• 1 Post
  • 28 Comments
Joined 1 year ago
cake
Cake day: June 11th, 2023

help-circle


  • Rates are not going back to sub-2% for a long time

    I disagree quite strongly.

    Economies limping along at ~1% GDP growth per year and little or no GDP per capita growth can’t handle larger base rates for long. It’s a self-correcting cycle - if base rates remain elevated for too long discretionary spending will collapse and many, many businesses/loans/credit with it.

    Rishi promised to half inflation not because he’s a financial genius with a secret trick, but because he knows two things: 1) what I said above, 2) inflation is often given as a YoY measure, so by December 2023 we’re measuring inflation above the 10% inflation of December last year, and the country can’t afford 10% inflation per year for long either.



  • It is proposing a new licence condition to “ensure electricity generators don’t take advantage of existing rules to make excessive profits”

    Why? If you want an energy market you shouldn’t be surprised when it does what it can to grow profits, including withholding supply to sell later at higher prices.

    This is typical of the past 10-15 years. Plasters on gaping wounds. Energy providers should be competing to sell us their energy generation capabilities. Competition drives down prices in the long run, not intervention. Of course, the lack of an energy strategy or any investment into one for a decade does leave us a bit… well, fucked.