Credit deflation and the reflation cycle to come (part 3)

[M S E Refugee]

https://www.dividendmax.com/united-states/nyse/shipping/zim-integrated-shipping-services-ltd/dividends

https://www.dividendmax.com/united-states/nasdaq/shipping/star-bulk-carriers-corp/dividends

https://www.dividendmax.com/south-africa/johannesburg-stock-exchange/energy/thungela-resources-limited/dividends

I have been buying these inflation busting dividend payers in my Freetrade ISA.

I've also bought back into Thungela.

[Formerly]

58 minutes ago, Barnsey said:

there has been a proliferation of non-jobs across the corporate world. Office workers spend too much time communicating with each other, which is easy, rather than creating value, which is hard. Poor, lazy, tick-box management is rife, some of it caused by regulatory idiocies.

Nailed it!

[M S E Refugee]

More Russian oil headed for Asia – Bloomberg https://www.rt.com/business/561017-russian-oil-headed-asia/

[geordie_lurch]

.

[Stuey]

23 minutes ago, M S E Refugee said:

More Russian oil headed for Asia – Bloomberg https://www.rt.com/business/561017-russian-oil-headed-asia/

Once they stop selling it to the west it's not like they can just turn off the taps. 

[DoINeedOne]

So a honest question what are people views of what will happen over winter and next year with these high gas and electric prices

 

Im sitting here wondering about certain companies that own or require properties think offices, pubs or large retail stores, just how will they survive going forward, we're starting to see companies struggling or posting images of huge bills whilst i can't predict what will happen im just wondering what peoples views are

[DurhamBorn]

1 hour ago, Barnsey said:

Are you writing for the Telegraph now @DurhamBorn?

https://www.telegraph.co.uk/news/2022/08/17/entitlement-britain-becoming-poor-country-many-people-dont-care/

Britain has turned into a three-speed society, with some people, including blue-collar workers in warehouses, in factories, in delivery vans, as well as plenty of white-collar professionals, working flat out, much harder than they ever did before, their output closely monitored and controlled by technology, but with their pay held back by productivity constraints.

The picture is different in office-based sectors where the working-from-home and HR cultures have spiralled out of control, and there has been a proliferation of non-jobs across the corporate world. Office workers spend too much time communicating with each other, which is easy, rather than creating value, which is hard. Poor, lazy, tick-box management is rife, some of it caused by regulatory idiocies. Many corporate types are resting on their laurels, insulated by cheap credit, lulled by rocketing house prices into thinking they have made it in life and can relax.

Last but not least, parts of the economy are suffering from the continued dysfunctionality of the welfare state: despite Universal Credit, there are insufficient incentives for some groups to increase their working hours. This is an important reason why so many vacancies for lower-paid jobs remain unfilled, and, combined with our poor education and skills, for our extreme reliance on immigrant labour.

All three challenges need to be addressed differently. We need to be honest about the new British disease: our staggering lack of competitiveness, poor levels of investment, the low quality of so many of our schools, the weakness of our skills, the disaster that is our infrastructure, our sky-high taxes, our deadly bureaucracy, and that fixing all of this will be painful. Incentives to work and invest need to be turbocharged: far too many people pay far too high marginal tax rates, and many youngsters are discouraged by our broken housing market.

Firms will need to be encouraged into investing a lot more. The economy requires more competition. The public sector needs radical reform and contraction. Crucially, higher interest rates would lead to a more rational allocation of capital, and the demise of wasteful low-return jobs and practices. One of the biggest barriers to change is the prevalence of middle-class Nimbyism, or at least the idea that things are good enough as they are, and that all new development – of homes, airports, power plants or water reservoirs – must be stopped.

Capitalism itself cannot survive another decade of zero growth in real incomes. The public only tolerates the profit motive and freeish markets if people feel that a rising tide is lifting all boats; but as incomes stagnate, they become ever more sceptical. But Britain is suffering from zombified social-democracy, over-regulation and monetary socialism, not from genuine capitalism. We wouldn’t be stagnating if a few million acres had been handed over to housing, or if monetary policy wasn’t obsessed with a proto-Keynesian desire to bail out the over-indebted, or if a flat tax had been introduced in 2010, or if the Oxford-Cambridge-London triangle had been turned into a giant high-productivity science enterprise zone.

Boris Johnson was meant to understand all of this but sadly didn’t, and three years have now been wasted. Liz Truss, a principled libertarian, does get it, and, crucially, isn’t scared of being blunt. The Tories can’t afford to mess this up again: it’s Truss’s way, hard graft and all, or a Labour landslide in 2024.

They get lots of their ideas from this thread and out work,then flesh it out into articles.They never credit us though.To be fair though at least they are getting it out there.They need to really push the bennies and public sector unfunded pensions consuming so much while producing nothing as the main problem.I was talking to an old squeeze yesterday,she is an estate agent/letting agent in my home town.She said they had let 65 houses this year,only 4 paid their own rent,61 bennies.She said she saw working kids looking in the windows,but pushed out by bennies.

[DurhamBorn]

2 minutes ago, DoINeedOne said:

So a honest question what are people views of what will happen over winter and next year with these high gas and electric prices

 

Im sitting here wondering about certain companies that own or require properties think offices, pubs or large retail stores, just how will they survive going forward, we're starting to see companies struggling or posting images of huge bills whilst i can't predict what will happen im just wondering what peoples views are

I think we will get a cap of some sort this winter from government.There is no political way a government can survive £5k utility bills while only bunging to bennies.Business is being strangled in this country,a lot will go under this winter.

[Stuey]

5 minutes ago, DoINeedOne said:

An honest question what are people views of what will happen over winter and next year with these high gas and electric prices

 

Im sitting here wondering about certain companies that own or require properties think offices, pubs or large retail stores, just how will they survive going forward, we're starting to see companies struggling or posting images of huge bills whilst i can't predict what will happen im just wondering what peoples views are

Very limited hours, and heated to 16C bare minimum for employee purposes rather than the ubiquitous roasting that some places are.

I amended the start of your post. 

[Stuey]

2 minutes ago, DurhamBorn said:

I think we will get a cap of some sort this winter from government.There is no political way a government can survive £5k utility bills while only bunging to bennies.Business is being strangled in this country,a lot will go under this winter.

They have not mentioned anything about business AFAIK, except one or two Energy Intensive Industries that already receive support. 

[M S E Refugee]

https://www.express.co.uk/life-style/life/886196/why-is-it-always-cold-in-office-women-temperature-thermostat-science

Anyone remember these type of stories from a few years ago?

Cold temperatures in the Office are sexist!

[A tremendous # on the lung]

13 hours ago, M S E Refugee said:

I have often fancied those for the bathroom, I would probably go for ones that said "shit" and "piss".

One for the bedroom? TIT and WANK perhaps 

[Plan-b]

Dr Tim Morgan is extremely bearish on the UKs chances

[DurhamBorn]

16 minutes ago, Plan-b said:

Dr Tim Morgan is extremely bearish on the UKs chances

My roadmap says UK collapse 100% certain on the present runway.So from the macro,and the energy situation we have a pincer movement.He is right to mention though 100% can quickly become 50% before events happen.He is also right to mention the two items that the BOE must do.Increase rates if Truss wins,refuse to QE if Dishi wins.The first option is the right one,but to save systemic collapse house equity will have to be destroyed.

 

[Yadda yadda yadda]

14 minutes ago, Plan-b said:

Dr Tim Morgan is extremely bearish on the UKs chances

All good except for the portion of blame attributed to voters. There was no option of "not morons" on the ballot paper.

[DurhamBorn]

1 minute ago, Yadda yadda yadda said:

All good except for the portion of blame attributed to voters. There was no option of "not morons" on the ballot paper.

The voters voted for the right policies,even staunch Labour areas around me,ex mining areas voted Tory to slash welfare and immigration,Tories did the opposite.Read the room wrong,or deliberate.

[M S E Refugee]

11 minutes ago, DurhamBorn said:

My roadmap says UK collapse 100% certain on the present runway.So from the macro,and the energy situation we have a pincer movement.He is right to mention though 100% can quickly become 50% before events happen.He is right to mention the two items that the BOE must do.Increase rates if Truss wins,refuse to QE if Dishi wins.The first option is the right one,but to save systemic collapse house equity will have to be destroyed.

 

I have been buying as much 50% Pre 1947 Silver as I can lay my hands on, it looks like it may come in useful.

A scrap dealer would give you £2.78 for a Pre 1947 Florin (10 pence).

[baffledbyzirp]

40 minutes ago, DoINeedOne said:

So a honest question what are people views of what will happen over winter and next year with these high gas and electric prices

 

Im sitting here wondering about certain companies that own or require properties think offices, pubs or large retail stores, just how will they survive going forward, we're starting to see companies struggling or posting images of huge bills whilst i can't predict what will happen im just wondering what peoples views are

The burden of increased heat and energy costs will certainly hit the private sector hard. I imagine that leisure and retail will be in the front line. How much will it cost to provide heating and lighting within a shopping centre? Pubs and restaurants face a combination of factors; higher wages, higher product costs, increased rates and fuel/ heating at a time when consumers are tightening their belts. Energy dependent industries including steel, aluminium, glass, chemicals and heavy manufacturing will cease to be viable.

However, my primary concern is for the public sector, particularly local authority funded services. Schools, libraries, hospitals, swimming pools and public spaces are going to become uneconomic to run and maintain. The only option is to let them rot or increase taxes, either locally or centrally. What will the response of TPTB be? No party will win an election on a platform of increased taxes given the current economic situation. More printing and fantasy economics is a possibility, but at some point the market will realise that the funny money they are being offered in return for tangible goods is worthless. 

The inescapable conclusion is that our whole system, fragile and bankrupt though it is, depends on cheap energy. We relied on Russian fuel to insure international spot prices remained payable. Collectively the West told Russia to shove their oil and gas. Russia duly obliged and started to export increased volumes to India, China, Africa and Saudi. The West gave a massive leg up to its main competition and committed economic suicide to prove a point. Our moral superiority will not keep us warm this winter.

[feed]

https://www.teletrader.com/rate-hikes-could-slow-due-to-policy-assessment-fomc-minutes/news/details/58458210?internal=1

Rate hikes could slow due to policy assessment - FOMC minutes

The pace of interest rate hikes could decelerate "at some point" so the United States Federal Reserve could assess the overall economic consequences of the monetary policy tightening, according to the Federal Open Market Committee (FOMC) July meeting minutes released on Wednesday.

At the meeting, central bank officials noted that they expect that most effects of monetary policy changes had "yet to be felt" as policy transmission is lagging and that policy impact on consumer prices was "not yet apparent in the data." Some meeting participants suggested that interest rates, when they reach "a sufficiently restrictive level," should remain there "for some time to ensure that inflation was firmly on a path back" to the Fed's 2% target. A number of central bankers also saw risks that policy stance could become restrictive "more than necessary," especially considering "the constantly changing nature of the economic environment."

In addition, policymakers "remarked that the strength of the labor market suggested that economic activity may be stronger than implied by the current GDP data." However, the Fed projected that the unemployment rate will begin increasing in the second half of 2022 and stressed that the July US economic activity estimates are "noticeably weaker" than those from June.

 

[Harley]

1 hour ago, M S E Refugee said:

https://www.dividendmax.com/united-states/nyse/shipping/zim-integrated-shipping-services-ltd/dividends

https://www.dividendmax.com/united-states/nasdaq/shipping/star-bulk-carriers-corp/dividends

https://www.dividendmax.com/south-africa/johannesburg-stock-exchange/energy/thungela-resources-limited/dividends

I have been buying these inflation busting dividend payers in my Freetrade ISA.

I've also bought back into Thungela.

Cheers.  I already own Star, for better or worse!  Plus I think another one.

[Yadda yadda yadda]

12 minutes ago, DurhamBorn said:

The voters voted for the right policies,even staunch Labour areas around me,ex mining areas voted Tory to slash welfare and immigration,Tories did the opposite.Read the room wrong,or deliberate.

Yes, we were lied to. Not unusual.

There are too many powerful vested interests that corrupt the system. Those vested interests need to lose their power. Probably won't happen without a collapse first.

[Harley]

2 hours ago, M S E Refugee said:

UK awaits shipment of Australian LNG – media https://www.rt.com/business/561007-uk-australia-lng-supplies/

 

Woodside's chart seems to have sorted itself out a bit at long last.  It's been emotional.  Shows a bit of a symmetrical triangle formation atm which is quite common across the sector.  There I go again being too optimistic.  AUD stocks rarely do well for me.

[Harley]

1 hour ago, Formerly said:

Nailed it!

Yep, I had to get out and do something that got me hands dirty, body bashed, and brain fully engaged.  Brilliant, with new levels of satisfaction and pride.  The walking dead that lot.

[Lightscribe]

If this happens, I think we’ll see the US try to destroy the price of paper gold.

From zerohedge:

According to the Russian Finance Ministry, precious metals prices will be fixed either in the national currencies of key member-countries or using new monetary units used in international trade—for instance, the new BRICS currency proposed by Putin.

The Finance Ministry wants to make membership in this organization attractive to all market participants, especially China, India, Venezuela, Peru and other South American countries, as well as Africa. It aims to swiftly destroy the monopoly of LBMA and to provide for stable development of the precious metals sector.

In essence, Russia proposes to create a market for gold, platinum, etc., which will be regulated by countries that control the resources for these metals. This would be, simply put, a revolution. On the basis of this new market, it intends to further the system of bilateral trade in national currencies that specifically excludes dollars, euros and pounds.

And now, some statistics on the world gold supply. The production share of the US and other hostile nations* produce a grand total of 22% of the world’s gold. Eurasian Economic Union, BRICS and Africa, together, produce 57%—already a controlling share. Now add Peru and Venezuela, and the number goes up to 62%.

To put it in the plainest terms possible, Russia is colluding with a number of other countries to exclude the dollar, the euro and the pound from the system of international settlements, starting with precious metals but not necessarily stopping there. These countries control a lion’s share of gold production. For starters, Russia has fixed the price of gold in rubles at 5000₽/g, which works out to $2,447.17 per troy ounce. This compares rather favorably to the current LBMA fix of $1737.84. The days of LBMA’s ability to drive down gold prices using paper gold manipulation appear be running out.

 

 

[Pip321]

58 minutes ago, DoINeedOne said:

So a honest question what are people views of what will happen over winter and next year with these high gas and electric prices

 

Im sitting here wondering about certain companies that own or require properties think offices, pubs or large retail stores, just how will they survive going forward, we're starting to see companies struggling or posting images of huge bills whilst i can't predict what will happen im just wondering what peoples views are

It’s a great question.

In the context of agreement with Baffled and Plan B (with his Dr Tim note) what worries me most isn’t where we are now (bad enough). What worries most is that despite where we are today the stock market is ok, house prices bubble along, interest rates still very low, gold/silver stay low and the narrative from main stream media is dreadful….and the population in the West seems oblivious to what is happening. I think they believe it’s Putins fault and ‘when’ he loses the war it will all be okay again. 

Truss is talking the talk….but I guess once in charge will realise the task ahead, then kick the can and try get out alive with lots of money/influence behind her. That not a criticism of her specifically but politicians are no longer ‘visionaries or world changers’. Loved to be proved wrong  

Re the energy bills we (the west) either concede to Russia ie make a strong moral vocal objection to Ukraine invasion but still do business with them (that should have been ‘plan a’ by the way) or we hold our position and wait for the government to start digging the hole deeper and send everyone more money. I think the energy crisis in Germany is more pronounced and will be very telling of what the West decide.

I think MSE has the right approach. Gold and Silver….not to make a killing but to hedge to avoid losing everything.