Another week, another corporate monopoly recording huge profits off the backs of millions struggling to pay bills, feed their families and keep the lights on. This time it’s the turn of the big banks, which are reporting record profits driven by the interest rate hikes that the Bank of England has continued to ratchet up, despite its own admission that this may do little to bring down inflation, which is driven by high fossil fuel prices.
Today HSBC reported doubling its quarterly profits to £4.3bn for the end of 2022. The big five banks – Barclays, HSBC, Lloyds TSB, NatWest and Standard Chartered – look set to post profits of £37.4bn
So, we’ve five big uns competing against each other. With some 400 others (roughly the number of banking licences in The City) making up the stragglers. That’s a plural then. Banks, not bank.
This ain’t a monopoly, is it Dearie?
Some will call me picky on this but a useful observation might be that starting economic analysis with reality could be helpful. We do not have a monopoly in banking in the UK.
A further reality check – we do not have high interest rates. CPI is 10%, base rate is 4%. Interest rates are therefore negative 6%.
Fran Boait is executive director of campaign group Positive Money
Sigh.
High fuel prices doesn’t drive inflation. *Increasing* fuel prices drives inflation. I predict very confidantly that this month’s annual fuel inflation figures will be close to 0%.
Did anybody else see that burkess on the news a few weeks ago responding to Rishi Sunak’s promise to halve inflation. “That would be wonderful if our fuel bills were halved”
At the time of writing the second most recommended comment says basically “The entire article is wrong” and gives reasons. The responses to that comment are unhinged and range from ‘let them leave’ to ‘tax them even more’ and ‘communism wasn’t tried in the USSR’. None address the actual point made.
Par for the leftie course then. Why let facts get in the way of beliefs.
If your real expenses are 25% of your income, say, and the other 75% is increasing at 4% or more, do you even care about CPI, other than for trolling purposes?
It’s the Guardian so grammar is hard. I suspect the writer means “cartel” but “monopoly” sounds so much scarier.
Executive director of a campaign group implies Chief Grifting Officer, I suppose.
Not that “cartel” is more accurate, but at least there’s an argument to be made – monopoly is just obviously wrong.
Working in a US bank the number of requisitions I am seeing switched from the UK to other locations is truly disturbing. If this daft bint wants to accelerate that process then by all means have a windfall tax. She’ll soon learn the basic arithmetical sum of 100% of zero, ‘Net’ or otherwise.
Will noone rid of me of my troublesome brain? I think Unlimited Quantitative easing will mean I don’t have to do any work – why the delay on the government and the rich sorting me out?
‘… millions struggling to pay bills, feed their families and keep the lights on.’
All caused by the Government which IS a monopoly… not the banks or energy companies.
@Van_Patten. We see something similar. The UK GBP debt market used to be large. It now isn’t. The *demand* to borrow to invest is shrinking in the UK I think. What people are investing in isn’t production of new stuff but property. That’s my impression for UK corporate credit.
I’d like to be proven wrong.
Lloyds has just reported profits of £5.555bn vs £5.885bn (after tax) in 2021
So NOT record profits. Is she unable read or just unwilling?
High fossil fuel prices are caused by the sanctions on Russian gas.
If the lady feels we should stop opposing dear old Puke’s invasion of Ukraine, she should say so.
Locally we have had talk from government and organisations in response to pay demands that inflation is now below 6% though if you break it down by category food inflation is over 10% and clothing is actually slightly negative so a disconnect in what’s reported and what people are seeing in the weekly costs. Also ignores the deficit from last years below inflation pay rises
It echoes the way that hate crime legislation penalises those who target certain groups based on their identity, by using an existing offence used to prosecute harassment
Which is why all hate crime legislation needs repealing in the principle of equality before the law rather than a principle from Animal Farm. What is with today and daft bints? Creasy really is intolerable. A very strong argument for the repeal of the 1918 ROTP Act.
…and her cat Iggles is the non-executive director.
I’ve just done my weekly shop and found that my litre of rum has increased in price by 16.7% since last week. Is this the end of my world as I know it? Well actually the price is back where it was before Christmas so I don’t think so.