Prices in the Future

Mike

Mike

Well-known Member
Location
London
How will this "Global Lockdown" affect prices I wonder.

It will be like a war ending, lots of people with no money or jobs,
companies can't sell their products to people who can't afford to
buy them, CEOs and Bankers who earn Mega-Bucks will not take
a drop, so they will have to be Taxed maybe 80% to get them out
or down in income earnings.

You might laugh at the above statement, but just think about it for
a few minutes/seconds.

To date as far as I am aware crude oil prices have dropped to their
lowest since Pre-1950, Chart in the link below.
https://www.macrotrends.net/1369/crude-oil-price-history-chart

I got this month's payslip for one of my pensions and it has dropped
by £25, in just one month and that month was just the start here in
the UK of the Virus, I wonder what next month's offering will be down
by, probably another £50.

So all/most Governments are handing out billions of Dollars & Pounds,
also Euros, even when they don't have them, they will borrow from the
World Bank and hope to pay back in the future, so low prices and high
Taxes are my thinking.

Anybody agree?

Mike.
 

We have been told 12 weeks lockdown, but maybe 6 months.

Mike.
 

Agree Mike. A realtor said yesterday that the housing market is due now for a correction.

Homes where I am usually list and sell the same day, two I notice have been sitting unsold now for two weeks.

Virtual tours only may become the norm and I for one would not want to take a chance buying that way, and as a seller I would feel uncomfortable letting someone into my home that could be infected.
 
Yes, I think businesses will be desperate to make up their losses and will do all they can to encourage those who DO have money to spend, to buy their products.
At the same time, thinking long-term, I think (and hope) that more companies will manufacture their products here in the UK, rather than in China and India, and this will cause prices to go up.
 
Rosemarie said:
Yes, I think businesses will be desperate to make up their losses and will do all they can to encourage those who DO have money to spend, to buy their products.
At the same time, thinking long-term, I think (and hope) that more companies will manufacture their products here in the UK, rather than in China and India, and this will cause prices to go up.
Click to expand...

I sincerely hope so too. ( ooops had to remove my previous sentence because it may have started a political debate)
 
At present, workers are exploited, animals are cruelly treated, and we pay far more for things than they are actually worth. All to put money in fat cats pockets. The whole system is in need of an over-haul.

It may be then, that some good may come out of all this.
 
Here in the United States, the additional federal debt to combat the coronavirus is being financed at very low rates.

It wouldn't surprise me if at some point a round of inflation kicks off and as interest rates rise the debt will shrink to create the illusion that we are in great financial shape. New debts will be issued at higher rates to pay off the old deflated low rate debt and the amount of outstanding debt will go down but the cost to service that debt will rise.

IMO we should raise taxes and pay our debts instead of continuing to play this old and wasteful game.

"Don't tax you, don't tax me. Tax that fellow behind the tree." - Russell B. Long
 
In the USA we are, without doubt, in for a rough ride for a while until the virus is under control. This event WILL, however, eventually be behind us. My crystal ball is a bit hazy but, once it's well and truly over, I predict:

There will be a HUGE pent up demand for goods and services.
The majority of furloughed workers will return to their jobs.
Many new employment opportunities will open up as new companies are created, driven in part by a new resolve to reduce our reliance on foreign countries for manufacturing.

That's the good news. Unfortunately, I suspect Aunt Bea is right and we'll go into a period of inflation as well. How bad that will be and how long it will last will depend almost entirely on the leadership we have at that point.
 
Rosemarie said:
At present, workers are exploited, animals are cruelly treated, and we pay far more for things than they are actually worth. All to put money in fat cats pockets. The whole system is in need of an over-haul.

It may be then, that some good may come out of all this.
Click to expand...
pretty much of what I posted then removed
 
hollydolly said:
pretty much of what I posted then removed
Click to expand...
I could in fact, say much more but, as you say, it involves politics. However, when you think about it, it's surprising the effects this system has on the world's economy.
I refuse to shop at Tesco because of their ethics. It really should extent to other companies, too. If people cared more about what was really going on, and boycotted the offending companies, it would have a major effect on our countrys economy, not to say the eco-system.
 
I think the biggest long term impact will be felt by the small businesses. Many small stores are financially unable to survive any long term economic downturns, so many of them may not survive if this downturn/isolation continues into the Summer. Unemployment numbers will continue to increase, and it will take many months to return to anything close to the low numbers we've seen in the past year or two.

Our Health Care Industry is going to require some Serious evaluation, and better steps taken to prepare for future major epidemics....which will most likely occur. This "knee jerk" reaction should Not have to happen in Any "developed" nation.

Service Sector jobs may well migrate more towards "work at home" positions....there really isn't any need for many of these people to navigate the morning/evening rush hours, just to sit behind a desk, pecking on a keyboard all day. Increased Internet capability would save a lot of wasted time and resources.

There will be a lot of lessons learned from this virus, and over the next couple of years, we may see some real changes in how millions live their daily lives.....and, much of it will be positive, IMO.

In the interim, we can expect some impacts to our routines, but patience and perseverance, and trying to stay positive, are about all that most of us can do while we ride out this current situation.
 
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