U.K. core inflation rate in the U.K. is getting worse. Food and energy prices are increasing because the mob refuse to allow us to produce our own (even though we could). Think we’re heading towards a world of pain with mortgages increasing. I’m already seeing lots of people on social complain about their monthly payments. Thankfully I have no debt and I own bitcoin.
Discussion
What do you mean by mob refuse to allow to produce your own food?
There's a term over here called 'NIMBYism' which basically stands for Not In My Back Yard. People lobby against turning fields into farmland and/or building travel links etc.
The UK is 98% non-residential and we have a lot of untouched arable land.
Granted, we have to import many foods because we simply can't produce them here but we could be doing more to be self-sustainable in food production.
We also depend on Norway and other countries for energy. Unlike, say, the US which is self-sustaining and produces all its own energy. We have a lot of wind farms (UK is an island so is perfect for wind) and produce a lot of household electricity but it's not enough for the country's entire energy needs.
I live on the right side of a fjord in Norway and have cheap electricity prices (some days I get paid for using electricity), but soon a new cable will be in operation and I will have direct exposure to the rest of Europe and the electricity prices are going to skyrocket. But im trying to have a lot of firewood as a hedge 🤙
Are you in Norway? Being paid to use electricity is amazing. Hope you were using it to mine Bitcoin ;)
UK is going to struggle with inflation for a while as we have effectively ruined our national gas reserves. There are 28 million homes in UK of which 22 million are heated with natural gas.
We are now importing gas from Texas, by cryogenically cooling it and shipping it across the Atlantic even tough we have decades of gas supply below our feet.
We did have a brilliant energy industry cluster around Aberdeen, companies from all around the world would invest in North Sea projects largely just to learn how offshore oil and gas production is done from a world class work force.
But that is no longer the case. Drilling is banned in practice via rollercoaster taxes and extreme interpretations of licensing conditions.
The government used price fixing to try and control the inflationary consequences of this but it’s very expensive fiscally and unsustainable for the government to hold that liability for too long so they will taper out of price fixing which is a big cause of the pernicious inflation.
This has bizarre consequences because the only way to tame the inflation is rising interest rates at the risk of the mortgage market souring and asset prices crumbling.
But hey, at least the gas we continue to burn wasn’t produced here. So we can take some satisfaction from that.
Well put! It angers/saddens me how stupid we can be sometimes.
The insanity of the “sustainability” movement.
UK has the gas but has to import it from America whilst America is importing oil because they refuse to frack their local supplies - all transported overseas using huge ships which are powered by the evil fossil fuels they want to eliminate…
How can this not be malicious? It is certainly beyond stupid.
It's the very same people who demanded we all be locked down for months on end while they demanded the government bail them all out. They're now demanding the government stop their mortgages from rising.
I'm generalising a lot here, obviously.
Last I checked, it's barely worth mining bitcoin if I get free electricity, since I have to pay transmission tariff for the electricity 😮💨
How is Norwegian energy going to become expensive? You guys produce so much you export it
Instead of saving the water in the reservoirs, Norway exports much of the electricity to the UK and Germany. And when we need electricity in the winter, the reservoirs are empty of water and we have to import expensive electricity 🤦
The more I learn how the world works, the more it doesn't make sense
