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Inflation.... 07:37 - Jul 27 with 2865 viewsBanksterDebtSlave

Is handing out dividend payments to the already wealthy inflationary? Or is it just public sector pay that's a problem?

https://www.theguardian.com/business/2023/jul/27/british-gas-record-profit-price

'The UK’s biggest energy supplier reported profits of £969m for the first six months of 2023, up nearly 900% from £98m in the same period last year.'

"They break our legs and tell us to be grateful when they offer us crutches."
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Inflation.... on 17:31 - Jul 27 with 701 viewsHARRY10

Inflation.... on 10:05 - Jul 27 by ElephantintheRoom

I suspect most of the major shareholders are institutions, whose main beneficiaries are pensioners of investors with tax efficient schemes - so no, quite the opposite as those windfall ‘profits on investment’ will be reinvested


So money paid out to pension fund is NOT used to pay pensions..........it is all reinvested ?

Dividends unlike a bank loan are paid out on performance. Just as Town do not pay an FA Cup winning bonus if we get knocked out in round 3

This company has exploited it's monopoly, therefore irrespective of what happens to dividend payments after they have been paid, there is no justification for paying them, or executive bonuses.

However companies do not finance their operations by shareholder dividends. Pension funds will spread their investments across a wide portfolio, which makes your squeak incorrect.

As said, the accounts are drawn up at the end of the financial year, and the net profits are 'divvied' out ie dividends. The idea they are then retained by the company shows a depth of ignorance even a rightie should not be spouting.

It should be understood that I expect BG to behave like this. What I don't accept is the UK government through it's regulator to allow this. Sadly I do expect cap doffers to offer up arz cringing apologies

"The French state-owned EDF reported that its UK business made profits of almost €2.3bn (£2bn) for the first half of the year – including the earnings from its nuclear power plants – up from €860m in the same months last year"

taking back control, eh righties ?
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Inflation.... on 19:42 - Jul 27 with 676 viewsYou_Bloo_Right

Inflation.... on 10:17 - Jul 27 by chicoazul

On the one hand I agree. On the other many of those dividend payments go into yours and my pension funds.


Hmmm.

I'm not sure it's true that many of the dividend payments go to UK pension funds.

https://www.tuc.org.uk/research-analysis/reports/do-dividends-pay-our-pensions

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Inflation.... on 19:45 - Jul 27 with 673 viewsnoggin

Inflation.... on 08:08 - Jul 27 by ibbleobble

Yawn. Another day and another Guardian post about a well trodden subject. Surely time would be spent better corralling efforts and mobilising people to be in a position to take advantage of a system-level crises to mass mobilise and seize power, either through elections or through an insurrectionary overthrow of the existing capitalist regime? Either that or planning and promoting better regulation and policy to put into action or maybe protesting or resisting capitalism through a unified approach to boycotting use or payment to energy suppliers? That is, if the anti-capitalist sentiment is really that strong on here.

Without it, this forum is just a dumping ground for middle aged men of the same demographic to moan about mainstream editorial with no sign of meaningful outcome. Where’s the sanity in that other than catharsis?


And as if my magic......

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Inflation.... on 19:46 - Jul 27 with 672 viewsnoggin

Inflation.... on 08:19 - Jul 27 by BlueBadger

If only people would stop posting about this well trodden subject.

Shell Energy Bills by ibbleobble 5 May 2023 13:15
Has anyone else on here had issues with Shell Energy bills recently? As in, being told you’re on a fixed tariff pre-winter only to now be told, “no, we don’t offer fixed tariffs only variable ones so you owe us a lot of money”.




Oh dear.

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Inflation.... on 20:13 - Jul 27 with 640 viewsSuperKieranMcKenna

Inflation.... on 19:42 - Jul 27 by You_Bloo_Right

Hmmm.

I'm not sure it's true that many of the dividend payments go to UK pension funds.

https://www.tuc.org.uk/research-analysis/reports/do-dividends-pay-our-pensions


That’s more a function of how badly the FTSE 100 has performed compared to peers. In the early 2000’s, ~40% of the equity was with pension companies which has gradually dwindled away. Whilst the yields are fairly decent, in terms of index growth the FTSE 100 has been a bit of a dog. Only around 10% is held by individual investors, most of the rest is largely held by institutional investors, both domestic and foreign.
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Inflation.... on 20:23 - Jul 27 with 637 viewsLeoMuff

Inflation.... on 08:48 - Jul 27 by Dubtractor

regardless of the predictability of the OP on here, it's hard to disagree with the sentiment isn't it?

We've all been told for the last 12 month that pay is inflationary, the public sector is the devil, blah blah blah, and yet every week there is another big corporate giant reporting record profits and paying out dividends.

It's a bit of a p1ss take, to put it mildly.


It’s a total p1ss take, they are the most corrupt charlatans in government in my voting lifetime, how anyone apart from the top 1 % could vote for them is beyond me.

They will screw us every which way to favour big business, then tell us it’s for the best.

The only Muff in Town.
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Inflation.... on 20:33 - Jul 27 with 618 viewsOldsmoker

When I studied for my degree in Civil Engineering in the 70's we had a few lectures on Economics. If you're working on major Government projects such as motorways (not railways 'cos they were dead) then you needed to know about money and how it worked.
We covered the obsolescence theory - build it to last 5 years and they'll have to buy a new one - Do you want to buy another one if the last one fell to bits?
We also covered Government money. Pay the workers in nationalised industries - Teaching, NHS, Coal mines, Power stations, Water/sewage, Royal Mail, GPO (telecoms), British Airways, Railways etc and they spend the money and it all comes back to the treasury in VAT and excise duty (cigs and booze).
They had a formula that indicated how many times a Pound was circulated and spent after being paid to a nationalised worker and I remember it being 7 times.
Nowadays, if you pay a dividend then a vast majority of it gets taken out of the country and is never spent in the UK again.
I'm convinced that affects money flow but does it affect inflation?
I think it does and can anyone convince me otherwise.

Don't believe a word I say. I'm only kidding. Or am I?
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Inflation.... on 20:45 - Jul 27 with 607 viewsSuperKieranMcKenna

Inflation.... on 20:33 - Jul 27 by Oldsmoker

When I studied for my degree in Civil Engineering in the 70's we had a few lectures on Economics. If you're working on major Government projects such as motorways (not railways 'cos they were dead) then you needed to know about money and how it worked.
We covered the obsolescence theory - build it to last 5 years and they'll have to buy a new one - Do you want to buy another one if the last one fell to bits?
We also covered Government money. Pay the workers in nationalised industries - Teaching, NHS, Coal mines, Power stations, Water/sewage, Royal Mail, GPO (telecoms), British Airways, Railways etc and they spend the money and it all comes back to the treasury in VAT and excise duty (cigs and booze).
They had a formula that indicated how many times a Pound was circulated and spent after being paid to a nationalised worker and I remember it being 7 times.
Nowadays, if you pay a dividend then a vast majority of it gets taken out of the country and is never spent in the UK again.
I'm convinced that affects money flow but does it affect inflation?
I think it does and can anyone convince me otherwise.


Around 51pc of FTSE equity is owned by foreign investors, not the vast majority. Typical FTSE100 divi yields are usually around 3pc, so way below inflation.

Other stock indexes are performing much better than ours with their respective economies experiencing much lower inflation. We have the highest in G7, and the OP complaining about inflation voted for it- giving us Brexit and higher food prices.
[Post edited 27 Jul 2023 20:53]
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Inflation.... on 20:56 - Jul 27 with 597 viewsOldsmoker

Inflation.... on 20:45 - Jul 27 by SuperKieranMcKenna

Around 51pc of FTSE equity is owned by foreign investors, not the vast majority. Typical FTSE100 divi yields are usually around 3pc, so way below inflation.

Other stock indexes are performing much better than ours with their respective economies experiencing much lower inflation. We have the highest in G7, and the OP complaining about inflation voted for it- giving us Brexit and higher food prices.
[Post edited 27 Jul 2023 20:53]


...but the money leaves our economy.
This must affect the exchange rate and in doing so makes imports more expensive to manufacturers and retailers which drives up prices.

Don't believe a word I say. I'm only kidding. Or am I?
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Inflation.... on 20:59 - Jul 27 with 587 viewsSuperKieranMcKenna

Inflation.... on 20:56 - Jul 27 by Oldsmoker

...but the money leaves our economy.
This must affect the exchange rate and in doing so makes imports more expensive to manufacturers and retailers which drives up prices.


You haven’t seen the price of Sterling then?

Edit - sorry that sounded a bit snarky! FTSE100 firms predominantly trade in USD
[Post edited 27 Jul 2023 21:01]
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Inflation.... on 21:04 - Jul 27 with 574 viewsSuperKieranMcKenna

Inflation.... on 20:56 - Jul 27 by Oldsmoker

...but the money leaves our economy.
This must affect the exchange rate and in doing so makes imports more expensive to manufacturers and retailers which drives up prices.


You’ll see when Bankster tanked the Pound in June 2016, after the initial shock the FTSE100 counterintuitively went up since USD is the main trading currency.
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Inflation.... on 21:13 - Jul 27 with 558 viewsBanksterDebtSlave

Inflation.... on 20:45 - Jul 27 by SuperKieranMcKenna

Around 51pc of FTSE equity is owned by foreign investors, not the vast majority. Typical FTSE100 divi yields are usually around 3pc, so way below inflation.

Other stock indexes are performing much better than ours with their respective economies experiencing much lower inflation. We have the highest in G7, and the OP complaining about inflation voted for it- giving us Brexit and higher food prices.
[Post edited 27 Jul 2023 20:53]


All I am doing is pointing out that big business gives not a toss about the welfare of the general public within or without the EU.

"They break our legs and tell us to be grateful when they offer us crutches."
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Inflation.... on 21:14 - Jul 27 with 557 viewsOldsmoker

Inflation.... on 20:59 - Jul 27 by SuperKieranMcKenna

You haven’t seen the price of Sterling then?

Edit - sorry that sounded a bit snarky! FTSE100 firms predominantly trade in USD
[Post edited 27 Jul 2023 21:01]


The thing about Sterling is it goes up and then down.
If you're an importer then you are NOT going to stand for that.
You fix the price at a negotiated rate with your customer/supplier.
If money issued by the Bank of England is regularly leaving the country then the general trend is going to be down.

If your post is suggesting that Sterling is doing well then I can't figure out why that is.
It's odd that at the end of December 2022, UK General government gross debt was £2,516.0 billion, or 101.0% Gross domestic product - that's 17.0% above the average of the EU member states at that time.
We owe more than what's coming in!!!

It's all Greek to me - but their economy is another ballpark.

Don't believe a word I say. I'm only kidding. Or am I?
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Inflation.... on 21:27 - Jul 27 with 539 viewsSuperKieranMcKenna

Inflation.... on 21:14 - Jul 27 by Oldsmoker

The thing about Sterling is it goes up and then down.
If you're an importer then you are NOT going to stand for that.
You fix the price at a negotiated rate with your customer/supplier.
If money issued by the Bank of England is regularly leaving the country then the general trend is going to be down.

If your post is suggesting that Sterling is doing well then I can't figure out why that is.
It's odd that at the end of December 2022, UK General government gross debt was £2,516.0 billion, or 101.0% Gross domestic product - that's 17.0% above the average of the EU member states at that time.
We owe more than what's coming in!!!

It's all Greek to me - but their economy is another ballpark.


I certainly wasn’t suggesting Sterling was doing well! Breaking away from your largest trading partner will do that.

None of the other factors you mention are unique to the UK, France has a much higher debt to GDP ratio. In fact the EU as a whole runs a huge trade deficit, likewise the ECB has printed 100’s of billions of euros since the GFC. The EURO is also weak against USD post pandemic, and since commodities are largely denominated in USD this adds further inflationary pressure. Again, there’s only one significant difference to our EU peers which could account for our higher inflation…
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Inflation.... on 21:32 - Jul 27 with 532 viewsBanksterDebtSlave

Inflation.... on 21:04 - Jul 27 by SuperKieranMcKenna

You’ll see when Bankster tanked the Pound in June 2016, after the initial shock the FTSE100 counterintuitively went up since USD is the main trading currency.


I have powers even I was unaware of.....I believe that shortly before leaving the pound was at $1.45 or so and that since leaving has peaked at $1.42 or so looking at the charts and is currently at $1.30. I imagine that other factors may also have been involved in these fluctuations! Not that I give a stuff as the performance metrics of global, environment destroying capitalism don't particularly float my boat.

"They break our legs and tell us to be grateful when they offer us crutches."
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Inflation.... on 21:46 - Jul 27 with 514 viewsHARRY10

Inflation.... on 19:42 - Jul 27 by You_Bloo_Right

Hmmm.

I'm not sure it's true that many of the dividend payments go to UK pension funds.

https://www.tuc.org.uk/research-analysis/reports/do-dividends-pay-our-pensions


An excellent piece. One I suspect the cap doffers will not read, preferring the nonsense from kGB news, Mail, Express instead.

You will often hear the same idiot comments from different folk (righties) they clearly have been fed. To reassure them that their comments are not the stupidity as is patently obvious, but the real truth by such expense fiddlers as fartrage, who tells it 'like it is'.

I was stood in Post Office queue yesterday, banks closed) and was behind two middle aged woman.

The gist n their conversation was

'Fire in Corfu, Rhodes. What do you expect now they have not got us bailing them out, whenever there is a problem, earthquakes they have to rely on us to go there and dig them out. Farage is being hounded for telling the truth. If labour get in he'll either be deported, or bumped off. All these queues, they are getting ready for Labour to take over, Remember the three day week and the power cuts *

It is hard to know where to start with such ignorance. I suspect that when you are a bigoted racist then you will seek out stuff that backs that view.

We have never had such an ability through the internet to check and verify stuff, yet there probably never has been such a level of crass stupidity among the populace


*under Ted Heaths Tory government.
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Inflation.... on 22:33 - Jul 27 with 505 viewsSwansea_Blue

Inflation.... on 19:42 - Jul 27 by You_Bloo_Right

Hmmm.

I'm not sure it's true that many of the dividend payments go to UK pension funds.

https://www.tuc.org.uk/research-analysis/reports/do-dividends-pay-our-pensions


Oof. Makes for grim reading. Not particularly surprising though. There’s a lot more people in the rest of the world compared to the UK, so not surprising the majority of dividends disappear from the UK.

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