Bank of England expects UK to fall into longest EVER recession

Looks like it's going to be a rough couple of years worldwide.

These type of headlines keep popping up all over.

The Ukraine conflict didn't cause all this, how could it, it's barely getting started, but I'm sure in 6 months we'll be in even more hot water because of it.

Though the MSM is spewing disinformation and trying to get ahead of the reasons for this, they ARE telling the truth of the effects, just not the cause.

Food and energy prices have jumped, in part because of the Ukraine war, which has left many households facing hardship and started to drag on the economy.

The Bank had previously expected the UK to fall into recession at the end of this year and said it would last for all next year.
But it now believes the economy already entered a "challenging" downturn this summer, which will continue next year and into the first half of 2024 - a possible general election year.
BBC

Looks like some hard times for families:

Chancellor Jeremy Hunt said: "The most important thing the British government can do right now is to restore stability, sort out our public finances, and get debt falling so that interest rate rises are kept as low as possible."

But shadow chancellor Rachel Reeves said families could not withstand such high rate rises "when we've got rising food prices, rising energy bills and now higher mortgage rates as well".

The BofE admits that the interest rate adjustments will probably backfire:

The Bank believes by raising interest rates it will make it more expensive to borrow and encourage people not to spend money, easing the pressure on prices in the process.

But while its latest rate rise will be welcomed by savers, it will have a knock-on effect on those with mortgages, credit card debt and bank loans.

Tough times ahead, not just for the UK, but for lot's of people worldwide.

Caused by the pandemic or Ukraine?

a reply to: MykeNukem
Hard times? No no no my friend, you’re being pessimistic. This is a golden opportunity for the world to finally accept (or succumb) common sense environmental social governance. A new dawn with a reimagined system based on fairness and equity. A new world awaits us but only after the destruction of the old one. Doesn’t that sound nice? All the suffering will end once we all just give in.

a reply to: ManSizedSquirrel

Is that you Klaus?
I didn't know you were a member here.

a reply to: MykeNukem

I have no doubt its going to get hard for some, probably the most needy and vulnerable in our society as usual.

But I grew up in the 70's and 80's in North East England in Thatcher's Britain....I assure you, that was #ing rough.
And to be honest, all we've had in the N.E. is varying degrees of 'hard times'.

I'm not trying to be dismissive or to play down the seriousness but a lot of this is scaremongering in order to push a certain narrative.

The causes; greed and the seemingly never ending pursuit of money. power and control.

a reply to: MykeNukem

The Ukraine conflict didn't cause all this, how could it, it's barely getting started, but I'm sure in 6 months we'll be in even more hot water because of it.

The cost of the reaction to the pandemic closely followed by the cost of Putin's invasion of Ukraine and our response to that have hit public finances hard , Liz Truss didn't help with her insane budget announcement but the BOE has a tendency to make gloomy predictions only to later be proved wrong , look at the doom and gloom they predicted for Brexit.

Personally I don't see the war lasting another 6 months , Russia's economy has been propped up by the state over recent months but is starting to show signs of trouble , Putin's time grows short.

a reply to: glen200376
Lord Turtle to you peasant. Your social credit score will reflect this.

the non crash has has been egg on the faces of the boe since Nov 2017.. as has been the non existent housing market crash heralded as imminent by the media and boe every few months since 2017..

that the actual markets have managed to not crash since 2017 is because of some ingenious games by companies. it'll take some seriously self destructive behaviour by Westminster to force through a crash but then the cost to them might be more than they're willing to pay..

a reply to: gortex

Bloomberg where right in pointing to the boe not the budget for the downfall of truss as they wanted her out.. as you say they still have a lot of egg of their faces over their consistently failed predictions post Brexit..

the thing is neither the boe or Westminster can change the fact they operate in a lollard country nor can that bunch of nimbys change we gave a huge shortfall in housing stock, nor can they can't change the supply and demand rules to force a 30% housing crash.. nor can they suppress wages in the face of those supply and demand issues as all that'll happen is companies will get ever more innovative in how they pay to ensure they keep their staff.

that just leaves the extremes and if either Westminster or the boe pursue those they'll bring their own houses down..

the only way out of the sh*t 2007/8 brought about was serious growth and investment in new wealth creation schemes not bailing out the too big to fails.. its the only route they only ever had and in that truss was right even for a liberal pro eu republican..

a reply to: Freeborn

there was only ever one levelling up needed and its removing the factors supressing wages to keep this cheap labour/money/energy fake economy going..

oh and putting some real effort into some serious occupational training rather than keep the class driven ceiling on higher education..

a reply to: ManSizedSquirrel

are you saying this is where the less is more/equity and do more with less equality ideologies fight it out to direct the future?

like a new reformation

originally posted by: Freeborn
a reply to: MykeNukem

I have no doubt its going to get hard for some, probably the most needy and vulnerable in our society as usual.

But I grew up in the 70's and 80's in North East England in Thatcher's Britain....I assure you, that was #ing rough.
And to be honest, all we've had in the N.E. is varying degrees of 'hard times'.

I'm not trying to be dismissive or to play down the seriousness but a lot of this is scaremongering in order to push a certain narrative.

The causes; greed and the seemingly never ending pursuit of money. power and control.

Nurturing and loving, Momma Thatcher? Bet she was a hoot at parties...

Greed, power and control, have we had enough yet? Never.

Agreed, almost everything in MSM is scaremongering to push narratives.

originally posted by: gortex
a reply to: MykeNukem

The Ukraine conflict didn't cause all this, how could it, it's barely getting started, but I'm sure in 6 months we'll be in even more hot water because of it.

The cost of the reaction to the pandemic closely followed by the cost of Putin's invasion of Ukraine and our response to that have hit public finances hard , Liz Truss didn't help with her insane budget announcement but the BOE has a tendency to make gloomy predictions only to later be proved wrong , look at the doom and gloom they predicted for Brexit.

Personally I don't see the war lasting another 6 months , Russia's economy has been propped up by the state over recent months but is starting to show signs of trouble , Putin's time grows short.

I think so too, but I'm not sure about Putin going anywhere, anytime soon.

Anything can happen though, so what do I know? lol

originally posted by: nickyw
the non crash has has been egg on the faces of the boe since Nov 2017.. as has been the non existent housing market crash heralded as imminent by the media and boe every few months since 2017..

that the actual markets have managed to not crash since 2017 is because of some ingenious games by companies. it'll take some seriously self destructive behaviour by Westminster to force through a crash but then the cost to them might be more than they're willing to pay..

The "crash" is going Global, that's what concerns me.

a reply to: MykeNukem

that's the issue with a global system trying to keep everyone in lockstep its as unpredictable as herding cats...

the thing is each great depression has led to the end of liberal globalism and great war ... its that las part i worry about..

a reply to: nickyw

Can't disagree with any of that.

One of the primary goals of any government seeking real change in the UK should be the removal of the glass ceiling that holds so many people of potential, talent and ability back purely because of their social status and background.

Levelling up has been a joke; sloganeering to garner votes with no substance whatsoever.
I have no doubt it will come to the fore again in the build up to the next election, probably with the exact same results.

originally posted by: nickyw
a reply to: MykeNukem

that's the issue with a global system trying to keep everyone in lockstep its as unpredictable as herding cats...

the thing is each great depression has led to the end of liberal globalism and great war ... its that las part i worry about..

Sometimes the only solution is war.

Sometimes the war is made for distraction.

One thing is for sure:

War is deceit 👈 Sun Tzu

a reply to: MykeNukem

very good and very true

War is deceit 👈 Sun Tzu

a reply to: Freeborn

Putting up interest rates to curb inflation at this time is insane.

Inflation is not rising because we are all spending too much.

The BoE are making this much worse.

a reply to: Freeborn

absolutely our ceilings dictated by our class and i'm sure like me, with grandkids that's really hard to accept.

my great grandfather was an engineer in the royal flying corps never made it beyond bus driver, my grandfather an engineer ended life as a night porter, from my father in law to my nephew its 100 years of the same story wanting to be pilots but pushed to be engineers as class dictates our ceiling not skill or knowledge..

it time those ceilings where removed its the only real levelling up that's not a gimmick..

originally posted by: Oldcarpy2
a reply to: Freeborn

Putting up interest rates to curb inflation at this time is insane.

Inflation is not rising because we are all spending too much.

The BoE are making this much worse.

See, we can agree on some things.

This one thing, anyway.