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Inflation, Oil Prices Create New Challenges - Imf

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http://uk.reuters.com/article/2011/04/11/uk-imf-idUKTRE73A3BX20110411

Soaring oil prices and inflation in emerging economies pose new risks to global recovery but are not yet strong enough to derail it, the International Monetary Fund said on Monday.

The global lender's latest health-check of world economic prospects marked a departure from recent years when its focus was on the financial crisis and recession in rich nations.

The fastest growth in recent years has come from emerging markets like China, Brazil and India, which helped offset the deep downturns in the United States and other rich nations touched off by burst housing bubbles.

Now, the IMF warns those very economies risk asset bubbles akin to the ones that sparked the 2007-2009 financial crisis.

"The challenge for many emerging and some developing economies is to ensure that present boom-like conditions do not develop into overheating over the coming year," the IMF said in its World Economic Outlook report.

IMF chief economist Olivier Blanchard said there was no overwhelming threat to the world economy, but there were trouble spots that need to be dealt with.

"There is not any major downside risk at this point," he told reporters. But he cited a still-ailing financial sector in Europe and a high U.S. debt load as areas demanding attention.

Still, even the prospect of oil above $120 a barrel was seen as not enough to imperil the steady global expansion.

"Commodity prices have increased more than expected ... (but) we don't think that this time these increases will derail the recovery," Blanchard said.

Soothing words indeed from the experts at the IMF. The don't expect the global recovery to be derailed. I'm sure everyone on here will be relieved to hear this news....

Amazing that the finger hasn't been pointed at the Ben Bernanke for triggering the global inflation spike, all that free money has to find a home and the booming Brics promise a rich return for those cheap US dollars.

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Even at $120 a barrel, that is only 46p a litre. The costs of refining the oil, the costs of the retailers, have remained the same. The average price of a litre of unleaded is 135p. Thus only 34% of the price of petrol is due to oil price. If the price of oil doubles, it will only have a marginal effect on the pump prices. By raising petrol prices in line with oil prices they are profiteering.

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Even at $120 a barrel, that is only 46p a litre. The costs of refining the oil, the costs of the retailers, have remained the same. The average price of a litre of unleaded is 135p. Thus only 34% of the price of petrol is due to oil price. If the price of oil doubles, it will only have a marginal effect on the pump prices. By raising petrol prices in line with oil prices they are profiteering.

And profiteering is what oil, banksters and the rest are all about. We must choose between a free market system or a regulated system. I would go for something in between as Brown began a trend that was far to laissez faire (havne't seen that term used for awhile).

I have cut my petrol consumption by about 50% by strategic planning as a way to cause big oil some loss. If everyone did the same......

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Even at $120 a barrel, that is only 46p a litre. The costs of refining the oil, the costs of the retailers, have remained the same. The average price of a litre of unleaded is 135p. Thus only 34% of the price of petrol is due to oil price. If the price of oil doubles, it will only have a marginal effect on the pump prices. By raising petrol prices in line with oil prices they are profiteering.

Given that refining oil uses a fraction of that oil to produce process heat and often electricity I cannot see how the cost of refining has not gone up Likewise with distribution and retail.

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I have cut my petrol consumption by about 50% by strategic planning as a way to cause big oil some loss. If everyone did the same......

Now, all we need is another billion RBs to swap from cars to motorcycles and bicycles and eat sand instead of meat whilst those in the East do the opposite. :rolleyes::rolleyes::rolleyes:

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I liked this comment,

"IMF chief economist Olivier Blanchard said there was no overwhelming threat to the world economy, but there were trouble spots that need to be dealt with."

The only problem is - regulation booming economies is like driving on ice. By the time you realise you need to stop, it's already too late.

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  • 294 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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