Monday, 28 March 2022

The Month That Was......March 2022

My typical month sees me feeling a little sorry for some of the small stories in life. Take the staff in Boots for example……having to ask EVERYONE if they’ve got an advantage card. You can see a little bit of Brenda’s soul disappear as she asks a 50 year old bald construction worker in a high-vis get-up if he’s got an advantage card when he just wants a bottle of Fanta. 


But this month my heart, like most, has been struck with a far from small story and the scale of the atrocities in Ukraine. I’ve struggled to provide any adequate explanation or logic to my 7 year old daughter as to what on earth Putin is doing.

I listened on the school run to the story of a Ukrainian woman and her 7 year-old daughter sleeping rough for four nights in freezing temperatures to get to Calais only to be refused entry to the UK. How do I explain that to my own 7 year old? I just can’t explain our Government’s mindless response to it all.

Dominic Raab said “we have a reputation second to none across the world” for helping refugees. He then immediately said the “EU was better than the UK at helping refugees because they’re closer to Ukraine.”

Our Government then said that Ireland helping Ukraine is a security threat to the UK because Ukrainians (who apparently we’re welcoming) might come to the UK using a border scheme they designed.

Priti Patel refused to open safe lanes for refugees. Then BoJo told reporters we would set up safe lanes. So then Patel said she would set up “a new humanitarian route to enter Britain”……but then BoJo said we weren’t setting up humanitarian routes.

Then Priti Patel said the UK had set up a “very generous” visa processing scheme……based in Calais. So Ukrainian refugees with relatives in the UK started walking across Europe to Calais in the middle of winter. Then Number 10 admitted the Calais centre didn’t exist.

We then put up posters in Calais telling Ukrainians there would be “no visas delivered in Calais.” Priti Patel then backtracked and said “but we are planning one” and in the meantime “refugees should phone the free application hotline” instead. You guessed it……the hotline isn’t free and the number didn’t work from outside the UK.


So, to recap……refugees have to walk 2000km to Calais to apply for a visa we won’t give them, at a centre that doesn’t exist and before they enter the UK they have to call a number that only works if they’re already in the UK.

BoJo then announced details of the visas Ukrainians needed to enter the UK…….and the Home Office boasted of “the first visa scheme in the world” to help Ukraine. That’s because all the other countries scrapped visas and just took in terrified refugees.

A website was then created where we can register to house a refugee…..finally some human compassion and spirit could be created in the UK for those that need it. The website then crashed. When it did occasionally work, it was discovered you need to know the individual names of any refugees you wanted to help and the Government wouldn’t assist with that in any way.

Michael Gove had the solution though……he suggested the best way for Ukrainian refugees to let volunteers know their names was to “set up an Instagram account,” quickly learn English and “advertise”. 

 

I genuinely wish I had made all of the above up but I am simply not creative enough to write such nonsense.

Compassion is not complex. Surely?


The Numbers

Whilst the human cost of the conflict in Ukraine is difficult to comprehend, the economic impact can be felt by most in the UK with evidence easy to find. 


Russia and Ukraine are big food producers…..they account for 60% of the world’s sunflower oil and 30% of the world’s wheat. No surprise that the cost of both has increased by around 70% during March. Food prices in the UK will only go up as a consequence.

Russia’s economic might, in part, comes from fossil fuels. It is the world’s biggest exporter of natural gas and the second biggest exporter of crude oil…..worth over $160 billion a year. Russia is incredibly unimportant in the global economy……except for oil and gas in reality. It’s basically a big gas station and that funds Russia’s military (at a cost of $62 billion a year).

About 40% of the EU's electricity comes from power stations that burn fossil fuels and Russia is the biggest source of that oil and gas. The EU essentially funds the Russian military.

No surprise that oil jumped to $139 a barrel at one point, the highest level since 2008, while wholesale gas prices for next-day delivery more than doubled.

Ukraine has an abundance of rare-earth elements, extensively used in smartphones, computer hard disks, screens, LED lights and electronic displays. Ukraine produces 70% of the world’s neon gas needed for vehicle chips and this will hit the electric vehicle market.

And all of the above means there is no way the UK can adjust quickly enough to the loss of supply from Ukraine and from Russia……so that adds to prices.

The easiest marker for this is the average price of petrol topping 168p a litre, a 25% increase in a matter of weeks. Higher fuel prices affect virtually every sector, business and industry as it increases costs of transporting goods. That means price inflation on products / services in the UK and this only ever leads to increases in interest rates.

Enter stage right…..the Bank of England increased the base interest rate to 0.75% as inflation hit 6.2% (a 30-year high). The increase in interest rate is the third rise in four months as the Bank of England tries to calm the rise in the cost of living. 


Enter stage left…..Rishi Sunak delivered his much anticipated Spring Statement on the eve of the worst-timed tax increase in history — April’s rise in national insurance and the freezing of income tax allowances and thresholds. The main headlines were:

- Economic Growth reduced from 6.0% to 3.8% this year.

- Fuel duty was reduced for 12 months for only the second time in 20 years by 5p at a cost of £5 billion to the Government (fuel duty currently accounts for 57.95p per litre of petrol or diesel).

- VAT was reduced to 0% (from 5%) on all renewal energy installed in homes (solar panels, heat pumps, insulation).

- The National Insurance threshold is to increase to £12,570 at a cost of £6 billion to the Government.

- A promise was given to cut Income Tax from 20% to 19% before the next General Election (2024), which is the first fall in 16 years.

Rishi boasted of "the biggest cut in fuel tax in 70 years", taking petrol prices all the way back to where they were 4 days earlier! It was a very strange Spring Statement.

Whilst it was good to see the rise in the national insurance threshold, there was very little else to address the cost of living crisis beyond a small cut in fuel duty (this will save a typical car fill-up about £3.30). A promise to cut Income Tax by 1% in 2024 was, at best, odd. Certainly a whiff of political gamesmanship before the next General Election.

Talking of which……Nazanin Zaghari-Ratcliffe was released from prison in Iran after 6 years and 5 different Foreign Secretary failures. The breakthrough came when the £400 million debt the UK owed Iran since the 1970’s (for an unfulfilled weapons deal) was repaid. Why now? I would love to think it was for human compassion but fear that our Government is flirting with Iran’s oil and natural gas reserves at a time that it looks to reduce Russia’s importance. All very sad.

 

Trump of the Month

In any other month the news of a knighthood for Gavin Williamson would have made Trump of The Month without fail. 


Apparently the knighthood is for his “services to the nation” but I’m not convinced he’ll actually find Buckingham Palace. This is the same Gavin Williamson who was sacked by Theresa May over allegations of leaking information from a National Security Council meeting, then sacked by Boris Johnson after presiding over the exams and school closure fiascos during Covid times and telling Russia to “shut up and go away”.   

Anyway, Russia didn’t……which brings us to Ukraine.

BoJo as diplomatic as ever on a fragile subject compared the struggle of Ukrainians fighting Russia's invasion to people in the UK voting for Brexit. In a speech he said Britons, like Ukrainians, had the instinct "to choose freedom" and cited the 2016 vote to leave the EU as a "recent example".

Really? Nothing quite says “going to war” like voting in a referendum. Idiot. 

Then The Trump caught a dose of the, well, errrrr……The Trumps. Unfortunately, The Trump still has access to microphones and he gave us his solution to the Russian invasion of Ukraine.

Musing to donors that “we should take our F-22 planes, put the Chinese flag on them and bomb the sh*t out of Russia. And then we say, China did it, we didn't do it, China did it and then they start fighting with each other and we sit back and watch." This, ladies and gentlemen, is the current red hot favourite to be the next President of America. 

In every conceivable way, it is so wrong for this man to be thinking of running for President again.

Williamson, BoJo and The Trump would all be worthy contenders in any other normal month. But this month’s award has to go to Putin yet again. 

In a TV address, Vlad said that Russia has “no ill intentions towards its neighbours” and “everyone should think about normalising relations and cooperating normally."

Really? Because nothing quite says “cooperating normally” like killing innocent people.

Trump Lunacy Rating: 10 / 10

 

And Finally……

“It isn’t enough to talk about peace. One must believe in it. And it isn’t enough to believe in it. One must work at it.”

Eleanor Roosevelt

Wednesday, 2 March 2022

The Month That Was……February 2022

Ah February…..you offer hope as we reach the end of that long winter road as you flirt with longer and warmer days. What a pleasure.

Unfortunately, you allowed Covid to knock on my door this month and, being the gentleman that I am, I was a gracious host. A little too gracious. It wasn’t pleasant……and BoJo’s rhetoric that Covid is over and sooooooo last year in a bid to win a little political goodwill seems to be missing the target for many. Me included.

However, of all the symptoms I endured, complete and total anger at a wide range of things is the ailment that seems to have lasted the longest.

Take one morning in my post Covid anger-induced world…..

I made a purchase on the internet. My money was taken within 3 seconds……I have now changed my mind (bright green lycra is just not my colour – who knew?) and as per the terms / conditions I would like a refund. No problem……that will be up to 15 working days to appear in your bank account. Not minutes. Not hours. Days. Ahhhhhhhhhhhhhhhh!

Whilst we are here……three little words that mean the world to me these days: Tumble. Dryer. Friendly. I cannot begin to tell you the anger I experience at the thought of a purchase that doesn’t include those words. Maybe the bright green lycra wasn’t my colour but I would have given it a shot if only they had thought about the drying options of such a garment.  How on this ever warming earth am I meant to get clothes dry?


I then decided to tackle a little domestic DIY and this led me to conclude that I have one real remaining ambition in life. I would love, just once, for a question I have about a product that isn't working to actually be covered in the 'Frequently Asked Questions.' That's the dream. Just once. Yes the tumble dryer was beeping……. CONTSTANTLY! No it wasn’t covered in the ‘Frequently Asked Questions’ despite being told by Shane in the call centre that it was a frequent issue. Clearly full justification for sky high blood pressure. Clearly.

Can we all agree on a new rule. When we call up a company and are on hold for a depressing amount of time we NEVER EVER want to be told by a robot we can do everything online when the online ‘help’ told us to call. We've called for a reason.

Oh, and while we’re on the internet subject…..cookies. Bloody cookies. SURELY I've accepted all possible cookies by now on every website that has ever been built?

I then flick through social media whilst on hold waiting to talk to Shane and see #DickResigns is trending. Perfect……“time for Rishi” was my first thought……only to realise that Cressida had resigned from the Met Police. I cried in anger. 

And if that wasn’t enough, news broke after my chat with Shane that BoJo will soon make England the first country in the world to be fully free of all the Covid rules that he and his mates never stuck to anyway. Brilliant.  

I just can’t take much more. I’m done. Covid 1……Covid Sufferer 0.

And then Vlad flexed his military muscles over the flimsiest of reasons!

 

The Numbers

We had a ‘super’ Thursday’ in February, though most people would say ‘black’ was a more appropriate description.

First off was the announcement of a huge 54% increase in the energy price cap by Ofgem, the energy regulator. Then came Rishi’s measures to ease the energy burden with yet another significant fiscal announcement made separately from a budget or other formal occasion. 

Then the Bank of England has raised the official interest rate to 0.5% and slashed its growth forecast. Interestingly, 4 of the 9 members of its monetary policy committee voted for a bigger increase. The Bank of England also said households will see their post-tax disposable income fall by 2% in 2022. The fall is largely a consequence of higher energy bills, the rising tax burden and comparatively weak earnings. This is likely to see the biggest squeeze on income since the statistical series begin.

What does the first back-to-back interest rate increase for 17 years and Rishi’s response to energy rises tell us? Well, first and foremost, policymakers have been badly caught out by the surge in inflation as there was an element of panic in these moves.

This time last year the Bank was forecasting that inflation would be 2% now. Instead, the consumer prices index is already sitting at 5.4% and the new forecast indicates inflation to rise to 7.25% in April - the highest level since the summer of 1991. Such happy memories.

It is not just the UK that has inflation issues……US inflation surged to a 40-year high of 7.5% ......and Turkey hit 36%. Maybe we should be thankful for our lot!

British car production collapses to a 65-year low. Car production slumped by 40% last month as manufacturers grappled with a shortage of parts on top of disruption caused by the Covid pandemic. It was the fourth monthly drop in a row and contributed to the weakest monthly output since 1956.

Oil traded at above $105, its highest price since 2014. It was $60 a year ago and analysts predict that it could “easily” surpass $120 a barrel in the coming months. The increases have been largely driven by a rebound in global demand as the pandemic eases and the uncertainty in Eastern Europe. The rise in forecourt prices was worsened by retailers increasing profit margins in an effort to recoup losses during the Covid lockdowns. Petrol prices have hit record highs, with the average cost of petrol rising to 151p a litre.

I love this quote from RAC: “Prices go up like a rocket, but fall like a feather.” A perfect summary.

The fallout from Brexit appears to be clearer with exports to the EU falling 14%. A big deal? That’s £20 billion lost in exports. Enter Jacob Rees-Mogg from stage left as the new Minister for Brexit Opportunities to inform us that he would soon cut all the red tape he’d just spent 20 years campaigning to create. What a farce!

Spare a thought for university graduates……the announcement that RPI was 7.84% means that Plan 2 Student Loans will revert to RPI +3% from the 1st March. Good luck with that and the monthly compounding impact!

We were warned this month by the Financial Stability Board (definitely in my top 5 of independent think tanks – it’s probably up there for most people to be fair) that the rise of cryptocurrencies poses a significant risk to global financial stability. The cryptomarket has grown to $2.6 trillion and is evolving at great pace. Definitely one to keep an eye on.

Here’s one for you to contemplate when you start swearing at your next energy bill……

There are 2 fuels, 3 ways of paying for gas and 4 for electricity, 2 charges (a standing charge for having the supply and a price per unit of energy used) and 14 Regions. That’s 196 different prices. And that's the simplified version!

And when you’ve got your head around that, 22.02.2022 was both a palindrome and an ambigram. My mind was completely blown at 22:02 that day.

 

Trump of the Month

I keep a rolling calendar of Trump of the Month nominees. It’s the way I roll. Each time I added a new idiot to the list this month it felt like the stupidity levels were raised by the next candidate. “I’ll see your foolishness and raise you to lunacy levels.” 

It stared with Liz Truss using a Government aircraft to fly to Australia at an estimated cost of £500,000 to the taxpayer instead of taking a scheduled flight business class (£7,000). The foreign secretary declined to travel business class and instead used an aircraft leased by the Government to make the 22,000-mile round trip last week. Personally, I don’t mind paying £500,000 towards Liz Truss flying to Australia……it’s paying for the return ticket that I object to.

Then the High Court ruled that former Health Secretary Matt Hancock and current ‘Milk Tray man’ broke equality law when appointing Conservative peer Dido Harding to an emergency health job during the Covid crisis. An unlawful appointment or not……it was an appointment that went on to waste billions. The consequence? Absolutely nothing. Presumably a promotion, peerage or knighthood is not far off for Hancock.


Then Prince Andrew stepped up and paid around £12 million to someone he has never met to stop them accusing him of something he definitely didn’t do. He’s just too honourable. Nothing quite says “totally innocent” like a huge bag of cash to stop talking about it.

Next Rishi decided that the best way to tackle the huge increase in energy prices was to give everyone a £200.00 credit off their energy bill that they then need to repay at £40.00 a year for the next 5 years. Am I missing something or has the government essentially announced a Buy Now Pay Later scheme for energy bills? Exactly what will he do with the £1 billion in extra VAT from households alone on the rising gas and electric bills?

And don’t get me started on the Council Tax rebates for those in bands A to D……when the banding is based on property values from 1991! Absolutely crazy.

But then crazy stepped up to lunatic level. February’s ‘Trump of the Month’ is……Vladimir Putin.

When The Trump described Russia’s invasion of Ukraine as a “genius move”, there could only be one winner.

No further questions your honour.

Sometimes the state of the world makes you want to adopt the brace position.

Trump Lunacy Rating: 10 / 10

 

And Finally……

Word of the month……'arsle’: to find yourself going backwards in a task rather than making any progress at all.