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murpaul

Oil Prices Wont Add To Inflationary Pressures

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"Businesses in the US and UK are struggling to pass on their rising costs to price-conscious shoppers, and instead have been forced to absorb them by accepting tighter margins."

And this is supposed to be _good_ news :). LOL.

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Very naive article. Car sales only jumped 10% in the U.S. last month because General Motors extended their employee price (i.e. close to wholesale) to all customers. They lost bags of money in the process but at least they got rid of their inventory. Trouble is car sales are going to be crap for the next few months as a result.

Manufacturers can only pass on higher material costs up to a point before they go broke. As I write, Nymex Crude Oil is up $1.44 to $63.75. The oil companies may be happy, but not many in the rest of the economy.

Edited by Tim M

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Very naive article. Car sales only jumped 10% in the U.S. last month because General Motors extended their employee price (i.e. close to wholesale) to all customers. They lost bags of money in the process but at least they got rid of their inventory. Trouble is car sales are going to be crap for the next few months as a result.

Manufacturers can only pass on higher material costs up to a point before they go broke. As I write, Nymex Crude Oil is up $1.44 to $63.75. The oil companies may be happy, but not many in the rest of the economy.

no, i dont think so. according to this:

http://news.bbc.co.uk/1/hi/business/4129426.stm

firms are more likely to go bust than be able to pass price increases onto consumers.

i also maintain that interest rates will continue to fall below 4% but that this will not prop up the housing market which became massively overvalued years ago.

not even swingeing rate cuts can support the price levels now seen.

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Surely if manufacturers can't pass on these price increases, they go bust or atleast reduce their workforce.

So if its not inflation it unemployment? Just as bad for the housing market :D

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Surely if manufacturers can't pass on these price increases, they go bust or atleast reduce their workforce.

So if its not inflation it unemployment? Just as bad for the housing market  :D

yes i think thats right. workers may find some employmnenbt elsewhere but certainy not at the wage levels required to keep the whole house of cards going.

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Is the author on drugs?

Once the price of crude oil went from $55 to $60 thats what I call inflationary and I reckon the US Federal reserve will agree.

Any comment from Gordon Brown?

Oh I am sorry, it's summer hols for our lads and lassies in the Commons.

I think a barrel is now creeping up to $63!!!!!!!!!!!

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i also maintain that interest rates will continue to fall below 4% but that this will not prop up the housing market which became massively overvalued years ago.

How will the BoE be able to continue to cut rates in light of export led and cost push inflation? I can't see interest rates falling.

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How will the BoE be able to continue to cut rates in light of export led and cost push inflation?  I can't see interest rates falling.

The inflation figures will be set to suit VIs. If that means it goes unreported officially, then so be it. Business is also calling for rate cuts, which the bank will heed due to weak growth.

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Is the author on drugs?

Once the price of crude oil went from $55 to $60 thats what I call inflationary and I reckon the US Federal reserve will agree.

Any comment from Gordon Brown?

Oh I am sorry, it's summer hols for our lads and lassies in the Commons.

I think a barrel is now creeping up to $63!!!!!!!!!!!

yeah its inflationary, but its not feeding through to wages, official inflation figures and also not through to growth - at least not in this country.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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