The price of Gas is up, again

Three completely connected headlines, all different aspects of the rise in gasoline prices.  Three sides of the same coin.  Notice how all the headlines either contain a number or refer to one?

World food prices at fresh high, says FAO

3 February 2011 Last updated at 12:56 ET

World food prices rose to a record high in January, according to the UN’s Food and Agricultural Organization (FAO).

The FAO Food Price Index, which measures the wholesale price of basic foods within a basket, averaged 231 points last month – its highest level since records began in 1990.
It was up 3.4% from December, the seventh monthly rise for the index.

 

Shell annual profits double to $18.6bn

3 February 2011 Last updated at 14:37 ET

The oil giant Shell has reported profits almost doubled from $9.8bn to $18.6bn (£11.5bn) for 2010, partly thanks to rising oil prices and output.

Its chief executive, Peter Voser, said the company had made good progress and that there was “still more to come”.

During the year, the company made $7bn of acquisitions and invested $3bn in exploration.

 

One in five workers ‘fears losing job’, CIPD says

3 February 2011 Last updated at 19:01 ET

One in five UK workers fear they could lose their jobs, a survey has said.

In the public sector, that figure rises to nearly one in three workers, the Chartered Institute of Personnel and Development (CIPD) said.

The organisation is calling on managers to demonstrate high-quality leadership in order to raise morale and engagement in the workplace.

More than half of those surveyed also claimed that their employer had either frozen or cut pay.

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The price of Gas is up, again

One thought on “The price of Gas is up, again

  1. My anecdotal thoughts are that we have a confluence of economic factors as we transition to a global economy. One is that “wealth” is flowing out of the industrial nations to the developing countries. As an example, outsourcing jobs to countries where workers are paid less.

    In outsourcing jobs to developing nations, economic theory would imply that the citizens of the developing nations would begin to accumulate wealth. This may well be occurring and is something we should desire since it opens trading opportunities. As one example, on the radio, there was a discussion concerning a spike in grain prices that was attributed to growing demand in China for protein (beef) based foods.

    Oil, like gold, is an international commodity where the price applies world wide. The US over the past several (decades) years been following a policy of deficit spending. Recently this has exploded. Theoretically this leads to inflation. While I have no official proof, it seems that the rise in oil prices really isn’t a rise, its a reflection of inflation. That is that the US Dollar is depreciating when compared to the commodity. To be very blunt, the US is becoming a poorer nation because we are living on “credit”. One day the bill will become due.

    At some point in time, the developing nations will achieve a degree of parity with the US. At that point, “wealth” would cease to flow out of the US. Japan would serve as a good example of this process. It used to be that “cheap” Japanese cars were shipped to the US putting US factory workers out-of-work. But as Japan became richer, production of Japanese cars moved to the US and US factory workers where once again hired.

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