Date: 01-07-22  Time: 12:34 pm

Author Topic: never ending inflation madness  (Read 233 times)

BBROWN1664

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never ending inflation madness
« on: 22 June 2022, 12:39:43 pm »
My brain is hurting trying to think of a way out of this.


1. oil output restricted so oil prices rise to make sure you are at the front of the queue to buy it
2. oil prices rise - oil companies make more money and tax man takes more tax
3. Joe public and all other companies end up paying more for oil products (oil/gas/plastic etc)
4. Companies have to put up prices to cover costs - not making more money apart from the tax man
5. Joe public pays more for the products - need more pay to cover this and pay more tax
6. Banks put up interest rates to try to reduce the amount of cash we have to stop us spending

7. Companies have to put up prices to cover costs - not making more money apart from the tax man

8. Joe public pays more for the products - need more pay to cover this and pay more tax
9. Banks put up interest rates to try to reduce the amount of cash we have to stop us spending
etc etc etc


The only ones making money out of this are the oil companies and the tax man really - banks making more are a side issue as when they put up the loan rates they generally put up the savings rates too (not that I have savings but some of you lucky feccers do)


The only way out of this I can see is for the UK government to find a way to make North Sea oil and gas the main supplier for the UK, restrict prices on domestic use and remove imports as much as possible and ban exports if they cannot supply the domestic market with what's left. Oil companies will hate this as they will make less money. The government will hate it as it reduces tax income.


We are screwed unless someone can work out another way to stop the never ending madness

[Edited because Point 9 was in a miniscule font - GrahamM - Moderator]
« Last Edit: 23 June 2022, 08:29:04 pm by Grahamm »
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mtread

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Re: never ending inflation madness
« Reply #1 on: 22 June 2022, 01:41:15 pm »
I think you've perfectly described 'spiralling inflation'. Prices go up, so wages go up, so costs go up, so prices go up. The 'solution' to this is usually recession. Where a large proportion of the population are left behind and can't afford to pay the increased prices, so demand falls, production falls, unemployment rises. Prices eventually drop. It takes a while, and the majority suffers.


Not sure North Sean oil and gas is sufficient for our needs, or cheap enough to extract. We're b*ggered.  :(


Just a point on taxation, Fuel Excise Duty is of course fixed per litre irrespective of price. All the extra tax is coming from VAT. So the price rises on most things, as well as petrol and diesel means more tax revenue
« Last Edit: 22 June 2022, 01:46:22 pm by mtread »

Grahamm

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Re: never ending inflation madness
« Reply #2 on: 23 June 2022, 08:37:26 pm »
My brain is hurting trying to think of a way out of this.

The long term solution is to stop relying on fossil fuels.

Doesn't fix the issue now, of course, although a lot of what is causing that is actually to do with the "B Word" that shall NOT be mentioned!

midden

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Re: never ending inflation madness
« Reply #3 on: 24 June 2022, 01:50:21 pm »
My brain is hurting trying to think of a way out of this.

The long term solution is to stop relying on fossil fuels.

Doesn't fix the issue now, of course, although a lot of what is causing that is actually to do with the "B Word" that shall NOT be mentioned!
You don't think anything replacing fossil fuels will eventually be heavily taxed?
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BBROWN1664

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Re: never ending inflation madness
« Reply #4 on: 24 June 2022, 03:15:25 pm »
My brain is hurting trying to think of a way out of this.

It doesnt matter if its heavily taxed as long as an organisation like OPEC doesn't control the price. If oil companies were allowed to operate like the airlines (Ryanair/Easyjet etc) they would all be trying to supply you for less money rather than all putting their prices up together etc.

I dont think Bexsh!t has anything to do with this, this is a global recession caused by Covid and now Russia.

The long term solution is to stop relying on fossil fuels.

Doesn't fix the issue now, of course, although a lot of what is causing that is actually to do with the "B Word" that shall NOT be mentioned!
You don't think anything replacing fossil fuels will eventually be heavily taxed?
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Dudeofrude

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Re: never ending inflation madness
« Reply #5 on: 24 June 2022, 06:58:29 pm »
Personally I don't think its the fossil fuels or the B word... its the big corporate scumbag companies that think its normal business practice to make more and more profits every year regardless.

The problem is when a company makes over £3billion profit but is upset because they forecast to make £5billion so start cutting corners in manufacturing, laying off staff and upping their prices just to make even more ludicrous profits to give the shareholders. Without increasing the pay of their workers or improving the quality of the products they produce

The fact that that this has become the norm among the largest companies operating in this country coupled with corruption in the government is the reason we are in this situation and until someone puts a stop to it then nothing will change.


Grahamm

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Re: never ending inflation madness
« Reply #6 on: 24 June 2022, 07:30:28 pm »
The B Word is affecting all businesses because of the extra paperwork etc involved in importing goods which, coupled with the rise in oil prices is putting up costs which are then passed on to the consumer, increasing inflation.

This results in the whole Cost of Living crisis we're seeing now because people are unable to buy the necessities they need as the prices have gone up as has the cost of fuelling the car. And since wages have been held down for so long, people need a pay rise just to put them back where they were before this all started.