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

Ponty said:
Pensions. Don’t panic. If you hold overseas equities, they increase in value if sterling devalues. Many of the top FTSE companies are global with significant USD and overseas earnings.
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Agree with this. I'm less certain what it means for fixed income - which will constitute the larger part of many private pensions.
 
paulfromcamden said:
Agree with this. I'm less certain what it means for fixed income - which will constitute the larger part of many private pensions.
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Many pensions in payment (like mine) are no longer hard wired to inflation. A prolonged period of high inflation will be a disaster for me.
 
Ponty said:
Bang on. Far too much cheap money for far too long and too much govt and consumer spending. Here’s the bill.
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Well, that's what twelve years of Tory does. Now we have 'real conservatism' though, so everything will be fine.
 
gavreid said:
Many pensions in payment (like mine) are no longer hard wired to inflation. A prolonged period of high inflation will be a disaster for me.
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Public sector? If so count yourself lucky as you’re largely immune to what happens in the real world to pension funds.
 
notaclue said:
A full-blown Sterling crisis. The lowest against the dollar EVER.
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“Sterling fell to an ALL TIME LOW against the dollar in early trading - lowest basically since the dollar was created… $1.035 recovered some of that in last hour, now at $1.06. But this is some slump after investors questioned the policy of massive tax cuts and borrowing…”

Faisal Islam (Twitter).

Puts it into perspective. The unhinged economic recklessness of this Tory government has crashed Sterling to the lowest level it has ever been since the US dollar was created with parity in 1792! There is no way a Tory government can ever sneer at any other party for anything economic ever again. They are the undisputed heavyweight champions of economic mismanagement. They own it.

As others have said this isn’t some academic Westminster political thing either. This is already crippling energy prices mirroring upwards at the exact speed of the £s hot brick-like descent down the shitter. It will impact us all hugely. Expect a lot of businesses to go under very fast as rapidly increasing materials costs etc make them entirely unviable. This will push unemployment, reduce tax take and the death spiral accelerates recursively. The Tories really have &***ed it up this time. They need to admit they have got it wrong and reverse out.
 
Well employment up is what they want isn't it? That's how they get things back on track, so they'll be rubbing their hands at that one, plus all their mates will be able to hoover up a shit ton of cheap houses when everyone has to sell up to live in a tent.

"You'll own nothing and be happy" playing out nicely.
 
Hopefully people will realise that govts can’t borrow / QE to their hearts content. It would indeed be bizarre if labour call for a return to the ‘household budget’.
 
Ponty said:
Hopefully people will realise that govts can’t borrow / QE to their hearts content. It would indeed be bizarre if labour call for a return to the ‘household budget’.
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Don’t buy the propaganda narrative. The £ has crashed because there was zero substance to this government or their budget. It is a budget based purely on gambling, cocaine addled minds, corruption and an ideology that has been proven to fail. It looked stupid and entirely reckless to everyone so it has deservedly been called-out by the markets. It could not be more 21st century Tory.
 
TheDecameron said:
It’s heading for parity with the dollar, it’s being suggested but it’s tanking against the € as well. It seems every time Kwarteng opens his mouth, the arse falls out of the £ and he’s pledging more tax cuts to come!

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Now under 1.06 to the Swiss franc - how low can you go?

 
Tony L said:
Don’t buy the propaganda narrative. The £ has crashed because there was zero substance to this government or their budget. It is a budget based purely on gambling, cocaine addled minds, corruption and an ideology that has been proven to fail. It looked stupid and entirely reckless to everyone so it has deservedly been called-out by the markets. It could not be more 21st century Tory.
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This has been brewing for years. There was a chance to reset in 2008 but no, IR’s smashed to the floor to bail out the over extended. Things were looking twitchy in 2019 then bang, covid hit. Everywhere flooded with free cash, which will be looked back on as a mistake I’m sure. Just as we were turning the corner from covid, Putin makes his move. Now there’s nowhere to go, inflation roaring so rates can only go one way i.e. back to a ‘normal’ level. Just as inflation is bought under control they’ll slash rates at the earliest opportunity and off we’ll go again on the next cycle. Brown called it boom and bust.
 
My biggest contempt in all of this is for the argument that goes:

2008 QE and borrowing will be our doom any day now.
2009 QE and borrowing will be our doom any day now.
2010 QE and borrowing will be our doom any day now.
2011 QE and borrowing will be our doom any day now.
...
2021 QE and borrowing will be our doom any day now.
2022 See I was right all along!

It's just catastrophically stupid.
 
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