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I have noticed today that the price of petrol at the pump has risen again without explanation.
Maybe it is because the vast majority of our oil is supplied by a very few major suppliers who fix prices to increase profits.
Maybe it is a market reaction to the instability on the stock markets in recent months and traders are storing their money in the black stuff.
Maybe it is due to the devaluation of Sterling against the basket of international currencies.
Maybe it will come down again … but not by much.
Whatever the reason for the increase in fuel prices the effect will be to stifle the ‘real’ economy.
Pumping hundreds of billions of pounds into the economy at the top end with the bankers is never going to solve the problem. Bankers will hold on to the precious commodity and charge more for it. Demanding more collateral and higher deposits. This is called market forces. What the government should have done is to put money in at the bottom of the stack. If the people who go out and work for a living get a little more they will go out and spend it. It is this consumer spending which drives the economy not the bankers who rack up enormous profits through charges to the government for handling its debt relocation scheme, or as they would prefer to call it, Quantitative Easing (QE).
This increase in fuel prices is a corporate squeeze on the economy increasing the already restrictive financial conditions endured by working people.
