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The Premiership of Mary Elizabeth Truss.Sept 2022 - Oct 2022

The one thing that is good about this simply staggering economic incompetence it will prune the Tory vote right back to the most wealthy elites and the most extreme Thatcherites. ‘Red Wall’? Gone. Middle-class rural and urban Lib Dem-curious floaters? Gone. If they carry on such an obvious elite class warrior low-tax low-human-rights path they really are toast. There is absolutely no popularism to this budget. It is a largely off-shored wealthy elite gang-raping what is left of a failing nation.

The way this is being reported is telling too. I’m watching Sky News, which is hardly the Socialist Worker, and they are reporting the crash of Sterling and the gilt market, describing it as the most extreme and risky budget of a lifetime, highlighting the extent to which experts across the world are at a loss to find any logic to it. They are also interviewing normal folk in normal working class areas (Wakefield I think) who understand more than enough to know they are screwed. They’ve been hung out to dry.

I expect a u-turn very, very soon, but if not the Tory poll rating will follow Sterling right down the shitter.
And delivered by a frankly bizarre character who sat openly gurning in a pew at Westminster Abbey as they brought the body of the Monarch into the building. Irvine Welsh could not even write this.

https://twitter.com/louishenwood/status/1571890023661699074?s=21&t=hG_qwcuxGNkrlPvBDgwGGw
 
The dollar is up every day at the minute, 1.5% today alone, so it is pretty hard not to collapse against it.
 
My goodness, parity with the Swiss franc approaches...

I mentioned on here a few weeks ago that this was likely. I wish i was able to put my money where my mouth is, when it comes to acting on my predictions, I am useless.
 
If UK interest rates do indeed hit 5.5% - as markets now expect - the impact for mortgage affordability will be the worst this country has seen since the late 1980s/early 1990s. That was probably the worst housing crash in the modern era. This is not pretty at all.

https://twitter.com/EdConwaySky/status/1573341352259108870

I think it's safe to say that they don't know the difference between the old A & the E.
 
Worth repeating. Take all the tax changes coming in over next few years and:

If your income is < £155k, you lose

If your income is > £155k you win

If your income > £1m you gain more than £40,000


Paul Johnson, Director of IFS (Twitter).
 
The mini-budget could potentially create a run on the pound, warns Neil Mehta, a portfolio manager at BlueBay Asset Management:


This announcement has caught investors off guard. The program set out this morning is potentially destabilizing to UK government finances, and could even create a run on the pound.

As the pound falls, the Bank of England is probably going to have to react on a falling, depreciating currency, which in itself has an inflationary impact.

Tax cuts will have a medium term inflationary impact, and the Bank of England is going to have to react by raising rates even further. Markets are now pricing that Bank of England rates are going to go up by five and a half percent by next year.

https://www.theguardian.com/politic...0894f47d8a43ba#block-632de2df8f0894f47d8a43ba
 
The tumble in the pound, and in government bonds, is so serious that the Bank of England should hold an emergency meeting to raise interest rates to calm the markets, suggests a Deutsche Bank analyst.

George Saravelos, Deutsche Bank’s head of global FX research, told clients that a “large, inter-meeting rate hike from the Bank of England as soon as next week” is needed.

This would “regain credibility with the market”, Saravelos explained in a research note.

He added that a strong signal by the BoE that it was willing to do “whatever it takes” to bring inflation down quickly and move real yields into positive territory would help.

Emergency central bank meetings are rare – usually triggered by financial crises, or a pandemic, not a “fiscal event” meant to boost growth.

But Saravelos writes that the BoE needs to take action to respond to the sharp drops in sterling and gilts.

The Bank is due to hold its next monetary policy meeting in November, having raised interest rate by 50 basis points yesterday.

https://www.theguardian.com/politic...0822acf24f5618#block-632ddc118f0822acf24f5618
 
C'mon he's only been in the job barely a fortnight. We've all had jobs where we drop a few clangers when we're new.

How many of us haven't sent an email to the CEO with an embarrassing typo? Or spilt coffee on a client? Or crashed a G7 economy?
Or smirked and fidgeted through a Monarch's funeral service?
 
Pound crashes as markets lose confidence in government

This is turning into an absolute rout on the pound, as the markets give a scathing verdict to Kwasi Kwarteng’s unfunded tax cuts and extra spending.

Having dropped through $1.10 earlier this afternoon, sterling has continued to crash….. all the way down to a new 37-year low of $1.09.

The pound has lost 3.5 cents today, cratering by 3% – on track for its worst day since the market panic of March 2020 when the pandemic hit.

https://www.theguardian.com/politic...0822acf24f54bd#block-632dc9ad8f0822acf24f54bd

Nick Macpherson, the former Permanent Secretary to the Treasury, tweets that he can’t remember such a strong market reaction to any previous fiscal event, over 30 years of service.

He points out that the pound has lost 2.5% against the Japanese yen, as well as tumbling against 3% the dollar and 1.8% vs the euro, while borrowing costs have surged alarmingly.

https://www.theguardian.com/politic...0894f47d8a42c2#block-632dd4208f0894f47d8a42c2

Where did the the Tories get their reputation for managing the economy anyway?

A year before the Brexit vote (because sterling started to fall as the probability of a leave victory rose) sterling was trading at $1.50.
https://www.exchangerates.org.uk/GBP-USD-spot-exchange-rates-history-2015.html

So the pound has lost nearly 30% against the USD since Brexit. Project fear eh ?! F*ck*n idiots.
 
Tories always gonna Tory. I remember friends losing houses in the ‘80s due to Thatcher’s financial mismanagement and this is a whole other level of stupid.

PS I bet Rees Mogg has made a couple of £million in the past few minutes.
 


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