Friday, March 4, 2011

Brace brace brace

For a nation already feeling the pinch, a stark double warning: Food and fuel bills to rocket

Families face massive rises in fuel and food costs, ministers warned last night. A catastrophic 1970s-style oil price spike is on the cards while the price of supermarket basics continues to soar.

Posted by mark @ 01:34 PM (2059 views)
Please complete the required fields.



12 thoughts on “Brace brace brace

  • that’s right , blame it on oil.but we all know it’s a banking crisis that caused oil to spike and then because they were made whole
    by the kind taxpayers.

    Reply
    Please complete the required fields.



  • An inevitable consequence of the nations descent into the third world league. Mind you the percentage of horizontally challenged individuals (obese for short) will still keep increasing despite the cost of food.

    Reply
    Please complete the required fields.



  • This is nonsense. The world’s best traders don’t know, for sure, where prices are headed, so what makes “ministers” or UN clerical staff think that they have the inside scoop? Commodity prices could go up or down from here and anyone who tells you differently is an idiot or a bluffer

    Reply
    Please complete the required fields.



  • @Flashman

    I might not have your depth of experience of the markets and trading but as sure as hell I know from past experience that even when inflation is brought back under control the cost of living does not come down, therefore this article correctly flags up the problems that Joe Public is going to suffer.

    Reply
    Please complete the required fields.



  • markj69 str05 says:

    @ mr g… I’d agree with that.

    The main reasons prices come down are pressure from competition, or sales have fallen off a cliff. I can see luxury goods sales continuing to suffer, so expect nice cheap plasmas and the like for a while yet. However, food, energy and water are all necessities. Lets face it, there are a lot of people could do with reducing their food intake, but the worry will probably have an inverse affect. Energy, well we could all do a little more i guess, light, heating, electrical equipment etc… And water, well, i don’t fancy paying for bottled, and i suspect the gov’t might be adding some sort of sedative into the tap water to keep the people quiet, so i’ll continue extracting it internally from beer!

    Reply
    Please complete the required fields.



  • markj69 str05 says:

    Not sure what happened then – Wrong post, sorry.

    Reply
    Please complete the required fields.



  • markj69 str05 says:

    No it wasn’t – Too much water!

    Reply
    Please complete the required fields.



  • mr g: “I know from past experience that even when inflation is brought back under control the cost of living does not come down”

    The above comment is a little illogical. If the rate of inflation is reduced (brought back under control), then of course the cost of living does not come down because there is still inflation. However if inflation goes negative it means that the cost of living (prices) physically went down because inflation, prices and the cost of living are effectively one and the same thing/interchangeable.

    Human beings are notoriously prone to misunderstanding probabilities and we are easily conditioned to believe things that are untrue or illogical. Just like some people are conditioned to believe that house prices only ever go up, you are probably conditioned to believe that inflation (prices/the cost of living) only ever rises. We easily forget or dismiss experiences that run contrary to our conditioning. For example, you have probably forgotten that all three measures of the rate of inflation were falling for the first six months of 2009 and that in February 2009 prices actually went down 0.4%? If you lived a few hundred years ago, you would probably have been just as confident in saying that prices never rise, no matter what happens.

    http://www.statistics.gov.uk/cci/nugget.asp?id=19

    There is a roughly 50% chance that commodity prices will fall from this point in time. If they fall just a little, then the rate of inflation could moderate. If they fall quite dramatically, then prices/the cost of living could also fall quite dramatically.

    There is always a large speculative element in any commodity price. It is therefore easily possible for commodity prices to fall, even when demand is actually increasing. It is also possible that there will be a few bumper crops in which case food prices could tumble. We should also never forget that oil was in the $20s as recently as the Clinton era. Demand has increased since then by about 20% but the price has increased by more than 400%. Discrepancies like that tend to (eventually) get shut down

    Reply
    Please complete the required fields.



  • 4. markj69 str05

    It’s in the bottled water too. No escape, sleep tight or get an effective filter.

    Reply
    Please complete the required fields.



  • the number cruncher says:

    “I like the truth unfettered by rational argument – straight from the gut”

    Reply
    Please complete the required fields.



  • Flash @ 7…..
    ‘The above comment is a little illogical’

    a mildly fatal mistake you made there

    Reply
    Please complete the required fields.



  • I think rising food costs will be the least of our problems in the UK. At any rate, it is common knowledge that on average we overeat by up to a third, as well as waste up to a third of our food. So some is room for adjustment there. The country is blessed with reasonably fertile soil and moderate climate and rainfall. It shouldn’t take too long for people to re-learn the skills of growing some fruit and veg for themselves, as well as keeping a few chickens etc. Form local growing clubs, swap ideas, seeds and surplus produce. Relearn food preservation skills etc. Apart from anything else, it will help bring societies closer together again. The govt should have been encouraging this (and energy self-sufficiency) from when the crisis hit three year back.

    Reply
    Please complete the required fields.



Add a comment

  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user´s views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>