With tighter supplies on the way, prices will rise in the near term and will continue to increase into next year as dairies work to replace the liquidated livestock, adds Snell.
The bulk of growth comes from the increase in our population of about 3 million people and the growing need to simply replace stuff that is wearing out, not enough to get the economy back to trend growth much less the strong growth needed to restore employment to 2007 levels.
While some of this increase reflects cars with improved lifespans, it also reflects the impact of the recession and pent-up demand to replace older cars.
Instead, policymakers continue to replace old debt with new debt, shift it from the private to the public sector, andincrease the amount of base money in the system to fill the gaps in both bank and government balance sheets.