My dear impertinents, dear impertinents,
With this article from the very reputable Telegraph (source of the article in English here) from London I want to make as many people as possible aware of the need for personal resilience. We don’t have to have resilience sadly, but on the contrary, altruistically and in the broadest sense turned to the protection of our loved ones and loved ones. The more we are, the more collectively our country will be able to overcome the great difficulties that lie ahead, but which, if we are prepared, will not be insurmountable, and above all good preparation will be able be essential to mitigate the effects.
Incidentally, the comment by the Central Bank of England is enough to make people shudder.
The Bank of England warns of an ‘apocalyptic’ global food shortage.
The Bank of England governor has warned of an “apocalyptic” rise in food prices around the world and said he is “helpless” in the face of rising inflation as war ravages Ukraine’s economy.
Andrew Bailey has said he’s “run out of jumpers” when it comes to counting the shocks Britain is facing, with soaring energy and food prices due to global market forces beyond his control.
Prices are rising at the fastest rate in 30 years, causing a “very large shock to income” that is expected to intensify in the coming months, with the risk of double-digit inflation before year-end.
Mr Bailey told Finance Committee MPs he was increasingly concerned about a further rise in food costs if Ukraine, a major agricultural producer, was unable to ship wheat and cooking oils from its warehouses due to the Russian blockade.
The governor said he spoke to Ukraine’s finance minister, adding: “The [risque] what I’m going to sound pretty apocalyptic about I think is the food.
“Ukraine has food stocks but they cannot dispose of them at the moment. although [le ministre des finances] Optimistic about sowing crops, he said that as of today, we have no way of sending them and the situation is getting worse.
“It’s a big concern. It’s not just a big problem for this country, it’s a big problem for developing countries.
“I’m by no means a military strategist, but anything that could be done to help Ukraine ship their groceries would be a huge contribution. »
The Bank of England criticized!
Many experts believe the institution has been too slow in raising interest rates over the past year, and it has also been criticized for not trimming its quantitative easing by-currency pressure program over the past decade.
The dismal record is also expected to increase pressure on the Treasury to present an emergency budget to deal with the cost-of-living crisis after Chancellor Rishi Sunak opted for a tax hike when revenues ran short.
Food prices have already skyrocketed amid fears of disruption. Ukraine supplies grain to much of the Middle East and families risk being unable to support themselves unless a solution is found. Wheat prices rose as much as 6% on Monday.
The governor also acknowledged that the bank has little hope of returning inflation to its 2% target as prices have already risen by 7% and a further increase is expected in the coming months.
When asked by Finance Committee members if he felt “powerless” to control inflation, Mr Bailey replied: “Yes. »
He added: “It’s a very, very, more than uncomfortable place – I’m trying to find an even harder word – it’s a very, very difficult place.
“If we forecast 10% inflation and say there’s not much we can do at 80% of that inflation, I can tell you it’s an extremely difficult situation to live with. We must recognize the reality of the situation we are facing. »
Monetary interest rate policy will be ineffective!
That’s what Governor Bailey just told us.
80% of the price increases are related to the shortage of resources, but of course also to the consequences of the war in Ukraine and sanctions against Russia with the explosion in energy costs.
And the Telegraph reporter confirms that “traditional policy has been for the bank to raise interest rates to fight high inflation, which means that borrowing costs are rising and the economy is slowing down. But most of the current price hikes are coming from global markets, which would have little impact in the short term.
Think about your inflation resistance.
This is the most difficult task that awaits us on a personal level and you will have a whole chapter dedicated to inflation and dedicated to inflation way to protect yourself from it or mitigate its effects (all information about subscribing can be found here). When we talk about inflation, we’re talking about purchasing power. There are two ways to play with your purchasing power. Limit excursions and increase inflows. My grandpa said, “a penny that goes in shouldn’t come out,” and grandpa, inflation, he’s known that for years!
It’s already too late, but all is not lost.
Prepare yourself!
Karl SANNAT
“Insolentiae” means “impudence” in Latin.
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