Looking at Energy Bulletin, I see that Matt Simmons is still talking about $190/barrel oil and that farmers don't have the cash to invest in next year's crop:

For farmers, a Katrina-like disaster is building. It will soon swamp many family farming operations. Astronomical fuel prices, fertilizer and chemical costs have reached the point that even a modest profit is impossible.

Farmers are receiving the lowest price for commodities that myself or most farmers can remember. Farmers are a proud group, usually not willing to protest. This time, I hope someone is listening. We are literally at the end of the turn row. That's a metaphor for desperation. Agriculture is in serious trouble.

And the Falls Church News-Press has this nugget:

Spiraling costs of materials combined with a frenzy of activity is driving up costs of construction projects throughout Northern Virginia, ...

But, everyone I work with is living as if there are no problems.  Our main office had an open house last week, so we all drove there together.  One lady talks of her son applying to Ivy League schools.  The other guy's wife is expecting a second child.  My immediate boss wants to upgrade to digital cable.  Meanwhile, I'm consolidating and cutting back on everything.

I walk down the street and through the stores and feel oddly removed, as if I have to remember all this because it will be gone soon.

I share your feelings donal; it's eerie. The reports from farmers in several different sectors of the country are crucial. Even if fertilizer costs dip, they will only return to their upward trajectory to a point where no farmer will employ them if they want to remain profitable. The conclusion to be drawn regarding the sustainability of IndustroAg is even clearer as the Cassandras are proven correct.  
That feeling you talk about is nauseating.

And more and more, people are regarding PO as crackpot. The geology profs at the University where I work seem indifferent. I don't know, maybe they're just being like me, biding their time, keeping their mouths shut, staying out of debt, keeping their old cars and motorcycles tuned up, replacing all incandescent bulbs with compact fluorescents, cooking their own food and not eating out, planning a bigger garden next year.

As a tiny farmer (a few cows and horses, chickens and turkeys), I can attest to skyrocketing grain prices. I can't imagine trying to raise a large batch of turkeys. I'm becoming mostly self-sufficient, with an eye toward a future community supported farm. If things don't implode too rapidly.

The Brick Wall Simmons talks about will have a lot of toothy smiles embedded in it.

I agree, it's really strange that so few are aware of all the dark clouds around us. I find it very hard to talk about any of the problems of today without being considered in the 'doom and gloom' catagory.

I applaud you for your personal actions and preparations!

I wonder, how many out there have a personal plan to provide for their own and their loved ones basic sustenance and safety in case of a natural or manmade emergency?

How many of you have a 'Plan B'--caring for yourself and your family for 3 days without outside assistance?

What about 'Plan C'--caring for yourself and your family for 2 weeks with just what is available in your local area without access to stores or government assistance?

And along that thread, Plans D, E and F---caring for your family for extended periods of time if the really 'doom and gloom' possiblilities discussed in TOD were actually to happen?

Glad to hear that you are already planning for D,E & F!!!

It's not just 'hillbillys' and 'hicks' that live in the country. A number of professional people have moved into rural areas over the years to escape the stress, crime and chaos of urban life. AND---a much larger number have developed retreats and cabins to "get away from it all!"

Let's add to the basis of the eerie sense of normalcy brought up by Donal the fact that gasoline prices have dropped nearly to their levels prior to the havoc wreaked upon them by Katrina.  This is the basis for real cognitive dissonance:  How can this be happening, yet at the same time a real danger exist of crippling fuel shortages this coming winter?
I take a weekly trip to my local Costco, ( the Sam's wholesale center moved 15 miles down the road to the expensive side of town, I only visit them once every two months, they used to be 3 blocks away, I have a business card with them.), the eilses are full of Christmas Stuff, Lots of folks have carts piled high, I see the joy on their faces.  Some of them point to the new posted LOWER price of Gasoline out at the pumps, as they drive their big shiny new SUV's and Luxury cars over to get fueled up.  

I usually Buy cheese and eggs, and cat food.  I try to slap my hand at other things, Because I know the Shiny NEW things are just an Illusion.  This is the Make Believe World where Nothing Is Going Wrong.

I recently had a Trip with other Elder's in My "Lutheran" Church.  Most of them are business owners who have houses that mine could fit in the garage's of, Have weekly budgets that make my Monthly budget look sick.  They know something is up, but they couldn't get a handle on it.  They knew that the housing bubble just can't last, They knew that something is going to fail, just not what.  I told some of them privately that the "something" was energy.  Only to get that look of "Technology will save us", but being Christians they also knew that even if the troubles ahead are going to be dire, that we as a group had to help the helpless.  It did bother me that "they" knew something was up, but were still planning on a status quo future, just like in years past.

I don't worry about many things, including this.  I just warn who I can, and get prepared to help the folks that will need it sooner or later.

But the weekly visits to the shiny world of Tomorrow Land, is a good free vacation every week, You all should TRY IT!! Great Fun, Free Samples and Lots of Toys for the Kids to play on while you Dream of a new Tool for the Tool box.

I'm having a hard time trying to understand this.  I had always thought that when fossil fuels-based costs went up, farmers would always be able to pass them thru to their products, just because eating is the most basic human need.

Basically, if chemical costs go up, it affects both farmers and toy manufacturers, to choose just two examples.  Both sectors raise their prices.  When consumers have to choose, which product will they buy?

If US farmers cannot raise the price of their products to at least cover rising costs, and moreover they are receiving the lowest price in history, the only explanation I can find is that there is excess worldwide supply and much of the non-US part of that supply is not being affected by rising costs.  You should find out what other countries export the products in question and whether they subsidize their internal energy prices.

The good news is that, in the long run, that cannot be sustained, as all competing countries will feel the energy squeeze.  The bad news is that in the long run you will be bankrupt if you do not get a government subsidy now.

BTW, learning about peak oil made me see the wisdom behind governments subsidizing agriculture particularly in Europe.  Hadn't they done that, foreign competition would have driven farmers out of business and turned their land into golf courses.  And after peak oil, when that land  had to be put again into farming, the skills would not longer be there.  (Of course, I very much doubt that politicians did that out of that level of foresight.)

I think you've got it right in considering world-wide produce suppliers. I opened a juice box for my little cousin today. . . " contains concentrates from China, Poland, and Italy" mmmmm good old applejuice. meanwhile, my neighbor is trying desperately to keep his 72 yearold family apple orchard profitable.

I seem to recall that the US gives the lowest level of subsidies for agriculture compared to most other major agrricultural producers( Chile, European Union, etc. . .)

My only suggestion is to lobby your gov't reps. election years make for stronger voter leverage :)

In support of sneakpeak's comment: "I think you've got it right in considering world-wide produce suppliers. I opened a juice box for my little cousin today. . . " contains concentrates from China, Poland, and Italy" mmmmm good old applejuice. meanwhile, my neighbor is trying desperately to keep his 72 yearold family apple orchard profitable. "

Here in Lithuania, we finished the apple harvest a week ago. If I recall correctly, the going wage rate in the countryside was 14 Lithuanian cents (5 American cents) per kilogram of apples. How many Americans would even get out of bed for that wage?

And no subsidies are involved -- this is a branch of agriculture that hasn't (yet) been sucked into the EU bureaucracy's vortex.

I understand that feeling too.  Feeling disconnected is not all that new to me, but it is increasing rapidly now.  One group will turn out to be right, probably with serious consequences.  I look around, and everything seems so normal.  The stores are indeed still full of new goods, and I am still tempted by the life-long habits of consumerism, but I resist.  I no longer believe that I will finish my career as an engineer - with another 20 to 25 yrs to work, it just seems very unlikely, especially with a 45min commute.  But it does not bother me - I have the skills to build and fix things, we have relocated to property with land and water and wood, and my only real ambition now is to maintain a home for my family.  I'm keeping debts as low and equity as high as I can.  

It certainly makes for interesting thoughts during long planning and budget meetings at work.  I look at the rest of the people in the room and wonder how many of them have any clue.  I all seems so unreal - flying around the world for 1day meetings, sales projections based on the assumption that the future will be like the past.  Some of the engineers I manage seem to understand that something is wrong, but have different ideas about what it is.  I try not to preach to a captive audience.  Sadly, my main focus at work is trying to maintain my salary and that of my team, so that all of us can have as much time to prepare as possible.  Meanwhile I'm looking for a job doing design work again, and thinking hard about how to earn money closer to home, and without a company backing me up.  I hope I can get my kid's teeth fixed while I still have dental benefits.  

I know the weather can be beautiful right before the storm hits, and sometimes I wonder if my tinfoil hat might not be a bit too tight.  Very few of the people I know take this seriously, and even those that I suspect do are unwilling to discuss it much - I suspect they are unsure.  

I am still purchasing things, of course, but they're of a different nature.  The wood stove is in, and the garden will be planned this winter - I'll need some additional tools and supplies for that.  I try not to purchase anything that does not look like it will last, or that does not appear to be repairable (quite a challenge now).  

I know that I am looking at the same things all the people around me are - it's just increasingly obvious that I seeing something different.

I wish I knew more about the timing of all this - I'll post separately about that.  I have to get out and split some more wood - I don't have nearly enough and it should have been stacked months ago.

I don't think you'll have long to wait for a crisis to begin, but I don't think it'll be peak oil that hits us first - I'm betting it'll be 'peak money'. In other words, my view of the world includes an imminent market crash followed by a rapid descent into a vicious deflationary spiral. I would expect peak oil to exacerbate this scenario by throwing energy supply disruptions and extreme price volatility into the mixture. It wouldn't surprise me if the crash occurred within the next month or less.

As for preparations, they'll be much more difficult to make during a liquidity crunch. Most people won't have any money and those who do won't want to admit it (by visibly spending large chunks of it at once) for fear of losing it through crime or quasi-official confiscation of one kind or another. I'd suggest taking action as soon as possible.

I've been preparing for this for several years. I used to be an academic working in energy studies. Now I live on a small farm where I haul wood, muck out barns and grow vegetables, among other things. I have an outdoor wood furnace, 3 kW of PV panels in my back field, a battery bank in my basement, a solar thermal system, a generator, solar ovens, solar battery chargers, a rechargeable battery supply, a wind-up radio, stand-alone solar LED lighting, hand tools, bicycle-powered generators with portable battery packs and a dog sled team. Fortunately, I love the rural life and am much happier than I was as a member of the rat race.

KEWL!!!! Applause!!!!!
I tend to view the economic, political, and environmental problems we face as all related, with the root cause a way of life that requires an unsustainable amount of energy.  It doesn't really matter in the end which symptom manifests itself first, although the details of which preparations to make first might.

I also like the rural life, but I'm not under any illusions about how hard it will be to get by with significantly less energy.  I'm working first on heat and food.  Electricity will be one of the harder issues to solve (PV is out of my price range at present).  I will be exploring the feasibility of wood fired steam generation at some point, but I expect to find the amount of wood required to be too large to be practical.

Heat and food first-----now that's the most practical statement I've heard from these comments. I agree with you completely. I've been working on these basic principles for many years along with my 'normal' job and raising a family.

I can proudly say that I'm about 80% locally food self-sufficient---you can't do it alone. I've learned that we need to network with others in our local communities to develop sustainable and varied food supplies. I'm about 60% locally energy self-sufficient. Friends and I are slowly accumulating the items necessary to convert waste cooking oil into biodiesel but I figure biodiesel is just a temporary measure because of all the outside inputs required. We are also planning to purchase a team of pregnant Belgian mares. Horses may not be practical for most people but I've worked with them for years and they fit well in my personal situation.

Other important things to consider are:
--local and natural health care in case the modern medical systems become overloaded or inaccessible. Improving our personal immune systems thru improved nutrition, exercise and reduced stress.

--eatable and medicinal herbs, wild foraging and wilderness skills.

--networking with local neighbors for mutually benefical assistance including developing a system of trading and bartering with neighbors to save money and increase community bonds.

--developing 'low tech' skills and facilities that can last for generations regardless of 'peak oil' and other changes to our society i.e: solar greenhouses & season extenders, root cellars, skills like knife sharpening, food processing, woodlot management and on and on.

---And ultimately to teach these basic skills to our children and grandchildren because it is within their lifetimes that extreme changes will occur.

I'm not saying that you 'Urbanites' need to immediately 'head for the hills'. But you do need to start considering what you would do JUST IN CASE............

My wife is establishing the connections with the rural community we live in, mostly through the people we deal with in regards to horses, goats, chickens etc. we've got running around.  Through these connections we have met several great people knowledgeable in sustainable organic farming techniques.  I leave everyday to return to the dying end of another lifestyle - because I need the money and it is still available there.  For now.

As for health care, well the medical community is excellent in fixing us when we are broken (I would be long dead otherwise), but not so useful in dealing with illness and with keeping us fit.  Mostly they serve as a distribution network for pharmaceuticals.  And the cost of this is astronomical, so I wonder how it can possibly be sustained.  We are already well versed in homeopathic remedies, but they have not always been powerful enough (i.e. the Lyme epidemic in these parts).  So I assume that for those who do not have large amounts of money, the future will often be difficult when it comes to health issues, as it always was up to very recently.

Twilight, you perfectly captured my feelings, including the totally surreal budget and business growth meetings. Amazing that your entre post was word for word of my current feelings / actions.

It would be interesting to know how many other people who read TOD are in the same thinking / action taking.

As for the timing of economic hardship, I hope that we have until at least 2009 before any real change, I have only been in PO thinking for 6 months and need at least 3 more years to make the smooth transition to a sustainable lifestyle.

But, everyone I work with is living as if there are no problems.  ...  One lady talks of her son applying to Ivy League schools.  The other guy's wife is expecting a second child.  My immediate boss wants to upgrade to digital cable.

Imagine ---heaven forbid--- that you just saw your doctor, and he said you had cancer; 6 months to live.

As you walk out of the office stunned, you look about at the sidewalks, the stores. Commerce is humming. People are going about same as always, "living their lives" so to speak. They do not have in their heads, the thoughts running through yours. You are both in the same physical space, and yet living in two parallel universes. What is wrong with those people? Do they not understand that the end is near?

Well, no they don't. They have their whole lives in front of them. You have 6 months.

Everything is changed once you have the new information implanted in your head. Just a moment before meeting with your doctor, you were one of them. Now you are in a different world.

For those who think I am being insensitive about the cancer thing, I apologize. I personally had a tumor removed recently. Luckily for me, it was clear margins. But I very much empathize with those for whom results are less optimistic. It is a horrible thing to go through, whether directly or if happening to a loved one.

OK. It's crudely the same when you became Peak Oil Aware. Suddenly the world is not the same for you. But it is for all the others. They go on living their lives, just as before.

I personally do not think Peak Oil is going to be as traumatic as some make out here on this site. We still have coal. Why do you think Hollywood is putting out these new coal miner's daughter movies now, North Country? They are getting the rest of the people acclimated to the concept of returning to the mines. Well, at least it's a job. At least we will go on working and living.