UK ECONOMY: Santa is about to land, & so all’s well in the media Kindergarten

Within 12 hours of last night’s Slogpost about the output glut >> retail over-investment >> falling real wages knot comes the UK deflation data. It reads as if I might have ‘fixed’ it myself….along with the media commentary about it.
The producer price index is further into deflation than expected, and all but the cheapest retail distributors are in pain, having seen price deflation at the pos of 1.9%. The one exception in the food sector – Sainsbury – has bucked the trend for now with massive Capex investment in refurbishment and advertising – all fuelled by cheap borrowing. And thanks to falling hours and wage values, Lidl and the smaller discounters are going from strength to strength.
Cut now to the BBCNews channel business slot, and this classic example of dictated news analysis from the anchor lady, having just interviewed a stats pointy-head early this afternoon:
“So then,” she asserted, “It looks like a bonus for shoppers, and a much cheaper cost of filling up the trolley this Christmas”.
“Yes, that’s right,” said the sp-h, who then instantly disappeared before he could venture to suggest “on the other hand”.

From the rising percentage of US firms losing margins or downright money to overvalued bourses across the globe, shunned junk bonds and beyond, the ranks of Apocalyptic horsemen continue to swell. You can step aside or you can keep those fingers firmly inserted in the ears. What you can’t pretend any longer is that the sound of galloping hooves is nothing more than something put out by the BBC’s special effects department.

Earlier at The Slog: There’s nothing like a Peake-time Tim to keep you distracted

9 thoughts on “UK ECONOMY: Santa is about to land, & so all’s well in the media Kindergarten

  1. It is a jungle out there, but there IS real value if we shop around, especially online. Pointless contributing to exorbitant retail tax business rates when it can be delivered tomorrow. Aldi has the market for all our favourite things, and I buy my socks at http://www.samuel-windsor.co.uk/
    Christmas is always a time when we are programmed to spoil ourselves. Nothing less will do. Cheers..!!
    But be safe..!!

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  2. @kfc14o4 I suspect it’s like predicting the weather, unfortunately they don’t have the working advantages, bestowed upon meteorologists, a Pine Cone, Piece of seaweed & a window to look out of.

    Just struck me, should this cluster $%^£ of a “Man Made” economic model, currently known to me as “Crony Capitalism”, be renames “Incompetent Debtisum”.

    Would be deep irony if the whole concept turned out to just be a Cognitive Bubble.

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  3. The fact that prices in the shops have barely risen over the past year, meaning the people whose wages have not risen either can still afford to buy their Christmas stuff, is good news. I understand why the Goldman Sachs Tendency view it as bad news, but I disagree with them. What mystifies me is why Slog is on the GST side. If anyone has an explanation, please share it.

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  4. nwf “PwC projects that the average UK household is set to owe close to £10,000 in unsecured debt by the end of 2016, which in cash terms is more than ever before.” – http://pwc.blogs.com/files/precious-plastic-2015_final.pdf
    People whose wages haven’t risen are taking on more debt to cover the cost of living increases in the l/h link above the comments. Increasing prices would at least mean that they were putting that money through the high street. The fact that retailers aren’t seeing it means its going on utilities, tax and servicing debt.

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  5. Absolutely. It’s denial and lies so people don’t turn on the government. The media play their part by constantly putting the most positive spin on everything or ignoring anything that doesn’t fit. We can all see around us that the economy is not improving and most people’s prospects are getting worse. I’ve given up on the mainstream media as anything much beyond entertainment.

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