Supply and Demand

Oil prices are now very low and all energy prices are very low however you measure them, compared with ten years ago. Most commodity prices are low. prices of raw materials are low compared with prices of ten years ago and so are many food prices.

There are probably several reasons for low prices today. one is the lack of inflation and very low interest rates. Another is exploitation of cheap easy to access fossil fuel. A third reason is the political effect of wars, armed conflict and international sanctions on prices. There is also the old twin factors of supply and demand. Continue reading

Good Money and Bad Money: the Rules have Changed

There is good money and bad money. If you took out a mortgage in order to buy a house or a long term loan in order to buy an assets between 1964 and 2008 in most developed or developing nations in the world you borrowed good money and repaid in bad money. If you saved money between the same periods in a deposit taking institution you parted with good money and in most cases got back bad money years later. In 2008 the rules changed although most ordinary people did not know it, because the rule change was not generally known.  Continue reading

A Cold Wind Blows Over Greece

Colder weather is forecast. Greece, where in summer it is hot, is in distress but its landlords, the IMF, the World Bank and the European Union, are still demanding the rent which Greece cannot pay. Continue reading

Quantitative Easing

All the quantitative easing has stopped; in the United Kingdom and in North America the financial institutions have been flooded with cheap printed money in an effort to improve liquidity, stimulate lending and make the economies prosper. the effort has failed, in its stated aims, although the effort has prevented many financial institutions closing their doors and calling in the liquidators, thus protecting the savings of people. Continue reading

An Economy Founded Upon Usury, Not Work

It is not quite good riddance to bad rubbish and it has taken an overly long period to take action but from next January the UK Payday loan lenders will have their usurious rates of interest they charge capped at a mouth-watering 0.8% per day and limited to twice the amount originally borrowed. Continue reading

The Best is No Longer Yet to Be

All over the western world the rich are getting richer and the less rich are getting less rich. A person who has invested in education is less able to become a reasonable wealthy person than at any time in the last hundred years. It is harder than ever to earn enough money to be able to buy a house, live as well as your parents or even live as well as your parents lived. Of course there are exceptions but generally people are getting poorer while corporations are getting wealthier. After many generations when most people lived better lives than their parents (give or take the occasional world war) most expect succeeding generations on the Western democracies to live less prosperous more hard working lives with considerably less hope than  the lives their parents lived. Continue reading

Addiction of Consumerism

The majority of the world, particularly the Western developed world, is short of money. We have spent more than we have earned and spent our money on pleasures and necessities. In the United Kingdom the pay-day loan lenders are being slightly restricted, but the few who make the loans are still going to be living of the many who borrow the money. The borrowers need food, shelter and warmth, but they in some cases have spent their money on pleasures, and whatever the short hit that they got from the pleasure was, they now have to suffer the pain of having to spend their work to pay huge interest on very small loans. Continue reading