Forum Topic

Ukraine is not the cause of the cost of living crisis

Martin Lewis on BBC Radio 4 yesterday:-"In response to comments made by Business secretary Kwasi Kwarteng, Mr Lewis said: "Kwasi Kwarteng has said that many people are willing to make sacrifices because of Ukraine. I think he's probably right, but I am slightly worried that we are seeing what may be potentially a deliberate narrative shift that effectively says the entire cost of living crisis is due to Ukraine and therefore we all need to make sacrifices."And that is not correct. What has happened in Ukraine has exacerbated the situation, but the rises in energy, heating oil, water, Council Tax, broadband and mobiles, food, National Insurance were all in place before Ukraine."And when we have a Budget or a Spring Statement coming in a couple of weeks we need to be careful not to allow that narrative to happen and to be used as an excuse that we all need to make sacrifices because of Ukraine, and that's why we have to suck in the cost of living crisis. Because that is not a correct analysis."It is a worsening of the situation it is not the cause of the situation."Asked whether people were still able to make savings in the current crisis, Martin Lewis admitted that in terms of the biggest area - energy bills - he 'no longer has the tools' to help people. He said: "The Money Saving Expert is out, this is going to be for Rishi Sunak to solve."https://www.manchestereveningnews.co.uk/news/uk-news/martin-lewis-angry-message-over-23349326

David Ainsworth ● 1425d26 Comments

Never mind, it will improve, I'm sure. Look at P&O's record exports. 800 jobs!

David Ainsworth ● 1410d

So glad you're happy Matt.

Andy Pike ● 1410d

Matt Palmer ● 1410d

"There is also a cost - that of paying for security to protect valuable physical assets, and in times of conflict there's the risk of loss, theft or destruction."Those oligarch-owned super-yachts taking refuge in the Maldives look like intriguing targets. One for France?

David Ainsworth ● 1423d

Yes Michael you are right.During high inflation the 1% will be ok but the rest of us not so much.

Tim Wood ● 1423d

Sadly, possibly not that feasible for many other than the really wealthy? There is also a cost - that of paying for security to protect valuable physical assets, and in times of conflict there's the risk of loss, theft or destruction.

Michael Ixer ● 1423d

Hi David,Physical gold and silver coins from the Royal Mint are a great store of value during high inflation. Gold and Silver is valued as real money with a 5000 year track record, whilst the fiat is just paper currency losing value as more money gets printed by world governments.Check out this inflation calculator at the BOE website below to see how much money has depreciated over the years:https://www.bankofengland.co.uk/monetary-policy/inflation/inflation-calculatorGold and Silver have already gone up 20% in value since inflation starting moving higher a few months ago.I believe inflation is going to get worse, at least over the next year or so as we will soon have an energy crisis, and supply chain issues will continue. Wealthy people (not me lol) move to art, antiques, expensive watches like a Rolex and commodities during an inflation crisis, as these all act as a store of value. It's called a transfer of wealth from paper denominated assets to tangible/hard assets.There is now a big move from hedge funds out of assets based in paper currency like equities and this money is moving into commodities and the like.Anyone interested, the best money series I have ever watched was recommended by someone on this forum previously.Mike Maloney, approx 12 short episodes really good value.Link below to episode 1:https://www.youtube.com/watch?v=DyV0OfU3-FU

Tim Wood ● 1423d

David,obviously the security services didn't have any concerns otherwise they would have done something about it a decade ago.The alternative is to suggest that the security services did have concerns but chose not to act. In fact with the links to the Met, Johnson could have easily been taken out of the running by polegate but the opposite was true.But what reason would they have not to act?Perhaps they may have preferred Johnson over a left wing UK government.I've heard noone explain why this is an issue now. Either it isn't an issue any people are just playing politics at a time of two international crises. Or an explanation is needed in in why they were silent.Thoughts??

Ed Robinson ● 1423d

Johnson and the Lebedevs, worth a read:-https://www.theguardian.com/politics/2019/dec/22/johnson-visit-to-lebedev-party-after-victory-odd-move-for-peoples-pm"Johnson visit to Lebedev party after victory odd move for 'people's PM'PM mingled with Russian elite amid claims of Moscow interference in UK politics.""It was the equivalent of a V-sign cheerfully flashed at his critics. The day after his landslide election victory, Boris Johnson and his girlfriend Carrie Symonds dropped into a caviar-fuelled Christmas party in London hosted by former KGB agent Alexander Lebedev and his son Evgeny.""The day after his landslide election victory".----------------------------------------“The creatures outside looked from pig to man, and from man to pig, and from pig to man again; but already it was impossible to say which was which.”― George Orwell, Animal Farm

David Ainsworth ● 1423d

"Which hard assets do you recommend?"Razor blades! For some reason they are stolen from shops more any other items. I've never understood it myself - surely there is a limit to how frequently you can shave. They must be used as some underworld commodity.My advice stick to liquid assets - wine and whiskey.Or perhaps soft assets - toilet rolls!Being serious the UK needs to invest heavily in energy storage. There may be a good case for nationalising energy companies and perhaps even go the full Rambo and have an energy policy - sorry must have slipped back into humour mode!

Ed Robinson ● 1423d

"safeguard themselves switching to hard assets asap."Which hard assets do you recommend?

David Ainsworth ● 1423d

I thought that there were always worries about who owned all the newspapers?  Offshore billionaires mostly and of course George Osborne went off to be editor of The Standard...

Philippa Bond ● 1423d

I thought that regenerative farming was the in thing and that it was partly fertilisers that were causing so many problems with our rivers.

Philippa Bond ● 1423d

Thanks, Ed. Interesting article.

Michael Ixer ● 1424d

Money printing is the main cause of inflation. More money chasing fewer goods. It's just going to get worse and worse.The world global debt is out of control and has gone past the point of no return.A banking crisis and the implosion of the financial system will hit us soon.As fiat denominated assets start to crash people need to wake up and safeguard themselves switching to hard assets asap.Obviously those still asleep will just say 'another conspiracy theory'.

Tim Wood ● 1424d

Ed, you are far too logical and level headed for this forum.😉

Sue Hammond ● 1424d

Baron Lebedev is a dual UK Russian national that owns a majority stake in the Standard around two thirds.This has been well known for years - why the sudden interest I wonder???If he was fit to own it when he bought it what has changed?I would say nothing. Those that had concerns about press ownership still have them.I think this says more about the people that are suddenly very vocal on this topic.Wait until you find out who owns the other papers.This article from last year suggests that Africa should be less reliant on European fertilizer. It's interesting I hadn't appreciated the link between low use of fertilizer and deforestation.https://thebreakthrough.org/issues/food/expand-fertilizer-manufacturing-across-africa

Ed Robinson ● 1424d

Yes, Lord Lebedev of Siberia - a Russian billionaire that Boris put in the house of lords against the advice of security services who said he was a threat.

Matt Palmer ● 1424d

My son said a Russian owns the Evening Standard.

Barbara Stevens ● 1424d

I am not too sure it is heart breaking - more akin to gut wrenching?

Ivonne Holliday ● 1424d

Well it's more than exacerbated, if we look at those commodities in the 6 months before mid February and since then:Wheat 780 - 780 - 1420  0% / +82%Fertilizer 300 - 350 - 1200    +17% / +343%Heating Oil 2.56 - 2.76 - 4.30    +8% / +65%Brent Oil  82 - 92 - 127    +12% / +38%Nickel jumped 250% in the last two weeks etcThe impact of oil is double as it is used by itself in your vehicle but it also affects the freight price for all these commodities, and the freight was already at record levels. Fertilizer is a massive blow to everyone, Africa won't be able to buy much, even for Europe the price is a killer. Ukraine is in no position to sow its fields properly, Russia's economy will collapse, there is little doubt about it, some parts of Africa will starve, starvation creates civil war... The madness of one man will result in the indirect death of possibly millions.

Marc Blanchard ● 1424d

It never ceases to surprise and/or amaze me how the members of the government are so skilled at delegating (shirking?) responsibilities!!!  Make sacrifices because of Ukraine????  I wonder if Kwasi Kwarteng actually believes this poppycock himself!Brexit, the pandemic, rises in energy costs, NI increases, etc had nothing to do with Ukraine.The government must be convinced we are all stupid!

Ivonne Holliday ● 1425d

Surely not, Sue 😶

Michael Ixer ● 1425d

It was actually directed at you Michael ...😸

Sue Hammond ● 1425d

I'll let my namesake, Mr Brown, deal with that. I'm sure it's all the fault of the lizard kings ... or Bill Gates, or is he one of those?

Michael Ixer ● 1425d

This has been caused by a number of factors all coming together and it's a global problem.  However I am waiting for Michael to wholly blame Brexit lol.😸

Sue Hammond ● 1425d