As the cost-of-living crisis impacts British households, many are cutting down on food while living in cold homes, according to the latest findings from the ‘Which?’ consumer insight tracker.

The monthly survey commissioned by the Food Standards Agency (FSA) revealed that 8.1% of households missed a housing, bill, loan or credit card payment in February. One in seven people (15%) said they had skipped meals due to rising costs.

Just over a quarter (27%) said they had gone without some foods, up from 21% in November. Meanwhile, 9% had prioritized meals for other family members above themselves, and 4% had used a food bank.

Nearly 60% of households reported making at least one adjustment to cover essential spending such as utility bills, housing costs, groceries, school supplies and medicines in the last month. According to the report, adjustments include cutting back on essentials, dipping into savings, selling possessions and borrowing.

Consumers have also been looking for ways to save on their energy bills, with seven out of ten (72%) saying they have turned down the heating due to spiraling costs, while 39% having used less hot water and 19% having had fewer cooked meals.

“Whilst the majority of consumers have used the heating less due to price rises, this behavior will be more extreme in some households than others. Whilst some may be able to save money on heating whilst still keeping their house sufficiently warm, others will not,” the report said.

Three in ten (29%) of those who reportedly reduced their heating said they have often or always felt in physical discomfort this winter as a result. A further four in ten (41%) noted they have sometimes felt physical discomfort, while 29% have rarely or never felt that way.

Data suggests that consumer confidence has recovered but remains low. With confidence in current household finances dropping slightly in February, 38% of consumers described their financial situation as good, and nearly a quarter (24%) as poor.

RT 14/3/23

Dave C.

 The British government has announced an unexpected one-off payment to state broadcaster the BBC. The £20 million ($24.13 million) tranche will be transferred to the broadcaster over the next two years, the UK Foreign Office said on Monday.

The package comes as part of an Integrated Review program document advocating for a ‘Global Britain’ originally adopted under former PM Boris Johnson.

The money is set to be funneled to the BBC World Service and will be used to “support English-language broadcasting,” as well as to “counter disinformation,” the foreign office explained, implying the funds will be specifically used to counter Russia. 

“The refreshed Integrated Review concludes that democracies like the UK must go further to out-cooperate and out-compete states that are driving instability. Developments over the past year, particularly the conflict in Ukraine, have shown the importance of being able to counter the hostile use of disinformation and tackle the spread of harmful state narratives,” it claimed.

UK Foreign Secretary James Cleverly praised the decision, hailing the BBC as “the world’s most trusted international broadcaster,” as well as a “vital” tool “in the fight against the spread of disinformation around the world.”

“This funding will ensure people across the globe continue to have access to accurate, high-quality journalism,” Cleverly asserted.

The statebroadcaster, which recently suspended a freelance sports presenter over a tweet criticizng government policy, received a similar lump sum payment in 2021, with the same proclaimed goal of battling purported fake news.

Back then, however, the payment was more than twice as modest as the new one, with ‘only’ £8 million allocated at the time to “tackle harmful disinformation, challenge inaccurate reporting around the world and improve digital engagement.”

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Dave C

One in five students at Russell Group universities are considering dropping out because of the cost of living crisis, and a quarter are regularly going without food and other essentials, the Observer can reveal.

In the largest study of its kind, new research by the Russell Group Students’ Unions – which represents 24 of Britain’s most elite higher education institutions, including Oxbridge, UCL and Edinburgh – for the first time lays bare the devastating impact soaring prices are having on all but the richest students.

More than half of those surveyed said their academic performance had suffered as a result of the cost of living crisis. Students reported having to take on additional paid work to cover costs, concentration issues caused by poor nourishment and financial stress, and skipping lectures because they couldn’t afford travel fares.

Researchers said unless urgent action is taken, the damage being done by the crisis could lead to universities being “only open to the most privileged” – undoing decades of progress on broadening higher education access.

https://www.theguardian.com/education/2023/mar/12/one-in-five-students-at-top-universities-consider-dropping-out-over-cost-of-living

American employers announced 77,770 job cuts in February, marking a 410% increase from the same month last year, executive coaching firm Challenger, Gray & Christmas has revealed. 

According to the report issued earlier this week, February’s total was the highest for the month since 2009, when 186,350 job cuts were recorded. However, the figure was down 24% on the 102,943 cuts announced in January.

So far this year, employers have announced plans to eliminate 180,713 jobs, up 427% from the 34,309 cuts announced in the first two months of 2022, the study showed. It is reportedly the highest January-February total since 2009.

“Certainly, employers are paying attention to rate increase plans from the Fed. Many have been planning for a downturn for months, cutting costs elsewhere,” the company’s senior vice president, Andrew Challenger, stated. “If things continue to cool, layoffs are typically the last piece in company cost-cutting strategies.” 

The report indicated that technology companies axed the most jobs last month, with the figure hitting 21,387. The tech sector has announced 35% of all job cuts in 2023.

“Right now, the overwhelming bulk of cuts are occurring in technology. Retail and financial are also cutting right now, as consumer spending matches economic conditions. In February, job cuts occurred in all 30 industries Challenger tracks,” Andrew Challenger added.

Meanwhile, the study showed hiring was down, with companies having announced plans to recruit 28,830 workers in February, a decline of 87% in annual terms.

RT 11/3/23

Dave C

Constant capital, the means of production, considered from the standpoint of the creation of surplus-value, only exist to absorb labour, and with every drop of labour a proportional quantity of surplus-labour. While they fail to do this, their mere existence causes a relative loss to the capitalist, for they represent during the time they lie fallow, a useless advance of capital. And this loss becomes positive and absolute as soon as the intermission of their employment necessitates additional outlay at the recommencement of work. The prolongation of the working-day beyond the limits of the natural day, into the night, only acts as a palliative. It quenches only in a slight degree the vampire thirst for the living blood of labour. To appropriate labour during all the 24 hours of the day is, therefore, the inherent tendency of capitalist production.’  Karl Marx. Capital. Volume One.

                       https://www.marxists.org/archive/marx/works/1867-c1/ch10.htm

Apple and its manufacturing supplier Foxconn have been involved in lobbying for a landmark liberalisation of labour laws in India, the Financial Times reported on Friday, citing sources.

According to the report, the legislation authorised the introduction of 12-hour shifts in the southern state of Karnataka, as well as night-time work for women.

Foxconn reportedly stated that the legal change is crucial to building efficient manufacturing at scale, and that the possibility of running production around the clock using two 12-hour shifts will be a big step forward for the company.

The Taiwanese tech giant has been shifting production away from China due to the country’s strict Covid-related restrictions, which has disrupted the manufacturing of new devices. The move has also been seen as an attempt to avoid problems due to growing tensions between Beijing and Washington.

The Karnataka government announced a week earlier that Apple’s iPhones would soon be assembled in the state, specifying that a total of 300 acres have been set aside for a plant.

India aims to increase its work output and efficiency in order to become the next big manufacturing hub, according to an anonymous Indian government official cited by Mint.

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Dave C

 Up until January 24th 2023.The Bulletin of Atomic Scientists Doomsday Clock stood at 100 seconds to midnight.

On that date it was changed to ninety seconds to midnight.

Brigadier General Ripper is an unhinged United States Air Force general who orders a pre-emptive nuclear attack on the Soviet Union in,.

Dr. Strangelove or How I Learned to Stop Worrying and Love the Bomb, in Stanley Kubrick’s 1964 film. 

 How many Brigadier General Jack D Ripper’s are there in the U S Military, or the State Department, or the White House in the present day? Or in the equivalent centres of power in other capitalist / state capitalist entities?

‘The US government will work to improve its nuclear forces, a senior military commander has said, pledging to bolster America’s arsenal on land, in the air, and at sea in response to “rogue” actions by North Korea.

Speaking before the Senate Armed Services Committee on Thursday, Air Force General Anthony Cotton spoke of the need to strengthen the nation’s nuclear arsenal to meet “challenges” from the likes of Pyongyang and other rival states.

“North Korea conducted an unprecedented number of missile launches in 2022 and its new intercontinental ballistic missile (ICBM), referred to as KN-28, highlight that the security challenge continues to grow,” he said. “To ensure our continued ability to serve as the bedrock of integrated deterrence, we are recapitalizing every leg of the nuclear triad, and the nuclear command control and communication systems.”

The ‘triad’ refers to the three primary methods of delivery for US nuclear weapons, including land-based missile silos, long-range strategic bomber aircraft, and nuclear-armed submarines. 

Cotton went on to accuse North Korea of acting as a “rogue” nation which “poses a threat to the United States and our allies,” stressing that Washington must continue to improve its “effective and credible nuclear deterrent.”

Tensions on the Korean Peninsula have soared over the last year, with the DPRK conducting a record number of weapons tests amid a flurry of joint US-South Korean war games. Military activity has continued into 2023, with Pyongyang firing off missiles as Washington and Seoul press on with multiple rounds of exercises, including a recent drill involving a US nuclear-capable bomber.

North Korea has repeatedly condemned such drills as rehearsals for an invasion, and insists it has every right to carry out missile launches and develop its own “deterrent” forces. However, US officials continue to press Pyongyang to give up its nuclear arsenal, with State Department spokesman Ned Price vowing on Thursday to impose increased “costs” on the DPRK until it “changes its approach” and abandons its weapons. Though Price called for “dialogue and diplomacy” with North Korea, so far President Joe Biden appears to have made no effort to sit down with the country’s leadership or hold a new round of talks to deescalate the tensions.’

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Dave C.

 The number of shoplifting crimes in Poland increased by almost a third in 2022, newspaper Rzeczpospolita reported on Thursday, citing police data.

Statistics showed that the number of thefts increased by as much as 31.1% on an annual basis, to over 32,000 cases. Out of 16 Polish regions, only Lublin reportedly did not record an increase in such crimes.

The rise in theft is “a clear signal of trouble on the market,” the president of the Polish Trade and Distribution Organization Renata Juszkiewicz was quoted as saying. Soaring prices have been pushing people to commit such crimes, she suggested, adding that it is “a huge challenge” for stores while prompting further increases in operating costs.

The report indicated that food was stolen most of all, followed by luxury items such as expensive perfumes and spirits, as well as small electronics.

The Polish economy slowed in 2022 amid soaring inflation and a plunge in consumer spending brought on by the conflict in neighbouring Ukraine and the impact of sanctions on Russia. Official statistics show that inflation accelerated in the beginning of 2023, with consumer prices jumping 17.2% in January from a year ago. Economists are forecasting that inflation will continue to rise, with Poland projected to have one of the EU’s highest rates this year.

The governor of Poland’s central bank, Adam Glapinski, said he expects the country to avoid a recession, although there may be temporary fluctuations in the first quarter of the year.

RT 11\3\23

Dave C

 The number of shoplifting crimes in Poland increased by almost a third in 2022, newspaper Rzeczpospolita reported on Thursday, citing police data.

Statistics showed that the number of thefts increased by as much as 31.1% on an annual basis, to over 32,000 cases. Out of 16 Polish regions, only Lublin reportedly did not record an increase in such crimes.

The rise in theft is “a clear signal of trouble on the market,” the president of the Polish Trade and Distribution Organization Renata Juszkiewicz was quoted as saying. Soaring prices have been pushing people to commit such crimes, she suggested, adding that it is “a huge challenge” for stores while prompting further increases in operating costs.

The report indicated that food was stolen most of all, followed by luxury items such as expensive perfumes and spirits, as well as small electronics.

The Polish economy slowed in 2022 amid soaring inflation and a plunge in consumer spending brought on by the conflict in neighbouring Ukraine and the impact of sanctions on Russia. Official statistics show that inflation accelerated in the beginning of 2023, with consumer prices jumping 17.2% in January from a year ago. Economists are forecasting that inflation will continue to rise, with Poland projected to have one of the EU’s highest rates this year.

The governor of Poland’s central bank, Adam Glapinski, said he expects the country to avoid a recession, although there may be temporary fluctuations in the first quarter of the year.

RT 11\3\23

Dave C

 There is freedom within

 Germany and Italy will slide into recession by the end of the year as inflation continues to rise, Fitch Ratings told Bloomberg on Thursday.

Although the downturn is not expected to be “severe,” the head of sovereigns and supranationals at Fitch, James McCormack, says that “recession is significant in and of itself.”

Inflation in Germany, the EU’s largest economy, accelerated in February, rising 9.3% on the year and 1% on the month, according to the latest figures from Germany’s Federal Statistical Office (Destatis). Surging food and energy prices dealt a major blow to the country’s economy despite relief measures taken by the government.

The German economy shrank by 0.4% quarter-on-quarter in the final three months of 2022. The contraction came in larger than the previously estimated 0.2% GDP drop.

In Italy, the EU’s third largest economy, consumer prices rose 9.2% in February compared with the same period last year, down from a 10% increase in January, preliminary data from the country’s statistics agency ISTAT showed on Thursday.

Purchasing power in the country more than halved over the past year, according to a report by Nomisma think tank, which said that one in seven Italians complained they earned less than they required to make ends meet. A quarter of those surveyed said they spent all their money on essentials while 26% of Italian households said they feared not making it to the end of the month.

The US is also at risk of a “modest” recession by the end of the year, McCormack told Bloomberg, adding that the “UK is already probably there.”

The economist also pointed out that governments around the world are struggling to tackle the cost-of-living crisis sparked by surging food and energy prices since the start of conflict in Ukraine. So far there is little optimism about a rapid recovery and the rising costs have sent ripples of instability throughout the global economy.

The US is facing an economic downturn that could start in the third quarter of 2023 and continue into the first quarter of 2024, Bank of America’s (BoA) chief executive, Brian Moynihan, has warned.

Speaking at the Financial Review’s Business Summit on Tuesday, he said that the downturn would not be deep, and projected interest rates to start falling in the second quarter of next year. 

“It’s a very slight recession in the scheme of things. I don’t think you’ll see a deep recession,” Moynihan was quoted as saying by Reuters. “It will be more of a technical recession than it will be a deep drop in the US,” he specified.

A ‘technical recession’ means that there have been two consecutive quarters of negative growth in real GDP.

Moynihan also stated that the Wall Street bank’s forecasters estimate quarterly contractions of 0.5%-1%.

For the past year, the US Federal Reserve has made a series of interest rate hikes aimed at cooling down record inflation. In February, the regulator approved a quarter-point interest rate increase, which is the smallest one in several months, as the pace of consumer price growth has reportedly slowed.’

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Dave C.