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  • UK plans for potential power cuts to industries and homes in January

it's still very long,, and the market is reacting now?

cool,,
The Sri Lanka way of life
Bad for GBP, welcome to stone age lol
Admit & be admitted
Shut down all Europe.

Go back to to stone age. Use coal.
Quoting PathVDCP
it's still very long,, and the market is reacting now? cool,,
May be market is sensing that no more rate hike is coming as power cut in future will cool inflation by reducing demand significantly for households and industries.
Does that mean UK is now 3rd world?
Quoting Never
Does that mean UK is now 3rd world?
That'll show Putin who's boss
The Empire on which the sun never sets
Quoting PathVDCP
it's still very long,, and the market is reacting now? cool,,
Big boys getting into trades...they just needed a better entry.
Everyone can see the chart, but only a few can actually read it.
ForexEA PRO Return This Month: 2.9%
This might result into potential job loss in the UK
I am pleased to see that someone is devising longer-term plans than what happens tomorrow. Whilst a few on here are stirring up and making out that this is a sign of some UK-specific issue, I'd be less jingoistic when you think about what is likely to happen. The UK doesn't get much energy from Russia and will possibly need even less/zero (the intention) come the turn of the year. BUT the energy market is global and EVERY developed nation will be scrambling for energy at ANY price. So inflation will go nuts. The interest rate alone won't do anything for it. So, one way of diminishing demand is to use less. The UK tends to have milder winters than Mid and Eastern Europe. if you think it's going to be bad for the UK, what about Germany, the the financiers of the Euro and European project?
In 2021 the UK imported a nett 13.9TWh of electricity from France, however all EU countries (according to something I just read on the ONS website) import energy. Therefore when things get tough later this year, or the start of next, I can see the French becoming somewhat possessive about their energy supplies.

The UK still uses gas for about a third of its electricity generation. Even with huge strides in alternative generating capacity there will not be enough to supplant the gas generation. So it is no surprise to me that others have noticed that it is going to be a tough winter.
Carbon-Dioxide: the gas of life! https://youtu.be/ttJBdr6eBuo
It would be nice, Mr. @financialjuice, if you would reveal your source for this teaser.
Carbon-Dioxide: the gas of life! https://youtu.be/ttJBdr6eBuo
Have you ever calculated how many power plants are missing from the system in Europe if we want to replace all the fossil-powered cars with electric ones? I am just curious. My tip is 20 big nuclear plants.
Just a travesty!

Think about the billions in tax revenue the governments have not collected over past decades, by allowing corporations, as well as individuals like CEOs and greedy politicians, to legally evade taxations......

......because they all worked in concert to formulate all the applicable laws to favor their greed. So.......

......all these greedy deadheads prepared NOT for the future (except for themselves). And the consequence......

......is they might have to cut power to the "Little People" instead of being able to continue it.......FOR FREE!!!!!!

Just another "Bubble" that needs to be burst!
Quoting zamans98
Shut down all Europe. Go back to to stone age. Use coal.
And flint to light fires
every Saint has a past. Every Sinner has a Future
Quoting ForexCFD
{quote} May be market is sensing that no more rate hike is coming as power cut in future will cool inflation by reducing demand significantly for households and industries.
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LOL

So niave
...because you never know - until you do!
Quoting DaJoWaBa
I am pleased to see that someone is devising longer-term plans than what happens tomorrow. Whilst a few on here are stirring up and making out that this is a sign of some UK-specific issue, I'd be less jingoistic when you think about what is likely to happen. The UK doesn't get much energy from Russia and will possibly need even less/zero (the intention) come the turn of the year. BUT the energy market is global and EVERY developed nation will be scrambling for energy at ANY price. So inflation will go nuts. The interest rate alone won't do anything...
Give this person a trophy for best analysis.

Now you are I agree on the above. Let me ask YOU this one: do YOU think that there has been PEAK INFLATION in the USA?

My thoughts are NO! Because of WAGE inflation (sticky) and ENERGY inflation (see your post above)
...because you never know - until you do!
Quoting fxsport
{quote} Give this person a trophy for best analysis. Now you are I agree on the above. Let me ask YOU this one: do YOU think that there has been PEAK INFLATION in the USA? My thoughts are NO! Because of WAGE inflation (sticky) and ENERGY inflation (see your post above)
Okay, let's talk about wage inflation.....and be TRUTHFUL AND HONEST.

Since the 1960's CEO pay to labor pay has been magnified to 400x more! THAT'S THE INFLATION EVERYONE SHOULD BE AWARE OF AND TALKING ABOUT! And those folks work LESS THAN EVER BEFORE!

And what about "entitlements"? The rich complain about Social Security for the masses, about health care for the masses, but..................they've built into the tax codes such self-serving abominations that they retain the lion's share of their expanding wealth each year, compared to EVERYONE ELSE!

The problem is the NOT THE PROBLEMS! The problem is keeping talk of REAL SOLUTIONS out of bounds and hidden.
Quoting fxsport
{quote} Give this person a trophy for best analysis. Now you are I agree on the above. Let me ask YOU this one: do YOU think that there has been PEAK INFLATION in the USA? My thoughts are NO! Because of WAGE inflation (sticky) and ENERGY inflation (see your post above)
IMO it all rests on Energy Inflation.
Energy is at the centre of everything and all other forms of inflation are merely derived from that, just now. Yes, Wage Inflation will kick off BUT not as much as Energy Inflation. Global demand for energy is, without restriction, only going to increase.
See Energy Inflation as being the largest bottleneck. In my days as a Business Troubleshooter in Industry the simple task was always to find the bottlenecks and remove them. Each time you removed the biggest, you moved onto the next biggest etc until everything was running smoothly. So, for Inflation to reduce, governments should be focusing on how to reduce energy prices. One way is not to meddle with the direct supply and demand balance to make the currency stronger but to have the same effect as the % rate of energy inflation would require ridiculous Interest Rates. There's a fuss in the economy when Interest rates get to 5%, never mind 50% and at those sorts of rates the rest of the economy would die anyway. There's always a tipping point.
Another approach would be to reduce demand; to some extent the inability to pay for it will impact on that and a second way is enforced restrictions.
The other side of the equation is to increase supply. The latter would require, much like the bottleneck search already mentioned, a calm analysis of the political impact of increasing supply from all the currently-sanctioned, commodity-based, pariah states on a scale of most-to-least troublesome, and then working out a way of opening the channels.
Diplomatic forms of Politics are never quick so the simple answer to the Question is: "No". Energy inflation is unlikely to dissipate any time soon and will definitely be much worse during the coming Northern Hemisphere winter. Wage Inflation will follow it but it will lag and it will be less impactful UNTIL Energy Inflation reduces as a result of less-fast rising prices impacting the annual calculations.
Quoting traderathome
{quote} Okay, let's talk about wage inflation.....and be TRUTHFUL AND HONEST. Since the 1960's CEO pay to labor pay has been magnified to 400x more! THAT'S THE INFLATION EVERYONE SHOULD BE AWARE OF AND TALKING ABOUT! And those folks work LESS THAN EVER BEFORE! And what about "entitlements"? The rich complain about Social Security for the masses, about health care for the masses, but..................they've built into the tax codes such self-serving abominations that they retain the lion's share of their expanding wealth each year, compared...
My opinions on that subject would be too long for interest here. In broad principle about the distribution of wages, productivity and the wealth gap, yes, I agree wholeheartedly that there is a problem with the differential between earnings of those at the top and those at the bottom rung of the ladder.
My simplest answer is that there should be a ceiling on pay for those at the top based on a multiple of their worst-paid employees. That would exclude genuine entrepreneurs who actually STARTED a business. But any hired help, Executive or not, would be restricted.
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Welcome to the South African way of living. Here we get loadshedding 3 times a day. It is with stage 4 loadshedding, 2.5 hours at a time, when it is stage 6, it can be 3 times a day for 4.5 hours intervals
Quoting DaJoWaBa
{quote} My opinions on that subject would be too long for interest here. In broad principle about the distribution of wages, productivity and the wealth gap, yes, I agree wholeheartedly that there is a problem with the differential between earnings of those at the top and those at the bottom rung of the ladder. My simplest answer is that there should be a ceiling on pay for those at the top based on a multiple of their worst-paid employees. That would exclude genuine entrepreneurs who actually STARTED a business. But any hired help, Executive or...
Not too many years back, a gentleman in Switzerland advocated the top pay in any corporation should be limited to 12x the minimum pay. And, of course, the banks were the guiltiest violators at that time....and still are.

But, a neat idea, right? Yes! And he wanted it to be added as a referendum in some upcoming election.

......and then the gentleman simply disappeared, never to be heard from again. And neither this idea.

Perhaps the banks made it so?

Anyway, it is amazing how the privileged elite wealthy are able to shut people up (or disappear them), shut ideas down, and keep the ball nicely rolling along to their own benefit. And it is these very people that act outraged whenever there is talk of giving "lesser folks" a wee bit more.
This news isn't the news. Every developed nation will have civil contingency plans for this type of event. The problem arises when politicians get involved, and do things like 'fast-track' procurement, or spin facts to suit their political narrative.

We saw this with the UK government during the pandemic. The UK had plans and models in place for dealing with pandemics (I think I read somewhere that they modelled stress tests on 1 in 4 severely ill/dying). The UK was ideally placed to deal with the pandemic, but the UK ruling class decided that a pandemic was an opportunity to make some money for them and their donors (e.g. Test and Trace programme), rather than serve the people.

This story should be looked at through the lens of 'crisis management', and whether the UK is capable of managing a crisis. Whatever we are told, the UK had a disastrous response, and the UK government was shown to be hopeless, leading to the eventual resignation of the Prime Minister. The UK now has a government led by someone who has checked out (literally - he's gone - holidays, parties...), while the 2 possible replacements are trying to convince a very small group (Conservative Party members, something like 100-200k membership), that they would have done things differently, even though they were part of the cabinet the whole time.

Does that sound like a government ready to deal with another crisis?
Quoting traderathome
{quote} Not too many years back, a gentleman in Switzerland advocated the top pay in any corporation should be limited to 12x the minimum pay. And, of course, the banks were the guiltiest violators at that time....and still are. But, a neat idea, right? Yes! And he wanted it to be added as a referendum in some upcoming election. ......and then the gentleman simply disappeared, never to be heard from again. And neither this idea. Perhaps the banks made it so? Anyway, it is amazing how the privileged elite wealthy are able to shut people up (or disappear...
I'm less worried about someone being able to earn a lot of money in their lifetime than I am about passing that wealth onto heirs. IMO inherited wealth is the root cause of inequality. We currently rely on 'brilliant' leaders to come from a very small subset of the population i.e. most come from wealthy families, and these families want to maintain the status quo. How many brilliant minds are we failing to develop because that mind was born to a poor family and mis out on opportunity due to worse education, healthcare, energy, housing etc.
Quoting TableTop
{quote} I'm less worried about someone being able to earn a lot of money in their lifetime than I am about passing that wealth onto heirs. IMO inherited wealth is the root cause of inequality. We currently rely on 'brilliant' leaders to come from a very small subset of the population i.e. most come from wealthy families, and these families want to maintain the status quo. How many brilliant minds are we failing to develop because that mind was born to a poor family and mis out on opportunity due to worse education, healthcare, energy, housing etc....
I'd enjoy a debate with you. But that's not for here.

You've made some good points but I'd disagree about inherited wealth. Heirs can very easily destroy it just as much as take advantage. Should it be right that any wealth acquisition be taxed out of existence or taxed multiple times? You work for the benefits of yourself first, your nearest and dearest next etc with the state last. It's not a communist society where, in theory, it's the other way around.

I DO agree that many great minds may not be given the same headstart but truly great minds will always prosper in a free society. Improving the lot of the lower rungs will not be achieved by impoverishing those with studiously achieved wealth. Investing in public education and opening up the channels in every way possible would be a better way forward, not closing down the chances of a few. That's the politics of envy.

IMO, I'd like our politicians to have proven service of a minimum of ten years in a non-political job before they're allowed to be candidates to be elected, rather than working their way through lobbying, advising, or being political appointments. And if I had my way, in dreamland, I'd force them all to attend all the Board meetings, unpaid by the company or public service, for a year, on a rotating basis during the parliament term. Each year all the MP's would be assigned to a company or public service and it would alternate between private company and public service each year. Call it CPD. I'm sure the quality of the MP's would improve and the decision-making likewise.

Anyway, too much hypothesising entered here already. Apologies, folks, and Happy Trading to all.
Quoting DaJoWaBa
{quote} I'd enjoy a debate with you....
Agree with most of what you are suggesting - I do sometimes exaggerate a point to test out thoughts and ideas - and the reality is that I want to help my children and give them an unfair advantage ;-)
Quoting TableTop
{quote} Agree with most of what you are suggesting - I do sometimes exaggerate a point to test out thoughts and ideas - and the reality is that I want to help my children and give them an unfair advantage ;-)
. We agree on that human instinct.
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  • Posted: Aug 9, 2022 10:51am
  • Submitted by:
     Newsstand
    Category: High Impact Breaking News
    Comments: 28  /  Views: 6,515