Friday, Mar 30, 2007
Oil prices rise on back of kidnapped British sailors in Iran and French oil refinery strike
CNBC: Oil Above $66 on Iran Fears, French Strike
Help. I really am struggling to understand this.
Let me see if I have got things straight:-
1) Oil/energy prices are rising
2) Food prices are rising
3) Chinese prices are rising (forcing their recent interest rate rise)
4) Housing costs are still rising
5) Salaries & mark-ups are rising
6) Consumers are spending like its going out of fashion
7) Money supply swelling at double digit level
.............but we don't have a global inflation problem?
- I'm really confused!
Posted by royston @ 03:10 PM (391 views) Add Comment
10 Comments
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1. waitingfor hpc said...
we do have major inflation - and its only just starting to show through to the consumer!!!!!
2. lvmreader said...
It is not only beginning to show. It has been the elephant in the room for the last 9 years, if ou knew where to get the data.
1999 was when it ran out of control. 2003 was when we went past the chance of reigning in disaster in the current Western financial system.
LTCM, Argentina/Brazil, Enron - all have been symptoms of this.
Ever heard of MouseTrap the board game - that is a great analogy for the financial system.
3. paul said...
"Ever heard of MouseTrap the board game - that is a great analogy for the financial system."
Mousetrap was a game? I thought it was just a demonstration of heath-robinson scientific principles. I don't remember there being a game attached to it ...
4. uncle tom said...
Whichever way you look at it, Mr Brown's contention that we are enjoying economic stability is utter bunkum.
Both the US and the UK have pursued economic policies that have been shamelessly based on short term expediency, with a blind eye turned to the ultimate calamity resulting from consumers over borrowing.
Inflationary pressures are building steadily, and there is a very real risk that we will see an oil price shock over the next few months.
- While you watch the Iranians childish antics, remember that if they suddenly demanded $100/barrel for their oil, they'd get it - because the world cannot pump enough without their supplies..
5. dohousescrashinthewoods said...
I would say salaries on the whole are falling.
Only directors can award themselves inflation-linked pay settlements these days. ;)
Where the can a chap go to build a decent life?
6. sold 2 rent 1 said...
Paul,
LOL. You are on top form today.
I've done sh*g all work today - just surf this site and listen to Snow Patrol.
One of the perks of being my own boss.
Back to the subject.....
Talk about a re-run of the 1970's
Back then, they had also lost control over inflation before the big OPEC crisis.
7. lvmreader said...
Mouse Trap
8. C'mon Correction said...
crashinthewoods - I'd disagree with wages falling. I've noticed in my local job adverts more salary growth over the past 12 months than at anytime in the last 10 years that I've been watching.
I can't see any other way than up at a much faster rate for wage growth over the next 10 years. Younger people replacing old people who NEED more salary because of the over-inflated house prices. We are in the start-middle of a wage induced inflation spiral because of house prices. That is why I don't buy the deflation agrument - we could only have deflation in this country after a large house price crash. Until then inflation, inflation, inflation.
9. royston said...
And what is the result of the government's "let's keep wage growth low and pretend we don't have inflation" policy? - Greater social inequality.
What a credit to socialism you are, Gordon! Well done!
10. dohousescrashinthewoods said...
Thanks, C'mon Correction, that's interesting - so the gov are hiding wage inflation along with price inflation?
I had read the official figures and seen the stories about public sector workers getting real-terms pay-cuts.
Stands to reason that Gordot would be hiding the truth about wage inflation.