Tag Archives: interest rates

Fṛm Đ Obzrvr: Brexit is the villain in accidental death of the economy

‘The actors change but the roles remain the same’: Sunak has continued Johnson’s legacy on Brexit. Photograph: WPA/Getty Images
‘Ɖ actrz ćenj bt ɖ rǒlz rmen ɖ sem’: Sūnac hz cntinyd Jonsn’z leġsi on Brexit. Foṭgraf: WPA/Geti Iṃjz

Brexit z ɖ viḷn in axdntl deʈ v ɖ icoṇmi

(Transcription of an Observer article of 6 August 2023)

Lîc caṛctrz in Dario Fo’z fars, w cmplen abt, bt toḷret, ɖ most daṃjñ p’liticl scandl v ǎr tîm

William Keegan
Wiłm Cīgn

Súnde, 6 Ōġst 2023

At ɖ bginñ v ɖ frst Ʈaćr guvnmnt (1979-83), ɖ icoṇmist Jon Ceniʈ Galbrêʈ rout ɖt Britn wz ɖ prfict ples t conduct ɖ dybịs muniṭrist xperimnt rec̣mndd bî hiz felo icoṇmist Miltn Frīdmn. Ɖs wz bcz olɖo Galbrêʈ (rîtli) ʈt ɖ poḷsi wz crezi, Britiś “flém” wd si s ʈru, n ɖ tolṛnt neśn wd nt “tec t ɖ strīts”.

Ɖs meṃri cem t mînd rīsntli ẃn I wz at ɖ rvîvl v ɖt gret 1970z clasic Axdntl Deʈ v an Aṇcist. Dario Fo n Franca Rame’z fars hz bn updetd bî Tom Bazdn, n z a fîv-star trîumf. Ɖ meṃri wz ivoct bî ɖ sntṛl caṛctr, ɖ “meńac”, dclerñ: “Scandl z t ssayti ẃt cnfeśn z t ɖ sinr. It’s a cʈarsis [ɖt] fixz nʈñ: ɖ hostîl invîrnmnts, ɖ suij in ɖ sīz, ɖ piṛjz fr p’liticl donrz. N ẃt’s ɖ rzult? D w arest enwn? Cn w ćenj enʈñ? V cors nt … In glorịs dmocṛsiz sć az ǎrz, w gt t mon abt it instd.”

Ɖ most glẹrñ xampl v ɖs public tolṛns n monñ z v cors – wêt fr it – Brexit. Ɖ damij mǎnts, bt ɖr hz bn nʈñ in ɖ śep v a public inqîri or a royl cmiśn intu ẃt z indybitbli ɖ bigist n most daṃjñ p’liticl n ic̣nomic scandl v ǎr tîm.

Az ɖ “meńac” obzrvz: “Ɖ actrz ćenj, v cors, bt ɖ rǒlz rmen ɖ sem.” Ɖ miscrịnts hu cónd ɖ neśn – Boris Jonsn; Mîcl “Ppl hv hd inuf v xprts” Gov; Nîjl “Hǎ I luv ɖ lîmlît” F’rāź; Dańl “Brexit wl nt mīn līvñ ɖ sngl marcit, n ʈancs fr ɖ pirij” Hann; n a cast v ʈǎzndz – jst cari on śemlisli, ẃl ɖer rplesmnts, Riśi Sūnac n co, tec p ɖ banr, n Cir Starmr, wns a nobl rmenr, ofndz hiz naćṛl folowrz bî rūlñ ǎt rījônñ ɖ YY or īvn ɖ sngl marcit.

Ǒ, d’nt wuri, I am tld. Wns ɖe r in – f, az wîdli xpctd, ɖe win – Lebr wl mnd rleśnz wɖ ɖ YY. Bt, hañ on a minit: unls sm amezñ ivnt ocŕz, ɖr z unlîcli t b an ilex́n fr at līst anɖr yir, jrñ ẃć tîm Brexit wl rīc mor n mor damij, nt līst t ɖ cuntri’z fiscl pziśn.

Ẃć brñz s t ɖ topic ɖt hz bn doṃnetñ ɖ ic̣nomic nyz in ɖ past wīc: ɖ hî levl v inṭrestrets w r promist fr ɖ fōrsiybl fyćr on acǎnt v ɖ guvnmnt’s n ɖ Banc v Ñgḷnd’z dtrṃneśn t brñ ɖ ret v infleśn dǎn t 2% wɖn ẃt z noun az ɖ “fōrcastpirịd” – 18 munʈs t tū yirz – īvn at ɖ cost v rseśn.

Nǎ, ẃn ɖe r nt tayñ ɖmslvz p in sttisticl nóts, mî felo icoṇmists fṛm tîm t tîm rmînd s ɖt ẃt īc̣nomics śd riyli b abt z ɖ qoḷti v lîf. Mî frend Emos Witztum, in hiz mońmntl wrc Ɖ Btreyl v Libṛl Īc̣nomics, argyz forsḟli ɖt tù mć atnśn z peid t ic̣nomic groʈ, n nt inuf t a fer distṛbyśn v ic̣nomic rzorsz. “Distṛbyśn” hz v cors bn ɖ stuf v p’liticl dbet fr decedz, bt lîf z nt gwñ t gt eni īzịr f ǎtpt stagnets or fōlz, ẃć, bî deḟniśn, it dz jrñ a rseśn.

Ɖ teribl ʈñ z ɖt aftr imbarcñ on a nīdlis poḷsi v osteṛti fṛm 2010, n ɖen biyñ brǎbìtn intu a reḟrendm ɖe òt t rgret fr ɖ rest v ɖer livz, īvn ɖ non-mnaycl Toriz hv dn mć t dminiś ɖ qoḷti v lîf in ɖs cuntri.

Ẃ z infleśn so mć gretr a ʈret hir ɖn in ɖ YS or ɖ YY? Bcz v Brexit n its impact on ɖ cost v livñ. Indd, impndñ frɖr incrisz in ɖ cost v importñ fūd fṛm ɖ YY r olrdi frîṭnñ ɖ guvnmnt intu dleyñ ɖ nxt bǎt v byṛcratic reğleśnz rqîrd bî ɖ foli v Brexit.

Wn fînl, non-Brexit, xampl v nīdlis inṭfiṛns in ɖ qoḷti v lîf. In comn wɖ mni ppl v a srtn ej, I lîc bcñ trenticits fṛm a riyl prsn in a riyl ticit ofis. Indd, I am mć imprest bî ɖ cntińl flo v rsrć ẃć inḍcets ɖt sć sośl inṭćenjz r gd fr wn’z qoḷti v lîf.

Bt ɖr z anɖr pônt: in an ej ẃn corṗreśnz hv fūld “cnsymrz” intu ʈncñ ɖt ɖe śd d ɖ wrc on ɖ inṭnet, it z mć mor saṭsfayñ – n ifiśnt – t rlî on xprts t advîz wn wɖ travl arenjmnts. Yt w r tld ɖt ɖ guvnmnt hz instructd ɖ trencumṗniz t bgin clozñ ol ɖer ticit ofisz.

I īvn hŕd an ofiśl seyñ on ɖ Tde program ɖt ɖs wd b an impruvmnt in ifiśnsi n wd fri stāf t b on ɖ platform t hlp “custmrz” wɖ qiriz. Hǎ pasinjrz wd b ebl t gt on t ɖ platform wɖt a ticit fṛm ɖ clozd ticit ofis wz nt xplend.

Instroduction to Ñspel

"House by the Railroad," Edward Hopper, 1925

In Ñspel: The Guardian view on the Bank of England: on the side of profit, not people

‘The Bank’s deputy governor was sent out on the day Liz Truss resigned to argue that rates could not keep rising – as it was a medicine that would hurt the patient.’ Photograph: Ben Stansall/AFP/Getty Images
‘Ɖ Banc’z depytiguvnr wz snt ǎt on ɖ de Liz Trus rzînd t argy ɖt rets cd nt cīp rîzñ – az it wz a meḍsin ɖt wd hrt ɖ peśnt.’ Foṭgraf: Ben Stansl/AFP/Geti Iṃjz

Ɖ Gardịn vy on ɖ Banc v Ñgḷnd: on ɖ sîd v profit, nt ppl

(Transcription of an editorial published in the Guardian on 2 November 2022)

Ɖ Banc plesz an opresiv ʈum on ɖ scel v ic̣nomic justis, t gaṛnti ɖ dominns v xtractiv inṭrests

Wnzde 2 Nvmbr 2022

Ɖ  Banc v Ñgḷnd’z munitri-poḷsi cmiti wl olmst srtnli rêz inṭrestrets fr ɖ etʈ tîm cnsektivli in a yir on Ʈrzde, dspt ɖ icoṇmi hedñ twdz rseśn. It z nt clir ẃ Britn nīdz its bigist rethîc in 33 yirz. Mcñ muni dirr ẃl ɖ Treẓ́ri cuts spendñ n rezz taxz wl onli dīpn n pṛloñ a rseśn ɖt ɖ cuntri me olrdi hv entrd. Ɖt z probbli ẃ ɖ depyti guvnr, Ben Brōdbent, wz snt ǎt on ɖ de Liz Trus rzînd t argy ɖt rets cd nt cīp rîzñ – az it wz a meḍsin ɖt wd hrt ɖ peśnt.

Ɖ tîmñ v Mr Brōdbent’s spīć sjstd ɖ Trus imploźn wz sol̦i rsponsbl fr hayr borowñ costs. Yt inṭrestrets wr 0.1% ɖs tîm last yir n ɖe r xpctd t hit 3% on Ʈrzde. Yzñ a rūl v ʈum, ɖ Banc hz impozd a £1,800 ańl xtra ćarj p’ £100,000 v morgijdét acrùd bî borowrz. Ɖs z a probḷm az 1.8 miłn ppl huz lo fixt-ret morġjz end nxt yir wl hv t rīfînans ɖm at a hayr cost. Rents wl olso rîz. Mz Trus’z incompitns n lac v a b’liṿbl groʈplan dzrv snśr. Bt ɖ public wd b roñ t blem hr fr hayr rets n fiscl tîṭnñ. Ɖ Banc n ɖ Treẓ́ri ǒn ɖoz dsiźnz.

Doctrz no longr b’liv ɖt blīdñ ɖ sic wl mc ɖm hlʈi. Unforćṇtli, ic̣nomic-poḷsi mcrz stl d. Olivier de Schutter, ɖ YN raportŕ on xtrim poṿti, z rît t b “xtrimli trubld” bî multibiłn-pǎnd spendñcuts invizijd bî Riśi Sŭnac ɖt wl hrt ɖ purist in Britn. Osteṛti 2.0 z lîcli t b mć wrs ɖn ẃn it wz atmtd a deced ago. Wn rīzn z ɖt bac ɖen public spendñ wz cut, bt so wr inṭrestrets. Nǎ rets r rîzñ n guvnmnt s’port z dwindlñ. Mor ppl r imploid, bt on fōlñ riyl wejz. Infleśn z rîzñ – bt ɖ evidns z ɖt proḟtirñ frmz, nt wrcrz, r pśñ p prîsz.

It sīmz ɖt ɖ Banc’z infleśn-tarġtñ reźīm, intṛdyst in 1992, hz an antiwrcr bays. Andru Beili, its guvnr, let ɖ cat ǎt v ɖ bag ẃn h ćastîzd wrcrz fr ascñ fr pêrîzz – ẃl bizṇsz hv iscept snśr fr amasñ hyj profits, īvn ɖo ɖer xesz hv md infleśn wrs. Rezñ rets beṇfits ɖ fînanśl sectr ɖt ɖ Banc z mnt t reğlet. Cmrśl bancs gt peid mor t hold risc-fri gílts. Ɖ muv s’ports ɖ cuṛnsi n alǎz ɖ Banc t ri’srt its cntrol v inṭrestrets bî tîṭnñ n ɖen oḟrñ gílts t prîṿt invstrz rɖr ɖn prć̣sñ ɖm itslf. Bt hayr rets olso śift incm fṛm pur hǎsholdz wɖ no sevñz t rićr wnz ɖt hv lots.

Wɖt mec̣nizmz t cīp prîsz gwñ hayr, ɖe wl fōl. Ɖs z ẃt hapnd in 2009 aftr ɖ last big śoc. Ɖr’z no sîn ɖt bʈ prîs- n wej-setrz r simlteńsli drîvñ p ɖer dmandz. Bt ɖr r distṛbyśnl n p’liticl ćôsz in hǎ infleśn z bròt dǎn. Ɖ Banc plesz an opresiv ʈum on ɖ scel v ic̣nomic justis, t gaṛnti ɖ cntinyd – n bêlfl – dominns v xtractiv inṭrests in ɖ Britiś icoṇmi. Az ɖ sntṛl bancs’ ańl rport śoz, ɖe ʈnc ɖt f ɖ rîzñ cost v gdz cōzz infleśn, ɖen wrcrz, nt cumṗniz, śd pe fr it wɖ lowr pe. Ɖ Banc v Ñgḷnd śd b stopt in its tracs, nt left t rîd ruf-śod ovr ɖ public.

Instroduction to Ñspel