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More Signs Of 'deflation' - 9% Rise In Gas Prices

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BBC article

Scottish and Southern Energy (SSE) is putting up its domestic gas tariffs by 9.4% at the start of December.

The company, one of the UK's biggest energy suppliers, said the rise would affect 3.6 million customers.

The company blamed the increasing wholesale cost of buying gas which it said had gone up by 25% since March this year.

The company said it was sorry that the higher bills would come in during this winter.

We'd better hurry up and print some more money to pay for all this stuff and stop an all-out deflationary death spiral, eh :lol::lol::lol:

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Its a private company putting prices up when wholesale costs rise and keeping them fixed when wholesale prices fall. Good business model

Is it more money chasing less goods or the same money not worth a toss - or a bit of both?

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Is it more money chasing less goods or the same money not worth a toss - or a bit of both?

Here's another interesting article:

http://www.newscientist.com/article/dn19653-are-we-having-another-food-crisis.html

The world food price index is at its highest since 2008, when food prices rocketed and millions of people suffered. This year the crisis seems to be happening again. Prices for the staple grains that underpin the world's food supply soared after forecasts for the US and Chinese maize harvests fell in October, Pakistan lost its wheat to floods, and crop losses to drought and wildfire led Russia to ban grain exports until 2011. Food prices have soared in India, Egypt and elsewhere and are being blamed for riots in Mozambique.

Are we having another food crisis? New Scientist investigates.

Is this another crisis like the one we had in 2008?

Not quite. Maximo Torero of the International Food Policy Research Institute (IFPRI) in Washington DC notes that oil, the real driver of food prices and of the 2008 crisis, is relatively cheap, at around $75 a barrel, not over $100 as it was in 2008.

In 2008, both immediate grain prices, and the prices offered for future grain purchases in commodities markets, climbed steadily for months, whereas now they are spiking and dipping more unpredictably, which economists call volatility.

"The market fundamentals – supply and demand – do not warrant the price increases we have seen," says Torero. Not all harvests have been bad, and after 2008 countries rebuilt grain stocks. "There are enough stocks in the US alone to cover the expected losses in Russia."

The food riots in Mozambique were not due to world grain prices, he says, but because Mozambique devalued its currency, making imported food more expensive.

Not too hard to see what is happening to prices of essentials in the wake of a tide of printed money and government stimulus cash.

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Isn't it supposed to be the case that we can expect deflation, except in food and energy costs?

Good job I gave up eating, heating my home, going out, buying anything transported by road/rail/sea/air and can use my infra-red vision to see in the dark.

If only we could revoke the Second Law of Thermodynamics I'd be firmly in the deflation camp!

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This week alone that's energy, food, transport, housing, holidays etc all costing more for the average family. A few extra % on every transaction to come in the form of VAT.

With incomes and benefits falling, people are going to be demanding extra wages simply to be able to live.

Inflation is at a velocity that you can actually see it.

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At risk of enraging the resident hyperinflationistas, if I can negotiate a grand off my rent in a year's time, I won't be worrying about the extra 120 quid on my energy bill. If you don't own property, I don't think you necessarily need to fear this classic Austrian stagflationary bust.

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Inflation my ****, they're full of sh*t. Inflation happened and now it deflates.

At risk of enraging the resident hyperinflationistas, if I can negotiate a grand off my rent in a year's time, I won't be worrying about the extra 120 quid on my energy bill. If you don't own property, I don't think you necessarily need to fear this classic Austrian stagflationary bust.

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Bullshoot, what a knob! I've seen inflation at an extraordinary velocity for about 12 years. Where were you? A one-off VAT increase is irrelevant and pales in comparison with 10% annual house price inflation over a long period! Housing is number 1 on the cost list, income tax is second, its not energy and food. Holidays are not even essential which shows where you are coming from.

This week alone that's energy, food, transport, housing, holidays etc all costing more for the average family. A few extra % on every transaction to come in the form of VAT.

With incomes and benefits falling, people are going to be demanding extra wages simply to be able to live.

Inflation is at a velocity that you can actually see it.

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Guest spp

Inflation my ****, they're full of sh*t. Inflation happened and now it deflates.

Got to be the worst comment of the year!!

clip_image0034.jpg

http://jsmineset.com/

You deflationists really have no idea!

Deflation = end game.

They will fight it all the way = inflation!

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Natural Gas Prices

UK ETF in GBP Sterling

http://bigcharts.marketwatch.com/charts/big.chart?symb=uk%3Angsp&compidx=aaaaa%3A0&ma=1&maval=200%2C50&uf=0&lf=1&lf2=0&lf3=0&type=2&size=2&state=8&sid=2963638&style=320&time=20&freq=2&comp=NO%5FSYMBOL%5FCHOSEN&nosettings=1&rand=7244&mocktick=1

JUST LOOK AT THE CHART.

NAT GAS FUTURES

ng.gif

"Read" and weep

If they are going up now, what the hell are we going to pay, when they spike globally!

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Er for most people gas is expensive now, even though the charts for wholesale markets points to multiyear lows.

Cheap woodburner anyone?

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Is it more money chasing less goods or the same money not worth a toss - or a bit of both?

It's funny money chasing the bunny and the honey while the UK plc goes down the Dunny

D :0)

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Closet deflationist!

Added: Where are labour costs on your chart? Have you worked out how to reconcile CPI-U with your numbers?

Got to be the worst comment of the year!!

clip_image0034.jpg

http://jsmineset.com/

You deflationists really have no idea!

Deflation = end game.

They will fight it all the way = inflation!

Edited by fallingbuzzard

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Got to be the worst comment of the year!!

clip_image0034.jpg

http://jsmineset.com/

You deflationists really have no idea!

Deflation = end game.

They will fight it all the way = inflation!

Don't see land on your chart.

Funny thing is, that represents 40% of my real cost of living.

Gold, never got on with the taste.

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Don't see land on your chart.  

Funny thing is, that represents 40% of my real cost of living.  

Gold, never got on with the taste.

Well it goes up and down, but at the moment it still goes up more than down.

If it hits $10,000 per once, then I'll pay the mortgage off in bullion.

Edited by Mikhail Liebenstein

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Electric blankets cost relatively little electricity and thermal sleeping bags seem to be the order of the day for the UK these days.

The energy company regulators are doing a fine job - NOT.

Mind you the bankers with their £trillions of bail-out money and huge bonuses should be ok.

Edited by billybong

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Hmmm...

No real reason for increase in Scottish and Southern retail gas price. Scottish and Southern owned by Iberdrola. "First Minister Alex Salmond has welcomed an announcement by Spanish power giant Iberdrola that it will invest about £2.7bn in Scottish businesses over the next two years.". Wherever you see Salmond, you see English people paying for Scottish people.

Nothing to do with the inflation/deflation debate. Just another display of financial genius by an incompetant First Minister.

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Again, someone confuses deflation with the price from one company.

THEY are doing all they can to counter the deflation that is occuring...thats a deflation in total credit.....they counter it with QE...

sadly, QE creates no wealth, debt therefore is not being paid off, the BUST continues.

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Again, someone confuses deflation with the price from one company.

THEY are doing all they can to counter the deflation that is occuring...thats a deflation in total credit.....they counter it with QE...

sadly, QE creates no wealth, debt therefore is not being paid off, the BUST continues.

Using the official metrics we've only had continuous deflation for four months back at the end of 2008.

Based on 'the cost of stuff I spend my money on' then we most certainly are having 'inflation'. However, higher prices are just the symptoms of inflation whereas the strict definition is supply of goods and services vs supply of money chasing them.

So - has the total money supply actually shrunk or grown?

Has the amount of goods and services seeking buyers shrunk or grown?

Look it up and then tell me if you still think we have deflation? :lol:

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Based on my specific experiences, I would like to draw a gross generalisation.....etc etc

Using the official metrics we've only had continuous deflation for four months back at the end of 2008.

Based on 'the cost of stuff I spend my money on' then we most certainly are having 'inflation'. However, higher prices are just the symptoms of inflation whereas the strict definition is supply of goods and services vs supply of money chasing them.

So - has the total money supply actually shrunk or grown?

Has the amount of goods and services seeking buyers shrunk or grown?

Look it up and then tell me if you still think we have deflation? :lol:

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Great chart and worth quoting for sheer impact.

Poor harvest is not inflation. More will be grown next year and the price will come down. Gold is in a bubble just like housing was. The highest inflation is always seen before deflation.

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  • 259 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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