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alansday

  1 month ago

Financial propaganda.

I've just been reading the "breaking news" on the BBC news website regarding the Bank of England's latest interest rate rise of 0.25% , leaving it's lending rate now at 1% . The latest prediction is for inflation to hit 10% by the year end in the UK.

What irritated me was the constant inference that the Ukraine conflict had caused an "intensification" of inflation pressures that the "impact of the Ukraine war on household energy prices were largely to blame". The article seems to wish to place blame for our current inflationary woes fairly and squarely on the conflict in Ukraine.

Sorry but world oil prices were already at $100 a barrel prior to the war in Ukraine and world gas prices were even higher prior to the invasion than at present, standing at way more than £200 per therm , whereas today's price is around £170 per therm.

What they fail to mention is the real and underlying causes of inflation that presently affects many parts of the globe today .
The present situation began way back in 2008 and the global financial crisis that caused many central banks to begin remedial actions such as "quantitative easing" and "money printing" this policy has continued largely unchecked for the past 14 years. This put trillions of dollars / pounds / euros and yen etc into the hands of banks and financial institutions at zero cost . Much of this money was invested in commodities on the futures market, such as oil , gas , coal , iron ore , copper and steel etc. There is no "real shortage" in these commodities but because so much money was "bet" on these items rising , it naturally raised their value eventually, as we now see today.
Another large contributory factor is that China's living standards have risen dramatically over the past decade , causing wages and general cost of production in China to rise closer to western levels thus pushing up prices from this country that provides the majority of world's goods today. Cheap consumer goods from this source which were enjoyed for 20 years are now definitely at an end.

I feel there's a fair bit of propaganda going around attempting to blame our present woes regarding inflation on the war in Ukraine when in effect it has been brewing way before this terrible event . Governments and banks have over egged their puddings and are now looking to deflect blame on to other events that have in reality added very little to price pressures in my view at least.

Do you think the Ukraine conflict is being used as a scapegoat as far as our present troubles with inflation are concerned ?
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Post

steppenwolf_a_558

  1 month ago
Who cares what causes it? Us poor people just have to make the best of whatever we get as far as inflation goes... as I have no savings and no loans base rate changes don't have any direct effect on me... Reply
2 comments

Ed777

  1 month ago
The current rate of inflation is down to Brexit and it is going to get a lot worse Alan. Reply
3 comments

Mollygirl

  1 month ago
Well, it's not helping the food situation, that's for sure. They're always going to try and find a reason out of things, that's their job. Giving people enough information would fry some brains out in the real world, people can't take it anymore. They're used to tiny little morsels of information, nothing too broad-spectrum. That's why the youth of today are all dumbing down, they can't take in that much info at one time. Whatever the causes, they don't seem to be going anywhere anytime soon. I bought extra coffee today while I can still get it for less than a fiver. Reply
1 comments

watervole

  1 month ago
I do agree with you. Just hoping Ukraine situation doesn’t intensify. Reply
1 comments

roselily1

  1 month ago
yes i do think they are using ukraine as a scapegoat,nor do i think things are as dire as they are trying to make us think,the goverment will never admit to failure Reply
1 comments

pigmare

  1 month ago
It's a quick and easy excuse to cover failures. Why would the government etc... admit that they've been doing a bad job, when they can just say "it's the wars fault!" Reply
1 comments

rosemary-charles

  1 month ago
I dont know about all that but I do know I got 19pence interest on one of my savings account for £2000 being there for a year , i must find a better account Reply
5 comments

davepretty22

  1 month ago
I think it is very easy to blame any economic crisis on events such as the Ukraine war or Brexit especially if it suits someone's political narrative. Usually, the cause is much more complex and I think you have provided good historical evidence as to why we are where we are today. As someone who withdraws from savings to make ends meet, I am more worried about inflation than anything else. A small rise in the base rate that may or may not be passed on to savers hardly compensates for inflation of 7 - 10%. Also, the majority of my savings are in fixed rate bonds to get a better return so I cannot take advantage of higher rates until they mature. The gap between the rich and poor seems to grow bigger every year and no government appears to be anywhere near to solving this economical and sociological timebomb. Reply
7 comments

Meryl10

  1 month ago
Gosh I lost interest reading that .. too much text. sorry. Reply
1 comments

spartan3002

  1 month ago
A couple of points to ponder Alan ; OPEC hold meetings to discuss how much oil to release into the marketplace , in order to maximise profits . Also , Shell quarterly profits were £7.3 billion - but they've been assured there will be no windfall tax . I'll say no more . Reply
1 comments
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