"The Bank is right that interest rates cannot move global energy prices. Raising them will not fix the shock. Instead, rate hikes redistribute the impact by compressing wages and deterring investment to stop higher costs becoming embedded."
"If fertiliser is so critical, why did the UK hold no reserves? Because efficiency has been considered more important than resilience and buffer stocks are treated as wasteful."
"National security depends on the integrity of civilian digital infrastructure. This was part of the message in a speech by Fiona Hill, one of the co-authors of the UK's 2025 strategic defence review."
The Bank of England warned that food inflation may hit 7% due to geopolitical shocks affecting energy and fertilizer prices. This situation reveals the UK's economic fragility, as rising interest rates cannot address the underlying issues. The country’s reliance on the strait of Hormuz for energy makes it vulnerable. Key sectors operate on thin margins, and the lack of reserves for critical resources like fertilizer highlights a focus on efficiency over resilience. Modern interconnectedness increases vulnerability to cyber threats, which can disrupt essential services and national security.
#food-inflation #economic-vulnerability #geopolitical-risks #national-security #infrastructure-resilience
Read at www.theguardian.com
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