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"“Many companies have taken advantage of the return of inflation to inflate their prices excessively, at the risk of stimulating an inflationary spiral,” warned Charles-Henry Monchau, chief investment officer at Bank Syz, Swiss private bank.
“The idea is simple: when world prices rose because of supply and demand, companies raised their prices. But they didn’t just raise them to cover higher costs. They have fuelled inflation with price increases that go beyond the rise in raw material costs and wages, pushing their revenues to record levels,” Monchau said.
The weakness of the pound has also pushed up the cost of imports. Sterling fell to a record low last autumn after the mini-budget chaos, hitting $1.03, but has now recovered to about $1.24. Before the 2016 Brexit vote, the pound was worth almost $1.50."
The UK economy just before, and since, Brexit (and we haven't reached the point of the helicopter rescue)
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BoE to the general public: "Suck it up" on 08:49 - Apr 26 with 1274 views
BoE to the general public: "Suck it up" on 22:27 - Apr 25 by Gogs
BoE trying to make excuses as they’re realising that trying to fix supply-side inflation with a demand-side solution isn’t working very well
I can't work out whether the BoE are really this tone-deaf, or if these comments have been made in order to grab some headlines/attention whilst deflecting from something else.
BoE to the general public: "Suck it up" on 22:27 - Apr 25 by Gogs
BoE trying to make excuses as they’re realising that trying to fix supply-side inflation with a demand-side solution isn’t working very well
The BoE is not fit for purpose and neither is Bailey. As somebody appointed by the government, no surprise there. How they think supply drive inflation and blatant profiteering will be solved by raising interest rates and telling people to be poor and happy about it is beyond me. Especially as it’s the necessities of life like food and energy that are driving inflation the hardest.
As for accept being poorer, why? So Sunak and his mates can take more? Let’s face it, if they’re allowed to, they’ll do just that. The lies spread about Unions and people fighting for a living wage are to weaken peoples bargaining power so they can grab more of the pie.
Here’s an idea Sunak, take a look at investment since 2016 and ask why there hasn’t been any. Take a proper look at why old industries like shipbuilding and engineering died in this country post war. It was nothing to do with lazy workers or industrial action, but everything to do with lack of investment in plant and people. Even the ageing owners of shipyards on the Clyde admitted that after it was all gone.
Inflation is at the moment supply driven and by companies profiteering. I don’t blame the latter. They’re there for their shareholders and should maximise profit. I don’t blame foreign own companies ramping up prices either - this is a captive market. A milk cow.
I blame the government for complete incompetence in everything they’ve touched in 13 long years. Their flawed ideologies of the market will provide and trickle down economics governs their thinking on everything, not least because their own personal wealth will only increase.
These people are dirt.
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BoE to the general public: "Suck it up" on 09:21 - Apr 26 with 1219 views
BoE to the general public: "Suck it up" on 09:21 - Apr 26 by Herbivore
Why aren't they telling large corporations to temporarily accept lower profits?
I guess they're terrified those corporations will piss off elsewhere to pay tax. The balance between governments (or the people) and business is all wrong and needs addressing globally.
But I don't actually blame the BofE for making these noises - as mentioned above current inflation appears to be driven by the supply side, but I wouldn't blame the bank for worrying that wage inflation could keep the whole thing going for longer.
Has anyone ever looked at their own postings for last day or so? Oh my... so sorry. Was Ullaa
BoE to the general public: "Suck it up" on 09:41 - Apr 26 by giant_stow
I guess they're terrified those corporations will piss off elsewhere to pay tax. The balance between governments (or the people) and business is all wrong and needs addressing globally.
But I don't actually blame the BofE for making these noises - as mentioned above current inflation appears to be driven by the supply side, but I wouldn't blame the bank for worrying that wage inflation could keep the whole thing going for longer.
So they aren't worried about telling people they should accept being poorer but they are worried about suggesting that companies profiteering and making billions should accept only making millions for a bit? Sounds pretty fooked up to me and can't agree with you that it's understandable for them to make those noises. The BofE is meant to be independent, it shouldn't be beholden to the interests of government or big business.
BoE to the general public: "Suck it up" on 09:44 - Apr 26 by Herbivore
So they aren't worried about telling people they should accept being poorer but they are worried about suggesting that companies profiteering and making billions should accept only making millions for a bit? Sounds pretty fooked up to me and can't agree with you that it's understandable for them to make those noises. The BofE is meant to be independent, it shouldn't be beholden to the interests of government or big business.
Fair enough we disagree a bit (not massively though - I think we can all see that big business has way way way too much power). I would argue that as inflation appears to suit big business - by arguing for restraint, the BofE is actually on the side of the man in the street. It seems to hurt us most - a wage inflation spiral taken to it's natural conclusion would cause hugely more mass poverty, as we've seen elsewhere.
Edit: slightly regretting being so specific about *wage* inflation and 'as we've seen elsewhere' - don't ask me to back this up! I think I was talking about inflation in general being the poorer person's worst enemy. I'll leave the above unedited to shame me into thinking more carefully about I post!3
[Post edited 26 Apr 2023 10:00]
Has anyone ever looked at their own postings for last day or so? Oh my... so sorry. Was Ullaa
BoE to the general public: "Suck it up" on 09:21 - Apr 26 by Herbivore
Why aren't they telling large corporations to temporarily accept lower profits?
Corporate growth and profit has been the mantra so long now that it’s almost heresy/blasphemy to suggest that a steroidal, profit-based approach has any negative effect whatsoever.
That plus it’s in no-one’s self-interest towards the top of the pyramid/Ponzi scheme.
Pronouns: He/Him
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BoE to the general public: "Suck it up" on 10:28 - Apr 26 with 1134 views
BoE to the general public: "Suck it up" on 09:50 - Apr 26 by giant_stow
Fair enough we disagree a bit (not massively though - I think we can all see that big business has way way way too much power). I would argue that as inflation appears to suit big business - by arguing for restraint, the BofE is actually on the side of the man in the street. It seems to hurt us most - a wage inflation spiral taken to it's natural conclusion would cause hugely more mass poverty, as we've seen elsewhere.
Edit: slightly regretting being so specific about *wage* inflation and 'as we've seen elsewhere' - don't ask me to back this up! I think I was talking about inflation in general being the poorer person's worst enemy. I'll leave the above unedited to shame me into thinking more carefully about I post!3
[Post edited 26 Apr 2023 10:00]
Inflation is on the supply side rather than the demand side, so dampening profiteering would be a much better way of tackling inflation than telling people they just need to suck it up and accept being poor. Really can't see how you can reach the conclusion that these comments show the BofE is on the side of the people.
BoE to the general public: "Suck it up" on 09:50 - Apr 26 by giant_stow
Fair enough we disagree a bit (not massively though - I think we can all see that big business has way way way too much power). I would argue that as inflation appears to suit big business - by arguing for restraint, the BofE is actually on the side of the man in the street. It seems to hurt us most - a wage inflation spiral taken to it's natural conclusion would cause hugely more mass poverty, as we've seen elsewhere.
Edit: slightly regretting being so specific about *wage* inflation and 'as we've seen elsewhere' - don't ask me to back this up! I think I was talking about inflation in general being the poorer person's worst enemy. I'll leave the above unedited to shame me into thinking more carefully about I post!3
[Post edited 26 Apr 2023 10:00]
What an exceedingly bizarre post
"A wage spiral" ?
Was that what caused the increase in the price of gas ?
Have supermarkets been hiking up some of the products by 20% because they are paying their employees 5% more ?
We have not seen 'a wage spiral' " cause hugely more mass poverty, as we've seen elsewhere. ".
" inflation in general being the poorer person's worst enemy." Only because collective action does not have the ability to maintain the buying power of wages. Something you bizarrely refer to as 'a wage spiral'
Inflation benefits the employer because it erodes the value of wages. And the answer is to erode those wages further !
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BoE to the general public: "Suck it up" on 01:54 - Apr 27 with 843 views
BoE to the general public: "Suck it up" on 19:37 - Apr 26 by tractordownsouth
Yep, I only did economics at A-level and most people in our group would have grasped that within a few months.
If they don’t keep up with the Fed, Sterling will continue to plummet and all those commodities we buy in $ will become even more expensive. I don’t disagree with the principle that BoE rises won’t dampen inflation outright but there’s a bigger picture.
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BoE to the general public: "Suck it up" on 10:33 - Apr 27 with 746 views
BoE to the general public: "Suck it up" on 20:50 - Apr 26 by HARRY10
What an exceedingly bizarre post
"A wage spiral" ?
Was that what caused the increase in the price of gas ?
Have supermarkets been hiking up some of the products by 20% because they are paying their employees 5% more ?
We have not seen 'a wage spiral' " cause hugely more mass poverty, as we've seen elsewhere. ".
" inflation in general being the poorer person's worst enemy." Only because collective action does not have the ability to maintain the buying power of wages. Something you bizarrely refer to as 'a wage spiral'
Inflation benefits the employer because it erodes the value of wages. And the answer is to erode those wages further !
In some ways, that's a fair Harry-ing. In others not.
My post was confused so In an attempt to clarify I'm not blaming current inflation on wages. I'm saying that high inflation may stay higher for longer if wage increases sprial and create their own inflationary pressure.
As to inflation hurtng the poor most, that much is obvious and undeniable. You seem to be forgetting the non-working poor who have no wage to demand an increase on. With food inflation running much higher than the headline rate, they get screwed out of sight by inflation. Plus a lot of rhe working poor will be in sectors without strong unions and reliant on the minimum wage rate to set their pay.
Has anyone ever looked at their own postings for last day or so? Oh my... so sorry. Was Ullaa
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