Bank of England warns of ‘apocalyptic’ global food shortage! »Editorial by Charles SANNAT

My dear fools, my dear fools,

In this article from the very serious Telegraph (source of the article in English here) from London, I want to inform as many people as possible of the need for personal stability. Stability should not be sad, but on the contrary be altruistic and turn towards protection in the broadest sense of our loved ones and loved ones. If we are many, our country will be better able, together, to overcome the great difficulties that await but if we are prepared, will not be overcome and above all, good preparation will weaken the effects. big.

For the rest, the Central Bank of England statement was enough to thrill people.

The Bank of England has warned of an ‘apocalyptic’ global food shortage.

The Governor of the Bank of England warned of an ‘apocalyptic’ rise in food prices around the world and said he was ‘helpless’ in the face of runaway inflation as the economy was hit by the war in Ukraine.

Andrew Bailey says he is ‘short of jumpers’ (Editor’s note, this is an English expression because there are not enough fingers on the hand to count the problems we face) when it comes to counting the shocks facing Britain, whose energy and food prices are rising due to global market forces beyond its control.

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

Mr Bailey told Treasury Committee MPs that he was especially concerned about further increases in food costs if Ukraine, a major agricultural producer, could not ship wheat and cooking oils from its warehouses because in the blockade of Russia.

The Governor indicated that he had spoken to the Ukrainian Minister of Finance and added: “The [risque] Which I’m going to sound rather apocalyptic about, I guess, is the food one.

“Ukraine has food reserves, but it can’t dispose of them right now. Although [le ministre des finances] being optimistic about sowing crops, he said that as things stand, 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 am not a military strategist by any means, but anything that can be done to help Ukraine send its food is a huge contribution.»

Criticized by the Bank of England!

Many experts believe the institution’s action in raising interest rates was too slow when prices rose last year, and have also criticized it for not avoiding printing a quantitative easing program by currency. over the past decade.

The sad record is also expected to increase pressure on the Treasury to present an emergency budget to meet the cost of the living crisis, after Chancellor Rishi Sunak chose to raise taxes as revenues were squeezed.

Food prices have already risen in fear of disruption. Ukraine provides most of the Middle East’s cereals, and families are in danger of not feeding themselves unless a solution is found. Wheat prices rose as much as 6% on Monday.

The Governor also admitted that the Bank has little hope of bringing inflation back to its 2% target, as prices have already risen by 7% and expect further increases in the coming months.

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

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

“Predicting 10% inflation and saying we can’t do anything about that 80% inflation, I can tell you it’s a very difficult situation to live with. We need to acknowledge the reality of the situation we face. »

Monetary interest rate policies will not be effective!

That’s all Governor Bailey told us.

80% of price increases are associated with shortages, the lack of resources, but also clearly with the consequences of the war in Ukraine and the sanctions imposed on Russia on the explosion of energy costs.

And the Telegraph reporter to confirm that “The traditional policy is for the Bank to raise interest rates to combat high inflation, which has the effect of rising borrowing costs and slowing down 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 stability to inflation.

This is the most difficult task that awaits us on a personal level and you have in the special file PRP (Personal Resilience Plan) for the month of May that will be available in a few days a whole chapter focused on inflation and the way to protect yourself against it or to mitigate its effects (to subscribe all the information is here). When we talk about inflation, we are talking about purchasing power. There are two ways to play with its purchasing power. Limit exits and increase entrances. My grandfather said, “a penny that comes in is a penny that shouldn’t come out”, and grandpa, inflation, he’s known this for years!

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

Prepare yourself!

Charles SANNAT

“Insolentiae” means “impertinence” in Latin
To write to me charles@insolentiae.com
To write to my wife helene@insolentiae.com

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