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Petrol Prices Down At Supermarkets

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So say the BBC here.

Oil does seem to be trending down - the lack of QE recently? Signs of deflation in the global economy? A blip?

Devaluing the £ is often seen as a dead end solution to the UK's economic mess because it will stoke inflation through higher fuel prices. What if oil continues downwards though??

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So say the BBC here.

Oil does seem to be trending down - the lack of QE recently? Signs of deflation in the global economy? A blip?

Devaluing the £ is often seen as a dead end solution to the UK's economic mess because it will stoke inflation through higher fuel prices. What if oil continues downwards though??

Based on the 2006 price and inflation...prices are most definitely up.

Relative to wages...prices are WAY UP.

You should get a job with the BBC. :P

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So say the BBC here.

Oil does seem to be trending down - the lack of QE recently? Signs of deflation in the global economy? A blip?

Devaluing the £ is often seen as a dead end solution to the UK's economic mess because it will stoke inflation through higher fuel prices. What if oil continues downwards though??

QE is the cause, but its inflationary impact seems to be hitting emerging economies hardest. To keep their exports competitive these countries are forced into devaluing their currencies continuously to hold par with the US dollar. This has the habit of sucking in excess foreign capital, driving up local asset prices (especially property) and the cost of living.

India, Russia and Brazil are already on their knees and have been for some time. China now looks set to join them. Since the West is still locked in a debt deflation, absent demand from the BRICs and the global economy may be headed for a severe contraction. In expectation of this, oil is down. Gold and silver are sharply lower.

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QE is the cause, but its inflationary impact seems to be hitting emerging economies hardest. To keep their exports competitive these countries are forced into devaluing their currencies continuously to hold par with the US dollar. This has the habit of sucking in excess foreign capital, driving up local asset prices (especially property) and the cost of living.

India, Russia and Brazil are already on their knees and have been for some time. China now looks set to join them. Since the West is still locked in a debt deflation, absent demand from the BRICs and the global economy may be headed for a severe contraction. In expectation of this, oil is down. Gold and silver are sharply lower.

Gold should do well in both scenarios shouldnt it? In a deflationary environment it cant be seized as easily as bank deposits, inflationary cant be printed away.

The idea the states and europe can simply carry on with the debt based model where we left off in 2006/7 is plain fantasy. As the charts denninger regularly posts show, the ponzi has hit the wall.

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Gold should do well in both scenarios shouldnt it? In a deflationary environment it cant be seized as easily as bank deposits, inflationary cant be printed away.

The idea the states and europe can simply carry on with the debt based model where we left off in 2006/7 is plain fantasy. As the charts denninger regularly posts show, the ponzi has hit the wall.

They will have the shirt off your back:

http://www.bbc.co.uk/news/magazine-21994873

"Why spend $250,000 on a gold shirt?"

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QE is the cause, but its inflationary impact seems to be hitting emerging economies hardest. To keep their exports competitive these countries are forced into devaluing their currencies continuously to hold par with the US dollar. This has the habit of sucking in excess foreign capital, driving up local asset prices (especially property) and the cost of living.

India, Russia and Brazil are already on their knees and have been for some time. China now looks set to join them. Since the West is still locked in a debt deflation, absent demand from the BRICs and the global economy may be headed for a severe contraction. In expectation of this, oil is down. Gold and silver are sharply lower.

Yep - the US always ends up exporting a lot of its inflation thanks the the Dollar's position of de-facto global reserve currency, oil-currency and commodities currency.

A smart move by the up-and-coming nations would be to realise that the US is all tapped out on how much wealth can be squeezed out of it and to start trading more with each other, using non-dollar currencies ... but many seem to be locked into the thinking of having to swap their goods and labour with the US for even more dollars, which are never going to be meaningfully repaid.

As for deflation in the West - not likely. The govts/central banks are locked in a feedback loop of money printing. They're not going to sit there and work to pay back all the debt that has been accumulated over the last decades - meaning heavy deflation - when they can simply print the currency that the debt is denominated in and soft-default.

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So say the BBC here.

Oil does seem to be trending down - the lack of QE recently? Signs of deflation in the global economy? A blip?

Devaluing the £ is often seen as a dead end solution to the UK's economic mess because it will stoke inflation through higher fuel prices. What if oil continues downwards though??

....the Mail says:

A number of Britain’s largest supermarkets have announced cuts in both unleaded and diesel prices, which will come into effect from tomorrow.

Read more: http://www.dailymail.co.uk/money/cars/article-2309376/Supermarkets-cut-petrol-prices-3p-litre-tomorrow.html#ixzz2QZwr7Qfj

...but why do they act in unison..where is competition...?..... :rolleyes:

Edited by South Lorne

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Well, its hardly a surprise when you see the likes of Iraq coming back to pre-BUSH II invasion production levels; especially without US sanctioned restrictions.

Artificial scarcity via war and proxy has been holding up the price.

It's simply not possible to keep making big scale and threatening bad guys out of what's left of the middle east oil dictators/theocrats (except for Saudi) worthy of a big war and sanctioning, at least for the next decade or so.

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They will have the shirt off your back:

http://www.bbc.co.uk/news/magazine-21994873

"Why spend $250,000 on a gold shirt?"

That article symbolised the peak of the bubble in the yellow stuff I think, and couldn't have been timed better (I presume it's now only worth $200k?). Like the massive building projects just as the credit bubbles popped in Dubai.

Edited by deflation

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House prices 12 years ago were 70k, petrol was 70p. Now house prices are 160k, petrol only 140p - still relatively cheap. Relatively. I estimate based on this fag packet calculation that we atill have 2 or 3 years left until inflation catches up with HPI. P.S. Wage inflation has been told to do one in case you were thinking of living in this land at some point.

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House prices 12 years ago were 70k, petrol was 70p. Now house prices are 160k, petrol only 140p - still relatively cheap. Relatively. I estimate based on this fag packet calculation that we atill have 2 or 3 years left until inflation catches up with HPI. P.S. Wage inflation has been told to do one in case you were thinking of living in this land at some point.

House prices are a matter of opinion; petrol prices are real. ;)

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House prices 12 years ago were 70k, petrol was 70p. Now house prices are 160k, petrol only 140p - still relatively cheap. Relatively. I estimate based on this fag packet calculation that we atill have 2 or 3 years left until inflation catches up with HPI. P.S. Wage inflation has been told to do one in case you were thinking of living in this land at some point.

Yes it would be cheap for those who bought their house for £70k......no good having wage inflation, even more insecure jobs with fewer hours and more people not earning any wage.......how many miles you have to drive to work makes a big impact depending of course on who pays the mileage expense, some are more fortunate than others. ;)

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  • 239 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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