Quick summary of what's happening with the economy

[PerlOfWisdom]

Can I make a point about oil prices (like gold prices).

Oil is not going up because there is a shortage of oil, it is going up because it is priced in US $, and the US economy is bolluxed and their currency is becoming worthless.

Since oil has intrinsic value and worth(like gold), the price of a barrel rises as the currency becomes worthless.

HTH

I've been telling people this for ages (same with food) but no-one believes me.

[Chantho]

As an aside - I find it incredible that inflation is **only** at just under 4%. food up 10% - but offset by falling cost of cars (who can afford one with petrol so high?) and DVDs and eating out.

So why is eating out cost falling when food etc. is up 10% or more ?

Makes no sense.

[BrilloPad]

So why is eating out cost falling when food etc. is up 10% or more ?

Makes no sense.

I am no expert - but will comment as if I know what I am talking about! Food prices make up small part of restaurant costs. Fewer people are eating out so they have to cut prices. Eventually restaurants will close and more will be out of work (or go home to Poland).

[DimPrawn]

I am no expert - but will comment as if I know what I am talking about!

You are AtW and I claim my free bullet proof X5!

[BrilloPad]

You are AtW and I claim my free bullet proof X5!

I knew I should have added "in true cuk tradition".

[HairyArsedBloke]

Oil is not going up because there is a shortage of oil, it is going up because it is priced in US $, and the US economy is bolluxed and their currency is becoming worthless.

Oil has been going up, even in non-dollar terms, because of the demand for it. This is partly to hold other classes of asset as an alternative to stocks and real-estate. It is also to build stocks for reserves and ahead of perceived further price rises. However, demand is not need. Actual consumption from India, China, etc has not gone up anything like as much to warrant these prices. The producers know that there isn’t the real need for the volume of oil that’s why they do not respond to idiots like Brown asking them to pump more. There is plenty of oil sitting in tankers in the gulf with nowhere to go. The problem is that it‘s heavy oil. What there is a shortage of is refining capability. It’s a problem that has been a long time in the making and will take even longer to fix.

[sasguru]

So why is eating out cost falling when food etc. is up 10% or more ?

Makes no sense.

Coz some idiots who ate out in the boom have been stupid enough to pay the sky high margins restaurants have been getting away with.
Take polenta, marketed as a delicacy. Genius! The Italian peasants and poor Africans who eat a similar dish would laugh their tits off at the London idiots who pay £10 a pop for it.

[DimPrawn]

Oil has been going up, even in non-dollar terms, because of the demand for it. This is partly to hold other classes of asset as an alternative to stocks and real-estate. It is also to build stocks for reserves and ahead of perceived further price rises. However, demand is not need. Actual consumption from India, China, etc has not gone up anything like as much to warrant these prices. The producers know that there isn’t the real need for the volume of oil that’s why they do not respond to idiots like Brown asking them to pump more. There is plenty of oil sitting in tankers in the gulf with nowhere to go. The problem is that it‘s heavy oil. What there is a shortage of is refining capability. It’s a problem that has been a long time in the making and will take even longer to fix.

Okay smart arse.

[DimPrawn]

Coz some idiots who ate out in the boom have been stupid enough to pay the sky high margins restaurants have been getting away with.
Take polenta, marketed as a delicacy. Genius! The Italian peasants and poor Africans who eat a similar dish would laugh their tits off at the London idiots who pay £10 a pop for it.

They can't help it, they also think £500K is a good price for an ex-council flat in Hackney,

[oracleslave]

Coz some idiots who ate out in the boom have been stupid enough to pay the sky high margins restaurants have been getting away with.

It sounds like a sad existence when you have to ask yourself what state the economy is in before decidng whether to go out for a meal or not.