The ONS produced another set of dismal GDP results for the UK this morning, the headline being that there is no growth.
This was the summary chart:
If GDP is your barometer of well-being then this is not good news.
The messaging within the report is not good either. Take this:
Not only is the pretence that Covid is of any consequence any more indirectly seriously harming GDP. Actually failing to address it is also doing so.
Then there is this:
All production output is falling (which good, but unplanned, news for the green agenda) excepting sewage, where the amount being charged for what might politely be called doing a shit job is going up.
Finally, there is this:
Non-consumer facing services are up. Those that people actually went are still heavily down. Retail and brewing are doing OK. Travel, holidays, car and motor cycle sales are not. In other words, people are seeking short term solace for bigger woes.
That pretty much summarises the UK economy right now.
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Purchasing power sucked out of the economy by needless and counter-productive rises in interest rates.
Energy prices also suck!
Then exports to Europe are down and many companies are investing in branches inside the Single market.
The govt. explanation -covid and strikes.
I know which explanation I believe.
No surprise there. If we assume that for some in the government this is also no surprise, then it is as planned.
Follow the money. Breaking the economy has been the plan all along. The wealthy have benefited all along, waiting for the opportunity of further privatisation.
Money has been sucked out of the Economy by Sunak’s Energy PONZI scheme.
1) Ofgem are Tory run and have maintained Energy clearing at the Aug 2022 NG high of $9.89
– the price fell quickly within 2 months to $6 and now today it is under $2 yet artificially high prices are still forced on the market
2) Sunak has gained direct Tax by now being able to level windfall taxes on all Energy companies
3) The Subsidy scraps that are paid out to Homes and Business are
– good propaganda as Sunak can claim his government (if you can call it a Government) are ‘supporting households and business’
– good for GDP as many energy firms pay out the subsidies in cash and all currently on fixed contracts essentially benefit, this may be the only cash entering the Brexit Economy.
– imposed austerity on all
4) Ofgem have failed to
– introduce fair pricing
– protect People and Business from 3x to 5x price gauging
– introduce fairer clearing and contracts for all energy types
– develop the Energy market and encourage Infra, Supply and Storage
This is the classic definition of a PONZI scheme money from many is transferred to a few who get rich. Sunak gets loot for a pre election tax reduction and all energy companies gain ridiculous profits.
It is clear the Tory party has no Energy strategy, Sunak and BOJO both trumpeted how they will increase Oil and Gas production, over and over in the house. In effect a small recovery in Gas production was managed in 2021 however both Gas and NS oil production linger around 2014 lows, current world supply is in any case is plentiful and oil companies have no real motivation to increase supply further. Two electricity cables capable of supplying over 2M homes with Net zero generation, have been run from Scotland to North England the main one from Peterhead to Yorkshire which will connect to the National Grid and also
supply Sunak’s mansion and pool. Apart from above ground line upgrades and the repair of the connection to France, the major infra upgrades voiced are so far simple propaganda over any real plan to upgrade the energy supply and storage across the entire National Grid.