2022 mini-budget discussion

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Maybe the BoE should stop stepping in. The more it does the more truss etc can keep fighting them.

Unfortunately the cost of not doing it is monumentally bad.

When the BoE had to save pensions I can't really understand how truss has any support from any of us
 
Demon said:
This was discussed to death yesterday in the office and our most vocal labourite was lambasting Truss for trying to spend her way out of the recession and this is an obvious fallacy basing that on having this huge debt around our necks, so I just asked why was he so against Cameron and the period of austerity to reduce debt because at that time the same vocal labourite thought the way to stimulate the economy was to spend our way out?
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Spending our way out of the credit crunch would have been the right option, because we should have taken advantage of the decade of incredibly cheap borrowing to invest in education, infrastructure, and services, to lay a foundation for future growth and productivity gains.

Instead we hung an anchor around the economy's neck with austerity, strangled growth, crippled our public services, didn't make any appreciable impact on the public finances.....so now we are in the worst possible situation to ride out the current crisis......yet somehow making things worse by embarking on fairy tale borrowing sprees just as the cost of borrowing skyrockets and completely destroying investor confidence in the country.
 
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413x said:
Maybe the BoE should stop stepping in. The more it does the more truss etc can keep fighting them.

Unfortunately the cost of not doing it is monumentally bad.

When the BoE had to save pensions I can't really understand how truss has any support from any of us
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If the boomer pensioners that have got so used to being exclusively catered to by the Tories at the expense of everyone else, had their pensions wiped out, that would be it for the Tories. Done. Might as well disband the party and call it a day.....that's if any of them were left alive after the mobs dragged them from their homes.
 
Demon said:
This was discussed to death yesterday in the office and our most vocal labourite was lambasting Truss for trying to spend her way out of the recession and this is an obvious fallacy basing that on having this huge debt around our necks, so I just asked why was he so against Cameron and the period of austerity to reduce debt because at that time the same vocal labourite thought the way to stimulate the economy was to spend our way out?
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Borrowing isn't bad per se, it depends what the borrowing is for.

If a company borrows money to invest in new machinery, which will increase the productivity/income/profitability then that is seen as prudent as the increase in income will pay for the cost of the loan. If it borrowed the money just yo pay the company directors a bonus, that wouldn't be prudent as it just puts extra stress on the company's current profits with no real benefit (to anyone but the directors!)

We seem to have done the latter, the international financial markets think so anyway and they are the ones that matter. It doesn't help that the Govt deemed to forgoe the OBR report to accompany the budget, which would gave shown the predictions of what would happen and Liz and Kwasi saying "trust me" isn't enough.
 
mid_gen said:
The £65,000,000,000 sticking plaster from the BoE isn't going to be enough with Truss doubling down. Sterling down again today, gilt yields up....which is pretty incredible considering the BoE has a blank cheque for buying bonds.
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I don't find it incredible, interest rates are rising above 5%. There isn't a scenario in which gilt yields don't follow. Kinda need to separate out what was happening anyway worldwide and the extra pain they have caused, BoE may well had steadied the ship for now but as far as yields are concerned the only way is up.

pICYQAj.png
 
Destination said:
This is complete and utter *****.
Go on, produce any source that shows those in the 45% were employers of 99% of the country. Suggesting none of them are employees themselves.
If you truly believe your statement, it shows just how completely wrong you are in anything economy based.
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Indeed. A lot of the top 2500 winners who shared £1bn between them so getting £400k each are footballers or entertainers. Not sure how many people they employ tbh.
 
mid_gen said:
If the boomer pensioners that have got so used to being exclusively catered to by the Tories at the expense of everyone else, had their pensions wiped out, that would be it for the Tories. Done. Might as well disband the party and call it a day.....that's if any of them were left alive after the mobs dragged them from their homes.
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Yep. Can you imagine the chaos. It would be game over.
And can the bank hold this back? If market forces are driving this collapse the bank has only bailed out some water. The sink still has a hole in in where kami-Kwasi crashed his plane into the hull

Wouldn't mind seeing these two lynched. It's criminal what they are doing to our futures
 
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n111ck said:
Refreshing not to see the usual u turn after media hysteria lol - ultimately over £2bn, ridiculous..

So Labour are saying they wouldn't undo the cuts apart from reverting the 40% rate to 45% over £150k so what's their plan for funding this?

Also Labour saying they would reinstate the 45% rate and then use this 'new' money to pay for whatever policy goes down best on Twitter is just another reminder as to why they are not to be taken seriously.
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Given that Liz doesn't have a plan either what does that say about her?
 
200sols said:
I don't find it incredible, interest rates are rising above 5%. There isn't a scenario in which gilt yields don't follow. Kinda need to separate out what was happening anyway worldwide and the extra pain they have caused, BoE may well had steadied the ship for now but as far as yields are concerned the only way is up.

pICYQAj.png
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Since we just had some D-ream, have some Yazz!

 
413x said:
Yep. Can you imagine the chaos. It would be game over.
And can the bank hold this back? If market forces are driving this collapse the bank has only bailed out some water. The sink still has a hole in in where kami-Kwasi crashed his plane into the hull

Wouldn't mind seeing these two lynched. It's criminal what they are doing to our futures
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It was the issue with gilt prices that caused it. As long as nothing else stupid happens then it should be safe. Fundamentally the pensions are safe as long as things stay stable.
 
Chris Philip was on Nick Ferrari this morning on LBC. I seriously wanted to smash the radio.

So, the turmoil over the last few days is nothing to do with the budget. It is normal market volatility and the war in Ukraine.
 
delta0 said:
It was the issue with gilt prices that caused it. As long as nothing else stupid happens then it should be safe. Fundamentally the pensions are safe as long as things stay stable.
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Which they wont as we have more tax cuts and massive spending cuts on the way with the full budget.

And 6% interest rates.
 
413x said:
Maybe the BoE should stop stepping in. The more it does the more truss etc can keep fighting them.

Unfortunately the cost of not doing it is monumentally bad.

When the BoE had to save pensions I can't really understand how truss has any support from any of us
Click to expand...

Exactly. Couldn't be any clearer just look at exactly they have done to put your hard earned years on years worth of cash at the highest risk.

If you wanted to do that personally you'd have to invest in a fund, bang the risk factor up to 9 and you'll still probably be at less risk than what they've done.
 
200sols said:
Not really, the plan isn't credible. Unless they reverse it UK markets will destabilise it is just a question of time.
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I don’t think they will reverse it. Even Labour are only talking about reversing the 45% £2bn part which is the smallest cut.

Greebo said:
Which they wont as we have more tax cuts and massive spending cuts on the way with the full budget.

And 6% interest rates.
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I wonder if they will go ahead with it. As this one will be subject to review as it is an actual budget.
 
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n111ck said:
Refreshing not to see the usual u turn after media hysteria lol - ultimately over £2bn, ridiculous..

So Labour are saying they wouldn't undo the cuts apart from reverting the 40% rate to 45% over £150k so what's their plan for funding this?

Also Labour saying they would reinstate the 45% rate and then use this 'new' money to pay for whatever policy goes down best on Twitter is just another reminder as to why they are not to be taken seriously..
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What £2bn was that? The government have mismanaged our money so much it's difficult to keep track, i know about the £11bn Rishi and the millions handed out to friends of Conservative MPs in dodgy PPE contracts but I'm not sure where that £2bn went.

Also with the broken record? After everything that's happened in the last week, heck in the last 24hrs our central bank had to step in to savetrillions worth of our pensions, it's still but, but, Labour.
 
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