Inflation is coming...in a big way. Part 2.

[goldeneagle]

You have a degree? Get your money back. Wow.

Rookie must be off his meds again.

[pelmet]

But those who think the price of gas is somehow tied to overall inflation are delusional.

The price of oil will be whatever the Saudi princes say it will be. Ever heard of OPEC ? Those meetings are where they decide how they intend to manipulate the price of oil going forward, and they will grind it up to as much as they can get away with.

This take is so bad I have no idea where to begin.

You have a degree? Get your money back. Wow.

Rookie must be off his meds again.

The Saudi's certainly have influence but there are other big players too, like Russia. Then again, they are just as nefarious along with most of the others. Obviously, there are many complexities that leave the Saudis far from total control.

It amazes me how all these do-gooders play right into the hands of these nations with their Koombaya policies. But that is they way a significant part of the population is. on many subjects, and one has to just deal with reality....in my opinion.

[rookiepilot]

You have a degree? Get your money back. Wow.

Rookie must be off his meds again.

Try to confine your comments to a topic you actually know a little something about.

Yes, news flash, Golden—— energy prices do feed into “actual” inflation. Companies pass those costs to the consumer.

Yes, I love mocking those who flaunt their expensive paper and are in reality common sense deprived. It’s fun sport.

['97 Tercel]

Yep.

Inflation is basically a hidden tax

[rookiepilot]

so it begins......
https://www.youtube.com/watch?v=QYSYAHDKtvM

[Inverted2]

4.8%. I think they left a 1 off of that number.

https://www.cbc.ca/news/business/inflat ... -1.6320085

[altiplano]

4.8%. I think they left a 1 off of that number.

https://www.cbc.ca/news/business/inflat ... -1.6320085

The thing is they don't include minor things - like HOUSING & ENERGY. Probably average people's single largest expenses. Add that in and we are probably pushing double digits.

[altiplano]

HAHAHA...

I can't believe they are talking about the FCOJ market in the commodities market and the Florida crop report Where's Winthorpe when you need him!

That's causing the price of frozen concentrated orange juice to skyrocket on commodities markets.

"If you're an orange juice drinker, it means your prices are going to be going up at the store," analyst Phil Flynn, with Chicago-based commodity trading firm Price Group, told CBC News. "The cost of orange juice has almost doubled here in the last few months, and that's going to be passed down to the consumers."

[‘Bob’]

But those who think the price of gas is somehow tied to overall inflation are delusional. The price of oil will be whatever the Saudi princes say it will be. Ever heard of OPEC ? Those meetings are where they decide how they intend to manipulate the price of oil going forward, and they will grind it up to as much as they can get away with.

OPEC hasn’t really been relevant since the 80s. Remember when the oil glut happened and they put the brakes on production to try and get prices to go up? They (the Saudis especially) lost their shirts.

So they didn’t make the same mistake in 2014. They kept producing, and prices dropped precipitously. That’s ok because they can make it on volume.

Point is, everyone is along for the ride. There’s very few people who can do anything about anything.

And it is definitely about inflation. The more cash floating around, the more people consume things. Especially energy.

[‘Bob’]

4.8%. I think they left a 1 off of that number.

https://www.cbc.ca/news/business/inflat ... -1.6320085

The thing is they don't include minor things - like HOUSING & ENERGY. Probably average people's single largest expenses. Add that in and we are probably pushing double digits.

Did your housing expenses increase by 4.8% this year? Mine didn’t. Mine actually decreased thanks to the feds.

For those who bought this year or found themselves suddenly homeless from landlords sale or renovictions staring down increased mortgages or rentals…. or those who have energy intensive lifestyles (I have a high efficiency furnace and wood heat, a small car and a short commute), I’d bet the figure is closer to 25%.

Point is it’s an average. Part of the reason for high home prices is very low supply meaning most homeowners are immune to the market. Unless they were stupid and sold thinking they were going to make money only to try and stay in the market with a subject to offer that’s round binned immediately.

[altiplano]

4.8%. I think they left a 1 off of that number.

https://www.cbc.ca/news/business/inflat ... -1.6320085

The thing is they don't include minor things - like HOUSING & ENERGY. Probably average people's single largest expenses. Add that in and we are probably pushing double digits.

Did your housing expenses increase by 4.8% this year? Mine didn’t. Mine actually decreased thanks to the feds.

For those who bought this year or found themselves suddenly homeless from landlords sale or renovictions staring down increased mortgages or rentals…. or those who have energy intensive lifestyles (I have a high efficiency furnace and wood heat, a small car and a short commute), I’d bet the figure is closer to 25%.

Point is it’s an average. Part of the reason for high home prices is very low supply meaning most homeowners are immune to the market. Unless they were stupid and sold thinking they were going to make money only to try and stay in the market with a subject to offer that’s round binned immediately.

My mortgage stayed the same because I'm on a fixed rate/term, but when the mortgage renews it will be up as interest rates rise.

But that's only one cost...

Upkeep and repairs increased substantially.

Utilities rates increased substantially.

Insurance rates increased substantially.

Property taxes increased substantially.

Roughly 6 in 10 Canadian families own their principle residence. So there are still many people exposed to the rental market and it's corresponding rises, or trying to buy into a rapidly inflating market.

To say: "I'm a homeowner, not my problem" is arrogant and ignorant.

This is a problem that affects our whole society, even if we own our little slice of paradise, there will still be eventual broader repercussions.

That said, I've got several properties in the least affordable markets on the continent... It's good my net worth now, but I have larger concerns on the issue of sustainable market growth.

['97 Tercel]

I rent but my neighbour's property tax has gone up 17% since covid started. Insurance definitely went up and is set to continue that trend.

[kgb531]

While demand has been firm in most markets, it is low rates that have artificially increased the price of homes.
Here in Alberta, a $500K home is not a $500K home. It is a $2500/mth mortgage payment. Given that a large majority of homebuyers in the last 19 years have borrowed at or near their maximum affordability, that home stays a $2500/mth home whether rates are 1.8% or 4%.
The price of a home is what somebody is willing (capable) of paying for it. In the above scenario, the 500K home becomes a 420K quite fast. Those who are overextended, be it mortgagee or builder, will find the bankruptcy avenue to be more appealing as time goes on.
Of course those with any common sense didn't borrow to their maximum and gave themselves plenty of breathing room. The "home as investment" fad started about 20 years ago and it is the normalization of lending rates that will ultimately bring housing prices back inline. There will be a lot of carnage in many neighborhoods.

&$

4.8%. I think they left a 1 off of that number.

https://www.cbc.ca/news/business/inflat ... -1.6320085

The thing is they don't include minor things - like HOUSING & ENERGY. Probably average people's single largest expenses. Add that in and we are probably pushing double digits.

Did your housing expenses increase by 4.8% this year? Mine didn’t. Mine actually decreased thanks to the feds.

For those who bought this year or found themselves suddenly homeless from landlords sale or renovictions staring down increased mortgages or rentals…. or those who have energy intensive lifestyles (I have a high efficiency furnace and wood heat, a small car and a short commute), I’d bet the figure is closer to 25%.

Point is it’s an average. Part of the reason for high home prices is very low supply meaning most homeowners are immune to the market. Unless they were stupid and sold thinking they were going to make money only to try and stay in the market with a subject to offer that’s round binned immediately.

[tsgarp]

Biden is about to get annihilated in the midterms.

Depends who counts the votes.

[dhc#]

Good article on this topic...

https://quoththeraven.substack.com/p/in ... ished=true

[rookiepilot]

Get ready for car gas $2.50 +.......and an epic sale on piston twins and the like. Gonna get fun.......

Ok - but can we get a timeframe for this prediction?

$2.10, today.

[rookiepilot]

So we’ll have the same gas prices as England? What do you suggest we do with this information?

If you’ve hedged your fuel costs, would have saved a fortune.

[digits_]

Get ready for car gas $2.50 +.......and an epic sale on piston twins and the like. Gonna get fun.......

Ok - but can we get a timeframe for this prediction?

$2.10, today.

That's a report, not a prediction

[Inverted2]

Last year you couldn’t find a boat or RV. I think there will be some hot bargains this summer.

And all those Cessna 185s people are asking half a million for.... What’s 100LL going for these days?

[rookiepilot]

Get ready for car gas $2.50 +.......and an epic sale on piston twins and the like. Gonna get fun.......

Ok - but can we get a timeframe for this prediction?

$2.10, today.

Almost there….and you doubted me.

https://www.cbc.ca/news/business/gas-pr ... -1.6453689

2.55 diesel….

[co-joe]

The price of diesel pisses me off so much. Pure greed. There is no other single commodity price that directly effects the cost of literally everything grown, transported, manufactured, bought, and sold in today's economy than diesel. High diesel prices are high inflation. And there's no reason for it other than oil company greed.

[Jet Jockey]

LMAO...

[tsgarp]

The price of diesel pisses me off so much. Pure greed. There is no other single commodity price that directly effects the cost of literally everything grown, transported, manufactured, bought, and sold in today's economy than diesel. High diesel prices are high inflation. And there's no reason for it other than oil company greed.

Other reasons;

Carbon Tax & Laxk of North American Oil Production.

[‘Bob’]

The price of diesel pisses me off so much. Pure greed. There is no other single commodity price that directly effects the cost of literally everything grown, transported, manufactured, bought, and sold in today's economy than diesel. High diesel prices are high inflation. And there's no reason for it other than oil company greed.

Other reasons;

Carbon Tax & Laxk of North American Oil Production.

Carbon tax did not cause diesel to more than double in price in two years.

It’s not the lack of North American oil production either. Otherwise we wouldn’t be exporting it.

It’s the lack of refinery capacity, which is intentional… and BS excuses. Rack prices are going down but prices at the pump are going up. It’s pure unadulterated greed.

But. It’s not going to last. Like every energy cycle ever.. increased production driven by high prices will cross with reduced consumption driven by recession and adoption of modern technologies.

Except in this case instead of buying Japanese compacts in the 70s and 80s to turn around and buy Explorers and Hummers in the 90s and 00s… we will replace almost everything with EVs… and so will end our dependence on oil except in aviation for now and very small industrial sectors.

[Inverted2]

I read they are talking about diesel rationing soon as in they are running low in the Northeast US. That’s REALLY gonna hurt. GasBuddy is showing diesel at $2.75 in Newfoundland.