#Bank of England

[theinconvenientlifestyle]

Britons ‘need to accept’ they’re poorer, says Bank of England economist | Bank of England | The Guardian

British households and businesses “need to accept” they are poorer and stop seeking pay increases and pushing prices higher, the Bank of England’s chief economist, Huw Pill, has said....

Last year, BoE governor Andrew Bailey, was widely criticised after saying workers should not ask for big pay rises, to try to stop prices rising out of control.

Pill’s comments risk attracting fresh criticism that Threadneedle Street is out of touch over the cost of living crisis, at a time when public sector workers have been striking as they sought pay rises to match, or beat, inflation.

They come on a day in which Nestlé, PepsiCo and McDonald’s have all reported that higher prices boosted their sales this year, and as UK families face 17.3% grocery inflation in supermarkets.

Bailey was paid £495,000 in the year to 28 February 2022, while Pill was paid £88,000 for his first five months and 24 days, according the the central bank’s annual report, taking his annual salary to £180,000. According to the latest official data, median average household disposable income last year was £32,300.

The headline rate of inflation in the UK fell by less than expected in March, to 10.1% from 10.4% in February, as households came under pressure from food and drink prices soaring at their fastest annual rate since 1977.

[vox-anglosphere]

The first printing of Britain's splendid new banknotes were presented to King Charles in a private ceremony at Buckingham Palace. 9/4/24

[probablyasocialecologist]

For most of the time, politicians have ostensibly retreated into the pre-Keynesian view that governments should run like households and seek to ‘balance their books.’ And most of the media has tended to endorse this fallacy. But when it was obviously necessary to act to save the economy, for example after the Global Financial Crisis or during the height of the pandemic when much of the economy had to be shut down, governments suddenly remembered that they have the extraordinary power to create money. After the Global Financial Crisis, the government – via the Bank of England’s Quantitative Easing programme – created around £445 billion of new money to prevent a collapse in the banking system. During COVID, the government created around £450 billion more to prevent a collapse in household finances when people would otherwise have had no income. In total, during the 21st century, the government has created £895 billion of new money – when it had the will to do so. And the view from economists is supportive. The argument for government spending to pay for healthcare, save businesses from bankruptcy, create new jobs and prevent a climate apocalypse has been made by the proponents of Modern Monetary Theory, for example Stephanie Kelton in her book The Deficit Myth. This book explains in detail how money is created and shows that the idea that governments should – or even responsibly could – budget in the same way as a normal household is no more than (admittedly compelling) rhetoric. But politicians and the media have – by and large – reverted to the notion that the government finances constitute a brake on what can be done for the public good. And our government continues to rein-in public spending even though it is clear that most public services are struggling badly.

[scavengedluxury]

And is the wage increase in the room with us right now?

[khorazir]

#Inktober #Inktober2023 #inktober2023day27 Lineart of page 172 of my Sherlock & London Graphic Novel: https://khorazirart.wordpress.com/tag/sherlock-graphic-novel/

[peterarklenews]

© Peter Arkle 2023 AUTUMN IN THE CITY OF LONDON

[thepastisalreadywritten]

[partisan-by-default]

The assumption of a certain kind of stability over time is hardwired into many of the kinds of economic models used today. That even if the economy is temporarily knocked off-balance, it will swing, eventually, back to its steady growth path, plodding on into the future. “Shocks” such as sudden hikes in the price of oil, or wars in eastern Europe, may happen, but, like a roly-poly toy, the economy springs back to where it was before.

Any deviation from this stable, long-run growth path is assumed by the models to be temporary, with the deep structures of the economy – demographics and technological change, primarily – asserting themselves over any short-term fluctuations. The big question is how quickly the economy can respond to a shock, and get back to its long-run path.

From the birth of modern economics two centuries ago until now, this unstated assumption didn’t matter. The Earth’s climate was broadly stable. But what if the environmental shocks just keep coming? Think about the last few years: from peat fires in summer 2019 to the extraordinary (and ongoing) disruption of Covid, to the extreme heat this year. The shocks have not ended, and, if the climate forecasters are correct, they will most likely get bigger and more frequent from this point onwards. The serious danger is that economic models insisting on a return to stable normality will lead our policymaking dramatically astray.

[zee-man-chatter]

@cassandrasmoggies I'm posting this one on behalf of the comments you made about the UK economy being like Canada's. Honestly, the amount of lies and disinformation coming out of the central banks are shocking. The presenter in this vid is very bright, but also very down to earth, and it's worth it to watch at least half of it to get an idea of what's being going on through and after covid to the economy. He's one of my favorite YouTube channels for that reason, he's honest and will hold the dishonest to account.

[theinconvenientlifestyle]

‘Wages and remuneration’ are not what’s keeping inflation high, says Bank of England at interest hike press conference – it’s how much you’re being forced to pay for food and clothes. But while companies gouge record profits, the Establishment is making you poorer

In an astonishing – or perhaps not, given the arrogance of the Establishment – Bank of England governor Andrew Bailey just admitted, at its press conference to announce yet another interest rate hike that will impoverish huge numbers of people even further during a ‘cost of living emergency, that your wages are not causing inflation.

Instead, companies making huge profits in the food and clothing sector are pushing up prices and driving the headline rate of inflation. In other words, what is causing inflation is them making you poorer.

But the bank is putting up rates anyway, pushing ordinary people who are already drowning even further underwater in the name of a crisis they didn’t cause – and are not fuelling now... 

[video in link above]

[vox-anglosphere]

Britain's splendid new banknotes featuring King Charles III are here!

[khorazir]

#Inktober #Inktober2023 #inktober2023day29 Lineart of page 174 of my Sherlock & London Graphic Novel: https://khorazirart.wordpress.com/tag/sherlock-graphic-novel/

[ceevee5]

“Action was needed to halt a “doom loop” in the bond markets that risked draining pension funds of cash and leaving them at risk of insolvency … it threatened the financial health of Britain’s biggest pensions and insurance companies, which together manage trillions of pounds of people’s cash.”

[notayesmanseconomics]

The burden of higher mortgage costs starts to arrive

Over the weekend it seems that the chattering classes and establishment caught up with something we have been noting for a while now. I recall us discussing the UK give-year yield passing 4% with the implication being that higher mortgage rates were on their way. We can also add in one of our longest-running themes. Jeremy Hunt, UK chancellor, has ruled out giving any direct fiscal support to…

[thisish20]

[visionsofthefu]

It's all made up nonsense. There is no national debt, but rather a tool to try and enslave the population. Technically they don't need taxes at all. It's a myth that they need to tax people.

They are all corrupt liars, the financial authorities and the suit cult politicians. The construct is there to keep people in economic slavery. We don't owe Westminster jack shit.