A world without inflation

som farmer

Member
Livestock Farmer
Location
somerset
Was the death rate horrific? Majority of deaths were in the over 60s and it just brought forward the inevitable by a few years. Younger folk that succumbed generally had co morbidities, so natural selection at work. One of those things really. More will die or be adversely affected by the repercussions than ever died through Covid. Hey ho.
l thought it was 'pc' not to say that, but agree totally.
 

nelly55

Member
Location
Yorkshire
I remember my fathers wage paid the rent and food and a bit left over .Now everyone wants spending money for holidays,clothes and rubbish they don’t need.Food and rent is low down because they have got so used to cheap food ,cheap energy ,cheap fuel so the bit left after first choice spending is now not covering food etc.Just look at how many are heading off on holidays ,it’s the fixed income people who are suffering as they have cut everything out to only cover bills then food.I just wish someone would put their brain in gear and really understand what a mess this country is in.Is sorting Ukraine out really going to put the world economy right,or will it bankrupt countries in the process.
 

Cowabunga

Member
Location
Ceredigion,Wales
A small amount of inflation is desirable which is why the Bank of England’s target is not 0 but is 2% inflation. Deflation is deadly to any economy because prices are reduced over a period, which means that there is zero incentive to invest or spend, which both result in poor demand for goods, which means jobs and companies disappear and local and national tax take reduces resulting in public service and health cuts.
 

toquark

Member
Today's inflation is caused primarily from pumping money into the economy for 15 years and not seeing a concurrent rise in productivity. There is simply far too much money chasing far too few goods. Ukraine, Covid, Brexit etc. are sideshows really but have combined with the main issue to form a perfect storm. There will be a reckoning for the decade and a half of profligate quantitative easing, this is just the start.
 

Cowabunga

Member
Location
Ceredigion,Wales
Today's inflation is caused primarily from pumping money into the economy for 15 years and not seeing a concurrent rise in productivity. There is simply far too much money chasing far too few goods. Ukraine, Covid, Brexit etc. are sideshows really but have combined with the main issue to form a perfect storm. There will be a reckoning for the decade and a half of profligate quantitative easing, this is just the start.
Actually its not. Inflation today is supply side inflation caused by very high energy costs primarily, along with the issue of a decreasing currency value due to difficult trading conditions, especially for exporting.
There is no way on earth that you can blame current gas and fuel prices, resulting in the more than doubling of fertiliser price on so-called quantitive easing. It is due to underinvestment in energy and poor energy security adversely impacted by a war in a major supplying region. Same goes for food but related to the cost of producing it not because the consumer has so much cash that they are throwing it away. If they cannot or will not cover the increased cost of production, stuff including food, will not be produced.

Mainly this is the cost we all have to pay for opposing the Russian invasion of Ukraine. Had not some particular European countries left themselves so exposed to Russian energy blackmail, the price increases would be far less all-round.

The proof that it is supply side inflation is the general consensus that the usual method of curbing inflation by significantly raising interest rates just will not work. It is not demand inflation or wage driven inflation. It is unavoidable and will make the vast majority of ordinary people worse off for at least a couple of years unless Russia withdraws, which is unlikely.
 
As above, much of this inflation is being caused by energy costs.

At the start of the year, those bright sparks did away with red diesel for anything but farming or forestry. Bang, extra cost all passed to the consumer. Everything from a cauliflower to a bag of cement became more expensive overnight.

The Putin did his thing. Gas prices spiked heading into winter anyway, then he pulls this stunt. Stopped exports from the Black sea, stopped oil exports although he is under sanction anyway.

The rest is academic.
 

BrianV

Member
Livestock Farmer
Actually its not. Inflation today is supply side inflation caused by very high energy costs primarily, along with the issue of a decreasing currency value due to difficult trading conditions, especially for exporting.
There is no way on earth that you can blame current gas and fuel prices, resulting in the more than doubling of fertiliser price on so-called quantitive easing. It is due to underinvestment in energy and poor energy security adversely impacted by a war in a major supplying region. Same goes for food but related to the cost of producing it not because the consumer has so much cash that they are throwing it away. If they cannot or will not cover the increased cost of production, stuff including food, will not be produced.

Mainly this is the cost we all have to pay for opposing the Russian invasion of Ukraine. Had not some particular European countries left themselves so exposed to Russian energy blackmail, the price increases would be far less all-round.

The proof that it is supply side inflation is the general consensus that the usual method of curbing inflation by significantly raising interest rates just will not work. It is not demand inflation or wage driven inflation. It is unavoidable and will make the vast majority of ordinary people worse off for at least a couple of years unless Russia withdraws, which is unlikely.
Not just European countries, our own bright sparks did away with coal fired power stations & relied on gas & the on off windmill supply, we now rely on gas for more than half our electric & it is subject to world prices, our green plonkers pretend to everyone that it saves the world if someone else other than us produce it!
 

Hindsight

Member
Location
Lincolnshire
Not just European countries, our own bright sparks did away with coal fired power stations & relied on gas & the on off windmill supply, we now rely on gas for more than half our electric & it is subject to world prices, our green plonkers pretend to everyone that it saves the world if someone else other than us produce it!

Ah the 'Dash for Gas' policy of the embers of the Thatcher days.

This piece from Conservative Home dated 2008 makes for prescient reading. Just republish and put todays date at the top. Oh, and change a few names. Tis a funny old world.

 

thesilentone

Member
NFFN Member
Location
Cumbria
I remember my fathers wage paid the rent and food and a bit left over .Now everyone wants spending money for holidays,clothes and rubbish they don’t need.Food and rent is low down because they have got so used to cheap food ,cheap energy ,cheap fuel so the bit left after first choice spending is now not covering food etc.Just look at how many are heading off on holidays ,it’s the fixed income people who are suffering as they have cut everything out to only cover bills then food.I just wish someone would put their brain in gear and really understand what a mess this country is in.Is sorting Ukraine out really going to put the world economy right,or will it bankrupt countries in the process.

Yes, despite the fact that we are all struggling (allegedly) try and buy a ticket for a decent concert artist, or British GP, or a Premier Footy Match, or look at our airports. Try and get on the beach at West Wittering (one of the few you have to pay for)

Search out the sponsorship deals to top sporting Clubs by top brands etc, etc, etc.............

The food banks are busy, I wonder why, and when squeezed, what happens to the gazillions spent on illegal narcotics every year, now worth over £9.4 Billion in UK !!!
 

toquark

Member
Actually its not. Inflation today is supply side inflation caused by very high energy costs primarily, along with the issue of a decreasing currency value due to difficult trading conditions, especially for exporting.
There is no way on earth that you can blame current gas and fuel prices, resulting in the more than doubling of fertiliser price on so-called quantitive easing. It is due to underinvestment in energy and poor energy security adversely impacted by a war in a major supplying region. Same goes for food but related to the cost of producing it not because the consumer has so much cash that they are throwing it away. If they cannot or will not cover the increased cost of production, stuff including food, will not be produced.

Mainly this is the cost we all have to pay for opposing the Russian invasion of Ukraine. Had not some particular European countries left themselves so exposed to Russian energy blackmail, the price increases would be far less all-round.

The proof that it is supply side inflation is the general consensus that the usual method of curbing inflation by significantly raising interest rates just will not work. It is not demand inflation or wage driven inflation. It is unavoidable and will make the vast majority of ordinary people worse off for at least a couple of years unless Russia withdraws, which is unlikely.
Yes you're quite right, my point was that QE has left us exposed to global events out with our control such as Ukraine etc. The supply of money has increased for the goods (primarily energy) available.

The decades-long under investment in our domestic oil and gas industry and the misguided energy policy is a disgrace. One small positive though, is that at least the current situation may focus some minds in parliament on the importance of food and energy security.
 

Cowabunga

Member
Location
Ceredigion,Wales
Not just European countries, our own bright sparks did away with coal fired power stations & relied on gas & the on off windmill supply, we now rely on gas for more than half our electric & it is subject to world prices, our green plonkers pretend to everyone that it saves the world if someone else other than us produce it!
Gas is fine if only we produced enough of our own. Unfortunately there has been underinvestment in all forms of fossil fuel harvesting and indeed refining. No regard for national security only for short-term gains at its expense. Who knew that so much of our diesel fuel came ready-refined by boat from Russia? I always tended to buy from the North of my area because the fuel came from Stanlow. Little did I know that Stanlow is now mainly a storage depot for imported refined fuel.
I totally agree that the ‘plonkers’ don’t want production or industry in general ‘in their backyard’ and prefer to cleanse their consciences by exporting production [of almost everything] elsewhere
 

BrianV

Member
Livestock Farmer
Ah the 'Dash for Gas' policy of the embers of the Thatcher days.

This piece from Conservative Home dated 2008 makes for prescient reading. Just republish and put todays date at the top. Oh, and change a few names. Tis a funny old world.

The only difference being at that time we were more than happy to produce more than we needed, not like the plonkers in government these days!
 

Robt

Member
Location
Suffolk
I remember my fathers wage paid the rent and food and a bit left over .Now everyone wants spending money for holidays,clothes and rubbish they don’t need.Food and rent is low down because they have got so used to cheap food ,cheap energy ,cheap fuel so the bit left after first choice spending is now not covering food etc.Just look at how many are heading off on holidays ,it’s the fixed income people who are suffering as they have cut everything out to only cover bills then food.I just wish someone would put their brain in gear and really understand what a mess this country is in.Is sorting Ukraine out really going to put the world economy right,or will it bankrupt countries in the process.
were you naked as a child? I dont get your point?
 

essexpete

Member
Location
Essex
A small amount of inflation is desirable which is why the Bank of England’s target is not 0 but is 2% inflation. Deflation is deadly to any economy because prices are reduced over a period, which means that there is zero incentive to invest or spend, which both result in poor demand for goods, which means jobs and companies disappear and local and national tax take reduces resulting in public service and health cuts.
Exactly what my old economics lecturer would say. How old are you? I am sure he was not Welsh, he was not fond of sheep AFAIK. To be serious, I have have a lot of faith in my lecturer's monetarist theories. He always said the best scenario would be inflation around 2% with interest perhaps just above. Deflation is the worst scenario, with all the negativity that accompanies.
 

Is Red tractor detrimental to your mental health?

  • Yes, Red tractor increase my stress and anxiety

    Votes: 309 97.2%
  • No, Red tractor gives me peace of mind that the product I produce is safe to enter the food chain

    Votes: 9 2.8%

HSENI names new farm safety champions

  • 153
  • 0
Written by William Kellett from Agriland

Farm-safety-640x360.png
The Health and Safety Executive for Northern Ireland (HSENI) alongside the Farm Safety Partnership (FSP), has named new farm safety champions and commended the outstanding work on farm safety that has been carried out in the farming community in the last 20 years.

Two of these champions are Malcom Downey, retired principal inspector for the Agri/Food team in HSENI and Harry Sinclair, current chair of the Farm Safety Partnership and former president of the Ulster Farmers’ Union (UFU).

Improving farm safety is the key aim of HSENI’s and the FSP’s work and...
Top