Originally Posted by Antdemo
I am british and have lived here and born here for 20 years now and to say its costing a fortune to live here, our house prices are to high due to USA , because their stock market sucks big time.
the british house prices are high because or the british economy, this has been going on for years, inflation is becoming uncontrolable, and the country has pretty much no national reserve of anything worth any money left.
you'll find that the american stock market *generally* doesn't effect british house prices.
house prices are not only affected by inflation, but also by the ability to get loans and stuff.
it may be that the US saw a credit crunch before the UK, but the US is ina state of recovery now according to some reports, things are looking up, as things in britain are looking down. -i.e if things in britain were that badly affected by america we'd have seen this earlier, been hit harder and on our way out by now.
supply is what also drives the price of oil. The bloke with the 'hole in the ground' wants a bit extra income this week so he goes out and closes the gate valve off another 1/2 turn. Less supply so those wanting it will pay a bit more for it.
the high price has a lot to do with global demand, and it's not about shutting off demand.
(I can't remember the exact numbers from the news, but...) ten years ago the oil field were producing something like 90 million barrels of oil a day, world consumption was at 86 million barrels, and there was a 4 million barrel a day surpless that was stock piled.
now supply is still at 90 million barrels of oil a day, but demand is 98 million barrels a day, and there is an 8 million barrel a day deficite. thus the oild goes to the highest bidder.
it's a sellers market, that's just how it works.
apparantly, saudi arabia *can* increase production in order to sustain current demand, however demand does keep going up.
and oil reserves are becoming harder to actually find.
it's got nothing to do with people limiting supply, or turning down supply for greed, (as I said supply has remains largly unchanged), it's to do with the fact that at the moment there are a lot of developing economies in the world who also need oil, and the increased demand drives up the price.
Its actually $9.84 per gallon. and a uk gallon costs £5.48 a gallon.
By what maths is that? also what hell kind of exchange rate did you use? it's currently 1.97779USD to 1GBP ($9.84 = £4.97) (£5.48= $10.83)... (and you work as an accountant?)
if a UK gallon is 4.55 litres you are suggesting that fuel only costs £1.20 a litre. (I can't believe I just said only
and if you're using the american "queen anne" gallon, then you are suggesting it costs £1.44 per litre, (far higher than anyone has said so far!)