Society/Culture Inflation

Jul 13, 2015
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Because for some silly reason, Texas crude prices are often quoted here which make virtually no difference to petrol prices in Australia.

We source most of our fuel from Singapore and because most of refining capacity has been eroded over the past 50 years, we have to pay the FOB price on refined fuel from overseas.

Its not even that. The govt allows local refiners to charge the Singapore price no matter how much they produce and no matter the price it costs them.

This is because in theory they could export the fuel they refine overseas and get higher prices.

Of course what it does mean is allow them to increase prices to the Singapore price instantly when they go up, and take all the time in the world to bring the prices down when Singapore goes down.

We also have an ACCC that was unable to prove collusion even when they had proof that petrol companies were telling eachother what prices they were going to set - because its only really collusion if they then say "oh okay thanks we will use that price too"... they can just say nothing while setting the price. Thankyou garbage laws and drunk judges who dont care about the petrol price because they are too pickled to drive.
 

Rotayjay

Brownlow Medallist
Aug 28, 2014
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I'm going to sound Marxist again, but the ruling class of politicians and policymakers are well-off enough not to care about the price of petrol all that much. Just fill up the Merc to the top and whatever it costs it costs.

I can't wait to buy an electric car and *** off these scum petrol retailers for good.
 

Festerz

Brownlow Medallist
May 20, 2019
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I remember the time when eating bananas was a sign of wealth. Now it's lettuce.
My investment portfolio:

images
 

hamohawk1

Premiership Player
Feb 18, 2011
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From an outsider's perspective, it seems like a lot of countries, including Australia are relying on interest rates to 'cool' the economy and bring inflation down. If that doesn't work its pretty much left to austerity?
 
Apr 12, 2010
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Melbourne
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Geelong
From an outsider's perspective, it seems like a lot of countries, including Australia are relying on interest rates to 'cool' the economy and bring inflation down. If that doesn't work its pretty much left to austerity?
Or increase productivity. More s**t to buy = more competition for out dollar. Spend extra cash on innovation, not houses.

A bit of luck would help too. The floods in Australia have had a significant impact on food prices.

But Innovation is the big one. Is this the kick in the balls we need to take a quantum leap toward efficient renewables, lab grown meat instead of inefficient farming, that sort of thing.

The last few years of innovation have not been that innovative - I mean all the capital that has gone into AfterPay for example: what has it delivered that a credit card didn't already do? Algorithms that can give us customised ads for things we already bought a month ago? Woop dee doo. Extortionate pricing just to get food home delivered? Please.

Time for the best and brightest to cast their minds back 100 years and invent the next refrigerator, antibiotic or aeroplane.

Or just pump it all into property and NFTs ffs.
 
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Or increase productivity. More s**t to buy = more competition for out dollar. Spend extra cash on innovation, not houses.

A bit of luck would help too. The floods in Australia have had a significant impact on food prices.

But Innovation is the big one. Is this the kick in the balls we need to take a quantum leap toward efficient renewables, lab grown meat instead of inefficient farming, that sort of thing.

The last few years of innovation have not been that innovative - I mean all the capital that has gone into AfterPay for example: what has it delivered that a credit card didn't already do? Algorithms that can give us customised ads for things we already bought a month ago? Woop dee doo. Extortionate pricing just to get food home delivered? Please.

Time for the best and brightest to cast their minds back 100 years and invent the next refrigerator, antibiotic or aeroplane.

Or just pump it all into property and NFTs ffs.
This.

Too little too late for the current economic issues though.

Years down the drain because government and banks would rather rely on wealth effects through eye-watering asset valuations than improve conditions for business productivity. While money gets sucked out of the real economy and funneled into the property market.
 

hamohawk1

Premiership Player
Feb 18, 2011
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Once the excise halving comes off its likely petrol prices could be around $2.70 per litre. Compared to the same time last year when it was 1.50 a litre, it represents a 55% odd increase year on year.

But inflation is only going up around 4-5% apparently.

Everything at the moment is costing an arm, leg and the other arm at the moment.
 
Inflation will sort itself out by itself

1) war in Russia won’t last forever
2) Russia will sell gas elsewhere
3) gas producers will increase production
4) supply chain shocks as the global economy restart post covid will settle
5) supply chain shocks against Russia (ie construction timber will be replaced by Indo and Malaysia in time)
6) supply chain shocks from china will be replaced by india and Vietnam

To avoid cost of living pressures, just cut out things you don’t need like pay tv, avocado, booze, four lights in each room.
 
Sep 15, 2007
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I'm going to sound Marxist again, but the ruling class of politicians and policymakers are well-off enough not to care about the price of petrol all that much. Just fill up the Merc to the top and whatever it costs it costs.

I can't wait to buy an electric car and *** off these scum petrol retailers for good.
You can buy an electric car now. What is stopping you?

ps. Those politicians are doing their best to make fossil fuel prices cheaper. They shouodnt be as its bad for the environment.
 

hamohawk1

Premiership Player
Feb 18, 2011
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Inflation will sort itself out by itself

1) war in Russia won’t last forever
2) Russia will sell gas elsewhere
3) gas producers will increase production
4) supply chain shocks as the global economy restart post covid will settle
5) supply chain shocks against Russia (ie construction timber will be replaced by Indo and Malaysia in time)
6) supply chain shocks from china will be replaced by india and Vietnam

To avoid cost of living pressures, just cut out things you don’t need like pay tv, avocado, booze, four lights in each room.

Won't last forever but we could likely be in very dangerous areas economy wise by the time it ends.
 
Won't last forever but we could likely be in very dangerous areas economy wise by the time it ends.

I will challenge that the interest rates have anything to do with inflation control. If we wanted to lower inflation, we would bring in labour to pick fruit and the various other jobs this labour force completed in the past.

FYI - we have 1.5 job vacancies for every 1 unemployed person in WA.


This interest rate rise and manufactured economic slowdown is, in my opinion, is a tool of war against russia (just like the sanctions). Otherwise we would simply stop stimulating our own economies and or start paying down our debt.
 
Sep 15, 2007
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I will challenge that the interest rates have anything to do with inflation control. If we wanted to lower inflation, we would bring in labour to pick fruit and the various other jobs this labour force completed in the past.

FYI - we have 1.5 job vacancies for every 1 unemployed person in WA.


This interest rate rise and manufactured economic slowdown is, in my opinion, is a tool of war against russia (just like the sanctions). Otherwise we would simply stop stimulating our own economies and or start paying down our debt.
The central bank and government arent the same beast though. They have different motivations.
 
Aug 14, 2011
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West Coast
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Published 21 August 2022 at 4:23pm

'Prime Minister Anthony Albanese says inflation won't hit the UK's level of 10 per cent, with cost of living pressures a top priority at Labor's upcoming jobs and skills summit.'

So mid 9's are a possibility ?



Mr Chalmers:
Published: July 28, 2022 7.40pm AEST Updated: July 30, 2022 8.16pm AEST

'Inflation is now forecast to peak at 7.75% in the December quarter of this year.

That’s higher than the Reserve Bank’s most recent (informal) forecast peak of 7%, and way above the 4.25% forecast in the March budget for the year to June, and the 3% forecast in that budget for the year to June 2023.

The annual rate is then expected to decline to 5.5% by June next year, and then to 3.5% by December next year, before dropping to 2.75%, back within the Reserve Bank’s target band, by June 2024.'
 

hamohawk1

Premiership Player
Feb 18, 2011
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US still with persistent inflation, leading to a 35-40% chance they will hike rates there by 1%.

Does this sort itself out without some level of implosion?
 

Evolved1

Cancelled
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Jun 14, 2013
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interest rates will be back to normal shortly

we just need the war to end, so the economic war can be pulled back; and
industry smoothing out the remobilisation of covid issues
That raises the question of what a normal interest rate is. Current interest rates aren't high by comparison to the last 30 years of data.
 

Johnny Bananas

Premiership Player Hater
Sep 10, 2010
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Think it all comes back down to the fact you can't pump absurd amount of $$$ into an economy and not expect it to not have consequences. For me this is the fatal flaw to any UBI or similar.
Any serious UBI proposal would have to be accompanied by higher taxes for the well-off for that reason.
 

burge13

Brownlow Medallist
Jan 25, 2019
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You seem very confident that it can't. Why?
Find me a country with a borderline level of extreme socialism actually works? Its a ridiculous notion to think UBI can work

Money doesnt grow on trees.

"Tax the rich" sounds cool. Until they take operations overseas when its no longer feasible here and therefore less jobs.

UBI sounds nice, I agree. In practice i doubt it ever works and i have mu doubts the utter morons running this country could pull it off! You want the idiots who wanted to spend 20m on an aboriginal flag on the bridge to sort this out?! Bit complex for them. Way too many hurdles, risks, problems, impracticalities for it to work
 
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