| Bond buying to end friday on 22:37 - Oct 11 with 1576 views | Churchman |
There will be further carnage from tomorrow. This is a crisis of Truss and the boneheads making. No other suspects, no blame to be placed on anybody or anything else. The mess they’ve created is neatly summarised here.
https://www.economicshelp.org/blog/171028/economics/the-uks-self-imposed-economi
Everybody is about to get poorer very quickly - apart from the privileged and wealthy of course. [Post edited 11 Oct 2022 22:38]
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| Bond buying to end friday on 22:50 - Oct 11 with 1541 views | StokieBlue |
| Bond buying to end friday on 22:37 - Oct 11 by Churchman |
There will be further carnage from tomorrow. This is a crisis of Truss and the boneheads making. No other suspects, no blame to be placed on anybody or anything else. The mess they’ve created is neatly summarised here.
https://www.economicshelp.org/blog/171028/economics/the-uks-self-imposed-economi
Everybody is about to get poorer very quickly - apart from the privileged and wealthy of course. [Post edited 11 Oct 2022 22:38]
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It's been utterly awful, there clearly isn't 60bn of possible reductions in public services and there isn't 60bn of immediate growth which is going to pay for the black hole in the governments accounts.
Truss will be forced to back down on the tax cuts or at least made to delay them. Eventually there will be U-turns on most of the pledges because they are economically stupid.
Unfortunately by then the damage will be done and it will be hard to reverse.
SB |  |
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| Bond buying to end friday on 23:05 - Oct 11 with 1490 views | BanksterDebtSlave |
| Bond buying to end friday on 22:37 - Oct 11 by Churchman |
There will be further carnage from tomorrow. This is a crisis of Truss and the boneheads making. No other suspects, no blame to be placed on anybody or anything else. The mess they’ve created is neatly summarised here.
https://www.economicshelp.org/blog/171028/economics/the-uks-self-imposed-economi
Everybody is about to get poorer very quickly - apart from the privileged and wealthy of course. [Post edited 11 Oct 2022 22:38]
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" The Bank of England had even begun quantitative tightening — selling off the bonds it bought in the last recession."
Is there an element here of the markets reacting to the unwinding of the QE money tree?
How long I wonder until the heads of HSBC, G. Sachs, Citigroup, Barclays etc just cut the middle men/women and take on the role of government (financial policy). After all they are the experts! |  |
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| Bond buying to end friday on 23:20 - Oct 11 with 1427 views | BanksterDebtSlave |
| Bond buying to end friday on 22:50 - Oct 11 by StokieBlue |
It's been utterly awful, there clearly isn't 60bn of possible reductions in public services and there isn't 60bn of immediate growth which is going to pay for the black hole in the governments accounts.
Truss will be forced to back down on the tax cuts or at least made to delay them. Eventually there will be U-turns on most of the pledges because they are economically stupid.
Unfortunately by then the damage will be done and it will be hard to reverse.
SB |
What is the difference between this 60 billion and the energy price cap cost of around 90 billion or the Covid 400 billion?
https://www.theguardian.com/business/2022/oct/05/uk-price-cap-on-household-energ
https://commonslibrary.parliament.uk/research-briefings/cbp-9309/ | |
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| Bond buying to end friday on 23:31 - Oct 11 with 1409 views | factual_blue |
| Bond buying to end friday on 22:50 - Oct 11 by StokieBlue |
It's been utterly awful, there clearly isn't 60bn of possible reductions in public services and there isn't 60bn of immediate growth which is going to pay for the black hole in the governments accounts.
Truss will be forced to back down on the tax cuts or at least made to delay them. Eventually there will be U-turns on most of the pledges because they are economically stupid.
Unfortunately by then the damage will be done and it will be hard to reverse.
SB |
Pfft.....you're just a cheerleader for the anti-growth coalition. |  |
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| They have to walk back the budget, but the won’t, and they’ll blame mythical on 23:35 - Oct 11 with 1398 views | unstableblue |
| Bond buying to end friday on 22:37 - Oct 11 by Churchman |
There will be further carnage from tomorrow. This is a crisis of Truss and the boneheads making. No other suspects, no blame to be placed on anybody or anything else. The mess they’ve created is neatly summarised here.
https://www.economicshelp.org/blog/171028/economics/the-uks-self-imposed-economi
Everybody is about to get poorer very quickly - apart from the privileged and wealthy of course. [Post edited 11 Oct 2022 22:38]
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… bad actors such as the anti-growth coalition
And the Daily Hate and Express will back them…
And the country will further divide
Truss and this government will go down spewing bile about ‘the leftist woke net zero anti growth north London trans rights loonies”…
And GB News and Talk TV will grow as the BBC diminishes and before you know it we’ll have US politics
And still no one will tackle Brexit or the economy… even as recession and a housing crash commences |  |
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| Bond buying to end friday on 23:36 - Oct 11 with 1387 views | XYZ |
| Bond buying to end friday on 22:50 - Oct 11 by StokieBlue |
It's been utterly awful, there clearly isn't 60bn of possible reductions in public services and there isn't 60bn of immediate growth which is going to pay for the black hole in the governments accounts.
Truss will be forced to back down on the tax cuts or at least made to delay them. Eventually there will be U-turns on most of the pledges because they are economically stupid.
Unfortunately by then the damage will be done and it will be hard to reverse.
SB |
Indeed - this is the BoE gently kicking back against the government spin.
This is going to get quite ugly, I fear. |  | | |
| Bond buying to end friday on 23:40 - Oct 11 with 1377 views | StokieBlue |
| Bond buying to end friday on 23:36 - Oct 11 by XYZ |
Indeed - this is the BoE gently kicking back against the government spin.
This is going to get quite ugly, I fear. |
One of the main issues is the markets see it as poor book keeping. Borrowing large sums for things like the energy cap or covid are seen differently as they are events which are primarily outside the control of the government.
The 60bn+ black hole which we now have has been entirely created by the government by pushing a tax cutting ideology which is totally unfunded. Tax cuts that are funded with sound financial management won't spook the markets, borrowing to fund tax cuts is just ridiculous and the cost of UK borrowing and the strength of Sterling will reflect this fact.
SB | |
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| Bond buying to end friday on 23:59 - Oct 11 with 1316 views | Churchman |
| Bond buying to end friday on 23:40 - Oct 11 by StokieBlue |
One of the main issues is the markets see it as poor book keeping. Borrowing large sums for things like the energy cap or covid are seen differently as they are events which are primarily outside the control of the government.
The 60bn+ black hole which we now have has been entirely created by the government by pushing a tax cutting ideology which is totally unfunded. Tax cuts that are funded with sound financial management won't spook the markets, borrowing to fund tax cuts is just ridiculous and the cost of UK borrowing and the strength of Sterling will reflect this fact.
SB |
£60bn is dead easy to find from the bloated, useless public sector.
NHS and Social care annual bill £200bn
Defence £48bn
Education £116bn
Police £15bn
Even a little 10% haircut raises about £35bn before you even start on the rest. Scrap BEIS, DCMS, DEFRA for starter (we are already tipping sewage into the sea and rivers and cutting red tape so we don’t need the dead hand blocking progress). Border Force - 20% cut. People can wait a little longer. Prisons. It’s voluntary. An extra con per cell and a 10% cut. And so on.
This is fag packet madness, but just as much effort went into this rubbish as Truss and Kwarseng’s pathetic effort. | | | |
| Bond buying to end friday on 00:01 - Oct 12 with 1318 views | XYZ |
| Bond buying to end friday on 23:40 - Oct 11 by StokieBlue |
One of the main issues is the markets see it as poor book keeping. Borrowing large sums for things like the energy cap or covid are seen differently as they are events which are primarily outside the control of the government.
The 60bn+ black hole which we now have has been entirely created by the government by pushing a tax cutting ideology which is totally unfunded. Tax cuts that are funded with sound financial management won't spook the markets, borrowing to fund tax cuts is just ridiculous and the cost of UK borrowing and the strength of Sterling will reflect this fact.
SB |
There's one easy solution that the markets would react to instantly.
"I'm sorry, we ballsed up. We'd like to rejoin the EU and we'll accept the consequences, including joining the Euro so that the UK population have a stable currency overseen by a reliable political infrastructure that the UK constitution is unable to provide."
Yep, the only way of saving the UK is to go to Germany and France with a begging bowl.
Well done Mr Farage! | | | |
| Bond buying to end friday on 00:04 - Oct 12 with 1309 views | HARRY10 |
who would have thought that trying to bring in one of the real intents of Brexit would cause so much panic | | | |
| Bond buying to end friday on 00:08 - Oct 12 with 1301 views | giant_stow |
Anyone know why the bank is stopping thee purchases? Read the article but couldn't see the rational behind stopping on Friday. |  |
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| Bond buying to end friday on 00:11 - Oct 12 with 1290 views | XYZ |
| Bond buying to end friday on 00:08 - Oct 12 by giant_stow |
Anyone know why the bank is stopping thee purchases? Read the article but couldn't see the rational behind stopping on Friday. |
Calling the Government out.
"Sort your sh!t fiscal policy out and stop blaming us and making us milk the magic money tree again that you pretend you haven't been milking since 2010 whilst claiming to be fiscally responsible, you absolute Jeremy Hunts. | | | |
| Bond buying to end friday on 00:18 - Oct 12 with 1276 views | giant_stow |
| Bond buying to end friday on 00:11 - Oct 12 by XYZ |
Calling the Government out.
"Sort your sh!t fiscal policy out and stop blaming us and making us milk the magic money tree again that you pretend you haven't been milking since 2010 whilst claiming to be fiscally responsible, you absolute Jeremy Hunts. |
It does look that way innit, but is there any technical reason to stop the purchases? Cos if not, it *really* looks that way in quite a dramatic way, I spose | |
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| Bond buying to end friday on 00:36 - Oct 12 with 1250 views | XYZ |
| Bond buying to end friday on 00:18 - Oct 12 by giant_stow |
It does look that way innit, but is there any technical reason to stop the purchases? Cos if not, it *really* looks that way in quite a dramatic way, I spose |
The BoE can't carry on forever. They need the Government to act. They are not doing so.
They're saying, "OK you want the sh!t to hit the fan? Let's see what happens" | | | |
| Bond buying to end friday on 01:17 - Oct 12 with 1234 views | HARRY10 |
| Bond buying to end friday on 00:11 - Oct 12 by XYZ |
Calling the Government out.
"Sort your sh!t fiscal policy out and stop blaming us and making us milk the magic money tree again that you pretend you haven't been milking since 2010 whilst claiming to be fiscally responsible, you absolute Jeremy Hunts. |
Will the government come out ?
And will the banks stand outside like that bloke playing Benny Hill ?
However, newspeak aside, it comes down to the BoE wanting pension funds to act quicker - which they claim is not easy ie a shopping centre cannot be turned into cash overnight.
Basically pension funds have been working on the basis of steady as she goes as low interest rates have meant a careful 'playing of the market to ensure liabilities are met.
Khazis brexit lunacy threw the markets into almost meltdown and sent gilt yields soaring. Meaning in absolute laymans language is that it will now cost more to pay some pensions. More than had been budgetted for. Meaning assets were needed to be sold to meet those liabilities (pension payments.
Swell as that not being easy (as above) it is not prudent to dispose of assets at the wrong time ie selling a lawn mower at the beginning of winter rather than at the beginning of spring. However, I suspect some arrangement will be made, as the consequences could be worse than 27th Sept.
Watching Kharzi at the dispatch box yesterday it is clear he really does not have a clue about this, and is merely a useful idiot spouting brexit shy te like a true believer. Truss is no better. While Johnson was acutely aware of his limitations (ignorance some might say) Truss is not.
Hers is a world where 'Daisy pulls it off'. Where determination can over come deficiencies, ambition trumps ability and nothing is so worthy that it cannot be dumped. You only have to watch her conference speeches of yesteryear to know that the words on the autocue after "and that is a disgrace"were "pull angry face, for 5 seconds."
And like some thought to be long retired vampire, the old beliefs are rising once more. Braverman and a hatred of immigrants, Coffey supporting smoking, reversing green projects, cutting benefits and cutting taxes for the rich.
All I can say is welcome. Welcome to those too young to know why the Tories were known as the nasty party. And may you might then wonder why, after a history of being the nasty party, thickos thought they had changed.
Yeh, like Dracula had changed and become a blood donor. | | | |
| Bond buying to end friday on 07:36 - Oct 12 with 1022 views | BanksterDebtSlave |
| Bond buying to end friday on 23:40 - Oct 11 by StokieBlue |
One of the main issues is the markets see it as poor book keeping. Borrowing large sums for things like the energy cap or covid are seen differently as they are events which are primarily outside the control of the government.
The 60bn+ black hole which we now have has been entirely created by the government by pushing a tax cutting ideology which is totally unfunded. Tax cuts that are funded with sound financial management won't spook the markets, borrowing to fund tax cuts is just ridiculous and the cost of UK borrowing and the strength of Sterling will reflect this fact.
SB |
Although it should benoted that the IMF have been highly critical of the broad reach of the energy cap saying that consumers need to adjust to the new normal. I would also suggest that the well off with savings should not have been so generously supported via furlough. (Universal Credit levels for all would seem fairer)
I see also that Labour backed the cut in NI yesterday. I wonder how much of the 60 billion that accounts for? (Looks like in the region of 10 billion.... https://commonslibrary.parliament.uk/research-briefings/cbp-9309/ )
The Emperor Has No Clothes....we need the markets to work for society rather than private wealth. | |
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| Bond buying to end friday on 07:40 - Oct 12 with 1014 views | BanksterDebtSlave |
| Bond buying to end friday on 00:08 - Oct 12 by giant_stow |
Anyone know why the bank is stopping thee purchases? Read the article but couldn't see the rational behind stopping on Friday. |
I imagine they want to have their foot on either the brake or the accelerator rather than both! Their preference being the brake. | |
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| Bond buying to end friday on 07:46 - Oct 12 with 1004 views | BanksterDebtSlave |
| Bond buying to end friday on 01:17 - Oct 12 by HARRY10 |
Will the government come out ?
And will the banks stand outside like that bloke playing Benny Hill ?
However, newspeak aside, it comes down to the BoE wanting pension funds to act quicker - which they claim is not easy ie a shopping centre cannot be turned into cash overnight.
Basically pension funds have been working on the basis of steady as she goes as low interest rates have meant a careful 'playing of the market to ensure liabilities are met.
Khazis brexit lunacy threw the markets into almost meltdown and sent gilt yields soaring. Meaning in absolute laymans language is that it will now cost more to pay some pensions. More than had been budgetted for. Meaning assets were needed to be sold to meet those liabilities (pension payments.
Swell as that not being easy (as above) it is not prudent to dispose of assets at the wrong time ie selling a lawn mower at the beginning of winter rather than at the beginning of spring. However, I suspect some arrangement will be made, as the consequences could be worse than 27th Sept.
Watching Kharzi at the dispatch box yesterday it is clear he really does not have a clue about this, and is merely a useful idiot spouting brexit shy te like a true believer. Truss is no better. While Johnson was acutely aware of his limitations (ignorance some might say) Truss is not.
Hers is a world where 'Daisy pulls it off'. Where determination can over come deficiencies, ambition trumps ability and nothing is so worthy that it cannot be dumped. You only have to watch her conference speeches of yesteryear to know that the words on the autocue after "and that is a disgrace"were "pull angry face, for 5 seconds."
And like some thought to be long retired vampire, the old beliefs are rising once more. Braverman and a hatred of immigrants, Coffey supporting smoking, reversing green projects, cutting benefits and cutting taxes for the rich.
All I can say is welcome. Welcome to those too young to know why the Tories were known as the nasty party. And may you might then wonder why, after a history of being the nasty party, thickos thought they had changed.
Yeh, like Dracula had changed and become a blood donor. |
I suspect that the shorter version of this is pension funds and the wider markets are having a melt down because the QE taps started to be turned off/interest rates going up. Perhaps the can just ran out of road. | |
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| Bond buying to end friday on 07:56 - Oct 12 with 907 views | noggin |
It's all Corbyn's fault though. |  |
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| Bond buying to end friday on 08:01 - Oct 12 with 883 views | bluelagos |
Anyone knowledgable about pension funds on here?
Qn. Given the issue of liquidity, namely the risk they run out of cash rather than go bust....why don't they simply offload some of their liquid assets (I.e. Shares) to meet the short term need for cash? |  |
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| Bond buying to end friday on 08:03 - Oct 12 with 843 views | nrb1985 |
| Bond buying to end friday on 07:46 - Oct 12 by BanksterDebtSlave |
I suspect that the shorter version of this is pension funds and the wider markets are having a melt down because the QE taps started to be turned off/interest rates going up. Perhaps the can just ran out of road. |
Ffs give it a rest mate.Every time you open your mouth on this subject it's more embarrassing than the last and shows you have little to no understanding of the subject at hand.
Overall, higher interest rate environment should be better for pension funds meaning that government debt and investment grade bonds actually start to yield something.
Honestly, please read up on financial markets and how they function before posting because what you and nodge blue have been spouting on this and another thread is wildly inaccurate and full of Icke like conspiracy that it's all a house of cards to keep the masses in check. | | | |
| Bond buying to end friday on 08:10 - Oct 12 with 802 views | homer_123 |
| Bond buying to end friday on 23:59 - Oct 11 by Churchman |
£60bn is dead easy to find from the bloated, useless public sector.
NHS and Social care annual bill £200bn
Defence £48bn
Education £116bn
Police £15bn
Even a little 10% haircut raises about £35bn before you even start on the rest. Scrap BEIS, DCMS, DEFRA for starter (we are already tipping sewage into the sea and rivers and cutting red tape so we don’t need the dead hand blocking progress). Border Force - 20% cut. People can wait a little longer. Prisons. It’s voluntary. An extra con per cell and a 10% cut. And so on.
This is fag packet madness, but just as much effort went into this rubbish as Truss and Kwarseng’s pathetic effort. |
Yeah - feck the already underfunded Health and Education sectors. |  |
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| Bond buying to end friday on 08:34 - Oct 12 with 737 views | blueislander |
| Bond buying to end friday on 08:10 - Oct 12 by homer_123 |
Yeah - feck the already underfunded Health and Education sectors. |
Unbelievable interview with Rees-Mogg this morning. Complete denial that the fiscal event was in any way responsible for the pound tanking and B of E emergency measures. All the fault of US rates rising. Unfortunately Sally Nugent did not challenge him. | | | |
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