Liz fucking Truss then.....

[magicrat]

Hard to see how Truss rows back from this shit show. As I’ve said before the cuts don’t happen until next April and I see no way they will get them over the line . Kwarteng is just collateral damage , it’s Truss pulling the strings and she is famously intransigent and has tunnel vision. Something has to give and I suspect sooner rather than later she will be forced to throw Kwasi to the dogs and select reverse gear . Expect a very acrimonious Conference and markets shitting all over us for the next few weeks whilst she behaves like a tit in a trance 

[littletedwest]

All going swimmingly so far for Truss 

[the chimp]

4 minutes ago, DalyanPete said:

I accepted long ago I wasn't part of any plans governments might have.

Shares, house prices, dabbling in exchange rates. Available only to those who can afford to lose cash.

Are people on here still gambling on crypto shit? Not seen the thread bumped in a while.

 

All in. Convinced (or why would I be involved) it will be great for when I retire or for my Mrs if I don't get that far.. I only put in what I have spare and don't mind losing mind you, plus I fucked off in 2003. 

[Gnasher]

Just now, littletedwest said:

All going swimmingly so far for Truss 

She's actually suprised a few people. She's worse than we thought. 

 

 

I get the impression that economist wasn't impressed.

 

 

[an tha]

So the bank of england is effectively rescuing the government then...

 

The Treasury has just responsed to the Bank of England's statement that it would be stepping in to calm markets by buying government bonds.

"Global financial markets have seen significant volatility in recent days," the Treasury says.

"The Bank has identified a risk from recent dysfunction in gilt markets, so the Bank will temporarily carry out purchases of long-dated UK government bonds from today in order to restore orderly market conditions."

The Treasury added that Chancellor Kwasi Kwarteng was committed to the Bank of England’s independence.

"The government will continue to work closely with the Bank in support of its financial stability and inflation objectives."

The statement confirmed the Bank's assurance that the purchases will be strictly time-limited, and completed in the next two weeks and fully indemnified by HM Treasury

[an tha]

The Bank of England has launched a surprise and potentially huge intervention in government bond markets to prevent what it said was a “material risk to financial stability” arising from market turmoil after Friday’s mini-budget.

The Bank will now buy unlimited quantities of long-term debt.

The effective interest rates being charged to the UK government in these markets was spiralling to 20-year highs. That has now fallen back.

It is very similar to the policy of quantitative easing that saw money pumped into the economy during crisis periods. It could also help the government’s funding costs.

But it was not a decision made by the Bank’s Monetary Policy Committee, who were informed of the decision after it was made by the Bank’s financial experts.

It comes at exactly the same time as that committee had been committed to doing the exact reverse policy - selling government debts.

The process was due to start next week and has been delayed. It is a massive intervention, but it could confuse markets about the clarity of policy making.

[Anubis]

30 minutes ago, Gnasher said:

Times like this call for a good old fashioned game of bluff and double bluff.. lose and you crash the economy.

 

Some commentators saying Truss could be gone by Christmas.

 

 

I thought the rules had been changed to stop any challenge until 12 months had past? Unless they’re planning to assassinate her.

 

Maybe a vote of no confidence?

[Anubis]

 

 

[clangers]

4 minutes ago, Anubis said:

I thought the rules had been changed to stop any challenge until 12 months had past? Unless they’re planning to assassinate her.

 

Maybe a vote of no confidence?

Isn't that after the sitting PM has faced down a vote of no confidence. So if they trigger a vote and she won she'd then be safe for 12 months unless they change the rules again.

 

I still think it's unlikely they'll remove her before the next general election, it's approaching the point where it's too close to the election to do anything and they don't have an obvious replacement.

[Gnasher]

19 minutes ago, Anubis said:

I thought the rules had been changed to stop any challenge until 12 months had past? Unless they’re planning to assassinate her.

 

Maybe a vote of no confidence?

I'm not sure to be honest. 

[Gnasher]

Thats both the IMF and the Bank of England turned left wing.

 

 

[TD_LFC]

Starmers speech really was good then.

[Barrington Womble]

31 minutes ago, Anubis said:

 

 

The thing you keep hearing time and again is that they have done all this without any real costing around it. It's not just they're running up debt, people can get their heads around that, it's the fact they've not measured the impact of anything, which makes the markets think they've just made it up. Which they have. This is a political move because they want to reduce tax. They don't care about the impact, so why would they try to measure it? 

 

The thing with the markets, is they try to price everything in. It's hard to price in the unknown, so their appetite for risk is massively reduced. Strangely the exact opposite of what these morons are trying to do. They want everyone to risk everything for their ideals, just as they have done with this budget. 

 

Something Rachael reeves called immediately, they're just like drunk gamblers at the roulette table chasing their losses. 

[clangers]

Pound falling again, BoE stepping in to prop up the gilts market by burning through their own reserves, concerns that this will rapidly collapse pension funds. Massive uncosted borrowing spooking an already volatile market. Ultimately this could all lead to a credit crunch, house market crash and an even deeper recession.

 

It's all going swimmingly for Liz then.

[Anubis]

Hannan and Ashworth pushing the line that the prospect a Starmer Gov’t is giving the market jitters. Expect to see more Tories pushing this today as the word appears to have gone out from Tory HQ to push this line. 
 

Not that anyone with a brain is buying it, mind.

[Mudface]

10 minutes ago, Barrington Womble said:

The thing you keep hearing time and again is that they have done all this without any real costing around it. It's not just they're running up debt, people can get their heads around that, it's the fact they've not measured the impact of anything, which makes the markets think they've just made it up. Which they have. This is a political move because they want to reduce tax. They don't care about the impact, so why would they try to measure it? 

 

The thing with the markets, is they try to price everything in. It's hard to price in the unknown, so their appetite for risk is massively reduced. Strangely the exact opposite of what these morons are trying to do. They want everyone to risk everything for their ideals, just as they have done with this budget. 

 

Something Rachael reeves called immediately, they're just like drunk gamblers at the roulette table chasing their losses. 

Yep, exactly. As soon as it became apparent that the OBR had been excluded from this, it was obvious that they didn't want the budgetary impacts to be known. I get the feeling they wanted this to kickstart Truss's premiership, the tax cuts would occur next April, possibly coinciding with a royal coronation and they could have a feel good election around May before the shit hit the fan. They thought it would also put Labour in a bind with the old Cameron/ Osbourne 6th form 'trap', with Labour either going along with it, or having to say they'd reverse the cuts. Neatly and easily sidestepped by Labour saying they'd reverse the higher rate cut and use the money to fund the NHS.

 

It's all incredibly naive and made even worse by Kwarteng shitting on about further tax cuts to come in interviews over the weeked., but poetic justice that the markets they so venerate have shown what they think of it.

[Mudface]

6 minutes ago, Anubis said:

Hannan and Ashworth pushing the line that the prospect a Starmer Gov’t is giving the market jitters. Expect to see more Tories pushing this today as the word appears to have gone out from Tory HQ to push this line. 
 

Not that anyone with a brain is buying it, mind.

I hope they do try and push it, it's so obviously desperate and has already been contradicted by multiple economists and funds that it'll just look ridiculous. 

[M_B]

So we're printing money to buy our own debt. That's going to end well.

[Gooch]

1 hour ago, DalyanPete said:

I accepted long ago I wasn't part of any plans governments might have.

Shares, house prices, dabbling in exchange rates. Available only to those who can afford to lose cash.

Are people on here still gambling on crypto shit? Not seen the thread bumped in a while.

 

Like everything, it’s gone to shit the past year, but it’s definitely something worth keeping an eye on.

 

Youre right about not being part of government plans, it’s what drawn me towards crypto as it’s a shot at a better life that’s in my own hands and is very accessible, even if it is a casino. That is the hand that a lot of us have been dealt so best to try and make the most of it.

[halewood pete]

[Anubis]

That last sentence is pure poetry.

 

 

[Gnasher]

Bring back the shopping trolley, it was only a piece of cake.

 

 

 

 

 

 

[TD_LFC]

 

[Gnasher]

How's the new job going Liz?

 

 

 

 

[Barrington Womble]

44 minutes ago, Mudface said:

Yep, exactly. As soon as it became apparent that the OBR had been excluded from this, it was obvious that they didn't want the budgetary impacts to be known. I get the feeling they wanted this to kickstart Truss's premiership, the tax cuts would occur next April, possibly coinciding with a royal coronation and they could have a feel good election around May before the shit hit the fan. They thought it would also put Labour in a bind with the old Cameron/ Osbourne 6th form 'trap', with Labour either going along with it, or having to say they'd reverse the cuts. Neatly and easily sidestepped by Labour saying they'd reverse the higher rate cut and use the money to fund the NHS.

 

It's all incredibly naive and made even worse by Kwarteng shitting on about further tax cuts to come in interviews over the weeked., but poetic justice that the markets they so venerate have shown what they think of it.

Naive is the word. And it starts at the idea you can make tax cuts for April, but the market won't react when they're announced.