BEWARE! THE BANKS ARE OUT TO GET YOU!

[Stanley]

In other words Helm argues that energy is a commanding height of the economy and shouldn't be treated like a commodity. Exactly what Bevan was arguing for. Note that Nye didn't call for nationalisation but government control, very different things. The latest events have flagged up the dangers of not having control of the essentials. The fact that even Tories are calling for some sort of regulation shows that the message has struck home.

[Whyperion]

The EU are also looking at effectively the energy market. Still need in the UK the load balancing systems to be put in including line upgrades for distributed generation of power

[Stanley]

The people who argue for the market as an effective regulating system have gone very quiet. Any system that allows 500% increases is broken. End of!
My mind keeps reverting to where the money is going.
See THIS Guardian article on the rate of food inflation.
The rapidly rising price of food including milk, margarine and crisps pushed August shop price inflation to the highest levels since 2008 as the war in Ukraine raised costs for farmers. Prices in shops rose by 5.1%, a big increase from 4.4% in July, as food producers passed on increases in the cost of fertiliser, wheat and vegetable oils, large amounts of which are produced in Ukraine and Russia, according to data from the British Retail Consortium (BRC) and market research firm NielsenIQ. Fresh food prices rose by 10.5%, the highest rate since September 2008, when the global financial system was on the brink of collapse. The increase from a rate of 8% in July more than offset a slight decline in non-food inflation of 3% in August from 2.9% a month before.
Later still.... News from the Bank of England that credit card borrowing is up 13% in July on last year and the average interest rate is up overall.

[plaques]

With the price of energy going through the roof it doesn't need a genius to realize that everything we buy is going to be more expensive.
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Cost of Fuel .jpg

Ultimately energy prices on this scale will hit everything we use, touch or consume. Pick up a jar of jam or a bottle of wine and ask yourself 'how much did it cost to make this bit of glass. If the cost of energy in this august at around £220 MWh is giving 13% increase in cost of living just think what £700MWh will do. Anything up to 30% and above is on the cards. No wonder the EU is talking about taking control of energy supplies. Will the UK do the same. Don't be silly we have sovereignty.

[Stanley]

Have a look at THIS for an explanation of how the infamous quotation about electricity too cheap to meter came about.
In the annals of the long, still-ongoing debate over nuclear power, the most infamous words are undoubtedly “too cheap to meter.” The origin of this phrase is a speech given on September 16, 1954 by Lewis L. Strauss, a former Navy officer who was appointed Chairman of the U.S. Atomic Energy Commission in 1953 by President Dwight D. Eisenhower. Ever since Strauss gave that speech, many anti-nuclear activists have assumed and claimed that he literally said electricity from nuclear plants would be too cheap to meter. Of course, nuclear power did not turn out to be “cheap” from a cost-per-kilowatt-hour perspective. At least, not compared to traditional energy sources like coal, oil and hydropower, which have been economically “cheap” but are arguably more “costly” in terms of their long term impacts on the environment (barring incidents like the Fukushima meltdown). Anyway, putting aside that debate, it has long been clear that electricity from fission-powered nuclear plants is not and never will be “too cheap to meter.”
Thus, for decades, the phrase has been ridiculed and held up as the prime iconic example of absurd claims made by supporters of nuclear power.
Except that Strauss didn’t actually say what opponents of nuclear power think he said. The focus of his speech to the National Association of Science Writers in New York City on September 16th, 1954 dealt with how modern scientific research, in general, would lead to better lives for future generations. And, his meter remark was about electric energy, in general, not nuclear power in particular. As reported in the New York Times the next day, what Strauss really said was this: “Our children will enjoy in their homes electrical energy too cheap to meter...will travel effortlessly over the seas and under them and through the air with a minimum of danger and at great speeds, and will experience a lifespan far longer than ours, as disease yields and man comes to understand what causes him to age.”

[Stanley]

Thinking about Peter's news that none of the HBOS execs will be prosecuted after a long investigation I am forced to wonder just what a banker has to do the have his collar felt. Truly they are Lords of the Universe.....

[plaques]

As the vale of the £Stirling sinks then import prices rise. In good times this may be offset by export prices being more competitive leading to increased manufacturing output. Unfortunately since the UK's energy prices are bigger than our competitors its doubtful if the UK can take advantage of the Stirling drop. So in the short term prices will rise.
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Stirling..jpg

[Stanley]

I wonder if Quasi Kwarteng has any inspired thoughts about the fact that the pound is almost at parity with the dollar?

[Tizer]

`China emerges as IMF competitor with emergency loans to at-risk nations' FT
`China has doled out tens of billions of dollars in secretive “emergency loans” to countries at risk of financial crises in recent years, turning Beijing into a formidable competitor of the western-led IMF. The bailouts represent a pivot from the huge infrastructure loans China has extended over nearly a decade as part of its $838bn Belt and Road Initiative, a programme that made it the world’s biggest financer of public works, eclipsing the World Bank. Three of the largest recipients of China’s rescue lending have been Pakistan, Sri Lanka and Argentina, which together have received $32.83bn since 2017, according to data compiled by AidData, a research lab at William & Mary, a university in the US. Other countries receiving rescue lending from Chinese state institutions included Kenya, Venezuela, Ecuador, Angola, Laos, Suriname, Belarus, Egypt, Mongolia and Ukraine, according to AidData, which did not provide details for these countries. “Beijing has tried to keep these countries afloat by providing emergency loan after emergency loan without asking its borrowers to restore economic policy discipline or pursue debt relief through a co-ordinated restructuring process with all major creditors,” said Bradley Parks, AidData executive director.'...

[Stanley]

Perhaps we should be applying for a loan to finance the war in Ukraine?

[Stanley]

See THIS BBC report of a fall last month in retail sales.
Sales fell by 1.6%, continuing a slide since summer 2021 when hospitality restrictions were lifted, the Office for National Statistics (ONS) said. Retail sales in all the main sectors - food, non-food, online and fuel - fell over the month, the ONS said. Supermarkets' sales volumes also fell by 0.9% in August, but alcohol and tobacco sales rose by 6.3%. August's sales figures signalled the largest month-on-month drop since December 2021 and the fall was larger than economists had expected.
100 days to Xmas.... Any bets on sales then?

[Stanley]

Nicola Horlicks is being interviewed on World at One and she says we are already in depression and that if the BofE, as expected, raise interest rates by another three quarters of a percentage point it will have a devastating effect on mortgage holders....
Further reports that the rate of exchange of the Pound to the Dollar is the worst for almost 40 years.....

[Stanley]

Have you noticed that a phrase that has fallen from favour is "best result in G7 countries"?

[plaques]

Further reports that the rate of exchange of the Pound to the Dollar is the worst for almost 40 years.....

Not a mention of how it will affect petrol and gas prices all priced in $Dollars. Imports will become more expensive with a general view that any advantages will be lost because of our leaving the common market. Unless Liz Truss's tax reductions can somehow magic a boom in GDP the signs are for another increase in inflation. This makes her promise of 2.5% GDP by the end of 2024 look like something that is suitable for the 'Fiction' shelf at the library. Stick with us, you have suffered the pain, Jam tomorrow, Where have I heard that before??

[Stanley]

Quite right Ken. The spin and obfuscation departments of government will have to shift into overdrive next week as the end of official mourning unleashes a tidal wave of economic and political decisions. Truss can be expected to play her part in defending against the inevitable but she would do well to remember that next winter and Spring as we move into cold reality any hollow promises made now will come back to haunt her. We may escape the predicted 18% inflation because of what she sees as 'handouts' but inflation will still be greater than wage rises so industrial action will continue. Because Interest Rates have to bow to reality no matter what politicians say we can expect another .75% increase from the B0fE and that has inevitable consequences for everyone but in particular, anyone who has a mortgage.
These are the grim realities we shall face soon and no amount of Jingoistic spin can alter them. Tin hats on yet again lads.......

[Stanley]

News this morning that the £Sterling has hit a new 40 year low on news that the Fed has raised US interest rates by another three quarters of a percent. This is bad news for the UK.

[plaques]

Q) Is it wise to remove the cap on bankers bonuses.
A) Its my job to grow the economy and encourage investment.
Q),Would it be better to impose a windfall tax rather than build up a debt for the future,
A) Its my job to grow the economy. Not to follow a left-wing ideology of a minority group.
Q).Polls would suggest that nearly 70% of the population back a windfall tax.
A). Its my job to grow the economy and encourage investment.
Q). Tax breaks to those with money would go into savings or spent on imported luxury goods.
A) Its my job to grow the economy and encourage investment.
Q). Removing stamp duty when there is only a limited supply of houses would raise the price of houses.
A) Its my job to grow the economy and encourage investment.
Q). The value of the £ is dropping against the dollar making basic necessities more expensive,
A) Its my job to grow the economy and encourage investment.
Q). The BofE is to raise interest rates to perhaps in the future to as high as 4,75% making mortgages more expensive.
A) Its my job to grow the economy and encourage investment.

The final qualification to "Its my job to grow the economy and encourage investment" was eventually..

[Stanley]

Later..... The BofE has announced a rise of half a percentage point. The pressures on the ordinary person's economy are mounting.
See THIS BBC report on the rise and its effects....
See THIS report also just issued. The BofE thinks that we are in recession and probably entered it in April.

[Stanley]

See THIS disturbing Guardian report on the accession of Quasi Kwarteng to the role of chancellor and dismay at what is described by Treasury officials as his 'Shock and Awe' approach to the job.
I would have thought that it was a given that the Treasury should work like a well-oiled machine in the present economic circumstances. If this report is accurate it means that Quasi Kwarteng isn't interested in harmony and cooperation and his emulating his boss, Liz Truss, who who earlier this week said she was willing to be unpopular for the sake of driving through what she thought were correct changes for the country.
What if neither of them is correct as to what are 'the correct changes'.....?
The financial community awaits today's mini-budget (for that is what it is....) with interest.

[Stanley]

We thought we had heard the best/worst of the financial changes when Quasi Kwarteng sat down. Now we get the verdict from trusted sources.
"99% of people ‘still going to be worse off’ says Director of Institute for Fiscal Studies"
Paul Johnson days that only people with incomes over £100,000 will see any benefits because of the effect of changes earlier this year by then Chancellor Rishi Sunak. It would seem that as usual smoke and mirrors plays a big part......
I'm sure we shall hear more opinions during the day as observers have time to mull over the changes. I hope you feel more confident when you have heard their views.

[Stanley]

THISGuardian article is worth a read. Pity Quasi Kwarteng didn't consult Tooze before announcing the Gamble.

[PanBiker]

Fell foul of the "Verified by Visa" security today on my CPC order. CPC have my credit card details stored as I have used it numerous times without a problem. This time though it refused the card because I didn't have a Verified by Visa password! Excuse me, but I do but it didn't ask me for it during checkout! Instructions were to contact the bank to change the password and then try again. Our credit card is with the CoOp and it's the only thing we have from the CoOp Bank. I rang them up and did all the preliminaries as asked for, then I was told there was at least a 25 minute wait for a CS adviser! I put the phone down. I went back to my shopping cart and re-jigged the payment method to PayPal. That is backed up for payments by exactly the same credit card. It processed it without any challenge at all. I'm sorted, however..

[plaques]

Our credit card is with the CoOp and it's the only thing we have from the CoOp Bank.

I don't know if this is relevant or not but I had a similar problem with Santander some years ago and it was because I hadn't registered a mobile number with the bank that it fell through a trap door that stopped the credit card being used. No I didn't get it either.

[Stanley]

Wherever possible with online purchases I use Paypal these days. Far easier and hassle free. Their verification via mobile phone is dead simple, quick and effective. The only card I use at the Co-op is the Visa Debit card and that doesn't ask for verification..... (If it did they would be on a sticky wicket as I don't carry my phone with me!)

[PanBiker]

it was because I hadn't registered a mobile number with the bank that it fell through a trap door that stopped the credit card being used. No I didn't get it either.

They had that information as well as my password. I think it's just a procedure that's just got too smart for it's own good. Anyway no worries I have confirmation from CPC that my order has been processed. Dire warnings of potential delays due to supply chain lead times. Fortunately everything I ordered showed that they had multiple quantities in stock. Free delivery on a 3-5 day RM service, should have it this week.