MakemineVanilla Posted September 30, 2022 Share Posted September 30, 2022 2 hours ago, Jareth said: Haha. Literally doing everything possible to lose votes - she could not have played this any better FTFY! Link to comment Share on other sites More sharing options...
CVByrne Posted September 30, 2022 Share Posted September 30, 2022 2 minutes ago, markavfc40 said: The UK treasury pays interest to the central bank so taking on a further 65 billion of UK bonds increases that interest surely. I was also reading that they have not paid for the bonds in cash but created the money with a guarantee from the Treasury which means that every pound of the 65 billion is covered by the taxpayer. No, the Bank of England can just create money. It's role as a central bank gives it the power to do that. So they are creating up to £65bln of money and buying up to £5bln of Gilts per day for 13 days. So we don't know how much they will really need to create. Creating more money devalues your currency. So one would expect the BoE intervention to lower the cost of the UK borrowing (which it has done) but at the cost of a further drop in the Pound. (which hasn't happened). This is because the other part of the BoE has said they will do what it takes to get inflation under control (so they will raise interest rates in Nov with a big rise expected). Higher rates = stronger pound. Also the US Dollar has lost value due to a revision of the Q2 GDP growth to negative. So they've now had two negative quarters of Growth there which means they are in one definition of a recession. I also think the central banks are coordinating quietly on a bit of currency manipulation. 2 Link to comment Share on other sites More sharing options...
Genie Posted September 30, 2022 Share Posted September 30, 2022 I assume the news that the UK hasn’t slipped into recession as widely assumed is the reason for the small uptick in the value of the pound. 1 Link to comment Share on other sites More sharing options...
CVByrne Posted September 30, 2022 Share Posted September 30, 2022 1 minute ago, Genie said: I assume the news that the UK hasn’t slipped into recession as widely assumed is the reason for the small uptick in the value of the pound. Yeah that's another factor in some of the rise today Link to comment Share on other sites More sharing options...
MakemineVanilla Posted September 30, 2022 Share Posted September 30, 2022 So which is best - a weakening pound so we can export more Jags and Land Rovers, or more expensive imports? Link to comment Share on other sites More sharing options...
CVByrne Posted September 30, 2022 Share Posted September 30, 2022 (edited) 2 minutes ago, MakemineVanilla said: So which is best - a weakening pound so we can export more Jags and Land Rovers, or more expensive imports? We are a net importer, we run a trade deficit of £27.9bln. We created lots of trade barriers with the EU which limits us in exports So a weaker Pound right now is bad Edited September 30, 2022 by CVByrne 1 Link to comment Share on other sites More sharing options...
foreveryoung Posted September 30, 2022 Share Posted September 30, 2022 1 hour ago, Genie said: Yeah true, then it gets valued at £900k when they’re finished. But they don't need the profit cause its a family home. 1 Link to comment Share on other sites More sharing options...
villa4europe Posted September 30, 2022 Share Posted September 30, 2022 1 hour ago, CVByrne said: We are a net importer, we run a trade deficit of £27.9bln. We created lots of trade barriers with the EU which limits us in exports So a weaker Pound right now is bad Not if you're about to transfer your life savings to your English bank account its not See also - pissed off thread where I'm not allowed to transfer my life savings to my English bank account because of security reasons Link to comment Share on other sites More sharing options...
MessiWillSignForVilla Posted September 30, 2022 Share Posted September 30, 2022 I was really not expecting another poll lead in that range 1 Link to comment Share on other sites More sharing options...
Delphinho123 Posted September 30, 2022 Share Posted September 30, 2022 I wonder how much the BOE will increase interest rates in November as a response to all of this. They’re widely predicted to hit 5% in May next year, but I imagine that would be staggered increases of 0.5/0.75% each time they meet. I have a feeling they’ll increase by 1/1.25% in November as a big f*** you to the current budget and government. A few people are in for a rough ride, me included. This Tory government is a complete joke. Link to comment Share on other sites More sharing options...
foreveryoung Posted September 30, 2022 Share Posted September 30, 2022 Listening to Question Time last night, even the rich are agreeing the tax cuts were needed needed, but the Tories have brought them at completely the wrong time and just **** things up more. These are the people making money out of it. Link to comment Share on other sites More sharing options...
CVByrne Posted September 30, 2022 Share Posted September 30, 2022 6 minutes ago, Delphinho123 said: I wonder how much the BOE will increase interest rates in November as a response to all of this. They’re widely predicted to hit 5% in May next year, but I imagine that would be staggered increases of 0.5/0.75% each time they meet. I have a feeling they’ll increase by 1/1.25% in November as a big f*** you to the current budget and government. A few people are in for a rough ride, me included. This Tory government is a complete joke. Probably 0.75% to 1% raise I'd say 1 Link to comment Share on other sites More sharing options...
CVByrne Posted September 30, 2022 Share Posted September 30, 2022 7 minutes ago, foreveryoung said: Listening to Question Time last night, even the rich are agreeing the tax cuts were needed needed, but the Tories have brought them at completely the wrong time and just **** things up more. These are the people making money out of it. A few extra quid in your pocket but massive hikes in interest rates and more big losses in your asset portfolio. Of course they didn't want that big tax cut right now. 1 Link to comment Share on other sites More sharing options...
sidcow Posted September 30, 2022 VT Supporter Share Posted September 30, 2022 8 minutes ago, foreveryoung said: Listening to Question Time last night, even the rich are agreeing the tax cuts were needed needed, but the Tories have brought them at completely the wrong time and just **** things up more. These are the people making money out of it. I was wondering last night if even the Tory members were looking on with horror at the Frankenstein Monster they have produced not realising how fully out of control it would get. Link to comment Share on other sites More sharing options...
Popular Post Davkaus Posted September 30, 2022 Popular Post Share Posted September 30, 2022 17 minutes ago, sidcow said: I was wondering last night if even the Tory members were looking on with horror at the Frankenstein Monster they have produced not realising how fully out of control it would get. Not quite. 5 Link to comment Share on other sites More sharing options...
foreveryoung Posted September 30, 2022 Share Posted September 30, 2022 So who have the Tories done it for if no one wants it? It really does seem they have thought of no one but themselves, shock, horror I know. Link to comment Share on other sites More sharing options...
maqroll Posted September 30, 2022 Share Posted September 30, 2022 (edited) Edited September 30, 2022 by maqroll Link to comment Share on other sites More sharing options...
Davkaus Posted September 30, 2022 Share Posted September 30, 2022 9 minutes ago, foreveryoung said: So who have the Tories done it for if no one wants it? It really does seem they have thought of no one but themselves, shock, horror I know. Some people want it. They're just not giving radio interviews about how they're treacherous pieces of shit profiting from betting on the nation's failure. 1 Link to comment Share on other sites More sharing options...
AshVilla Posted September 30, 2022 Share Posted September 30, 2022 I'd be interested to see what the above poll would say should Truss immediately get the boot and Boris be put back in. Would it be worse or better if he had taken the same action with the growth plan. Link to comment Share on other sites More sharing options...
CVByrne Posted September 30, 2022 Share Posted September 30, 2022 22 minutes ago, foreveryoung said: So who have the Tories done it for if no one wants it? It really does seem they have thought of no one but themselves, shock, horror I know. Like some of it is good. The fixing of energy prices, the reversal of the NI rise, cutting the base rate of tax to 19%. I also think not raising corporation tax from 19% to 25% right now (maybe raise it back to 20%) and abolishing stupid things that hamstring small companies like IR35 are sensible to help growth. It's that top rate of tax cut which just doesn't make any sense. Not having the OBR report too for any of this was very damaging to credibility 3 Link to comment Share on other sites More sharing options...
Recommended Posts