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Well, the money markets didn't like the mini budget. I met Liz Truss in a hotel in Monmouth a few years ago. She said her solution to pensioner poverty would be to feed them on Pedigree Chum. Not only would this save a lot of money, it would give them shiny coats and a nice cold nose.
Is that why you downvoted my post, because you've read a financially illiterate article in the Mirror about Brown's idiotic gold sell-off that you agree with?
From that article, no other quote necessary:
"Brown’s justification for the sale was to diversify the country’s assets. As Alan Beattie says in the FT , holding onto gold is a largely pointless activity for governments."
This illustrates a fundamental and dangerous misunderstanding about the nature of what is a store of value. The faith in fiat currency, which is implied here, is utterly misplaced. If fiat currency systems worked so well, why are we spiralling into a debt black hole?
[Post edited 25 Sep 2022 16:01]
I apologise if it annoyed you, I thought it was too harsh on Brown on the basis that, in my humble opinion, he had no choice but to rescue the banks. I shudder to think what would've happened if they had gone under taking businesses' and the public's money with them.
"Things had started becoming increasingly desperate at Loftus Road but QPR have been handed a massive lifeline and the place has absolutely erupted. it's carnage. It's bedlam. It's 1-1."
Your comment Hubble about "why are we spiralling into a debt black hole" hits the nail on the head
It's quite bizarre comments on this thread about the fall of the pound and posters are talking about energy plans for 2030. Its not relevant to the Original Post of this thread
The pound fell as markets view our government spending way too high alongside the debt we've already racked up and the market is recognising we won't be able to pay it back
But rather than asses that the usual fanatics are high jacking the thread and weirdly just talking about unrelated topics around medium to long term Green energy plan
Back to the topic, the pound will continue to weaken unless we show we can manage our debts so our options are either we have serious austerity or inflation disappears it away. Inflation though hammers the poor and the young who don't own assets and a bigger proportion of their income goes on these inflating essentials
We of course won't go with any real austerity (not the minuscule austerity of post 08). So inflation is what it will be. Central bankers might currently be on their way to trying to crash the economy and we will see periods in the next year or two of deflation but ultimately politicians will do what they do and what the lazy selfish self entitled British electorate will demand of them; print money, run up ever expanding debts and hope your generation dies before it needs to be dealt with
In August alone £8,200,000,000 of tax payers money went on repaying interest on our debts. Well actually around 20% of that is actually us borrowing more money to just pay interest. That's roughly the same as the country's education budget. What a disgraceful waste and this in a country where all you ever hear the Left moan about it we aren't spending and borrowing enough
Reducing the top rate of tax from 45p to 40p on a monthly basis is going to reduce the tax take by an expected £165,000,000. So about 2% of our monthly interest payments.
Wasting money like that on interest payments when we've not had any serious issues to deal with (WW2 style) means I'm quite ashamed of the selfishness of British society. Both on the Left and the Right who have allowed these unsustainable debts to be run up as they just aim to leave the mess for future generations. And the answer still even faced with debt at levels we see is to take on more debt. Borrow more money we can't afford and hope it's not our generations problem to deal with
Well we are beginning to face the consequences now
Disgustingly though, while all will suffer from inflation, the rich, those who own assets will be most protected from inflation as those assets increase in relative value. So that means the older generations most guilty causing this mess will suffer least. While the country's poorest and the young who don't own assets will suffer most
[Post edited 25 Sep 2022 18:12]
I think it's more complex than the pound falling because of spending, I think it's because the government plans is to give away vast amounts of money for nothing tangible in return. Investing in infrastructure or energy independence would still be debt but might be more palatable/understandable.
The blades used on wind turbines when worn out have to be buried as they are non -biodegradable. Alternatively they are sometimes burnt giving off toxic fumes. So not quite the answer yet.
Wait until you find out what happens to the spent fissile materials used in nuclear reactors.
Didn't they get the exact response they wanted from the mini budget? The pound collapsed, which meant all their hedge-fund pals (who largely finance the Conservative party) made a fortune by betting against the pound, just as they had done on Government bonds. Backs up the previous trick of raiding taxpayer money to pay their pals in the energy companies.
I was talking to a financially-astute friend in the pub earlier. He said “you should put your savings somewhere safe. Government bonds.” “Well make up your mind” I said.
My pension payment is due tomorrow, payable in €. I'm expecting it to be 6% less than it was 4 weeks ago.
Falling £ will add to inflation. BOE will lift rates again, possibly before next scheduled MPC meeting. Both counter any "benefits" from Friday's announcement. I'm all for economic growth but lifting -0.2% to ZERO is no greater achievement. Even if the gamble works.
UPDATE Pleasant surprise. UK Pensions managed to get 1.14. So only down 3.5% or 40€ since 26 August
[Post edited 26 Sep 2022 15:47]
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My pension payment is due tomorrow, payable in €. I'm expecting it to be 6% less than it was 4 weeks ago.
Falling £ will add to inflation. BOE will lift rates again, possibly before next scheduled MPC meeting. Both counter any "benefits" from Friday's announcement. I'm all for economic growth but lifting -0.2% to ZERO is no greater achievement. Even if the gamble works.
UPDATE Pleasant surprise. UK Pensions managed to get 1.14. So only down 3.5% or 40€ since 26 August
[Post edited 26 Sep 2022 15:47]
So Sterling has fallen 6% against the Euro in a month.I think not.
So Sterling has fallen 6% against the Euro in a month.I think not.
Can't say with certainty what the fall has been in the last 4-5 weeks but I do a bit of buying from the EU and the exchange rate I'm being quoted has dipped from 0.85 to 0.89 euro to the pound in the last 7-10 days. That's a 4.5% decline.
Can't say with certainty what the fall has been in the last 4-5 weeks but I do a bit of buying from the EU and the exchange rate I'm being quoted has dipped from 0.85 to 0.89 euro to the pound in the last 7-10 days. That's a 4.5% decline.
Just looked at it and its much worse than i thought.The BoE will have to do something soon if this carries on.
They will do, interest rates will move sharply higher for the next few months. I expect to see 5.5% - 6.5% by the middle of next year.
They should have been a bit more urgent some time ago and certainly last week instead of fannying about. they certainly shouldnt wait until November before increasing the rate again and it needs to be more that another 0.5% or so
I think it's more complex than the pound falling because of spending, I think it's because the government plans is to give away vast amounts of money for nothing tangible in return. Investing in infrastructure or energy independence would still be debt but might be more palatable/understandable.
This I agree with. Too much of our debt has been for unproductive things. That includes the housing market being pumped up these last 25 years
And my point on energy not being relevant. I’m talking about risky long term changes to our energy mix going green when that isn’t proven to work
Short term the damage is done. We have a commitment to buy energy this winter with the LNG priced in dollars. Our habit of assuming the government can automatically cover everything biting us again which will be the theme of this decade
Looks like the government’s genius tax cuts for the rich will result in the Bank of England having to call an emergency meeting to hike interest rates again this week to give the markets confidence in the pound.
Presumably this will increase the cost of borrowing for all the debt owed by the country from Covid, energy crisis etc?
Anyone got a clue what the government is trying to do here. Are they genuinely inept, corrupt or is this all part of a master plan.
Looks like the government’s genius tax cuts for the rich will result in the Bank of England having to call an emergency meeting to hike interest rates again this week to give the markets confidence in the pound.
Presumably this will increase the cost of borrowing for all the debt owed by the country from Covid, energy crisis etc?
Anyone got a clue what the government is trying to do here. Are they genuinely inept, corrupt or is this all part of a master plan.
When is the next general election??? time for a change
Looks like the government’s genius tax cuts for the rich will result in the Bank of England having to call an emergency meeting to hike interest rates again this week to give the markets confidence in the pound.
Presumably this will increase the cost of borrowing for all the debt owed by the country from Covid, energy crisis etc?
Anyone got a clue what the government is trying to do here. Are they genuinely inept, corrupt or is this all part of a master plan.
Well they briefed that more tax cuts were coming next year over the weekend which was completely mad given the state of the pound......
This I agree with. Too much of our debt has been for unproductive things. That includes the housing market being pumped up these last 25 years
And my point on energy not being relevant. I’m talking about risky long term changes to our energy mix going green when that isn’t proven to work
Short term the damage is done. We have a commitment to buy energy this winter with the LNG priced in dollars. Our habit of assuming the government can automatically cover everything biting us again which will be the theme of this decade
Do bear in mind that Labour is including nuclear in its green energy plan. The plan is not based solely on renewables.
Previous posts of yours suggest you are in favour of nuclear
"Things had started becoming increasingly desperate at Loftus Road but QPR have been handed a massive lifeline and the place has absolutely erupted. it's carnage. It's bedlam. It's 1-1."
Looks like the government’s genius tax cuts for the rich will result in the Bank of England having to call an emergency meeting to hike interest rates again this week to give the markets confidence in the pound.
Presumably this will increase the cost of borrowing for all the debt owed by the country from Covid, energy crisis etc?
Anyone got a clue what the government is trying to do here. Are they genuinely inept, corrupt or is this all part of a master plan.
Corrupt. Not inept.
This currency crash is intentional. They’re doing it right in front of us and being cheered on by the Mail etc.
It will be interesting to say the least if the "fiscal event" bill isn't voted through by MP's worried about what it has done to the pound. Not calling it a budget has it allowed to to bypass scrutiny the budget review board, who almost certainly would have criticised it heavily after the hedge fund managers shorting shortly beforehand.
We shouldn't forget that 2008 wasn't that long ago and we've had a pandemic. To get out of these issues, the government borrowed heavily when the magic money tree ran out of fruit, and the economy has been weakened accordingly.
Leaving political ideology aside, I've not encountered a positive response to this budget from anyone you could reasonably consider sensible and/or knowledgeable. It seems to have been met with derision and universal condemnation
A poster above (QPRJim I think) raised a really valid point I read over the weekend. If this budget was aimed at borrowing to fund key necessary investments and cut taxes that had greater wealth generation for many, then you could see it as a bold gamble, and possibly one to get behind.
It is however, the antithesis! So soon after the worst PM in living memory, the right-wing of the Tories have utterly surpassed themselves with someone more useless.
There's two more years until the next election, I shudder to think what the state of the UK economy, society and social cohesion will be like by then.
'Always In Motion' by John Honney available on amazon.co.uk
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