Liz Truss’s time is up

[brogdale]

Cheese dream material

 

[SpookyFrank]

Grim thing is there's very little left to cut. It's all been stripped back to the bone

Inflation is effectively constantly cutting the budget for the public sector already. Health, social care and education are near to collapse as it is.

 

[Raheem]

Cheese dream material

View attachment 344415

Two-thirds of our dreams come from cheese.

 

[ska invita]

Inflation is effectively constantly cutting the budget for the public sector already. Health, social care and education are near to collapse as it is.

It also reduces the cost of the debt - i remember hearing some left wing economist encouraging higher inflation in 2020, as borrowing would be needed for Covid and debt could be payed by inflating out of it
James Meadway IIRC

 

[Supine]

It also reduces the cost of the debt - i remember hearing some left wing economist encouraging higher inflation in 2020, as borrowing would be needed for Covid and debt could be payed by inflating out of it
James Meadway IIRC

Maybe true in some other circumstance but the run on gilts and the pound devaluation are making the cost of debt much higher this time (i think - not an expert!)

 

[belboid]

I've sent ten

How many were in green ink?

 

[gosub]

Two-thirds of our dreams come from cheese.

That is a disgrace! That means 4/9 of our dreams are imported

 

[Raheem]

That is a disgrace! That means 4/9 of our dreams are imported

But we can easily compensate by incentivising nightmares.

 

[DarkStars]

Inflation is effectively constantly cutting the budget for the public sector already. Health, social care and education are near to collapse as it is.

The £55,000 back via tax cuts for millionaires will trickle down and fix this silly, Ayn Rand said so via Ouija board during the last cabinet meeting.

 

[Artaxerxes]

It would be nice if the rich did sponsor hospitals and libraries again instead of spunking it on phallic space rockets.

 

[Jeff Robinson]

Some reports of Tory Vermin MP’s planning a rebellion against the barbarian Truss clique:

Liz Truss facing party pressure amid fears over pound slump

The pound’s value has dropped almost eight per cent against the US dollar in the past month

uk.movies.yahoo.com

 

[Jeff Robinson]

.

 

[gosub]

Just seen the front pages this morning...(still busy). FFS

Blaming 'city traders for fall in pound' - they are are the one who will keep their jobs and make their bonuses - borrowing now over 100% of GDP and the country is trying to borrow money in a negative yield curve. Truss isn't Thatcher, and her husband isn't Dennis. But, as long as she's wearing that necklace mind, might as well deal with her Master.

Starmer- reinstate the 45% tax - how very small c conservative. Should have made it 50% and got ahead of the curve.

 

[brogdale]

It also reduces the cost of the debt - i remember hearing some left wing economist encouraging higher inflation in 2020, as borrowing would be needed for Covid and debt could be payed by inflating out of it
James Meadway IIRC

In “Buying time’ (2014) Streeck identified Inflating away from debt as the first of the 3 post social contract, neoliberal ‘money illusion’ strategies employed by states to ‘buy time’ before declining real-terms returns to labour jeopardised rates of accumulation. When this inflationary strategy itself threatened rates of return to capital, it was cast as the great ‘dragon to be slain’ and the time was then bought by ballooning public debt. When that macroeconomic strategy itself spooked capital by threatening rates of accumulation, the consolidator states sought to cut psbr and pivoted to supporting consumption through ballooning private debt. Each of these strategies was, of course, ultimately at the expense of the wage-dependent population.

The desperation of Kwarteng's 'gamble' can be gauged by the fact that he is effectively throwing all 3 discredited post social contract strategies at the UK economy at once. Fourth 'strategy' or end of times?

 

[Chilli.s]

Anyone who thinks that inflation is running at less than 10% obviously doesnt do a family shop, run a car or provide a home and its bills. Or maybe they do and most of those costs come under easily claimed expenses

 

[Pickman's model]

It would be nice if the rich did sponsor hospitals and libraries again instead of spunking it on phallic space rockets.

The Shoreditch passmore Edwards library by the canal has been yuppie flats for some years now

Chats Palace in Homerton a former carnegie library

 

[gosub]

Anyone who thinks that inflation is running at less than 10% obviously doesnt do a family shop, run a car or provide a home and its bills. Or maybe they do and most of those costs come under easily claimed expenses

So interest rate rises right thing to tackle it.....though you'd also have to do that if you don't want inflation related to dollar backed oil.... (or sell US bonds like Japan has done) [bad news though for those living life on the never never]

 

[kabbes]

Interest rates were always going to rise anyway because it was the one lever available to the BoE and because the Fed are doing it, which impacts exchange rates. The difference is that now, instead of seeing rates peak at about 4%, I wouldn’t be surprised to see them hit 8% or 10%. Nobody I know even in middle England or in the halls of capital thinks that it is a good idea to reduce taxes in the middle of an energy and commodity shock, while also involved in a proxy war and with starting high debt ratios. This is all kinds of fucked.

 

[brogdale]

Irrespective of what the BoE might/might not attempt, the markets are raising rates of interest (yield) on UK bonds (lending to Govt) by up to 0.5% this morning. The lack of OBR funding cost estimates really seems to have spooked the short-term rates.

 

[brogdale]

Interest rates were always going to rise anyway because it was the one lever available to the BoE and because the Fed are doing it, which impacts exchange rates. The difference is that now, instead of seeing rates peak at about 4%, I wouldn’t be surprised to see them hit 8% or 10%. Nobody I know even in middle England or in the halls of capital thinks that it is a good idea to reduce taxes in the middle of an energy and commodity shock, while also involved in a proxy war and with starting high debt ratios. This is all kinds of fucked.

Yes, double digit interest rates on mortgages would be no surprise at all, with all that entails for personal disposable income.

 

[Chilli.s]

So interest rate rises right thing to tackle it.....though you'd also have to do that if you don't want inflation related to dollar backed oil.... (or sell US bonds like Japan has done) [bad news though for those living life on the never never]

Dunno... its said that economics is far far away from a science and Id have thought that with so many uncontrollable variables worldwide that it cant be much different than a guessing game.

Maybe the truss gamble pays off and the torrent of trickledown washes all the woes of the less well off away. Built back better britain rallies against the dollar and we see 2$ to the 1£ again. None of the rich toffs just hide their wealth away in the Cayman Islands and decide to pay tax on it instead

 

[Kaka Tim]

So the policy of borrowing fuck tons of public money to spunk on tax cuts for the rich in the middle of the worst inflation in 40 years is getting royally fucked by the markets. Seems they aren't buying into the magical thinking but are still stuck in the old fashioned orthodoxy called "reality" . I've never seen anything like it in the UK in response to a budget. Either they reverse it or we could be going full greece 2009.

 

[Pickman's model]

So the policy of borrowing fuck tons of public money to spunk on tax cuts for the rich in the middle of the worst inflation in 40 years is getting royally fucked by the markets. Seems they aren't buying into the magical thinking but are still stuck in the old fashioned orthodoxy called "reality" . I've never seen anything like it in the UK in response to a budget. Either they reverse it or we could be going full greece 2009.

Greece had people willing to chuck them some money in return for infrastructure. But so much UK infrastructure privatised. So who'll throw money at this shower?

 

[Kaka Tim]

Greece had people willing to chuck them some money in return for infrastructure. But so much UK infrastructure privatised. So who'll throw money at this shower?

Im happy to chuck a few paving slabs in their direction

 

[brogdale]

Greece had people willing to chuck them some money in return for infrastructure. But so much UK infrastructure privatised. So who'll throw money at this shower?

There's plenty of globalised "investment management firms" out there with reservoirs of dosh that they can throw at the UK state, but it will be on their terms and, with gilts up 20 BPS across the whole 50 year spread, they're making their terms obvious.

But, hey...we're taking back control.

 

[Kaka Tim]

Investment banker cunts less than enthusiastic about the prospects of Britannia unhinged ...

Investors seem inclined to regard the UK Conservative Party as a doomsday cult, according to Paul Donovan, chief economist of UBS Global Wealth Management.

 

[kabbes]

By the way, since we’re talking about such things, when assessing the market reaction to the budget, you need to look at the FTSE 250, not the FTSE 100. The 100 contains a lot of companies that make most of their profits (a really high proportion) in other currencies. So the fall in GBP doesn’t affect them — they simply have more GBP profit to report. It’s the 250 that is the more domestic set of companies — they’re the ones that will be impacted.

 

[gosub]

Dunno... its said that economics is far far away from a science and Id have thought that with so many uncontrollable variables worldwide that it cant be much different than a guessing game.

Maybe the truss gamble pays off and the torrent of trickledown washes all the woes of the less well off away. Built back better britain rallies against the dollar and we see 2$ to the 1£ again. None of the rich toffs just hide their wealth away in the Cayman Islands and decide to pay tax on it instead

The one thing helicpter money (during lockdown) proved is don't. A lot of people spunked it on playing computer games, gambling and the like (their prerogative) though when those games got to the level of the Games stop debacle people noticed...Sensible thing to have used it for was to pay down debt

 

[WhyLikeThis]

 

[Smokeandsteam]

It would be nice if the rich did sponsor hospitals and libraries again instead of spunking it on phallic space rockets.