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Cost of living crisis

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I once bought a sausage roll that purported to contain 13% meat. What the rest was God only knows. Why it was called a sausage roll belongs in the flummoxed thread.

 

Insects are the culinary future.

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I wonder how the fall of the euro vs the dollar will affect the cost of living? Energy is priced in dollars. Raising interest rates counts for nothing as the inflation is mostly driven by lack of supply, not excessive demand. So diesel/gasoline costs will rise as will transport costs which feed into just about everything. EU exports will become cheaper, but everything we source from abroad more expensive. Inflation on steroids.

 

As for gas:

https://www.thelocal.de/20220714/save-now-german-energy-regulator-warns-gas-prices-could-triple/

 

“From 2023, gas customers will have to prepare for a tripling of the monthly costs, at least.
Asked whether that meant that people who currently pay €1,500 per year would be hit with an annual bill of €4,500, Müller said he thought that was “absolutely realistic” and could even be higher."

Quote from Klaus Mueller, president of the Federal Network Agency (BNetzA).

 

Seriously??? Gas will be x3 more expensive. Currently I pay (and I am lucky) 10c per kwh for gas. Times three is 30c per kwh, what electricity was before they reduced it. This means a dumb electrical heater becomes cheaper, as of today, with electricity at 25c.

 

No wonder I see all my neighbours stocking up on wood these past weeks.

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I wonder how the fall of the euro vs the dollar will affect the cost of living? Energy is priced in dollars. Raising interest rates counts for nothing as the inflation is mostly driven by lack of supply, not excessive demand. So diesel/gasoline costs will rise as will transport costs which feed into just about everything. EU exports will become cheaper, but everything we source from abroad more expensive. Inflation on steroids.

 

As for gas:

https://www.thelocal.de/20220714/save-now-german-energy-regulator-warns-gas-prices-could-triple/

 

“From 2023, gas customers will have to prepare for a tripling of the monthly costs, at least.
Asked whether that meant that people who currently pay €1,500 per year would be hit with an annual bill of €4,500, Müller said he thought that was “absolutely realistic” and could even be higher."

Quote from Klaus Mueller, president of the Federal Network Agency (BNetzA).

 

Seriously??? Gas will be x3 more expensive. Currently I pay (and I am lucky) 10c per kwh for gas. Times three is 30c per kwh, what electricity was before they reduced it. This means a dumb electrical heater becomes cheaper, as of today, with electricity at 25c.

 

No wonder I see all my neighbours stocking up on wood these past weeks.

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There seems to be at least a doubling on this forum.

 

For climate change reasons fossil fuels are just going to have to be more expensive than electricity. They just are, and the sooner we get it over with the better. It'll be scheiße in the short term, but it obviously needs to happen.

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There seems to be at least a doubling on this forum.

 

For climate change reasons fossil fuels are just going to have to be more expensive than electricity. They just are, and the sooner we get it over with the better. It'll be scheiße in the short term, but it obviously needs to happen.

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19 hours ago, scook17 said:

I wonder how the fall of the euro vs the dollar will affect the cost of living? Energy is priced in dollars. Raising interest rates counts for nothing as the inflation is mostly driven by lack of supply, not excessive demand. So diesel/gasoline costs will rise as will transport costs which feed into just about everything. EU exports will become cheaper, but everything we source from abroad more expensive. Inflation on steroids.

 

 

It will get much worse. The EU and the euro is finished and they have a name for it,  Transmission Protection Instrument (TPI)

 

They have called the end of the EU and the Euro the TPI.

 

Look at the Euro today, a 50 basis point hike and the markets still do not believe you (straight back down against the dollar).

 

When you lose all credibility like the ECB has, then you have a huge problem.

 

Remember Black Wednesday?

 

Every time the Government increased interest rates the pound went down. 

 

Credibility is everything to the markets.

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On 20/07/2022, 22:15:28, scook17 said:

I wonder how the fall of the euro vs the dollar will affect the cost of living? Energy is priced in dollars. Raising interest rates counts for nothing as the inflation is mostly driven by lack of supply, not excessive demand. So diesel/gasoline costs will rise as will transport costs which feed into just about everything. EU exports will become cheaper, but everything we source from abroad more expensive. Inflation on steroids.

 

As for gas:

https://www.thelocal.de/20220714/save-now-german-energy-regulator-warns-gas-prices-could-triple/

 

“From 2023, gas customers will have to prepare for a tripling of the monthly costs, at least.
Asked whether that meant that people who currently pay €1,500 per year would be hit with an annual bill of €4,500, Müller said he thought that was “absolutely realistic” and could even be higher."

Quote from Klaus Mueller, president of the Federal Network Agency (BNetzA).

 

Seriously??? Gas will be x3 more expensive. Currently I pay (and I am lucky) 10c per kwh for gas. Times three is 30c per kwh, what electricity was before they reduced it. This means a dumb electrical heater becomes cheaper, as of today, with electricity at 25c.

 

No wonder I see all my neighbours stocking up on wood these past weeks.

Go look on check24. Current gas prices are 23ct kWh, up from 6ct before the war. So for new contracts the price has already more than tripled. Perhaps they will drop a little now the pipeline is flowing again, but considering Putin gas turn it off whenever he wants, speculation will probably keep the prices high.

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On 21/07/2022, 18:10:25, RenegadeFurther said:

 

It will get much worse. The EU and the euro is finished and they have a name for it,  Transmission Protection Instrument (TPI)

 

 

Aprictias had a good article on this

 

https://apricitas.substack.com/p/the-eus-hamiltonian-moment

 

I'm wondering if Germany will see a proliferation of homeless encampments the same way Canada has. When we visited last, pre coivd, there were homeless but typical of any mid sized city they were hidden. Now there are at least half dozen tent cities. The vast majority of the new homeless are  working class people who've been priced out of the rental market and now live on the street. Different circumstances but I can see something happening here over time especially if inflation isn't curbed. 

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