Here is a rough transcription of the presentation for people who are hard of hearing. Apologies for the lack of grammar, I am working to improve the automated transcriptions -
hello all people are spacious of this is a presentation on the price of energy and food inspired by the online daily Telegraph UK and articles all found this week starting with Ambrose Evans Prichard’s peak cheap oil is an incontrovertible fact peak cheap oil is an incontrovertible fact if you go up to the white peak cheap oil the top that it will link you to the article and there was all so jazz prom puts giant should all come and Russian Arctic gas project on ice over costs this is not so much a peak cheap oil arm or cheap energy article because the Russians have had to freeze this project because of the abundance of American cheap gas at the moment so there’s no point them going and getting expensive gaps that will come in our future when the cheap gas goes away but he gives the example that the cheap oil has gone away and we’ve got a certain amount of cheap gas coming but basically it’s all the low hanging fruit is being plucked off then we got dark clouds gather over China’s once booming solar industry China’s push into solar energy was supposed to be a proud example of how the country was advancing into high-tech manufacturing but now the whole sector is on the brink of bankruptcy even a controlled economy can’t make solar work at home and at Telegraph again the best to get used to high food and energy prices there are here to stay best to get used to high food prices and energy prices as they here to stay so we go over to the United Nations at food price index and it goes back to 1990 and we see stable food prices for the world from 90 to 2000 even onto 2002 even 2004 prices were in that stable range but since there has been something going on the red leave the Orange and the yellow have both gone up nominal and real now real would normally mean that it’s been adapted for inflation figures but the little Asterix there Asterix winner takes us down to the bottom where it says the real price indexes the nominal price index deflated by the World Bank manufacturers unit value index so on the next slide will go and have a look to see what that is normally I’d advise following the real price as it was as it is the inflation-adjusted price but in this case I would advise following the nought nominal price and as you can see nominal food prices for the world according to the United Nations have gone from that 90 to 130 range where it was for so long right up into the two hundredths very expensive for people that pay a lot of their daily allowance of spending on food so here is the World Bank MUTV index and read it to the a proxy for the price of developing country imports of manufacturers in US dollar terms used to assess cost escalation for imported goods it is updated twice a year the indexes are weighted average of export prices of manufactured goods for the G5 economies with local currency based prices converted into US dollars using market exchange rates and it contains historical dad on 1962 2007 projections through to 2020 I get the idea from that that if everybody in the world earned dollars then you could go with that arm real price but I think we have to go to for the nominal price which is the price the real people pay out in the world because they don’t earn dollars now I could have that wrong because that very hard to understand certainly for me still there to finish with a friend chart again US pump prices I’ve called it a friend calls it US regular all formations gas prices are from the Department of energy and again we can see from 1990 a long the bottom basically fair in that channel between $1.01 dollar and 1 1/2 dollars price at the pump for regular gas between 1 1/2 dollars right until 2002 10 years ago today in 2002 the gas price for regular was at 1 1/2 dollars and you can see what happened since is a great overdoing it perhaps the cause may be the recession and it dropped down but the trend is horribly bottom left at top right and where it was one and a half dollars at the pump 10 years ago it’s now 3 1/2 to 4 dollars were all having to pay more for things we need we can afford it a lot more in the Western world because it’s so the smaller amount of our budget for people in the poorer places of the world where food and energy is a larger percentage of their budget this really hit them very hard indeed that it buying
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