Philip Pilkington Profile picture
Jul 4 12 tweets 3 min read Twitter logo Read on Twitter
1/ Yesterday I published an article in @unherd arguing that the situation leading up to the French riots is being driven by high food prices and low consumption. I presented INSEE data showing a 17% drawdown in food consumption, totally unprecedented in recent history. Chart 👇
2/ I wouldn’t usually comment on the response to one of my articles - negative comments really don’t bother me. But the response to this was fascinating: person after person expressed disbelief in the numbers, said I hadn’t sourced them, and surmised that I made them up.
3/ I did not, of course, and I’ll link to the stats on France’s central database below. But its the reaction that I thought fascinating. I’ve never been accused by multiple independent people of just making up stats before. What an odd response!
4/ So what was it all about? Why were all these people saying I made the data up? Well, obviously they couldn’t believe the numbers. They were too shocking. If true, they presented a picture of Europe of catastrophic proportions.
5/ The more I thought about it, the more I suppose this to be the case. The impacts of the war on food prices don’t shock me. This is what war DOES. Its why so many wars trigger upheaval. But I guess many others are not familiar with this.
6/ It seems many people are locked into a mindset that (a) nothing that happens elsewhere in the world really affects them and (b) for all of our problems, developed countries will always be able to provide the goods on basic foodstuffs.
7/ Well, the latter point remains true - at the time of writing anyway. 17% decline is a massive number. But no one will starve. That said, skipping a meal or vastly lowering the standards of your diet might make you, well, hangry and that is enough for social pressure to build.
8/ The idea that the developed world is insulated from what happens abroad, however, is a very dangerous assumption. The cause-and-effect of the 17% decline in consumption are obvious enough. And there are other tensions rising in the world right now.
9/ The current war has only impacted energy and food prices. What do you think an all-out trade war with China would look like? Replacement parts for key components would likely dry up. You ain’t seen nothin’ yet folks!
10/ Anyway here is the link to the INSEE data. Feel free to replicate my chart. Its real.
insee.fr/en/statistique…
11/ And here is the piece that provoked the denialism. Check out the comments if you’re interested.
unherd.com/thepost/blame-…
12/ Screen-grab of chart on INSEE website.

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More from @philippilk

Jun 23
1/ There seems to be a bit of confusion being spread regarding the BoE 0.5% rate hike yesterday and how it will impact the coming recession. Apparently it is now mainstream to say that there will be a recession in the next 12 months. That’s a new development in and of itself.
2/ But the latest debate is whether this recession would not have happened without more rate hikes. In all likelihood it would, but this is really besides the point.
3/ Some are arguing that, since the recession was inevitable anyway the BoE did the wrong thing by hiking rates. The rationale for this is that we were in for a recession anyway but the rate hike will only make it worse.
Read 9 tweets
May 31
1/ The UK could be in a bit of trouble here. Labour are clearly dipping into the American liberal left playbook for basically all their policies. But where policies may be viable in the US, they may be harmful and even dangerous in the UK. Image
2/ First off, to be clear, I’m not shilling for carried interest. Looked at in terms of ‘fairness’ its debatable whether it should be taxed as capital gains. From an economic point-of-view, the carried interest debate isn’t even interesting. Except maybe in the case of the UK…
3/ Two words stand out. Tax. Raid. And those are the only two words people in the City will see. Image
Read 14 tweets
May 30
1/ Labour plan on allowing councils to force landholders to sell land at rates that don’t take into account potential improvements. Labour’s plan buys into the mythology that the problem is too little supply and so will fail like all the other failed plans. 🧵 Image
2/ Other countries in Europe already to do this - and they have the same high house prices as the UK. For example, in the Netherlands they have this system and yet housing is still top of the list in elections. Image
3/ Not surprising given that the Netherlands have one of the highest house price-to-income ratios in the world. Land confiscation policies make little difference. Image
Read 16 tweets
Apr 24
1/ A 🧵on the @SecYellen speech which, while promising, seems to be a bit myopic both on the relative economic position of the US and on the relative isolation the US is experiencing in their China policies. Image
2/ The section that caught the headlines highlighted that the US did not want to decouple from China, calling such a prospect “disastrous”. Image
3/ But this section only followed on from @SecYellen doubling down on their trade war against China. Regarding these policies, Yellen first talks about ‘unfairness’ but then… Image
Read 14 tweets
Apr 18
1/ Much discussion of de-dollarisation going on. But many seem not to understand what the process would look like and whether it can be 'measured' with today's data. Let's bust a few myths about global reserve currencies and what it means when they rise or fall. 🧵
2/ A lot of people out there are pointing to present reserve holdings and saying that these determine which currencies may emerge or remain in the shadoes. Here is a typical chart from @johnauthers this morning which he uses to claim the dollar is going nowhere. Image
3/ Too simplistic. A currency can lose a lot of reserve share and remain the globally hegemonic currency. Here's international reserve composition in the early 20th century. Despite falling to less than 50% of reserves, sterling remained the global hegemonic currency in 1913. Image
Read 11 tweets
Apr 17
1/ @Lagarde decided to go to New York and give a barnstormer speech on the emerging multipolar world. She didn’t even entertain the idea that it isn’t happening. She just assumed it is. She must be listening to @MultipolarPod! Highlights 👇 Image
2/ She raises the issue that countries are experimenting with alternative currencies for trade settlement. Note she assumed that this is perfectly viable - because it is. Image
3/ Next she points to countries creating new payments system eliminating their dependence on SWIFT. Note again: its assumed this is viable. Image
Read 6 tweets

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