High Interest Rates Are The Wrong Mechanism For The UK's Inflation

Today's inflation figures are welcome, but is has become increasingly clear to me that high interest rates have been the wrong choice. 

Interest rates are an outdated and class driven way of impacting inflation. It first hits the working class, then the middle classes. This reflects a society that is failing to evolve & truly want social mobility.

Public perception is that we have a government that has had little interest in the people of this country. People are poorer. Compared to other countries, the UK is uncompetitive & failing in too many areas.

People are angry. Not enough is being done as people are losing their life savings. This has been so poorly managed.  Wealth is being transferred to banks. 

Bumper profits have been announced by some companies. This is not good or responsible corporate citizenship. There should  be a tax on benefiting from the suffering of others. How can we call ourselves human and humane if we perpetuate unethical behaviour and we don't speak out about it? 

Forcing interest rates to these ridiculous levels is short sighted in any event. It will force the UK into a massive recession which will ultimately harm corporates & the wealthy. It discourages anyone investing significantly in the UK.

Why was the solution to increase costs via interest rates to manage inflation rather than bring in cheaper imports to force prices down? We live in a global competitive world, but we are using old measures to deal with statistics created by a patriarchal hierarchical system.

If the point is to reduce the labour market, aren't there more direct measures rather than interest rates?  Interest rates are about slowing things down & causing pain. It's a choice who is impacted by economic measures. 

A fairer way would have been taxes  strategically raised in certain areas or a voluntary tax is paid by the wealthy and those businesses who have profited in good times and bad. 

We need creative out of the box measures. The attack on the arts is another misguided politically poor decision, but more on that another time. 

If you are struggling with interest rates & the cost of living, the only real option seems to be to vote against a government which is failing. 

Banks are not making it easy to:

• switch to interest only
• not be penalised by temporarily going variable to ride out the high rates
• offeeing competitive deals - most deals are at 2 years or 5 years - no longer 1 year. 

Instead, they are leading with notices that your home may be repossessed. 

Britain is at breaking point and ineffective leadership has been at the heart of it. It will ultimately result in British businesses & people falling behind the rest of the world. 

We need to look at the big picture and sadly high interest rates have been used in the worst possible way which will cause the least desirable outcomes for all of us. 

Watch:

• "It’s not a cost of living crisis…it’s a cost of Conservatives greed crisis”

Read:

• Inflation falls to 7.9% in bigger than expected drop
• There’s only one way to tackle Britain’s mortgage meltdown – get the banks to cough up
• Bank profits poised to top £40 billion while UK economy struggles
• Mortgage cost rises: how other countries compare with the UK
  
• Inflation is causing real pain. But raising interest rates will make it worse

The Little Annoyances That Keep Us Awake

The 1 step backwards to see the 100 steps you've taken forward - the glass is never full. There's should have, could have, would have. 

So tonight I did the right thing and showed compassion & sensitivity. I have mixed feelings about the situation because it has made me doubt my way forward. 

Did I make a mistake? Perhaps. But then we all make mistakes. It's not the end of the world. It just means we learn hopefully from it, and are wiser in our decisions going forward. 

So the story is that I agreed something with someone. After doing it, they rescinded on the agreement. Fortunately it wasn't a huge amount of work, but still it was a precious few hours I could have spent on something else. I guess it makes a great anecdote to tell, one day. 

It was essentially a goodwill job for no payment. Honestly, why I do these, I don't know. It really isn't worth it. 

I guess I can't help but feel annoyed, naturally so. I won't make a big deal out of it. That's not my style. Does it make me weak? Is it frustrating trying to be a good person and not telling them this isn't ideal? 

The thing is, now I think that I no longer can move forward with other agreements I've made, as I've set the precedent they can rescind too. It's just become a waste of my time.

What are the positive?

1. It could have been worse.

2. I haven't really lost anything significant. 

3. Now I know agreements with this person are no longer credible. 

It confirms my hesitancy to move into this type of work. I took a risk and it didn't pay off today, but it is a useful example of what I can do. 

The reality is that the world is moving faster than many people are prepared for. They aren't able to cope with these changes. It's OK. I guess for my own sanity, I need to be aware of this as it can result in time wasting. I understand their point of view. It doesn't make me feel better though. As well, I can't sleep now because of it, which is even more annoying. 

I just needed to vent. I have to let it out, send it out and make my peace with it. Now back to trying to go to sleep. 

The Power of Empathy

Many of the most inspiring people in our world possessed an abundance of empathy. So why us it that at times, there seems to be so many people who lack empathy. 

Is it the stiff traditional British keep calm carry on attitude? 

When I see a lack of empathy in someone, it makes me wonder about their humanity. Perhaps it is an unfair leap. 

In a world where we face one challenge after another, I want a more supportive environment. Where leaders and role models cannot find compassion for those who are struggling, where feelings are invalidated, I can't help but think are we losing our way? 

As for people in my life, I want to spend more time with people if we are kind to each other. I am beginning to realise there is toxicity that we allow into our lives. We tolerate it.  

Be kind is not just words we say. It is about values, behaviour and how we live. It doesn't mean we can't criticise, but it is also about knowing when to do so, how we deliver it and recognising there is a person on the other side, who may be fragile. We have periods when we are vulnerable and just need others to be there for us. We're not perpetual victims. We're not overly sensitive. 

Yes we all make mistakes.  We don't always see or hear what others or saying, or recognise what they need. It is easy to get caught up in our own problems. 

Finding the balance in all of this is tricky. Empathy is power. It can strengthen you, those around you and is a trait we admire, but often take for granted. If there's one thing we can all work harder to do, it is to find more empathy for others. 

Why is the Credit Suisse story a big deal?

Switzerland's biggest bank, UBS, is buying Credit Suisse in an emergency rescue deal, but what makes it significant is that this story is a part of a larger narrative of financial market panic. 

Credit Suisse Group AG is a global investment bank and financial services firm founded in Zurich in 1856. UBS will pay more than $3 billion and assume up to $5.4 billion in losses. 

The slow demise of Credit Suisse culminating in the merger will not surprise many people. The FT - Clock ticks for Credit Suisse video provides useful background, contextualising it's downfall. 

All of this is reminiscent of Lehman's collapse and the Bank of America / Merrill Lynch merger in the financial crisis more than a decade ago. History repeats itself, despite changes in financial regulation and "lessons learned."

What does this mean for the man on the street? 

Share prices will continue to fluctuate. The economy is spiralling. Jobs are at risk. More businesses will fail. 

This is not a ripple. The collapse of Credit Suisse has vast implications, not to mention impacting the fragile foundation everything sits upon - confidence - which is crumbling. 

UBS' involvement stems the tsunami but the rain is coming and it will continue in a bleak and depressing way. 

What can individuals do?

Delay major investments. Cash flow is key in these difficult times. Try not to raid the rainy day funds and top up where possible. 

Those already struggling should seek help from charities, friends and family. Share your stories with news outlets & social media to put pressure on governments to help with electricity & rising costs, because they aren't doing enough. 

Recession

Whether we technically have a recession doesn't matter. Expect revisions to growth forecasts following this Credit Suisse saga. Times will be tough. Be kind and compassionate to others. Realise that this has physical and mental effects on everyone, no matter what their circumstances. 

Health and Happiness

In economic downturns, it can be hard to focus on health and happiness. It is probably more important than ever. 

The standard food and fitness advice prevails. It's easy to deprioritise and let stress overwhelm us. I highly recommend mindfulness and finding free activities that help you to relax.

Happiness can be found in simple things - a walk, a conversation with someone or listening to your favourite song. Incorporate these into your routine and do something everyday as being happy is a matter of practice, practice and practice. 

Wishing you beauty, health and happiness. 

C7. 

You may also be interested in:

• Did Ryan Reynolds investment in the UK help him snag £1bn deal?
  
• A 'sad and challenging' day: Credit Suisse chairman on 'historic' UBS takeover of his embattled bank
  
• The banking panic of 2023
  
• Credit Suisse’s $17B of risky bonds now worthless after takeover by UBS: ‘Those bonds were created for moments like this’
• My secret to eating more vegetables
  
• Exercise - It's all in the attitude
  
• What is the secret to happiness?
  

Did Ryan Reynolds investment in the UK help him snag £1bn deal?

 

Ryan Reynolds, Hollywood's new royalty, has landed a £1 billion deal. The actor has been a savvy business man and marketer, who recently met King Charles after investing in the UK. 

The British royal family, especially the new & future King (Prince William), adds a glamour and stamp to any brand. Tom Cruise got some great publicity when he was pictured with William and Kate on the red carpet.

The images with Charles and Camilla definitely gave Reynolds a massive boost. In these competitive times, these stand out moments create great PR and grows the social media presence of all involved. How many American actors get to say they've hung out with a real King, someone who will be in all the history books?

Reynolds is a positive role model, who keeps his image  he is a much loved celebrity. He is writing himself into history and creating an incredible legacy. 

That this also translates into buckets of money, well it seems the investment in the UK is a significant part of the narrative, one which many investors may start to take notice of, particularly when £1 billion is in the headline. 

Read more about the the £1 billion deal and CNN - King Charles visits Wrexham AFC, the soccer club owned by Ryan Reynolds and Rob McElhenney

Is the controversial tweet the death of the BBC & Gary Lineker?

To begin to understand what is going on with this contriversial tweet, we need to go back to basics and look at who is Gary Lineker and what is the BBC. 

Background - Gary Lineker

Gary Lineker is a name that needs no introduction for football fans around the world. Born on November 30th, 1960 in Leicester, England, he is one of the greatest English footballers of all time.

Club Football

In 1985, he made a move to Everton, where he won the Golden Boot in his first season, scoring 30 goals in 41 league games.

After two successful years at Everton, Lineker joined Barcelona in 1986, where he enjoyed a remarkable spell, scoring 42 goals in 103 appearances. He won the Copa del Rey and the European Cup Winners' Cup and was also named as the league's top scorer in the 1988-89 season.

In 1989, Lineker returned to England to join Tottenham Hotspur, where he spent the final years of his playing career. Despite being in his mid-thirties, he continued to be a prolific goalscorer, scoring 67 goals in 105 appearances for Spurs.

International Football

On the international stage, Lineker is best known for his performances for the England national team. He scored a total of 48 goals in 80 appearances for the Three Lions, and is currently England's third-highest goalscorer of all time. He was also a key player in the England team that reached the semi-finals of the 1990 World Cup, where he won the Golden Boot for being the tournament's top scorer.

Media Career

After retiring from football, Lineker went on to have a successful career as a broadcaster and pundit. He has been a regular presenter on the BBC's flagship football show, Match of the Day, since 1999, and is known for his insightful analysis and witty commentary. He has also worked for several other broadcasters, including ITV and BT Sport.

The Beebs (aka BBC)

The British Broadcasting Corporation, commonly known as the BBC, is a public service broadcaster based in the United Kingdom.

Established in 1922, it is the world's oldest national broadcaster and one of the largest media organizations globally, with over 22,000 employees. 

The BBC operates a range of services, including television, radio, and online content, catering to a diverse audience both in the UK and internationally. The corporation's mission is to inform, educate and entertain, and it is renowned for its impartiality and high-quality journalism. In addition to producing its own programming, the BBC also provides news and current affairs content to other broadcasters worldwide through its BBC World Service. The BBC is a significant cultural institution in the UK, and its programming has had a significant impact on the country's social and political landscape.

The Controversy 

Lineker was suspended by the BBC following controversy surrounding a tweet he wrote criticizing the UK government's new asylum-seeker policy.

The latest news is that the BBC 'climbdown' over the Lineker row has Tory MPs not happy with the U-turn. 

Is this the death of the BBC & Lineker?

Politicians are playing a dangerous game. They are coming after two cherished institutions of Great Britain - football and the BBC. 

Both football and the BBC represent two key economic and culturally significant pillars to the UK. They are soft power that generates billions of pounds. 

Whether this is individuals or groups seeking to undermine the western world or individuals who aren't too clued up, we may never know.

Should it transpire that both the BBC & Lineker come to an end, and I don't mean actual physical death, but the disassembling of the BBC by removing the licensing fee, it does cut the UK down at the knees. 

Also, Lineker's success and continued glory is intertwined with the BBC's. 

The bigger picture is that there is noise by politicians, much more media murmurings about scraping the license fee and a growing dislike of the current government who continue to be perceived as out of touch with the people. 

The trajectory seems to be the BBC & Lineker's time is running out. 

Other media outlets may have an interest in seeing the BBC brought down, but ultimately it will affect advertising revenue to have a diminished Great Britain. 

At the end of the day, making money is what matters and when strategists realise this, perhaps when it's too late, then they will be poorer. They already have their bottom lines eroded from socia media, so it's more downhill for them. 

All this makes a hot mess which shows Great Britain as less great and more broken. 

The controversial tweet may soon be old news, but will this be the pivotal moment when we look back, that led to the BBC & Lineker's death?

The King's Coronation - the biggest party of 2023

I'm not a fan of how much is being spent on the King's Coronation, but this will be the event of 2023. Royalty from around the world will be invited and it will be in the history books. 

Republicans and anti-royalists around the world may be getting traction, but monarchy has an enduring attraction to the public which no other individual or business has been able to emulate. 

Little girls still play princess. Little boys put on crowns. When you meet a member of the royal family, it's a big deal. 

Those who snub the coronation may start to alienate some fans. Those celebrities who poke their head out and take sides on political issues lose their star quality and seem more ordinary. 

The foolish dismiss opportunities. Events brings people together, to network and add something to their cv. It's another experience. We can tell our children we were there. 

Brand Britain has suffered some damage in recent years. But, and this is a big but, it is still a huge draw for people all around the world. Everyone knows of the British Royal Family. It is why when there is a story or scandal, media outlets go crazy. It sells and makes bucket loads of money. I don't see those who benefit from the royal family's existence being supportive or happy with those who support or wish to take away their golden goose. 

So don't expect the royal family to disappear or the monarchy to fall. 

Does this aspect bother me? No. 

Britain and the world will stop for the coronation. I'm looking forward to a bit of pomp and distraction from the dire news that constantly bombards us. 

Plus my beloved London will be a massive party. It will be the place to be. This is why I love this city.