Brexit red tape hits UK manufacturing of goods from cars to fridges

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Governments reduce their debts by allowing inflation to diminish their value.

I think it's widely known that the governments are going to use inflation and low interest rates to shrink their debt. especially the US.

Twenty years of 5% inflation will shrivel their debts away.

Bad news for anyone who buys or holds T-bonds.

It's been widely known for more than 20 years that the US governments policy of borrowing from overseas investors, and spending the money, couldn't go on forever. It was able to continue because nobody knew when it would end.

... ( Interest) ... has recently been abnormally low, to allow the banks to rebuild their profits at the expense of the ordinary citizen. https://www.bbc.co.uk/news/business-15198789

When interest rates are below inflation, savings are eroded. So is debt (especially Government debt). A Government with large borrowings can shrink them away by allowing inflation to creep up and erode the value of the debt. This is very common, and deliberate. It is a much simpler trick in the UK than in the Eurozone.

As an ordinary citizen, with no power, you will find that the banks charge you interest on your borrowings which is higher than inflation, to enrich themselves at your expense, and pay you interest on your savings at a rate which is lower than inflation, to enrich themselves at your expense. Polonius was right.
 
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I see vinty is too much of a dummy
to have read it.
 
https://www.independent.co.uk/news/...mage-uk-manufacturing-factories-b1895077.html

This means components needed for use in the UK will not have a suitable “kitemark” to guarantee a product is safe which could force manufacturers and their suppliers to down tools or divert their trade elsewhere, leading figures warn. Without confirmation that these safety and environmental standards are met, products and parts cannot be sold on the UK market.

These kitemarks must be policed by a government-approved testing body, and from January 1 2022 most products must be separately approved for a UK regime.

Projects such as refurbishing commercial premises or building homes could be stopped in their tracks, because contractors are required to install products, such as fridges and fridge components which meet UK regulations.

These can only be found to comply with that contractual obligation if confirmed by the new UKCA regime, and some products are currently caught in backlogs.

:rolleyes::rolleyes::rolleyes::rolleyes::rolleyes::rolleyes::rolleyes:


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Tesco i believe is offering a £1000 signing on fee to for HGV drivers because then cant get any.
There is going to be a severe shortage of labour, that in itself should mean higher wages will have to be paid.
If certain sectors of the economy have a shortage of labour that cannot be met domestically then bring in labour from abroad to fill the gaps but as long as the import of foreign labour is strictly regulated there shouldn't be a problem.

Do you think maybe Tesco’s might increase food prices to cover the increase?

So everybody will pay more, that doesn’t seem to mean more money in the economy.

only productivity gains can create more money
 
If there a serious out outbreak of inflation.
What happens to premium bonds.
Should i buy more.

not a wise move.

In the long term, they are guaranteed to lose value.

If, however, the prize fund increases so it is even higher than the rate of inflation, it might be worth a short-term punt. Currrently the reverse is true.

As the Brexit referendum grew closer, I moved some investments from a UK to a European fund. Do you think that was a sensible move? Can you guess how it has compared to the average return on Premium Bonds?
 
Do you think maybe Tesco’s might increase food prices to cover the increase?

So everybody will pay more, that doesn’t seem to mean more money in the economy.

only productivity gains can create more money
Or maybe HGV drivers should be paid less so we can all have cheaper food.
Paying higher wages is only market forces at work.
 

What doesnt matter? If you want to inflate away debt - what time period are you considering and what happens to businesses and public wanting to take on debt or refinance existing debt.

What will be the driver of this inflation? Costs ? Demand? Driven by supply side or fiscal?

You're lacking detail.
 
Or maybe HGV drivers should be paid less so we can all have cheaper food.
Paying higher wages is only market forces at work.

£120 quid a day, having to p1ss in a plastic bottle in a layby, multiple hours of unpaid time waiting to be loaded/unloaded.

Of course there's a shortage of drivers and it's bugger all to do with Brexit.
 
What doesnt matter? If you want to inflate away debt - what time period are you considering and what happens to businesses and public wanting to take on debt or refinance existing debt.

What will be the driver of this inflation? Costs ? Demand? Driven by supply side or fiscal?

You're lacking detail.

Normally driven by both or all sides isn't it? That's certainly what's happening now.
 
who shot there foot off :confused:
Who shot their foot off?

How about, for one, the ex-pats who lived in Spain and voted Brexit?

How about, for two, the lamb farmers who voted Brexit?

How about, for three, the Cornish Brexiteers who then whinged that their subsidies and payments from the EU had stopped and they wanted similar from the UK Govt.

All of them utterly and supremely stupid.

And they're just the tip of the idiot iceberg.
 
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