Bank of England warns of “horrific” global food shortage! » Editorial Charles Cents

Dear impudents, dear impudents,

With this article from the Very Serious Telegraph (article source in English here) from London, I want to make as many people as possible aware of the need for personal flexibility. Resilience should not be sad, but on the contrary, altruism and protection-oriented in the broad sense of our loved ones and loved ones. The greater our number, the more our country will be able, collectively, to overcome the great difficulties that lie ahead, which, if we are prepared, will not be insurmountable and, above all, good preparation will be able to greatly mitigate the effects.

For the rest, the BoE’s note is enough to make people shiver.

The Bank of England warns of “appalling” global food shortages.

The Bank of England governor warned of a “horrific” rise in food prices around the world and said he was “helpless” in the face of hyperinflation as the economy grapples with the war in Ukraine.

Andrew Bailey said he has a low jump (The editor noted that it is an English expression where there are not enough fingers on the hand to account for the problems we are facing) when it comes to counting the shocks facing Britain, with soaring energy and food prices due to global market forces beyond its control.

Prices are rising at their fastest rate in 30 years, creating a “very large income shock” that is expected to intensify in the coming months with the risk of double-digit inflation before the end of the year.

Bailey told Treasury Committee deputies he was increasingly concerned about the 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 indicated that he had spoken with the Ukrainian Finance Minister and added: “The [risque] The one I would look a little awful at, I think, is the food.

Ukraine has food reserves, but it cannot get rid of them at the moment. although [le ministre des finances] Expressing optimism about planting crops, he said that under the current situation, we have no way to ship them, and the situation is getting worse.

“It’s a major concern. It’s not just a major concern for this country, it’s a major concern for the developing world.

I’m not a military strategist by any means, but anything that could be done to help Ukraine ship its food would be a huge contribution. »

Bank of England criticizes!

Many experts believe that the institution moved too slowly in raising interest rates when rates took off last year, and has also been criticized for not scaling back the currency-printing quantitative easing program over the past decade.

The dismal record is also expected to put more pressure on the Treasury to provide an emergency budget to tackle the cost-of-living crisis, after Chancellor Rishi Sunak opted to raise taxes at a time when revenue has shrunk.

Food prices have already risen amid fears of disruption. Ukraine supplies most of the Middle East with grain, and families risk not being able to feed 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 bringing inflation back to its 2% target, with prices already up 7% and another hike expected in the coming months.

When asked by members of the Treasury Committee, who asked him if he felt “powerless” to control inflation, Mr. Bailey replied: “Yes.”

He added: “It’s a very uncomfortable place – I’m trying to find a harsher word than that – it’s a very, very difficult place.

“Expecting 10% inflation and saying there is not much we can do about 80% of that inflation, I can tell you that this is a very difficult situation to live with. We need to acknowledge the reality of the situation we are facing.”

Cash rate policies will be ineffective!

That’s what Governor Bailey just told us.

80% of the price increases are related to shortages and scarcity of resources, but it is also clear that they are related to the consequences of the war in Ukraine and sanctions against Russia as energy costs explode.

The Telegraph reporter confirms that The traditional policy is for the bank to raise interest rates to fight high inflation, which leads to increased borrowing costs and a slowdown in the national economy. But most of the current price increases are coming from global markets, which will have little impact in the short term.”.

Think about your ability to adapt to inflation.

This is the most difficult task ahead of us on a personal level and you will have in your file your PRP (Personal Resilience Plan) for the month of May which will be available in a few days a whole chapter dedicated to inflation and how to protect yourself from it or mitigate its effects (to subscribe to all the information here). When we talk about inflation we are talking about purchasing power. There are two ways to play on their purchasing power. Reduce outings and increase flows. My grandfather said, “A penny that goes in is a penny that shouldn’t come out,” and grandfather, inflation, has been known for years!

It’s already too late, but all is not lost.

get ready !

Charles Sannat

“Insolentiae” in Latin means “insolence”
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