Will prices ever come down?

[baggiematt]

The future kind of has to be that prices drop or wages match the increase, otherwise the economy will collapse. How many people are putting off buying a car, a house, a holiday etc because the money needs to pay for fuel and energy? That will really take hold when the price hikes actually hit.

We’re heading toward a hell of a recession, no doubt about it.

[Yarmbaggie]

The future kind of has to be that prices drop or wages match the increase, otherwise the economy will collapse. How many people are putting off buying a car, a house, a holiday etc because the money needs to pay for fuel and energy? That will really take hold when the price hikes actually hit.

We’re heading toward a hell of a recession, no doubt about it.

Yes we are Matt and there isn’t a lot we can do about it.

We have not developed renewables and have got into bed with devil instead. Putin had the west where he wanted them and took full advantage. Demand for gas/electricity gone through the roof as the world comes out of Covid restrictions. He knew we were screwed if we (the west) stopped buying from Russia and took the opportunity to grab Crimea and then Ukraine.

Do you seriously think gas prices will drop before the winter of 2023 or even 2024? No chance unless Putin is persuaded to stop the war (unlikely) or the west go back to buying Russian gas (unlikely).

The west is doomed economically until we get renewables in place, you may as well accept that.

[baggiematt]

Yes we are Matt and there isn’t a lot we can do about it.

We have not developed renewables and have got into bed with devil instead. Putin had the west where he wanted them and took full advantage. Demand for gas/electricity gone through the roof as the world comes out of Covid restrictions. He knew we were screwed if we (the west) stopped buying from Russia and took the opportunity to grab Crimea and then Ukraine.

Do you seriously think gas prices will drop before the winter of 2023 or even 2024? No chance unless Putin is persuaded to stop the war (unlikely) or the west go back to buying Russian gas (unlikely).

The west is doomed economically until we get renewables in place, you may as well accept that.

Bank of England think inflation will slow next year and go back to the 2% target in 2 years. But the question is whether wages will catch-up or will the government package support the rise in costs while wages slowly creep up.

Wages won’t keep up, that’s pretty much a given so we rely on the government to fix the issue. If they don’t, businesses will fall and unemployment will rise. That will lead to them funding energy anyway through welfare so it’s a no brainer to pay for the increase and keep us with disposable income.

Who knows, could all be a perfect storm!

[Dubbag]

Bank of England think inflation will slow next year and go back to the 2% target in 2 years. But the question is whether wages will catch-up or will the government package support the rise in costs while wages slowly creep up.

Wages won’t keep up, that’s pretty much a given so we rely on the government to fix the issue. If they don’t, businesses will fall and unemployment will rise. That will lead to them funding energy anyway through welfare so it’s a no brainer to pay for the increase and keep us with disposable income.

Who knows, could all be a perfect storm!

I think that statement was put out by the bank to apply pressure to union negotiations on wage increases this autumn....
As mentioned last May the bank says we just don't really know how this will play out....
Now they have it all sorted out.
How convenient..

[baggiematt]

I think that statement was put out by the bank to apply pressure to union negotiations on wage increases this autumn....
As mentioned last May the bank says we just don't really know how this will play out....
Now they have it all sorted out.
How convenient..

Yeah you might be right there. Some top economists are suggesting you cannot reduce inflation that high that quick.

Then again Bruce reckons he needs three transfer windows when there is no money to spend and parachute payments are running out…

I’d wager we will be throwing cabbages at Bruce before he gets three windows.

Time will tell!

[Dubbag]

Yeah you might be right there. Some top economists are suggesting you cannot reduce inflation that high that quick.

Then again Bruce reckons he needs three transfer windows when there is no money to spend and parachute payments are running out…

I’d wager we will be throwing cabbages at Bruce before he gets three windows.

Time will tell!

And I think the cabbages will then be retrieved after throwing them at him to be cooked later