Food inflation is the harbinger of the future. It's going to be worse than most can imagine.

Comment.

They have really screwed us.

They?

Not the Moslems, they're just a nasty symptom of our present precarious state, like pissing razor blades when you have Syphilis.

"They" are the greasy scum, the lick-spittles and lackeys of the Rothschild  collective and their friends in the City of London. They are at this present time pillaging the very last few assets from the UK before it's Goodnight Vienna for the British people.

The British economy will not recover. There is nothing to recover.

Keynesian will not help us: there are no factories, workshops and production facilities to revitalise. There are no coal mines, no fishing fleet, no clothing workers desperate to see the warehouses emptied by horny handed sons of toil, ready to fill again with the produce of their labours.

Our former public industries, the utilities especially, are owned not by either the scientific technocracy Whitehall or the half-arsed bumbling local council, as in years gone by, but by faceless globalistic corporations, who rightly perceive Britain as a savage barbarian views a woman - fit to raped.

And it's all a real honest  and true conspiracy (click for PDF download ), carried to fruition.

The jump, from 1.7 per cent in June, is likely if global food commodity prices continue to rise, said Simon Ward, chief economist at Henderson.

Rising food costs could have the effect of pushing up the consumer prices index (CPI), the official measure of inflation, to 4 per cent – double the Bank of England's 2 per cent target, warned Mr Ward. 

The impact on household budgets could even persuade the Coalition to cancel its planned rise in VAT, he added.

"Such an increase [in food prices] would hit consumer spending and recovery prospects and could destabilise inflationary expectations," said Mr Ward.

"This could warrant postponing or cancelling the coming VAT hike."

The Food and Agriculture Organisation food index, which measures prices of meat, dairy products, cereals, oils and fats, and sugar on a monthly basis, rose by an annual 22 per cent in August, the fastest rate since September 2008.

Food prices have increased further in September, Mr Ward said.

According to the British Retail Consortium, wheat prices alone have risen by 60 per cent over the past 12 months following crop failures in Russia and its subsequent ban on exports.

That has had a direct impact on the prices of foods containing wheat, but also on the cost of animal feed which in turn is pushing up meat prices.

Simon Hayes, an economist at Barclays Capital, said that rising food prices were a reminder that Britain's "inflation problem has not gone away".

He forecast that official figures to be released on Tuesday would show that the CPI rose to 3.2 per cent in August, from 3.1 per cent in July. 

11th September 2010 Telegraph (UK)

NB: 
Are all Jews part of a global network conspiring to destroy the world? 
No. 
Are there a tightly knit gang of Zionist communists controlling the financial system to their own benefit, using their collective religious affiliation, supported by whole host of useful idiots, such as other Jews, Christian Zionists, socialists, liberals,  and other foolish types? 
Yes.
But surely they couldn't do it on their own, could they? Right : the same forces behind finance are behind the Vatican, UN, EU, World Bank, Communism, Fascism.... the Synagogue of Satan (click the word link ---> link)...

Which master do you serve? God or Mammon?

KJV: Matthew Chapter 6

[24] ¶No man can serve two masters: for either he will hate the one, and love the other; or else he will hold to the one, and despise the other. Ye cannot serve God and mammon.

There is nothing wrong with money or capital. However we have idolised it: we have created an Idol, which we have worshiped at.

Economist Magazine: They're going to destroy your savings next.

If you have land, houses or gold and silver, you'll be OK. If not, you're in Shit Street.

My father when he was a little boy lived in a household where his father earned between two and three pounds a week in the nineteen thirties. 

My sister's childhood was spent in a house  where father earned £10 - 12 weekly. 

When I was child, dad earned £25 - 35 weekly. 

Today £200/week won't keep a family. 

Wondered why? 


The Tories are going to destroy the common folk to save the City of London. And themselves.

http://www.economist.com/blogs/buttonwood/2010/07/governments_savers_and_inflation?fsrc=scn/fb/wl/bl/debtbrit

They'll tell you owt

Jul 20th 2010, 9:42 by Buttonwood

IMAGINE that you are a govermnment with a huge fiscal deficit. You are worried that you might get punished by the markets as Greece has been. You decide to embark on an unpopular round of tax rises and spending cuts. Your next step is to abandon a fund-raising product because it is...too popular!

That is what the British government has just done. It has stopped the sale of index-linked national savings certificates. These paid the rate of inflation plus 1% for five years, with returns being tax-free. According to National Savings, the product was abandoned because it had exceeded the government's fund-raising target.

Exceeded the target! This is a government that has to raise £160 billion ($240 billion) this year, Rejoice, as Mrs Thatcher might say. Money raised from retail investors is money you do not have to raise from foreign investors, hedge funds and the like.

Ah, well. The worry is that money is being diverted from the banks. But a bit of healthy competition for the banks is no bad thing. Savers know they treat their customers abysmally. They lure them in with an attractive headline rate, only to drop the yield without notice, leaving savers on 0.10% or similar. Savers have to keep closing and re-opening accounts. It is a tax on the elderly or anyone else too busy to spend their life monitoring the web for announcements of new savings accounts.

But even the stated reasoning is dubious. The banks need deposits so they can lend to industry, or so the argument goes. But if the money to fund the deficit doesn't come from retail investors, it must come from pension funds and insurance companies which will buy government bonds. That will reduce the amount such institutions have to invest in industry via corporate bonds and equities. The "crowding out" argument makes the case for cutting the deficit, not abandoning a popular savings product.

So let us come to the real reason why this product has been dropped. It was attractive because the inflation rate has been high; the headline inflation rate has been 5% so those who bought the certificates have been getting 6% tax-free. (Buttonwood should declare an interest; I am such a saver. But the change does not affect the value of myexisting portfolio, only stops me from buying more.) 

If you believe the government and the Bank of England, however, the inflation rate is set to come down.  Over the long run, a government should leap at the chance to fund itself at 1% real; that ought to be less than Britain's GDP growth rate.

A cynic would look at the decision and say "Aha! The government either believes that inflation will stay high, or is pursuing a deliberate policy of inflating away its debt. It would rather issue bonds at a nominal 3% fixed than pay 1% real." Britain has more scope than most governments to pursue an inflation approach, because the average maturity of its debt is almost 14 years. 

Is this overly cynical? I don't think so. After all, the Bank of England recently bought £200bn of gilts, funding more than one year's deficit. This is debt monetisation as practised by Rudolf von Havenstein, head of the Reichsbank during the Weimar republic. Inflation is already above target and has been for several months but the Bhttp://www.economist.com/blogs/buttonwood/2010/07/governments_savers_and_inflation?fsrc=scn/fb/wl/bl/debtbritank of England has kept rates at 0.5%.

Of course, such an idea will be laughed out of court. The Bank's move was "quantitative easing" designed to stabilise the financial system, not a way of funding a spendthrift government. But as they say in Yorkshire "they'll tell you owt", i.e those in power will give you any old excuse.  After a while, you have to stop listening to what they say and start watching what they do. And the latter should make investors very suspicious.

UPDATE: Totle is right, owt is anything, nowt is nothing. As for certificates being generous, a 1% real return is not generous historically. Savers should get some real after-tax return or why would they save? The certificates look so good in relative terms because the government/Bank of England are punishing savers with low rates, high inflation and high taxes.