The cost of living!

[Gabby]

OMG! …. doing a shopping list online last night, and just on a handful of items there was a price increase of about a quid compared to the last couple of weeks… wtaf!!… what with energy bills set to rocket also….

[Holly]

OMG! …. doing a shopping list online last night, and just on a handful of items there was a price increase of about a quid compared to the last couple of weeks… wtaf!!… what with energy bills set to rocket also….

Same here, everything is slowly creeping up. Lettuce $6 (£2.94) Petrol, a liter $2.74 (£1.33)

[Stooo]

How odd, I was told that it was going to be great

[LordRaven]

How odd, I was told that it was going to be great

I did try to warn the Dorftrottels in society that this would happen, did they listen, did they fuck!

[Stooo]

How odd, I was told that it was going to be great

I did try to warn the Dorftrottels in society that this would happen, did they listen, did they fuck!

They tried to land the blame on benefit claimants the other week while trying to write off £4.7bn of furlough fraud that was mainly sent to brand new companies based offshore. The PPE procurement issue handled by Handy Handcock at the time is also coming back to bite.

Thankfully this bunch can't force through new laws that would reduce the powers of the judiciary because it would take too long but you know that they're going to try, it wouldn't be the first time...

[Maddog]

"The Bank of England is poised to raise interest rates on Thursday amid growing concern over the pressure on households from high inflation in Britain’s cost of living crisis.

City economists widely expect the central bank to increase its key rate from 0.25% to 0.5% in response to inflation hitting levels not seen for almost 30 years, with financial markets suggesting a 90% chance of an increase in borrowing costs.

From milk to crisps: why the price of basic food items is rising
With pressure mounting on households from soaring energy bills and the rising cost of a weekly shop, several leading analysts expect that the Bank’s nine-member monetary policy committee (MPC) will vote unanimously for a rise in rates.

It comes after the official inflation rate reached 5.4% in December, the highest level since March 1992, driven by soaring gas and electricity prices and the higher cost of food, clothes and footwear. The Bank has warned that inflation could peak at close to 6% by April, three times the 2% target rate set by the government."

https://www.theguardian.com/business/20 ... takes-toll



Look on the bright side. It's not as bad as in the US, because the BofE didn't go quite as crazy with the quantitative easing.

In any event, central banks everywhere are trying to unwind the damage, while politicians and poorly informed or deliberately dishonest forum posters try to blame things that have nothing to do with this.

[Maddog]

OMG! …. doing a shopping list online last night, and just on a handful of items there was a price increase of about a quid compared to the last couple of weeks… wtaf!!… what with energy bills set to rocket also….

Same here, everything is slowly creeping up. Lettuce $6 (£2.94) Petrol, a liter $2.74 (£1.33)

This global inflation has many causes, including the effects of trillions of dollars of fiscal and monetary stimulus, pent-up demand, increases in shipping costs, ongoing supply-chain disruptions, and rising energy prices.

https://theconversation.com/inflation-i ... lds-175915


NZ is raising interest rates to fight inflation.


Like everyone else who overstimulated their economy..

Shit is about to get real all over the planet.

[Maddog]

[LordRaven]

:gigglesnshit:

Weimar Republic
What a horrible time that was, and it created the right levels of bitterness and resentment to cause the rise of the Nazis as they pointed the finger of blame to rally the people against communists and Jews.
Dangerous times ahead if we ever get to that kind of level of inflation.
Let's hope things get better.

[Avon Barksdale]

"The Bank of England is poised to raise interest rates on Thursday amid growing concern over the pressure on households from high inflation in Britain’s cost of living crisis.

City economists widely expect the central bank to increase its key rate from 0.25% to 0.5% in response to inflation hitting levels not seen for almost 30 years, with financial markets suggesting a 90% chance of an increase in borrowing costs.

From milk to crisps: why the price of basic food items is rising
With pressure mounting on households from soaring energy bills and the rising cost of a weekly shop, several leading analysts expect that the Bank’s nine-member monetary policy committee (MPC) will vote unanimously for a rise in rates.

It comes after the official inflation rate reached 5.4% in December, the highest level since March 1992, driven by soaring gas and electricity prices and the higher cost of food, clothes and footwear. The Bank has warned that inflation could peak at close to 6% by April, three times the 2% target rate set by the government."

https://www.theguardian.com/business/20 ... takes-toll



Look on the bright side. It's not as bad as in the US, because the BofE didn't go quite as crazy with the quantitative easing.

In any event, central banks everywhere are trying to unwind the damage, while politicians and poorly informed or deliberately dishonest forum posters try to blame things that have nothing to do with this.

The real inflation rate is probably much higher in reality, well over 7% I suspect, and people are starting to feel it. We use the CPI (which replaced the RPI) and some argue it generates artificially low figures.

When the price cap on energy changes in April it is not going to be pleasant for many people. As a matter of sheer good luck I fixed my prices in August 2021 until August 2023 so at least I don't have that to worry about.

[ArchieG]

"The Bank of England is poised to raise interest rates on Thursday amid growing concern over the pressure on households from high inflation in Britain’s cost of living crisis.

City economists widely expect the central bank to increase its key rate from 0.25% to 0.5% in response to inflation hitting levels not seen for almost 30 years, with financial markets suggesting a 90% chance of an increase in borrowing costs.

From milk to crisps: why the price of basic food items is rising
With pressure mounting on households from soaring energy bills and the rising cost of a weekly shop, several leading analysts expect that the Bank’s nine-member monetary policy committee (MPC) will vote unanimously for a rise in rates.

It comes after the official inflation rate reached 5.4% in December, the highest level since March 1992, driven by soaring gas and electricity prices and the higher cost of food, clothes and footwear. The Bank has warned that inflation could peak at close to 6% by April, three times the 2% target rate set by the government."

https://www.theguardian.com/business/20 ... takes-toll



Look on the bright side. It's not as bad as in the US, because the BofE didn't go quite as crazy with the quantitative easing.

In any event, central banks everywhere are trying to unwind the damage, while politicians and poorly informed or deliberately dishonest forum posters try to blame things that have nothing to do with this.

The real inflation rate is probably much higher in reality, well over 7% I suspect, and people are starting to feel it. We use the CPI (which replaced the RPI) and some argue it generates artificially low figures.

When the price cap on energy changes in April it is not going to be pleasant for many people. As a matter of sheer good luck I fixed my prices in August 2021 until August 2023 so at least I don't have that to worry about.

The rate of inflation you feel is particular to your own spending habits, its all a general fudge really. Your own inflation rate is going to be lower for the time being owing to the same happy accident as me, energy fix. It’ll catch up with us in 2023. If you’re a benefit claiming single mum with a key meter and a cold flat, the rate is going to be a bit more than 7% I think. The average bill will have gone up about 80% after april, over 1 year. Next winter will be grim for a lot of people. What the government should do about it, aside from shovelling money at people, I don’t know. A hike in UC payments would obviously help. And probably changes to the earnings threshold. Whatever, its going to cost a lot, and it's potentially adding to the problem.

[Avon Barksdale]

"The Bank of England is poised to raise interest rates on Thursday amid growing concern over the pressure on households from high inflation in Britain’s cost of living crisis.

City economists widely expect the central bank to increase its key rate from 0.25% to 0.5% in response to inflation hitting levels not seen for almost 30 years, with financial markets suggesting a 90% chance of an increase in borrowing costs.

From milk to crisps: why the price of basic food items is rising
With pressure mounting on households from soaring energy bills and the rising cost of a weekly shop, several leading analysts expect that the Bank’s nine-member monetary policy committee (MPC) will vote unanimously for a rise in rates.

It comes after the official inflation rate reached 5.4% in December, the highest level since March 1992, driven by soaring gas and electricity prices and the higher cost of food, clothes and footwear. The Bank has warned that inflation could peak at close to 6% by April, three times the 2% target rate set by the government."

https://www.theguardian.com/business/20 ... takes-toll



Look on the bright side. It's not as bad as in the US, because the BofE didn't go quite as crazy with the quantitative easing.

In any event, central banks everywhere are trying to unwind the damage, while politicians and poorly informed or deliberately dishonest forum posters try to blame things that have nothing to do with this.

The real inflation rate is probably much higher in reality, well over 7% I suspect, and people are starting to feel it. We use the CPI (which replaced the RPI) and some argue it generates artificially low figures.

When the price cap on energy changes in April it is not going to be pleasant for many people. As a matter of sheer good luck I fixed my prices in August 2021 until August 2023 so at least I don't have that to worry about.

The rate of inflation you feel is particular to your own spending habits, its all a general fudge really. Your own inflation rate is going to be lower for the time being owing to the same happy accident as me, energy fix. It’ll catch up with us in 2023. If you’re a benefit claiming single mum with a key meter and a cold flat, the rate is going to be a bit more than 7% I think. The average bill will have gone up about 80% after april, over 1 year. Next winter will be grim for a lot of people. What the government should do about it, aside from shovelling money at people, I don’t know. A hike in UC payments would obviously help. And probably changes to the earnings threshold. Whatever, its going to cost a lot, and it's potentially adding to the problem.

Yes, you are quite right about the rate of inflation you experience being particular to your spending habits and some campaigners argue that there hasn't been enough weight attached to patterns of spending for people on low incomes. This means that there is less political pressure to alleviate financial suffering. Jack Monroe has recently led to a change in ONS calculations as she argued that people on low incomes were being priced out of the food market (incredible when you think about how rich we are as a nation.)

[LordRaven]

"The Bank of England is poised to raise interest rates on Thursday amid growing concern over the pressure on households from high inflation in Britain’s cost of living crisis.

City economists widely expect the central bank to increase its key rate from 0.25% to 0.5% in response to inflation hitting levels not seen for almost 30 years, with financial markets suggesting a 90% chance of an increase in borrowing costs.

From milk to crisps: why the price of basic food items is rising
With pressure mounting on households from soaring energy bills and the rising cost of a weekly shop, several leading analysts expect that the Bank’s nine-member monetary policy committee (MPC) will vote unanimously for a rise in rates.

It comes after the official inflation rate reached 5.4% in December, the highest level since March 1992, driven by soaring gas and electricity prices and the higher cost of food, clothes and footwear. The Bank has warned that inflation could peak at close to 6% by April, three times the 2% target rate set by the government."

https://www.theguardian.com/business/20 ... takes-toll



Look on the bright side. It's not as bad as in the US, because the BofE didn't go quite as crazy with the quantitative easing.

In any event, central banks everywhere are trying to unwind the damage, while politicians and poorly informed or deliberately dishonest forum posters try to blame things that have nothing to do with this.

The real inflation rate is probably much higher in reality, well over 7% I suspect, and people are starting to feel it. We use the CPI (which replaced the RPI) and some argue it generates artificially low figures.

When the price cap on energy changes in April it is not going to be pleasant for many people. As a matter of sheer good luck I fixed my prices in August 2021 until August 2023 so at least I don't have that to worry about.

The rate of inflation you feel is particular to your own spending habits, its all a general fudge really. Your own inflation rate is going to be lower for the time being owing to the same happy accident as me, energy fix. It’ll catch up with us in 2023. If you’re a benefit claiming single mum with a key meter and a cold flat, the rate is going to be a bit more than 7% I think. The average bill will have gone up about 80% after april, over 1 year. Next winter will be grim for a lot of people. What the government should do about it, aside from shovelling money at people, I don’t know. A hike in UC payments would obviously help. And probably changes to the earnings threshold. Whatever, its going to cost a lot, and it's potentially adding to the problem.

We are a G7 country "with the fastest growing economy" - so we are told --perhaps it's time for some real levelling up per capita, as opposed to regional levelling up and throwing money into, let's say, Wakefield Town Centre.
Job creation is great, but what about those who cannot work? They need to be helped.

[Maddog]

Stop printing fucking money.

More of something decreases it's value, meaning you can exchange it for less of something else.

Central Bankers got spoiled because they got used to QE not really causing inflation, when fundamentally they knew it eventually would..

But the politicians loved the access to all that money without having to confiscate it, or borrow it at a market rate with money that already exists.

[Maddog]

If central banks increase the money supply, it can create inflation. The worst possible scenario for a central bank is that its quantitative easing strategy may cause inflation without the intended economic growth. An economic situation where there is inflation, but no economic growth, is called stagflation.

Another potentially negative consequence of quantitative easing is that it can devalue the domestic currency. While a devalued currency can help domestic manufacturers because exported goods are cheaper in the global market (and this may help stimulate growth), a falling currency value makes imports more expensive. This can increase the cost of production and consumer price levels.

https://www.investopedia.com/terms/q/qu ... easing.asp



We don't have a lot of experience with QE on this planet. The Japanese first did it about 20 years ago.


But even without the experience, most of us fundamentally understand that making money out of thin air to buy investment products is fraught with danger.

If we could just print forever, we could stop paying taxes..