Business UK
UK economy: ‘They don’t get it!’ Former BoE adviser shocked by Government’s handling of inflation
‘You have to hit these guys on the head with a stick of security tag butter to get them to pay attention. I didn’t believe they were going to go ahead with a 13th interest rate rise but they did’
Former advisor to the BoE, Roger Gewolb, on the Government’s handling of inflation.
#inflation #rogergewolb #jeremyhunt #ukeconomy
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Donald Trump hails “extremely positive and productive conversations” with China as the President speaks at a state banquet with the Chinese President Xi Jinping in Beijing.
#DonaldTrump #China #WorldPolitics #WorldNews #GBNews
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Watch as Will Kensington expresses concern about the state of the UK, arguing that Downing Street is no longer a place of power but has instead become Britain’s most expensive Airbnb.
This comes as Andy Burnham is set to become the UK’s seventh Prime Minister in a decade, with seemingly no one challenging the “King of the North” for the country’s top job.
#Labour #PrimeMinister #KeirStarmer #UKNews #GBNews
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Business UK
Cabinet Office DEMANDS LGBT and ethnic figures on bank notes over DIVERSITY – ‘RIDICULOUS!’
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‘We have real pressing financial issues as a country. I find focus on stuff like this quite ridiculous!’
Nana Akua hits out at the Cabinet Office’s suggestion that banknotes should featurre prominent ethnic or LGBT figures from British history.
#cabinetoffice #lgbt #uknews #ukpolitics #gbnews
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Join Martin for an up-to-the-minute take on the day’s events delivered in his own unique and lively style.
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France holds annual Bastille Day parade with different military regiments with foreign troops included. President Emmanuel Macron has invited leaders from The Coalition of The Willing to watch parade.
#paris #bastille #french #zelensky
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@jmika539
December 19, 2023 at 12:35 pm
We are doing this to save our democracy, the rule based order. Ukraine Ukraine Ukraine. Is the beginning of the end. Rates will go up to 10%.. the UK is finished
@maxthemagition
December 19, 2023 at 12:35 pm
Looking back as far as the 1970's, previous Chancellors put interest rates into double figures to curb inflation.
The BOE today is behind the curve and now cannot do this because of 14 years of "Free Money" dished out to the banks and suchlike which has inflated property prices as well as DEBT.
The Country is awash with DEBT and IOUs.
The cost to young families today is in rents and mortgages as well as hire purchase for cars and suchlike. Also the cost of child care and schooling is very high.
Take mortgages for example….
A £200k mortgage at 10% interest rate = £20K p.a. interest only, which equates to well over £30k earnings! (After tax deductions, N.I., Pension Contributions, Health Insurance etc).
If interest rates do not go higher than about 5%, then inflation which is running at near 10% will be impossible to halt and the result will be of course continuing INFLATION and a possible devaluation of Sterling.
A devaluation of Sterling will affect everybody and very likely lead to accelerating INFLATION.
Basically the UK economy is in a hole that is almost impossible to get out of.
As winter approaches, and energy costs rising even more, along with almost guaranteed INFLATION, the future is not very bright to say the least.
There is almost stunned silence from this Government and the BOE.
The prolific money printing since 2008 and mountainous DEBT has created this monster today!
@stuartdeighton8730
December 19, 2023 at 12:35 pm
Break through your mind conditioning
@kenscholey3452
December 19, 2023 at 12:35 pm
This is correct. Interest rate rises are a great control for consumer lead inflation BUT NOT for supply chain inflation. Wrong tool wrong application. This is just making things WORSE. Dummies !! Bank of England board intelligent ?? Don’t make me laugh .
@PA-ss5cq
December 19, 2023 at 12:35 pm
We have a Chinese puppet running our economy, a man whose household income is coming in part directly from the Chinese State, and people are surprised when it's a shambles? Exactly as Chairman Xi ordered chums.
@Exanto777
December 19, 2023 at 12:35 pm
Zero interest rates were ridiculous. There has to be a return on capital. 5% base rate is not enough to correct price rises, it needs to go higher for a year or two.
@mramg6038
December 19, 2023 at 12:35 pm
STOP REACTING TO MEDIA – read below & educate yourself.
How did we get here?:
1) Domestic energy policies that shun Nuclear & Gas & increase UK reliance on important energy (Tony Blair)
2) Pension exposure to gilt inversion (Liz Truss)
3) Volume of debt (public & private) (Gordon Brown)
How do we get out of here?
1) Supply-side shocks "black swan events" reverse (energy prices fall, petrochemical refined goods fall, fertilisers fall) – not in BoE control.
2) Decrease VAT, Fuel Duty, fiscal drag policies, and landlord taxes (really read: tenant taxes). This is called Truss economics, & relies on pension companies limiting exposure to gilts – not in BoE control, as we seen with Kwazi Kwarteng & Liz Truss – the markets reacted violently as pensions almost went bust.
3) Increase interest rates to kerb demand (reducing global goods prices via strengthened Sterling, & reducing core inflation on domestically produced goods/services). – This is in BoE control.
You can see why the BoE is raising interest rates; because it has no other levers available due to the governments policies predating these black swan events.
I do believe that interest rates will cause a recessionary contraction, & core inflation will fall. However, the BoE will need pivot extremely quickly when contraction is established to prevent an all out collapse of asset prices which will ofcourse harm the banks, pensions, & ordinary people. Read: interest rate return to 0 (potential for -ve rates? Treasury had been prepping banks for just such an event only a few years ago).
Question for the electorate & government is, if/when that happens do you really want to end up with 150% GPD debt without a credible strategy for growth? This is why HS2 & other major capex projects are vital to the sustainability of the economy. Another easy way to boost growth is to remove trade tariffs with EU (rejoin EU), and/or sharpen the pencils on climate policies & DEFRA agricultural restrictions.
Hope that helps explain to people :).
Please comment you views.
@BernieTheBoxer
December 19, 2023 at 12:35 pm
Why has the Bank of England not got a supply-side economic policy committee? Because the whole institution has been hollowed out by rabid monetarists and ex-banking economists. It is supposed to be a well-balanced institution capable of understanding the UK economy in a holistic manner but instead it has been hijacked by a single economic dogma.
@cohen855
December 19, 2023 at 12:35 pm
The US has printed more money and have war related funds that should have been returned to some countries
The US dollar albeit is in crisis with the major economies buying gold and other precious stones as commodity
The dollar is looking bad
@peterfoley3043
December 19, 2023 at 12:35 pm
We have supply side inflation ! Interest rate rise is all about the government Want's a resission…it lost a million cheap willing workers with Brexit and want's to replace them with YOU !
@instantkarma1229
December 19, 2023 at 12:35 pm
They do get it unfortunately, they just don’t pretend to care about us anymore they have us right where they want us
@x...alne..1013
December 19, 2023 at 12:35 pm
Hi dear friends how are you
@widervision710
December 19, 2023 at 12:35 pm
Need to use Brexit freedoms more strategically to make uk great again……
@mrmeldrew693
December 19, 2023 at 12:35 pm
They DO get it.
We are just being lied to and robbed.
@somethinglikeanonymous1773
December 19, 2023 at 12:35 pm
We need Nigel Farage to seize power. Or Lee Anderson. Like if you agree.
@andrewcole4843
December 19, 2023 at 12:35 pm
Net zero intelligence just like the cross party political consensus and the IMF.
@MrMoriarty100
December 19, 2023 at 12:35 pm
UK inflation is caused by energy shortages. This is simply down to net zero – the withdrawal of carbon as the national workhorse without first having properly developed nuclear power to the point taking its place. As a result we find ourselves returning to pre industrial revolution slavery.
@sabrinam6895
December 19, 2023 at 12:35 pm
It’s deliberate
@XstaticState69
December 19, 2023 at 12:35 pm
The only CRISIS in Great Britain is the INVADING ARMY and we taxpayers are paying for the INVASION!
@colineastwood1357
December 19, 2023 at 12:35 pm
"Following the USA"? Whow… the country which thinks it is a good idea to get rid of its police, have abortion on demand (almost as if contraception was unavailable). A country which has a guy with staggering evidence of dishonesty for its president and a corrupt CIA, FBI, IRS and DOE protecting the whole shit-show.
AND for an encore, seeks to allow into its southern border – willy nilly – the entirety of drug-cartel's in Mexico – to set up base in the USA..
To keep this flow of good times rolling, they wish to ensure that their last guy presiding ruler, D J Trump is jailed, after his disaster of making them an energy exporter, thus keeping world oil prices low, and NOT starting ANY new wars whilst in office.
@JonathanAntonio1
December 19, 2023 at 12:35 pm
MOST rich people stay rich by spending like the poor and investing without stopping then most poor people stay poor by spending like the rich yet not investing like the rich but impressing them
@monkeyboy8424
December 19, 2023 at 12:35 pm
Billionaire Sunak's front bench rat pack are mostly multi millionaires, including his hunt chancellor. The cesspool Tories are out of touch with the population. Not my PM.
@peterschmidt1453
December 19, 2023 at 12:35 pm
If only the Monster Raving Looney Party had been given a go none of this would have happened. Sigh.
@imwithstupid00011
December 19, 2023 at 12:35 pm
Welcome to zimbabwe my brothers!
@rknaik76
December 19, 2023 at 12:35 pm
Finally some concrete action by increasing the house interest rates. The eggs in supermarket are very expensive, hopefully price will come down now.
@Dave_Smith647
December 19, 2023 at 12:35 pm
Hunt and Sunak both got smokes on their face and blokes like them who could never trust
@roypowell3450
December 19, 2023 at 12:35 pm
What a shambles, give everyone help by cutting tax on gas, electric, petrol diesel etc…bringing inflation down!! Cut the money spent on the Ukraine war, boat people, and 4.5 million on oil protestors…
@feydespiel.
December 19, 2023 at 12:35 pm
Its all part of the reset.tank the economy..make homeowners default on their payments..banks seize the house.put it on the market..and some faceless organisation buys them up…then rents them out for a grand a month….you will own nothing…ect..ect…sunak..and hunt are this countries no 1 and 2 public enemies..make no mistake…its all a plan.
@bmac3093
December 19, 2023 at 12:35 pm
Boosting bank profits feeds into gdp does it not and whilst it’s the worst possible indicator to use the govt need to keep it as near zero as they can. With energy prices just starting to come down there may be a small feed of lower prices which would cause mainstream media to start shouting recession bcos they also don’t really get it !
@williamvorkosigan5151
December 19, 2023 at 12:35 pm
Give me a break. The only cure for runaway inflation that has ever worked is a Bank Base Rate of something approaching double the offending inflation rate.
@matthewcook9404
December 19, 2023 at 12:35 pm
Serving your constituents, or serving yourself ?!?! 😂
@rorysmith2415
December 19, 2023 at 12:35 pm
We need equality.
If the far right had their way the air we beathe and heat and and light of the Sun would be priviatised.
I am centre left. I support peace, the working class, middle class and the best of socialism and capitalism.