not today afford to move to Silicon Valley at the end of a 35 year career. Whenever you sit on your cash, it is shrinking. When I moved here in the 1980's, you could buy groceries for $15 a bag, and they gave you the bag. Yesterday the wife and I handed them our reusable bag and paid $130 to fill it because we were buying a week's worth of meat. Invest your money in highly desired real estate, or fabulous red Italian sports cars that appreciate rather than depreciate, or in vacations that build memories. Don't keep it in a bank, that is for fools.

Come November, remember that those who prepare and then blow government budgets at local, state, and national levels have more impact on your life than anything else in this world. Maintain a grownup interest in Politics.

[ROCKMAN]

KP – Me too you old fart…born ’51. LOL. But let’s be fair and look at inflation adjusted gasoline prices. http://bigpicture.typepad.com/comments/ ... ic_nyt.gif

A tricky adjustment for sure but it needs to be accounted for. When I started at Mobil Oil in 1975 I was making $12/yr and the IAP of gasoline was a bit over $2/gal. At the IAP peak of 1979 of $3/gal I was making over $30k. Today I’m making considerably more and fuel is about $3/gal: cheap gasoline now for me relatively speaking. Even $6/gal wouldn’t be too painful for me. But for lots of other folks it would. But for our new cohort fuel prices have doubled since the 90’s. Actually doubled since about 2002.

Good for oil to run out? Hmm…let’s recall what happened when a number of societies, such as in Germany and Japan, had their economies suffer in part due to a lack of energy. Hmm…I seem to recall about 70 million people dying. It’s truly shocking to me how naïve some people are to think that as oil/energy becomes increasing scarce/expensive that the world will quietly slip into acceptance. I’ve never been a history buff per se but I’ve seen enough John Wayne movies to know that such an attitude is absolute bull sh*t. LOL. I doubt many will find comfort in the anticipation of the catastrophic death of hundreds of millions from the combined factors if they and the folks they care about aren’t amongst the “survivors”.

I forget who made the point years ago that man is trapped in the “war cycle” because younger generations that haven’t lived through such periods have difficulty believing it would ever happen to them. The site of beach erosion due to global warming would be unpleasant. But so is the sight of crispy critters smoldering in the midday sun. And as more of us old farts that have no trouble remembering (despite our best efforts to forget) slip away there are fewer voices to remind "the kids". And John Wayne movies aren’t shown as often either. LOL.

[KaiserJeep]

Rockman, remember that official US government inflation figures are tied to the prices of "durable goods" only. They deliberately exclude the cost of "consumable goods" such as gasoline and food from the inflation numbers, apparently based on the incredible idea that money spent on food and gasoline is actually disposable income.

When I build that new home, I am seriously considering an "off the grid" doomstead, and an "energy plus" photovoltaic (or perhaps wind charger plus photovoltaic) power generating setup with enough extra juice to have a Level 2 charger to run an Electric Vehicle.

[Paulo1]

Kaiser

re: "Invest your money in highly desired real estate, or fabulous red Italian sports cars that appreciate rather than depreciate, or in vacations that build memories. Don't keep it in a bank, that is for fools."

I take exception to this statement. First of all, despite the last several decades of hidden inflation, in a big downturn (which I absolutely cannot imagine will be avoided), cash is king.

My wife and I moved to a more rural area that my townie friends made jokes about. At work they would ask me about the new place and hum the Deliverance theme. When they now visit they watch the river flow by or look at the mountains and eat our meals that we catch or grow oursleves. Last week we fed a group of 10 friends sockeye salmon steaks and elk roast with all the trimmings...the wine was cab sav I made in 2010 with WA grapes. I sold our town rancher on 1/2 acre and bought down and renovated and rebuilt. I worked my ass off and saved. We now have 16 acres next to the riverside home and cash in the bank.

The cash is in term deposits that barely keeps up with inflation. It is insured against loss and is with a solid local credit union. It is a lifejacket and provides choice. If rapid inflation arises we can always pull it out and buy some more property or a rental. In actual fact we are waiting for our neighbours place to come on the market which it probably will in 3-5 years. If we used the money for memory vacations or bought luxury investments we lose all options unless we borrow money.

I have always been a saver and careful investor. I have never bought anything that I did not already have the money set aside except for two modest houses. That attitude and our lifestyle allowed me to retire at 57 and my wife at 55. Saving money is most definitely 'not for suckers', nor is living within/below one's means. It has been a fantastic and enriching life.

Saving money also provides freedom in many ways. Back when I was still flying for a living my boss started to piss company money away with grandiose projects. We came to disagreement about 'his' business after he was forced to lay off several of my co-workers. One day I had it out with him and walked away. I have never looked back. I have always called a savings account "my 'fu%! you money." It was like having popeye spinach in the cupboard knowing you could pick the time to walk away from a job.

Paulo

[KaiserJeep]

Paulo1, neither of us knows what is about to happen. I personally believe that as things start to swirl around the drain, and considering the number of senior citizens that are now collecting government money to live on, that we will pass from mere inflation to hyperinflation, as the politicians spend more and more money trying to preserve the lifestyles of the seniors - and their votes.

To understand the difference between mere inflation and hyperinflation, read the history of the Weimar Republic from 1921 to 1924: http://en.wikipedia.org/wiki/Hyperinflation_in_the_Weimar_Republic .

[RepublicanfromEngland]

Kaiser Jeep's life facts were an interesting read. Your country was prepping Astronauts for the moon back in that era. And now eighty plus year old former Apollo 17 commander Mr Cernan is having space flight dominance hubris.

He thinks an outpost on the moon is the key to a better future here on Earth, and well he'd no longer be the last person to step foot of the surface aboard challenger.

I just ordered a pizzia via a website now that is sure one example that could disappear some day, a trivial loss but certainly a decades old alternative to a home dinner.

[Paulo1]

K Jeep,

I certainly understand hyper-inflation very well having taken scads of history courses over the years and being a ww2 buff. I also acknowledge what a wheelbarrow of marks look like for a loaf of bread. Terrible stuff, for sure. Zimbabwe nightmares.

My folks were Depression era kids and both were at Normandy...Dad a supply officer on beach landings and my Mom an army nurse following behind. I grew up on Depression stories, but never war stories as they were much worse. From that childhood and some of my own tough times I had when my kids were young I have always lived prudently and tried to instill those same values in my children. Indeed, debt equals servitude and there are no shortcuts in life as far as I'm concerned. If people want freedom of choice and freedom to live as they wish...then stay out of debt.

I used to think hyper-inflation was inevitable, too. In fact, for years I despaired about it. Now, I think we will have deflation and decline. I think the printing solution has been done to death for the time being. Today's 1% drop in the Dow certainly links loose money with bubbles. All I wanted to say is that saving money and living wisely is not for chumps and there is no hyper-inflation in NA, yet. When or if there is I will buy more land. Until then it is safe in the bank and NOT in the Market.

The best preparation for any future is health, a supportive family, and good friends...and then add on your personal favourites. I think it is a good idea to add to this list; solvency with cash reserves, arable land in a good country with a liveable climate, vocational skills, tools and stores, food frozen and canned, energy source for heating and cooking, and a means of protection and safety without being weird about it. Dream vacations and fancy collectible cars are not on my list, although I do have friends who have done precisely that.

When you do build up north on the lake I hope you keep us posted on your progress. I have found other's personal solutions to these limits and changes we are witnessing to be both inspiring and valuable. Over the years a few psoters have 'chucked it all' and headed into their future with almost nothing. The posted for awhile and then stopped. I have always wondered how they made out? Then, there are the 'settlers type', of which I guess I belong. Most of us acknowledge decline is in the cards, however, there are so many adaptions possible it is almost exciting to imagine.

regards Paulo

[Pops]

I'm not sure how many times it needs to be said, no one wanted Marks, everyone wants Dollars, this ain't Germany, we don't owe reparations and the dollar is the leading reserve currency in the world -

There won't be hyperinflation.

In fact, the dollar has risen 11% since june against the basket and against gold as well.

and why is that?

Because of deflation. Actually deflation that is starting to get a little scary. Once people start getting scared and holding on to dollars you get the bad spiral where everything loses value compared to the evil paper money - which disappears into the mattress.

That was the Depression.

I'll laugh a little at all the years I've endured the goldbug ads.

[Loki]

$this->bbcode_second_pass_quote('KaiserJeep', 'R')ockman, remember that official US government inflation figures are tied to the prices of "durable goods" only. They deliberately exclude the cost of "consumable goods" such as gasoline and food from the inflation numbers