Armstrong Economics posted that Bank of England is cutting interest rates despite rising inflation, especially of food prices. The BoE tried to put that on employee costs of the supermarkets.
I have an alternative explanation. Inflation in classical sense is a short for inflation of money supply. BoE apparently worries that lowering interest rates will make lending cheaper leading to increase in money supply, i.e. classical inflation. However, the market prices actually depend on supply and demand. When supplies are low but demand high, prices rise to what the wealthiest market segment can pay for it, whereas if supplies are plentiful, nobody will take the product even for free. Also, the value of British pound had fallen by 4% on July, while the food price inflation was 4% – coincidence?
I think the inflation pressures on UK food prices are due to combination of increased demand (according to Worldometer, last year UK had 0.4 million more people on the top of 69 million already there, and that is on the top of the growth from the previous years) and reduced supply. The Western countries have reduced food production for environmental reasons, whereas political instability and weather have reduced crop production and / or exports elsewhere. Ant then there are artificial trade barriers and monopsonistic practices of the Western food and agri conglomerates (and Western in this case includes Japan and their rice crisis), which have created artificial scarcities to maintain the high prices.
All in all, I don’t blame the greedy Tesco cashier for the possible ham or bacon price increases in UK. I think it is the lack of pork anywhere except in government budgets.
I just saw a video on YouTube by a gentleman who seems to be into Bitcoin. Aside from the Bitcoin part, there were interesting little news.
Bank of England has published a bail-in guide. The term of note is ‘resolution weekend’. That’s when the peoples’ bank accounts will be converted into bank stocks at some fraction of value.
I had already become aware that millionaires and billionaires are fleeing the UK by their thousands, an exodus greater than that afflicting PCR, despite PRC having vastly larger population. I was surprised at the claim that the departing assets are equal to 4% of UK GDP. Dividing the 91.8B$ cumulative wealth of the departees by 3640B$ estimated GB GDP gives only about 2.5% in mu calculator. It will be interesting to see if the UK government will go full DDR and slam the exit doors shut at this hemorrhage. They already have the hate crime reporting lines and speech crimes police (in case someone could post something UK government does not approve) so why not go for the full experience, complete with empty shops?
Meanwhile, EU has made a deal of the decade (this century is too young to claim that something even weirder would not be coming through the pipes) agreeing to: 15% export and 0% import tariffs with US, 750 billion euros worth of US fossil fuels while banning all the Russian fossil fuel imports (which had continued despite the war, including quite a lot of natural gas transiting in pipelines through Ukraine), and 600 billion euros of private direct investment to US.
Exactly what this private investment is and how EU Commission can agree to seems unclear. According to the document description page on EU side, the agreement is not legally binding. I suspect that the tariff and energy deals were a bribe to US to let EU still continue their war – I further suspect large amounts of US military gear to be included in that 0% import tariff. Also, I suspect that EU will rather soon have a resolution weekend for bank accounts as they are already talking about mobilizing funds laying in peoples’ bank accounts to fund plans that are excessive for the public purse. Pension funds are joining the arms bonanza. Bonus points if these ‘privately funded’ imports/investments will count towards the 5% of GDP funding target for non-US NATO members.
Joker in the game: EU CBDCs, denied by European Central Bank to be programmable with expiration dates (not to mention blocking or sin fees for non-approved uses, which would similarly depend on programmability.) (There are also privacy questions.) I wonder what the actual utility of EU CBDCs for the small people would be, and how CBDCs (programmable or non) would affect application of a Resolution Weekend?
I have followed the recent discussions about Jeffrey E., a dead criminal whose suspicious passing away in custody has caused years of speculation (including that he was taken secretly away and is now living somewhere nice.) Namely, he is known to have committed his crimes with lots of people and suspected of blackmailing the said people, which tend to be the very wealthy and powerful type. Which is why he was rumored to have been self-deleted.
The current administration has loudly and repeatedly promised to publish the list of Jeffrey’s associates, until about a week ago an FBI memo was leaked(?) to Axios claiming: he offed himself, there is no list of people, and he did not blackmail anybody. The administration is trying to sweep the issue under the metaphorical carpet. Then the officials published a video of his cell from the night of his death. Except the video contained about 1 minute gap (or maybe more than 1 minute). It had been stitched together so badly that aside from the gap in the timestamp, the aspect ratios were subtly off. As Asmongold pointed out, there could be legitimate reasons for this blooper, but with all the other circumstatial evidence, to me this points towards a conspiracy concerning Jeffrey E.’s demise, the reasons for it, and the existence of more rot in the circles of power.
As I keep on watching the government stumble from narrative fail to a narrative fail, with people becoming increasingly convinced that something is off with the official story (which has presented already by the previous administration), I have began to suspect that all this furor is deliberately fanned to distract the hoi polloi from something really important, possibly even more insidious than the idea that we are being governed by a huge criminal blackmail network, until it is too late to do something about it. This is quite a common tactic by the powers that be. For example, in Finland, I have imprecise memories on how government starts making noises about changing regulations or taxes on selling beer, and people get upset. Huge discussions rage over newspaper opinion columns and on-line boards, pro and con, while the government passes something else, much more important for people’s lives. The beer issue can be resolved, or if necessary, retreated from, people will calm down, and meanwhile something actually nasty was done to them.
While the incompetence of governments can be stupendous, it stretches my credulity to have so many bloopers in the narrative management coming one after each other, and I am beginning to suspect we are being purposefully distracted. Whether it is from the coming (proxy) war against China (maybe started between Thailand and Cambodia, maybe still waiting for the Iran situation to worsen), the ongoing (officially proxy) war against Russia, the economic collapse (US consumers sentiment has been reportedly low earlier this year, though Goldman Sacks just reassured that everything is merely returning to normal), the incoming digital surveillance grid (brought to you in collaboration with Musk and Thiel under the guise of tracking immigrants – spoiler alert: to track immigrants they will “need to” also map the non-immigrants), or something possibly worse, it must be humongous to merit this level of egging of the masses. I don’t think Obama’s referral to Department of Justice for suspicion of having ordered narrative to be manufactured for the Russia Collusion quite qualifies, more likely it is just more noise to distract the masses. By the way, US just moved nukes to UK, but that’s probably a nothing-burger (I am still sitting on the fence about whether to link and comment to the article on the subject in aviationnews.eu.)
I am also currently sitting on the fence on whether our government truly is this incompetent at narrative management or whether there is some obscure Department of Narrative Management, who are gloating about their latest glorious success in psyop against the people. Or maybe the Department of Narrative Management has gone rogue and is actively fighting against the current administration.
Although considering the everyday dysfunction I live in due to the ongoing complexity crisis infecting all aspects of modern society and worsened by the ongoing incompetence crisis fanned by the decades of education crisis, I still think that, yes, they really could be that incompetent. Maybe.
A small Hymenopteran and a probable bug in the same flower in Berkeley, June 2025
Recently, a samizdata channel I watch has had multiple reports that insects are missing this summer, in locations scattered around United States.
This was not unexpected. The reduction in insect numbers started decades ago, if German amateur entomologists’ data is to be believed, but it has since been recorded around the world, including places like Colorado and Costa Rica.
The scientists have sounded an alarm – insect are possibly the most important group of land animals in terms of species numbers and biomass. They are important pollinators, decomposers, soil and biome modifiers, and they disperse nutrients even when not serving as important food source to other species in food web.
The loss of insects has been attributed on a variety of reasons, among other things pesticide use (and other environmental poisons, including chemtrails and 5G radiation), monoculture, spreading diseases (especially Varroa mite born in bees), and changing climate. While a large number of species are affected, reading the reports has given me an impression that the selection of missing species seems to vary from place to place, suggesting multifactorial causes. The modern world apparently does not have space for bees or butterflies.
I would probably blame monoculture, i.e., humans have appropriated too fat a slice of ecological resource flows for themselves. Traditional agricultural landscape in Europe had many verges, ditches and hedges, where wild plants and insects that relied on them could flourish. Now such places are rare.
For example, I have observed in horror, how most species of the meadow flowers, once common on road sides near Turku, Finland, seem to have had a population collapse in the past decade. I blame this on the municipal maintenance crews mowing the verges before the seeds have ripened. Annual plants fare the worst, but I suspect perennials will eventually follow. Any insects relying on those flowers also likely fared poorly.
As the small wild spots grow fewer and further between, I suspect we have crossed a critical threshold on insect metapopulation dynamics. Ilkka Hanski, studying Glanville fritillary butterflies living on dry meadows on rocky islands, showed that as long as there were enough patches with butterflies near each other (in this case, the minimum was estimated to be 32 patches covering total 10ha over 5km2 area), individual patches of plants or insects living on them could be ephemeral, i.e., the butterflies on a given patch could disappear or appear from year to year, but the butterfly populations of individual patches form a metapopulation that keeps the species going if the amount and density of patches are sufficient.
Extrapolated onto insects in general, I think the on-going collapse may indicate that despite good people setting their individual gardens for butterflies, bees and other insects, if a garden population is lost, for example to local bad weather or disease outbreak, there are no longer enough insect patches left nearby to repopulate the patch. Sooner or later, isolated gardens will lose their insects. And then the metapopulation is gone.
What can be done to reverse this trend? I suggest starting by restoring some verges. Also not mowing your yard while the flowers are seeding, as ugly as the drying seedheads may look. Insects are not very big, so they do not require nearly as large sanctuaries like roaming megafauna, but there should be plenty enough patches to maintain a viable metapopulation, so that if some species is lost from one spot, it can be colonized by insects from the neighboring spots. I believe this type of microrewilding to be compatible with current human population, possibly even essential if we want to retain their ecosystem services necessary for food production. Assuming there are no confounding factors like (possibly) 5G radiation to prevent its success.
Our current proxy war in Ukraine is not going well, and we are pulling our weapons help away (every other day, it seems, on the other days we are giving them more). European part of NATO is upset but considering the state of their economies and especially theirarmies (with a couple of exceptions), I doubt their help will be decisive in any manner. If it would be, this war would have been over years ago.
While there has been sporadic rice shortages around the world recent years, Japan is a first world country and a traditional rice producer. The problem is word traditional. According to First Post, the average age of Japanese rice farmer is 71 years, and government agricultural policies in general and rice policies in particular have hit the farmers whose numbers, citing Bloomberg, have shrunk by 25% between 2015 and 2020s.
The some explanations to Japanese rice shortages is that Japanese 2023 rice harvest was bad (already reporting rice rationing in some shops on 2024), there was an earthquake and people are panic buying (also as a hedge for rice inflation, which probably increases the rice shortfall causing more rice inflation), people are eating more rice because the war in Ukraine has increased wheat prices, and that there are hordes of tourists eating rice. And the Japanese government started selling the stored rice from reserves last year. A bit like US sells oil every now and then from strategic reserves to smooth consumer sentiment. Except that Rice News Today blames the shortage on government policy to reduce rice production, which has thinned the buffer between production and consumption to such extent that even slightest consumption increase would cause shortages.
The Japanese are having an election soon, July 20th. The price of rice and the rice shortages (estimated 1.8 months of annual supermarket sales worth of staple rice – either the consumers will consume something else or Japan will soon import lots of rice) may annoy the electorate enough to lead to political upset. According to Zerohedge, SocGen (a French bank) has predicted that there is about 50% chance of election results leading to governmental crisis in Japan, which may lead to problems in yen bond market. More importantly, the price of rice is part of Japan’s inflation metrics, and if rice prices explode, the rising inflation may trigger BOJ rate hikes.
The global bond markets are highly interconnected and the financial omnibubble is floating around in search of a pin prick. Thus, the rising rice crisis just could be the trigger of global financial collapse. Though I personally doubt it. The markets are so rigged that full collapse by contagion is unlikely. But what I have seen over the years, is that small retail investors rarely fare well in turbulence.
Or Treason Day, if you happen to live in UK. In recent years, I have been watching the fascinating news from that side of Atlantic with increasing horror. Sure makes me glad I am a US citizen, not a subject to the whimsies of Prime Minister Starmer. For the past couple of visits to Europe, I even have specified to my travel agent: no stops in UK.
Why? When Soviet Union was a thing, if you traveled there for cheap vodka (vodka tourism) and other cultural immersion, you would only be charged for drunken and disorderly, such as might happen. Obviously, potential troublemakers would have been screened during visa application, but even people caught inside Soviet Union for the heinous crime of smuggling Bibles were sentenced merely for what they were doing in Soviet Union. Or so I think. However, according to an Internet source, officials in Starmer’s UK have stated that folks traveling to UK are subject to prosecution for doubleplus ungood on-line speech even typed outside the UK borders, even if they are not UK citizens. I think such dictatorships are to be avoided, especially when they have gone clearly bonkers. I love and I am grateful for my First Amendment rights, and this is one of the reasons I am happy this Independence Day.
I have bought a steak and cherries, to be eaten soon, some canned fish for future, and had an Asian/Pacific Islander style BBQ beef minimeal with teriyaki sauce for breakfast.
Big white magnolias are in bloom, and I have tried to get a nice photo of them for days, but that has been difficult. Many of the trees are very big and the flowers tend to be in the upper branches, either too small for my cell phone zoom or obscured by leaves and branches. Or the flowers are not otherwise accessible to photography. When I see a magnolia bud at nice, near to eye level, getting back in time before it has bloomed and is wilting is tricky, apparently the blossoms open and are done at a quick rate.
Here are a couple of magnolia flowers I photographed with my cell phone today.
One of these days, I should make more jigsaw puzzles.
Florida is constructing an ‘Alligator Alcatraz‘, a deportation facility in the m Everglades. An abandoned airport project will be (government) quickly converted into a 5000 bed facility with an idea that the surrounding swamp area with its alligators and pythons would be part of the security. Federal government will use FEMA’s Shelter and Services Program money for the center. Presumed Federal costs will be 450 million dollars annually. Assuming processing speed of two weeks per deportee and full occupancy, that housing alone will cost 3750$ per person though I doubt government will be that efficient. But Alligator Alcatraz is a catchy name, good marketing!
The immigration industry seems to still provide good income for some – left loves to import immigrants with government paying the housing, whereas right loves to deport immigrants with government paying the housing.
Nigerian Oil Production Woes
Alleged 7.2 billion US dollar fraud in Nigeria has led to the arrest of two officials in Nigeria’s state owned oil corporation and three other officials are being investigated. Annual allocations of money meant for revamping and rehabilitation of old oil refineries had not been efficient, as Kaduna, Warri and Port Harcourt refineries “haven’t been producing fuel in recent years” as Oilprice.com reports. Nigeria is struggling to meet (as in has not met) its OPEC quota of oil production due to crime and “struggles to launch new projects”(ibid.)
Sweden has illiteracy problem
Regardless of the possible reasons for the Swedish education crisis described in this Zerohedge article (originally from Epoch Times but they require registration), about 800000 of 10 million inhabitants of Sweden are categorized as illiterate. While he definitions of literacy may have changed over the centuries, this is according to the author “the highest number since at least the mid-19th century, possibly since the early 18th century.”
During 18th century Finland was part of the Sweden, and literacy was then enforced by strong state church that demanded that everybody had to pass confirmation (which was prerequisite for get married – premarital relationships were strongly disapproved those days) and to pass confirmation had to know how to read (the material promoted by the state church , other literacy was a bonus.) Perhaps, if literacy would again be a basis for full civil rights (e.g., one would need to be able to read a contract for their signature to be legally binding), the literacy rates would begin to climb again. Without motivation to learn, there will be a segment of population that will not make an effort.
Also, what was alluded in the article but I think should be emphasized is that many of the modern students do not even speak Swedish, and before they learn the language they won’t be able to read or write it, either. Also the Finnish literacy levels which used to be among the highest in the world are declining, at least according to PISA statistics.
A picture from Finland, February 2025, not directly related to Alligator Alcatraz, Nigerian oil production or Swedish literacy.
Atomized people without knowledge of the past are easier to govern badly. If there are no reference points how things were better (in addition to worse), people will not demand it.
Atomized people lack social cohesion required for mass movements or revolutions. Every man forges his own fortune. Every woman is equal to man. The weak will get trampled in an increasingly predatory environment that used to be a society. As even family units are eliminated in gender wars and intergenerational conflict, it is no wonder that birthrates fall when atomized people concentrate on their own day to day survival.
I suspect that the loss of culture and traditions are a result of loss of intergenerational connection. When I was a child, we celebrated Christmas. The tree, the feast, the carols, the gifts (brought by some version of Santa or an elf, this was not all Westernized Coca Cola festival for us), the reading of Bible. Christmas was fun for children. Even in Soviet Union, where Christianity was suppressed, the powers that be had to bring back Father Winter and an associated winter festival, set to be the New Year’s Eve.
The world’s biggest shopping day is now the newly invented Singles’ Day from China, which began as a student response against Valentine’s Day but quickly ballooned into a massive hit, not only domestically but expanding globally, even having arrived into Finland. If you are lonely, why not have a day and buy something for yourself since the couples are having a day too? The popularity of the Singles’ Day is probably a troubling portent for future demographics and survival of the traditions, and by extension, history.
By the way, despite the lack of material manifestations of the culture and the breaking of social structures, there still remains an option for inner life – learn things and live your ideals. Become the culture you want to be.
P.S. Soon it will be Midsummer Festival / St. John’s Day / Summer Solstice time. I will not have a bonfire, nor will I go to a lakeside cabin to drown in a drunken boat accident. As cultural traditions go, I am neutral about bonfires, but against drunken boat accidents. Not all traditions need to be maintained.
A former deputy director of Caltrain had had a secret apartment built inside Burlingame train station, discovered by Caltrain 2022. Based on photos, it looks comfy, but about 40000 dollars of public funds were used and the historic building is not his property. Another apartment was found 2019 in Millbrae train station (8000 dollars were used on that), with another defendant was mentioned in connection to that case. Imagine, apartments for under 50k in San Francisco Bay Area! And close to commute!
While housing prices are crashing and you can find a condominium for under 300k in Bay Area if you are not picky about the commute, and right now Zillow advertises plenty of up to $1300 rentals in Bay Area. How many of these are actual apartments instead of shared housing is unclear, but right now it seems that the main constraint to housing is not the availability of units but of cash to rent or buy.
Pretend-to-Work companies
I thought WeWork which officially rented office space with amenities to startups and individual who wanted a workspace not at home was close to this, at least for some people who lacked self-discipline to work without bosses, but in China (the People’s Republic), there are now actual pretend-to-work companies, where people can for a small pay pretend to be office workers the whole day.
China is presumed to have high unemployment rate (official statistics are unreliable or missing) and there are social pressures for people to work. By paying for pretend-to-work day, people can LARP working in corporation, pretend to others that they are working, or just have an airconditioned space with computer terminal in which to spend time, like an internet cafe.
PlanktonPunkt 