The following report is by iTV News:
People in the UK ‘need to accept’ they are poorer otherwise inflation will continue to climb, the chief economist at the Bank of England has said.
Huw Pill said that people and businesses have responded to higher bills and costs by asking for higher wages or charging their customers more money.
But this, he said, adds to inflation, pushing up prices even further across the economy.
UK inflation, the rate at which prices rise, was at 10.1% in March. The rate dipped from 10.4% the previous month, but this does not mean prices are falling, just that they are rising at a slower rate.
Speaking on the Beyond Unprecedented podcast from Columbia Law School, Mr Pill said:
The UK, which is a big net importer of natural gas, is facing a situation where the price of what you’re buying from the rest of the world has gone up a lot, relative to the price of what you’re selling to the rest of the world, which is mainly services in the case of the UK.
You don’t need to be much of an economist to realise that if what you’re buying has gone up a lot relative to what you’re selling, you’re going to be worse off.
Mr Pill joined the Bank of England in September 2021 and was paid a salary of £88,154 and benefits of £7,029 during his first six months at the organisation, according to the central bank’s annual report, taking his annual salary to £180,000.
According to the Office of National Statistics, the median average disposable income in the UK was £32,300.
As energy prices and food costs continue to rise, many workers have asked for pay rises to help ease pressure on household budgets.
And, although pay is going up, it is not matched by inflation, meaning people’s pockets are still worse off.
Mr Pill added:
So, somehow in the UK, someone needs to accept that they’re worse off and stop trying to maintain their real spending power by bidding up prices whether through higher wages or passing energy costs on to customers etc.
What we’re facing now is that reluctance to accept that, yes, we’re all worse off and we all have to take our share; to try and pass that cost onto one of our compatriots and saying, ‘we’ll be alright, but they will have to take our share too’.
That pass-the-parcel game that’s going on here, that game is one that’s generating inflation, and that part of inflation can persist.
SEE: People In Wales ‘Eating Pet Food’ As Cost Of Living Crisis Gets Worse
AUTHOR COMMENTARY
The rich man’s wealth is his strong city, and as an high wall in his own conceit.
Proverbs 18:11
Laying aside this guy’s ego for just a moment, to a certain extent he is correct. Whether you like it or not, the consumer needs to realize that we are living in some hard times and inflation is not going to get better any time soon, and therefore you must stop pretending to live the façade the dead and gone middle class lifestyle. That’s the problem in America, for example, where people continue to buy junk they don’t need and can’t afford with debt; though, that is finally starting to change. Right now is the time to be frugal, tighten your belt, make do, and make only meaningful purchases.
Now, however, this bankster gangster’s hubris and moxie is ridiculous. Of course, he’s taking no pay cuts and will not be felt by any of this, neither will he practice anything he preaches. He also will not tell you why there is such insane inflation; and this is because of the draconian lockdowns and the detrimental restrictions levied against Russia that have backfired, and their green policies. Brit’s energy bills right now are out of this world as the whole country is just getting absolutely decimated with inflation.
As I have been discussing for over a whole year now, is that central banks raising rates around the world are NOT designed to kill inflation: they are designed to crush demand and the consumer, and now these higher rates around the world are really beginning to take their toll.
SEE: The Federal Reserve Is Guaranteeing Inflation Will Persist: Ignore The Media’s Rhetoric
[7] Who goeth a warfare any time at his own charges? who planteth a vineyard, and eateth not of the fruit thereof? or who feedeth a flock, and eateth not of the milk of the flock? [8] Say I these things as a man? or saith not the law the same also? [9] For it is written in the law of Moses, Thou shalt not muzzle the mouth of the ox that treadeth out the corn. Doth God take care for oxen? [10] Or saith he it altogether for our sakes? For our sakes, no doubt, this is written: that he that ploweth should plow in hope; and that he that thresheth in hope should be partaker of his hope. (1 Corinthians 9:7-10).
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