BEWARE! THE BANKS ARE OUT TO GET YOU!

[Stanley]

We have been noting the use of credit to fund day to day living for a while. Note the advertisements for credit cards using a minimum of 30% APR that you can get with no credit checks. The USP is that by using them and paying regularly you increase your credit score and make life easier. Problem is the only people who take them out are the bad risks who can't get a card at a normal rate of interest (or already have such a card and it's maxed out.)

[Stanley]

The latest rate of rise in inflation has been announced and it has fallen from 10.7% last month to 10.5% now.
This has been immediately seized on by commentators as a sign that inflation is falling. What it actually represents is a fall in the price of road fuel and cheaper clothes and shoes. This will not immediately ease matters for the strikers or the poor who are fighting the rise in cost of essential goods and services.
The government will use this as a negotiating ploy. Don't let them fool you!

[PanBiker]

How many addresses does the Virgin "store" need?

Or a salutary tale of shrinking banking services.

I relinquished my role as treasurer for the ILP land Society last year. The new treasurer lives in Clitheroe, the secretary in Nelson. We banked with Yorkshire which as everyone knows morphed into Virgin where they don't call it a bank any more but a "store". Nearest Virgin store is Burnley so our secretary went on the bus and advised them of the change of name and address and signatures for cheques etc. Prior to that I used to receive all the statements etc at my home address.

The last statement was sent to the secretaries address in Nelson but with the new treasurers name at the top. The new treasurer doesn't drive but is an avid bike rider so he got on his bike and went to Burnley to try and sort it. They advised him during his visit that the Burnley branch is probably closing and the next nearest will be in Preston!

I have received correspondence today from Virgin to my address but with his name at the top. The letter advises us that our account which previously had interest applied at 4% below the Bank of England rate has now been modified to 0.0%

David our new treasurer has yet to receive ANY correspondence, no one has yet received the current January statement which is due but seems to have disappeared somewhere in the ether.

[Stanley]

We are rapidly approaching the point where there will only be one point of contact with any bank that isn't digital.... An old fashioned snail mail letter.
It seems to me the secret is to avoid needing the bank for any transaction beyond what can automatically be done via your account.
See THIS New York Times report about further problems with entrepreneurs in China.
"Entrepreneurs Flee China’s Heavy Hand: ‘You Don’t Have to Stay There’ Weary of crackdowns and lockdowns, businesspeople are moving out of China and taking their wealth with them. Many have found a new home in Singapore.

[Stanley]

See THIS BBC report for confirmation that our old-fashioned view that the concept of virtual wealth is barking mad might possibly have some truth in it.
"Cryptocurrency lender Genesis has filed for bankruptcy. The firm had recently been charged by US regulators Securities and Exchange Commission (SEC) with illegally selling crypto. It is part of the Digital Currency Group (DCG), a conglomerate of more than 200 crypto-focused businesses. The insolvency of Genesis is linked to the bankruptcy of FTX, which went under last November amid allegations of fraud. Genesis had originally been set up as an "over the counter" Bitcoin trading desk, enabling the trade of large amounts of crypto. Earlier this month, it announced it was laying off 30% of its staff, taking it down to 145 employees. "We look forward to advancing our dialogue with DCG and our creditors' advisers as we seek to implement a path to maximise value and provide the best opportunity for our business to emerge well-positioned for the future," Genesis interim chief executive Derar Islim said in a statement."
It is the latest in a series of shocks to the sector, which has been dubbed the "crypto winter" by some analysts, describing the plummet in value of cryptocurrencies.

[Stanley]

The government, reacting to the IMF forecast that the UL will perform worst of all the G7 countries this year (including Russia) say that the UK can 'buck the trend'. Really?
At the same time, see THIS report that food price inflation is higher than ever at 16.7%.
Grocery food inflation hit record levels in the month of January, driving already sky-high shopping bills even higher and wiping out any sense of relief shoppers may have felt at the end of 2022. Food price inflation hit a record 16.7% in the four weeks to January 22 – the highest level since Kantar began keeping records back in 2008 – adding an extra £788 to UK consumers’ annual shopping bills. Kantar head of retail and consumer insight Fraser McKevitt said: “Late last year, we saw the rate of grocery price inflation dip slightly, but that small sign of relief for consumers has been short-lived. Grocery price inflation jumped a staggering 2.3 percentage points this month to 16.7%, flying past the previous high we recorded in October 2022. Households will now face an extra £788 on their annual shopping bills if they don’t change their behaviour to cut costs.”
Can we buck this one as well please Mr Hunt?

[Stanley]

See THIS BBC prediction that when the BofE meets today to set the base interest rate it will raise it again for the tenth time in a row from 3.5% to 4%.
'Experts' are predicting it could peak at 4.5%. All this is bad news for the economy and in particular mortgage holders who ar negotiating rates with building societies and banks.

[plaques]

See THIS BBC prediction that when the BofE meets today to set the base interest rate it will raise it again for the tenth time in a row from 3.5% to 4%.

The increase is still speculation but +0.5% is considered a mere bagatelle that's worth it if it will bring food prices tumbling from the 16.7% rise we are seeing at the moment. Of course it will do nothing of the sort. Taking more money out of circulation and increasing borrowing costs will only add to the spiraling inflation. Meanwhile as Joe Public gets poorer the banks will be holding back on increasing rates to lenders just to make the pips squeak louder. Will higher interest rates encourage firms to borrow more to invest in new machinery when they can hold back and get cheaper labour? Even the CBI is complaining that the government has no credible plans to increase GDP.
And the nodding donkeys keep on braying. The swamp fills with even more alligators and the cunning plan continues.

[Stanley]

Well, the predictions were right and we now have a 4% base rate. Davis was actually smiling when he announced it and said that the recession, though no shorter showed signs of being shallower. Fat lot of good that does us.
Think back to where this started, Liz Truss and her economic theory. I see that her supporters say she is making a come back. God help us!

[Tizer]

Think back to where this started, Liz Truss and her economic theory. I see that her supporters say she is making a come back. God help us!

...and Boris too, with Lord Frost and The Mogg tagging on with them.

[Stanley]

All I can say is that these proposals betray a complete absence of any original political thinking.
Please could we remember what these people did when they were in power?

[Tizer]

`UK to design ‘digital pound’ that could fend off future private tech rival' FT
`The UK Treasury and Bank of England are designing a “digital pound” that could supplant banknotes by the end of this decade and fend off a Big Tech competitor. With the decline of cash, ministers and officials think there is likely to be a need for a publicly-backed digital currency that would sit in wallets on smartphones and could be used for shopping much like notes and coins. Consumers already accustomed to fast digital payments would see few obvious differences, but the core infrastructure would be part of the central bank and could be guaranteed to be available for everyone to use. Officials believe a digital pound would ensure the BoE maintains control of the heart of the UK financial system and prevent any private company from keeping payments within a closed network. A final decision on whether to go ahead will be taken around 2025, the Treasury said, when it would decide whether the potential benefits of implementing a new payments infrastructure outweighs the costs and risks.'...

[Tripps]

The UK Treasury and Bank of England are designing a “digital pound” that could supplant banknotes by the end of this decade

What do we want? "A Government bitcoin".
When do we want it? " Now"

The people's clamour for this measure is getting deafening.

Don't forget where Boris was when Truss resigned - Block chain conference.

[Stanley]

I'd forgotten that David.... Well remembered!
I can remember the security check for white fivers..... You could thread one corner through a wedding ring and pull the whole note through. Simples..... We were using them until the 1960s.

[plaques]

Phew! That was a near thing GDP managed to hit zero for this quarter. Not quite sure if the zero was the result of movement increasing or decreasing. Either way it was because of the nurses strike? I didn't know that we included hospital bed occupancy as part of the GDP. Last time it was the Queen's funeral and the world football cup. Next it will be Liz Truss and the Kwarteng package. On the horizon is Nadine Norris. How is the country going to manage without her?
Never mind the wholesale price of gas is projected to drop but just in case it doesn't consumer prices will remain the same to avoid any disappointment. Inflation at 10.7% and food prices 16.7% higher the BofE says this is the wrong time to be asking for wage rises. They suggest workers wait until inflation drops, perhaps, and then ask for a rise. All down to stable doors and horses far too complex for the food bank users to understand.

[Stanley]

You echo what went through mu mind as I heard Hunt's pronouncements. These movements in economic activity are so small they are within the limits of accuracy and so actually mean nothing. Will any of us feel that things are better with no recession? A resounding no. I too worry about life without Mad Nad.....

[Tizer]

`Former Shell boss Ben van Beurden's pay package jumps to £9.7m' LINK

[Stanley]

The thought that always enters my head Peter is how can anybody be worth that or is that not the way these things are calculated. What does it say to ordinary mortals on normal wages...... Then there's that woman in charge of the gambling firm.
(I looked it up and found the highest paid director of Bet365 Group, believed to be founder Denise Coates, earned a salary of £213.4m in the year to March 2022. She was also entitled to at least half of £100m in dividends, despite a fall in profits.6 Jan 2023)
All right, it's a cop out but the world has gone mad....

[Stanley]

See THIS BBC report on the failure of a bank in the US.
US regulators have shut down Silicon Valley Bank (SVB) and taken control of its customer deposits in the largest failure of a US bank since 2008. The moves came as the firm, a key tech lender, was scrambling to raise money to plug a loss from the sale of assets affected by higher interest rates. Its troubles prompted a rush of customer withdrawals and sparked fears about the state of the banking sector. Officials said they acted to "protect insured depositors". Silicon Valley Bank faced "inadequate liquidity and insolvency", banking regulators in California, where the firm has its headquarters, said as they announced the takeover. The Federal Deposit Insurance Corporation (FDIC), which typically protects deposits up to $250,000, said it had taken charge of the roughly $175bn (£145bn) in deposits held at the bank, the 16th largest in the US.
Probably not dangerous but reminds the markets of Lehman Brothers......

[plaques]

US regulators have shut down Silicon Valley Bank (SVB) and taken control of its customer deposits in the largest failure of a US bank since 2008.

There are another 14 banks whose ratings have reduced due to Silicon Bank failing. The US government is doing its best to limit the contagion and stop a total collapse. Meanwhile back in the UK the governments aim is to make the UK the second Silicone Valley. Actually they are not doing a bad job another couple of years and we be bankrupt.

[Wendyf]

Time to sell the inherited gold bracelet! Shame I cant get out....

[Tizer]

Silicon Valley Bank has been toppling for a while now and it only hit the main news feeds because the regulator finally decided to do something about it. A lady business consultant on the radio the other day mentioned how the 2007 credit crunch was not a surprise to the financial world. They were all aware of the danger building up but chose to do nothing.

[Stanley]

Passengers don't stop the gravy train, they hang in as long as possible to maximise their personal gain. If an investor comes out of a crash with more money than the took in they reckon it a success. I believe that's what 'short selling' is all about.
I don't understand these matters. That's why I am not a multi-millionaire at least!

[Stanley]

We are being reassured that the problems at the Silicon Valley Bank are being addressed by the authorities but I still detect alarm from those businesses that rely on them for capital.
Not the sort of news you want coming out in the Budget week!

[Tizer]

I'm surprised to see that our Government has allowed SVB UK to be taken over by HSBC, a Chinese owned bank. I thought we were supposed to be keeping China at arm's length these days. And HSBC has one of the worst customer service records and has recently been fined £91,352,600 for failing to tackle money laundering (although it only paid £63,946,800 because it `did not dispute the FCA’s findings and agreed to settle at the earliest possible opportunity'). Bank of London submitted a bid to rescue SVB UK but lost out to the Chinese bank, as also did Barclays.

On the same day as handing SVB UK to HSBC we see this...
`Gulnara Karimova: How Uzbek president’s daughter built a £200m property empire' LINK
`A dictator's daughter who moonlighted as a pop star and diplomat spent $240m (£200m) on properties from London to Hong Kong, a report has found. Gulnara Karimova used UK companies to buy homes and a jet with funds obtained through bribery and corruption, the Freedom For Eurasia study says. It adds that accounting firms in London and the British Virgin Islands acted for UK companies involved in the deals. The story raises fresh doubts about the UK's efforts to tackle illegal wealth. British authorities have long been accused of not doing enough to prevent criminals from overseas using UK property to launder money. The report says the ease with which Karimova obtained UK property was "concerning".'...