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Convenient Inflation

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...or does the prospect of $70 per barrel oil seem just a little too "convenient".

The only way the western economies are going to get out of the debt mountain is by a heady mix of inflation and low interest rates.

Hey presto - the western markets all become hyper-sensitive to news about oil production being affected by storms, political and social unrest, etc, etc.

Seems too convenient to me... I'm not necessarily saying there's a higher power pulling the strings...

Remember when all the bad news seemed to arrive after Labour got re-elected (even to the point where the electorate themselves were prepared to turn a blind eye rather than let anyone else win) ?

Could it be that high inflation is in everyone's minds as the best of a bad bunch of possible economic outcomes, and it's influencing how we react to things we know that will push it skywards and "save us" from worse outcomes?

Just a suggestion... <_<

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Guest The dude

It sounds very convenient to me also. High fuel prices - the more Gordon Brown rakes in. I suppose the Government have to find some way to pay for the Iraq War. War is expensive.

Edited by The dude

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Thank goodness someone else is saying this; I thought I was alone!

The Federal Reserve, BOE, GB et al aren't telling us something. Namely that far from inflation being their concern, they're seeing the gloomy spectre of deflation.

Sorry to sound like a broken record, but with record amounts of personal debt, inflation is the only hope for millions of indebted Brits and Americans thus they're desperately trying to inject some inflationary pressure.

The Fed has pumped unheard of amounts of moulah into the system and there's been little inflation, if any. Believe me, this defies all the previous thought on money supply.

Inflation for them, and the indebted, is the best scenario going. But I've got a hunch deflation will cripple America and the UK rather like Japan.

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...or does the prospect of $70 per barrel oil seem just a little too "convenient".

The only way the western economies are going to get out of the debt mountain is by a heady mix of inflation and low interest rates.

...erm,nope.

I think the heady mix of outsourcing,inflation and high taxation and/or interest rates is where we're headed.

out of that $70 bbl you can probably take a good 20 out of that for speculation alone.

then another 10 for risk-premia.

if they were both to dissapear oil would be more like normal levels....and we would probably end up with DEflation on our hands!.

oil is another asset that's beginning to get out of kilter with fundamentals,ther's a lot riding on the "if's and but's" in the mix right now.

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The only problem with this though, as far as i'm aware, is increased inflation means increased wages which the country can little afford. More importantly nor can it's businesses - so if this is true maybe GB is really trying to run the country into the ground! :o

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  • 302 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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