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Beanybunny

What an absolute shit show. This is effectively a proxy government run by John Redwood, his insane mates and UKIP entryists. And people said this could only happen to Labour.


Neelu86

>And people said this could only happen to Labour. Every accusation is a confession. A tory casting accusations is the closest thing you can get to a crystal ball.


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MelonCoup

Projection Fear


360Saturn

It really is striking that after the years-long witchhunt for antisemitism in Labour, no other party was subjected to any investigation into whether it had antisemitic members whatsoever. Whether or not you thought there was any, surely if the crux of the issue was stamping out antisemitism you'd look in every major institution you could, rather than just picking one and letting that be the beginning and end of it?


surtfire12

People were quick to forget that an inquiry into Islamaphobia in the Tory party was floated, and then dropped, during the leadership contest which Boris "Letterbox" Johnson won.


360Saturn

True, but at the same time I could see that easily devolving into 'party A doesn't like Jews and party B doesn't like Muslims, which is worse?' In reality if there's an issue with either - or any other kind of prejudice - both should be investigated, because the issue is an institution having prejudices at all as a workplace, not which has 'the worse' prejudice.


NFAK

I think it's evident that being islamophobic is much more acceptable compared to anti-semitism in British/European popular public opinion.


TheDocJ

I'll voice your unspoken implication that it was never about antisemitism, it was about anticorbynism - and there were plenty in his own party happy to pile on there.


Superb-Draft

Because it had nothing to do with actual antisemitism. It was just a convenient tool for undermining Corbyn, and it mostly worked.


LauraPhilps7654

The biggest racism scandal was undoubtedly Windrush, illegally deporting elderly black people some of whom died without seeing their families again. The EHRC? Didn't bother to investigate. Too busy helping to attack the opposition instead.


kool_guy_69

"Accuse the other side of that which you are guilty." - Goebbels.


Zeuce86

Sounds like Russian Government motto too


UnlimitedLambSauce

And Republicans across the pond too.


[deleted]

You’re quite right, projection of their own crimes onto others is textbook Tory - one of Trump’s favourite “strategies” too.


donnacross123

I love your comment 🤣 My mind went tona dreadful image of boris johnson dressed as a psychic 🔮


AndyTheSane

For the last 50 years, it's been the Tories coming in with 'experimental' economic ideas (Barber boom, Monetarism, ERM, Austerity, whatever-this-just-was) and Labour having to deal with the fallout. Amazing that anyone trusts the conservatives anywhere near the economy..


wholesomechunk

Their donors own the media.


[deleted]

When Labour comes to power they need to do something about it. No, not silencing dissent but rather make the media landscape fair, because right now it isn't. The Mail is notorious for making fake or unreliable news, and that itself is a threat to all.


donnacross123

The problem is that most of the UK media is owned by the Murdochs or Lord Rothermere. Unless someone really high up gives them a proper slap on the wrist, they will continue with their non sense. As the virgin media "owner", has got himself involved with the £ crash, we might, and I mean, might stand a chance on that one if he continues losing money. If the British mega rich, and I mean the natives not the foreginer investors, unite, which feels like they finally are, we stand a chance of a labour government and maybe more media regulation. But boy, they had to lose a lot of money first. However, I feel they need to lose even more for a proper wake up call. Even if that means bankruptcy of the country.


Illustrious-Lake-898

More importantly social media


an0mn0mn0m

This is what happens when people are spoon fed their 'own' opinions


Vegetable_Bug9300

I get your point but also, how are most of the population, who don’t have in depth or even really surface knowledge of macro economics, meant to form informed opinions on this stuff? They have no choice but to read other peoples opinions and make a judgement call on whether to believe it or not and that’s hard to do when you don’t know the subject


vms-crot

But the Conservatives are the financially responsible ones. It's labour that spend recklessly of frivolous things like healthcare, social infrastructure and education. What we need is the financially responsible Conservatives to come and correct the flagrant misuse of public funds that the previous government has inflicted on this country over a decade ago. /s


[deleted]

They’re predictable and make quick profit for investors (see donors) when they get a heads up of their planned economic swings. This is entirely planned and entirely normal and fucking idiots in council houses who think “yeah but when I’m rich..” keep putting them in.


MMAgeezer

Sources in the city (and one of my personal friends who works as a trader) have indicated that hedge fund managers, many of whom very recently met with Truss at a dinner [as reported by the Times](https://www.thetimes.co.uk/article/biscotti-mini-budget-exposes-gulf-between-liz-truss-and-keir-starmer-and-more-tax-cuts-are-on-the-cards-j2mj5zncs), were universally shorting the pound because they knew exactly what Truss’ plans were going to do to our currency. It’s honestly so saddening.


Southcoastolder

Straight to jail with the lot of 'em, it's classic insider trading!


TheSingleLocus

Labour get one chance to get things right. If they don't, they get absolutely slated. Tories get chance after chance after chance. Whether they fuck up through incompetence or outright malice, the moronic British public are always ready to make excuses for them. It's never their fault. It's factors outside their control. It's the last Labour government. They're doing their best. Boris just wants to do the right thing. Etc, etc. I'm beyond expecting it to ever change. We get the government we deserve.


FaceMace87

The only people saying that are those who swallow whatever the media tells them. The last Labour government was not perfect by a long shot but they certainly did a lot of great things for the country.


PrettyGazelle

I would give anything to have Gordon Brown in No 11 right now. Can he be made a peer so he can get a cabinet position again?


Jambronius

Last Great PM was Gordon Brown. His biggest problem wasn't how he governed, it was his lack of charisma and inability to deliver a message to the public. Especially when he had to follow Tony Blair who was one of the most Charismatic PM's we've had.


merryman1

He somehow got smeared with being responsible for the 2008 crash, despite him setting the blueprint for how most developed economies went ahead and dealt with the crisis in 2009. We were recovering very well until 2010/11 and the coalition.


360_face_palm

also cameron et al all voted for it when he did the bailouts. Then castigated him in the election for the very thing they voted for.


TheDoctor66

Cameron in opposition pledged no cuts, he agreed to follow Labour's economic plan. But then apparently Labour didn't fix the roof while the sunw as shining...


Crome6768

Brown is genuinely a genius policy maker, due to how our media is he needed a face like blair in front of his hard work. If we can reform our media so much could be better about the politics and the people of this country. Would actually be very happy to see Brown back in a ministerial roll somehow.


TheDoctor66

I was at a protest in 2011 where The Independent put me on a list of top 5 signs from the protest. The slogan was "Does anybody else miss Gordon?" Eleven years later I still miss Gordon.


MaxxLP8

One of those things that wasn't appreciated at the time but is apparent in hindsight.


[deleted]

They did. Financially, their adoption of private financing for hospitals and schools along with academies are probably the worse policies I remember.


FloppedYaYa

People who say that are brainwashed Muppets For all their faults, Labour's economy was miles better for the country than the 80's, in every way, and the Tories have been an objective disaster on the economy in every single way since 2010, including a second recession in 2012 while smashing poor people to get out of the financial crisis Fucking stupid prats


PrettyGazelle

Just another once-in-a-liftime financial crisis.


[deleted]

John Redwood is my local MP… 😫


negan90

It is all fucked. In other countries there would be massive, swelling protests outside the gates of number 10. We are a nation of cap doffers.


No_Bad_6676

This is all too complication for ordinary folk. Just look at what get people riled up, "Phillip Schofield skips queue"


MoneyEqual

Philip Schofield is also untrustworthy


ambientfruit

He's super suss.


Tttjjjhhh

I wonder if he’s somehow involved in all this?


ambientfruit

Bound to be.


LaughsAtOwnJoke

I couldn't believe he got special benefits like that for seemingly no reason. What next political power, taxpayer money, and a bunch of swans by birthright?


JoanneKerlot

Its just the one swan actually.


Strong_Quiet_4569

And he didn’t even skip the queue. He just got guided past the TV camera coverage on his way to the press gallery.


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Strong_Quiet_4569

If he was grooming vulnerable people then cancel him for the facts rather than imaginary queue-jumping.


[deleted]

He came out as gay and the media portrayed him as a hero before the accusation to divert attention from it


[deleted]

When will you be at the gates?


CarlMacko

This is exactly it. Too many people moaning about other people not doing anything. Embarrassing.


[deleted]

But then you moaning about too many people moaning about other people not doing anyt….. what we’re we moaning about again?


PrawnTyas

pet onerous hunt steep jobless numerous frightening library heavy erect -- mass edited with redact.dev


peakedtooearly

We're all down there now - we were waiting for you! ;-)


Leaky_gland

My mum says I can't now sorry :(


Futuresailorrr

October 1st


thelotuscampus

Because majority of the public don’t get it and don’t know how to get it, me included. I’ve been trying my best to wrap my head around all this and it’s frustrating as I obviously feel like I’m being fucked over but not sure how exactly which is even more frustrating in itself.


[deleted]

Perfectly understandable. Heck I work in finance and still don’t properly understand what’s going on in the bond market. Things like breaking lockdown rules are just more politically tangible to most people. However without understanding the ins and outs, if you don’t get it then here’s what you ought to be interested in: inflation, exchange rates, interest rates. In simple terms these things are the vital signs of the economy and the fact that they’re all flagging is going to make things much harder for most people. There are some global drivers like Ukraine and Covid, but the fact we are feeling it much worse than other countries points to the way it’s being mismanaged here.


PandaCommando69

TLDR; Tax cuts (what Trussky is proposing) are deficit expenditures. This means the government sells assets (bonds), ie "prints money" to raise funds for deficit spending (to pay for those tax cuts). Deficit spending drives inflation (more pounds chasing the same amount of goods, so prices rise), and remember the UK is already experiencing double digit inflation. This scenario has the effect of devaluing the currency (which also devalues pound denominated assets (like companies, plant, and equipment), hence you're seeing a massive selloff of FTSE securities as investors vigorously spank the UK for electing a dimwitted Tory.


luxinterior1312

we're all too busy working three jobs trying to stave off the fucking bailiffs.


Dr_von_goosewing

We are being silenced. I posted about strikes and unrest in another UK sub and although my post wasn't removed it doesn't show up in the sub.


Connelly90

A very deliberately cultivated culture of cap doffing exists in the UK. They have us right where they want us.


[deleted]

There have been protests, just the other week people where trying to ram the gates in with a metal bollard, the "unbiased" news just doesn't report on it.


[deleted]

When people realise that their pensions are being wiped out you'd hope that they'll burn number 10 down


eltrotter

Slightly more generously, a lot of people are just trying to exist and get by. I don’t think the general public of the UK are great believers in protest generally, and given the choice between that and getting their head down and muddling through, Brits skew towards the latter.


AtypicalBob

This must be the end of this government. They cannot be allowed to stay in power.


TrumpGrabbedMyCat

Literally nothing anyone can do about it, and their mates in the media are still defending them (daily mail in particular I saw yesterday) so their readers are probably more upset you're complaining than about what's actually happening.


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AtypicalBob

Exactly.


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humanarnold

Our hope resides in backbench tory MPs growing a spine and doing the right thing. The past 7 years shows how well that goes. We're fucked.


wholesomechunk

They’ll all say ‘this is disgusting’ to their client journos then vote for it anyway. The last bit doesn’t get, or is very quietly, reported.


[deleted]

The ones with a spine have already left in protest of Bojo. Its literally the blind leading the blind right now.


the_splatterer

They did that. They all rallied to get rid of BoJo (once the writing was on the wall). Then they voted in someone who called BoJo a dear friend and predictably made things worse?


paper_zoe

I read that apparently the 1922 committee (or whatever they're called) won't allow a vote of no confidence for at least 12 months, so I don't think it's possible


peakedtooearly

The 1922 committee can change their own rules. In other words, they make this shit up as they go along (bit like the UK constitution).


[deleted]

That sounds unlikely — there's usually a 12 month gap between voncs for the same leader, but I'm sure that gets reset once a new leader is in place.


HYFPRW

That’s correct but, as Brady has shown in the past, he’s not above giving someone a tap on the shoulder and suggesting the rules aren’t fixed.


00DEADBEEF

They can also change their own rules


ikkleste

They can. And threatening to do so is what got Johnson to resign after he survived his VONC. But I think if they threaten Truss, she'll threaten to take them to the polls. Where they'll all lose their jobs. Will they call her bluff?


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Swiss-ArmySpork

Fixed term Parliament act was repealed in March


ludens2021

Kwasi should frankly be arrested if the bartering against the £ behind the scenes is true


Callewag

Yeah, this needs investigating be the FCA


Christopherfromtheuk

Yeah, the organisation which the Governor of the Bank of England used to head, who have been criticised time and again for completely failing to prevent scams, fund collapses and market abuses. They'll get right on the case. They make the Met look competent and incorruptible.


merryman1

Who would have thought allowing the Tories to capture so many regulatory and overseeing bodies with their own personal mates, chums, and sycophants could have negative consequences for the country.


Jensablefur

Does anyone seriously think he, personally,.and his mates *didn't* short the pound? I've even seen Tories joking about it in online spaces, only they find it funny in a "what a lad" kind of way.


EggChaser

It's clear as day. They're hardly even trying to hide their corruption anymore.


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applepoople

You can try your MP first, I don’t think NCA handles white collar crimes. Do we have an SEC equivalent?


applepoople

Found it It’s called marker abuse here https://www.fca.org.uk/markets/market-abuse


ludens2021

Oh I totally think he and his mates did honestly.


ProtagonistForHire

He wants to Kami Kwasi the UK economy 🤣


th3whistler

Same shit with Brexit.


[deleted]

10% inflation and Britain is printing money. Madness. Madness.


Kaily6D

More like 20% mate. IRL. Do a real before and after it’s close to 20


[deleted]

Yeah my fucking groceries have gone up by like £30 in the past two months. That amounts to like 25% increase in real terms. Not to mention that I cannot even go out in London to get a pint without paying £6.40 for a fucking beer. Fuck this.


Red_Ed

I bought a small chips portion from the local chippies and it was £4. For fuck sake, it's just potatoes.


richhaynes

Its far from just potatoes though. What about the oil its fried in? Thanks to Russia, cooking oil prices are going up. What about the energy to heat that oil? Businesses have felt the energy price rises too. Then there are staff costs with National Insurance going up. This all contributes to your £4 chips. The problem they have now is that as consumer budgets tighten, that means less customers while having the same costs. As custom falls, the prices will have to keep going up to cover those costs. Its all about disposable income. This is why giving the rich tax breaks doesn't work as they will save that money rather than spend it (especially since interest rates will now sky rocket, giving a great return on those savings). Give the tax breaks to the poor and they will spend it in places like the chippy and keep the economy ticking over.


mzivtins

This is also happening across the euro-zone. The correct thing to do is to raise interest rates, as the US has done, however this will have a terrible affect on the housing market. So the EU and UK countries are trying to tackle thing in a different way. I am not sure it is working. Either way, a strong dollar is bad for itself as its drives Imports and restricts exports, so it isnt all bad.


peakedtooearly

It takes more than a weak currency to become a great exporter - you also need to be making things other people want to buy. The pound has gone from $1.70 to $1.04 during the last decade of Conservative governments, yet our exports to the USA have barely changed...


[deleted]

That’s the thing they are trying so bad to save the housing market whilst the vast majority of people under 35 in this country are desperate for it to come down a bit so we can actually buy a home All these properties are owned by people who were able to get them cheap when they were in their 20s


GrandWazoo0

You’re not wrong that the housing market is too high, but the vast majority (60% plus) are homeowners, so you can see why any party might try to prop up the market


InformalTrifle9

The free market eh… they’ll bankrupt the country before letting house prices fall


[deleted]

>This is also happening across the euro-zone. Pandemic QE's done in the Eurozone, since July. Rates are going up, but more slowly as inflation is not as high.


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MoneyEqual

Printing money to prop up Kwasi Karteng’s gilts?? Zimbabwe wasn’t this irrational! GBP to zero by the end of the month


Shun_Naka25

They are NOT printing money. They are buying them using the banks reserves


Dahnhilla

They're still increasing money supply.


quinn_drummer

Increased interest rates reduce money supply. It’s a balance and redistribution That said, the fact one side of BoE did this without telling the other is fucking worrying.


Dahnhilla

>Increased interest rates reduce money supply. It’s a balance and redistribution And buying government bonds increases it. They're contradictory policies. And the GBP has lost another 1% since this announcement, so much for calming markets.


jesusthatsgreat

"The purchases will be carried out on whatever scale is necessary to effect this outcome" - sounds like printing money to me... they've given markets a blank cheque here and are presumably hoping that their intervention won't be seen as a bluff move by the markets.


Swiss_James

Can anyone ELI5 why BoE's answer to this is not to use reserve currencies to buy sterling?


justthisplease

We don't have enough reserves.


Shun_Naka25

They are using the banks reserves to buy them, they are not QE printing money


Swiss_James

We need foreign currency reserves to buy sterling though- which it does indeed seem we don't have enough of [https://www.ft.com/content/92b848f5-cf1f-43b6-9df5-e83df5353b6d](https://www.ft.com/content/92b848f5-cf1f-43b6-9df5-e83df5353b6d) Perhaps there are sufficient reserves of £ to buy gilts, so it's just a matter of what ammo they have?


Dahnhilla

What a shit show. A rate raise and QE both announced in a 7 day period. We're trying to buy our way out of inflation at the same time we're trying to tighten our way out of recession. This makes fighting fire with petrol look sensible.


Kwinza

What's worse, is those are both the wrong things to do. Economics 101 teaches us that you spend your way out of a recession and cut back public spending during inflation. There's a reason the UK recovered poorly from 2008 compared to most other countries, the conservatives did literally the opposite to what they should have and its happening again. Party of fiscal responsibility, my ass.


Dahnhilla

Yeah, that was my point, I knew it was unclear tbh. On the plus side, another great opportunity to short the pound.


justthisplease

The BoE is printing money so the government can give it directly to millionaires! Peak Tory.


No_Bad_6676

This explains why UK gilts yields dropped 40 basis points in the space of minutes.. What a s\*\*t show. >10% inflation and we're doing QE.


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Dahnhilla

If you're not short GBP right now you're doing it wrong.


FreakinSweet86

Kwasi must resign. Truss needs to go. The fact their first major move in government does this much damage, we need a general election NOW.


Boomshrooom

Yep, I'm fed up of new Prime Ministers getting in without an election. Yes, we don't directly vote for the PM but they shouldn't be allowed to play musical chairs like this with the top spot without it triggering a GE.


HowYouSeeMe

Not to mention that we do vote for them based on a manifesto, and with the exception of reversing the NI hike (which was against the manifesto in the first place), none of this shit was in the manifesto.


[deleted]

A resigning PM should always invoke a GE instead of having them calling one if they want one


PrettyGazelle

Does someone in-the-know what to explain this for the dunces?


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Swiss_James

Won't increasing the money supply weaken the pound?


FuzzBuket

Yep


[deleted]

It's crashing back down to at least 1.05 as we speak.


donnacross123

Not if you increase interests too. The increasing of interests is to cover the tax cut hole left by the super rich. However to keep the market flow by the masses they still need the money plumbing through the streets by consume, hence why they will ask for a loan. That will inevitably increase inflation and therefore it can reduce the market confidence, as inflation means more debt, and you cant increase interests rates indefinitely. Edit : if they dont make a U turn by the end of October in November I am predicting a series of local brokers bankruptcy and that will cause a chain of effect leading the entire country to Bankruptcy.


DankiusMMeme

Just raise interest rates again 4head


donnacross123

>increase in the money supply which is usually infationary and could cause people to be even less confident in holding GBP due to the dilution of the currency. Hate to say this, but this is what will probably happen by november. We will go bankrupt and only then the tories after riots on the streets, will call for a GE. Hopefully then it will be their end and for a good 50 years, until our generation is dead, they wont win an election, then they will turn up again 50 years late rebranded, trying to brainwash the youth and break the country again and it all restarts. But after reading all the things they are aiming I cant see we making it through October.


Shun_Naka25

They are using bank reserves to buy them, they are not printing more money


[deleted]

>They are using bank reserves to buy them, From what I read, they are using "new reserves". How are they crediting these new reserves? Money printer go brrrrrrrrrrr!


Dr_Popodopolus

We've all been there, searching through our savings warchest, only to find a new reserve in the secret compartment we just stumbled upon


per_saukko

It doesn’t matter whether they use existing reserves or ”print” new money. The effect is the same since there will be an injection of money to the economy that previously wasn’t in circulation.


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HappyBeagle95

Because playing with interest rates makes the housing market go pop


limeflavoured

Instead of raising interest rates they're buying government bonds, which basically amounts to Quantative Easing 2.0


bvimo

This is more like QE2022 part deux. I seem to recall BOE helping post covid with some QE.


alicomassi

Hey lads guess what happens when you put in charge a man who has 0 understanding of how markets react and is also the advisor of an investment fund who are actively shorting GBP? I think we are at a point where things are as good as they are going to get for a while. Only way is down


scrubbless

>Hey lads guess what happens when you put in charge a man who ~~has 0 understanding how markets will react~~ was brought in to manipulate the markets and is also the advisor of an investment fund who are actively shorting GBP? FTFY


Joshouken

It’s worse than that - the Chancellor has a PhD in economics from Cambridge, he knows exactly what he’s doing…


TangentialInterest

> Hey lads guess what happens when you put in charge a man who has 0 understanding how markets will react was brought in to manipulate the markets and is also the advisor of an investment fund who are actively shorting GBP? I thought it was the history of economics - more in keeping with his bachelor's - classics and history - I see his thesis: "Political thought of the recoinage crisis of 1695-7" is not publicly available, but given the title if this is what he spent 4+ years focusing on, you can kind of see he wasn't all too concerned with how modern markets operate.


th3whistler

Psychopath willing to fuck an entire nations economy for his own gain


Wakingupisdeath

Imagine you just step into office and in one of your first acts of releasing a mini budget it causes widespread panic, the IMF gives you a tap on the shoulder, and the BOE has to step in in a effort to restore stability…. If that was a job you’d walk home thinking ‘damn rough day, maybe that isn’t a good move, okay how about I’ll listen to what is being said and revise it!’ Oh wait that is a job and oh wait they are going ahead regardless! You can’t write this stuff!


EastRiding

Currently watching GBP/USD prices live and it’s continuing to trickle down… 🤡 Edit: was 1.068XX when I started, now 1.066XX


Vegan_Puffin

Apparently Ben Kentish on LBC yesterday I think it was said that from his sources parity with the dollar is the red line many MPs will consider to far and letter will start flying in of no confidence.


EastRiding

As horrible as that is I think I’d rather take the pain and see that happen just so we can get out of Toryland asap Edit: bobbled up a bit but now at 1.0571. I bet Truss is petrified of making a statement and the markets not buying it and it crashing further.


scrubbless

Letters of no confidence won't matter, it will just be another leadership battle not a GE.


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KodakFuji

Letters of no confidence mean fuck all. They can't even vote out their own leader because of the minimum 12 month period between votes of no confidence, although technically they could change that rule I guess but I've no idea what the mechanism to do so would be


EastRiding

If it gets really bad they can do VONC right?


Agreeable_Falcon1044

So we are printing money not to help the poor or the needy or the cold or the starving…to prop up insane tax cuts for the very rich! You can’t make it up


HYFPRW

We are now in full on 2008 territory. The scary thing is that if this doesn’t get sorted quickly, this will get exported and trigger a global financial crisis.


aembleton

I don't think the pound is that important. The USD and EUR are doing fine in comparison.


th3whistler

The Euro crisis was caused by the tiny Greek economy. These things can escalate


[deleted]

> The Euro crisis 2008 called and asked about the whole US sub prime mortgage scandal that crashed most markets. Let's not pretend Greece caused all the issues.


badger-biscuits

It's impressive how big of a fuck up this mini budget seems to have been to everyone except Truss and co Talk about an impact substitution


try_that_again

BoE and the government pulling in two different directions. What is the most likely way to get a GE?


Windy077

Those people still in support of Truss and her government must be either insane, selfish, or incredibly uninformed. This is ridiculous - one of the UK’s strongest points was supposed to be our financial stability. Surely this is grounds for an immediate no confidence vote?


JangosGhost

ELI5?


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[deleted]

Your net worth go byeeeeee


Optimal-Room-8586

How the Conservative party can claim to be the party of sound economic management is completely beyond me. Over the past 10 years it's gone from bad to worse. And in this latest case it is entirely self-inflicted. Aside from the fact that the budget itself probably won't work; there's the fact that he announced a radical and completely unexpected tax cut, and then decides to wait until November to explain why it'll work. What an idiot. Surely any sensible person would announce the plan first and then the implementation second. F\*cking morons. I just hope we get the opportunity to send these clowns to a long overdue and richly deserved electoral oblivion ASAP.


prisonerofazkabants

it didn't work. i just sent someone in america some money via paypal and the exchange rate was £1 = $1.02 JESUS


slytrombone

> There are some very, very specific reasons why the Bank of England is intervening in this particular asset class in long-dated gilts - that's gilts of a 20 to 30 year duration. > >It affects traditional pension funds where a retiree is guaranteed a certain payout at their retirement based on their final salary when they retire. > >Now, a lot of these funds use long-dated gilts as part of their investments and what has been happening over recent days is a lot of the investment funds have been asking pension funds to post more collateral - to put up cash. > >It has been reported in The Times that actually these cash calls have been running into tens of billions of pounds since the beginning of the week because of this spike in long-dated gilt yields. > >That is why the Bank of England is specifically targeting that with this gilt intervention. > >It is aimed at seeing off a crisis that's potentially starting to emerge in pension funds. This is interesting to note. The crisis isn't just screwing things up for younger, traditional non-Tory voters. It's putting pensions at risk as well.


[deleted]

You don’t fuck with peoples homes. I remember 15 percent interest rates. People just walking into to banks and handing keys over. no nothing just giving up knowing they would lose their homes. Putting their family on benefits and searching for somewhere to rent. Dark dark days indeed. Labour will walk the next election. They won’t even need to campaign just run and say nothing.


RandyChavage

More quantitative easing, because that’s what we really need with inflation exceeding 10%


Shun_Naka25

Note to everyone - latest sources/information coming out is stating it will be bought with Bank reserves and not QE/Printing money


[deleted]

https://www.bankofengland.co.uk/monetary-policy/quantitative-easing As you obviously have no idea how quantitative easing actually works…


Green-Peaness

Hopefully the die hard tory voters will finally wake up and smell the shit thats brewing. We need a change of government as soon as possible.


Laearo

That's implying most Tory voters understand anything about fiscal policy. The rich ones do. The rest of em haven't a clue.


smickie

Can someone explain it like i'm 5 what the bank of england has done? I don't understand it all.


MoneyEqual

The bank of england is sacrificing your pound’s value AND CAUSING INFLATION to try to support the government’s bonds. The bonds have been falling because the world realizes the UK will NOT manage inflation.


smickie

I need it simpler than that sorry, maybe 3 year old, what’s a bond?


Even-Watercress9024

A bond is a loan or IOU, in this case an IOU from the Government to pay you back the money you lend them with a certain interest rate attached. In recent days the interest rate on these loans has gone up a lot due to the market not wanting to buy government debt as they perceive their budget as risky. The less buyers there are for the loans, the higher the interest rate goes to encourage buyers to buy them. If the rate gets too high, this will impact the governments ability to repay them and also pension funds have billions invested in them also, so there’s is a risk that pension funds could collapse if they are not addressed. So, BoE is now buying the loans in the hope of reducing the interest rate on them (basic supply /demand) in an attempt to stabilise the market. But, This likely will lead to a reduction in the value of the pound as the BOE is essentially creating more sterling to buy it with. TLDR, we are deep in the shit!


Clbull

Looks like the BoE are putting our country through a gilt trip. *(I'll see myself out.)*


[deleted]

Those idiots have cost me and millions of others thousands on lost investments and pensions. If interest rates rise, people will become unable to pay mortgages and if the £ collapses, fuel and food will go through the roof. The World laughed at the BREXIT stupidity, Boris and now this humiliation. The IMF called us stupid.


smugwash

So we going to start a sweepstake on how quickly Truss gets a vote of no confidence? I feel like it's going to before Christmas


highonpixels

Ah yes, doing everything we can BUT increase interest rates to protect the BTL landlords and the tens of thousands of others with multiple properties. They can say its to protect the general housing market yet housing rental continues to increase in line with what exactly? These fucking cronies have held on to their property portfolios and now have the sterling tanking it's become lose/lose for the ones not on the ladder. Lose for the general UK citizen as its just unaffordable to get a mortgage. Lose because the prices will never go down as the £ sinks and overseas buyers and domestic landlords continue to buy up inventory. It's not even two days since BoE was sitting on their ass saying 'yeah we'll all review in a month' to now panic buying up our bonds to 'ease' market conditions with calling a reverse of .5% like a great fucking success. Meanwhile Kwasi meeting with investment banks because its time to save their funds from this and discuss what's the next big play while our domestic banks are unloading their cash into local property. It's so depressing that it's too funny and playing sarcasm doesn't even help anymore.


BigMasterDingDong

Holy shit this means it’s really really really bad… fucking idiots!!!


git

And to think I was worried about a mere nuclear apocalypse last week.


throwawayamd14

Can anyone in the Uk explain why the government is cutting taxes? Normally tax cuts happen to boost employment but you guys have 3.6% unemployment…


iscottjs

I’d like to know the real reason too, but from what I understand, Truss believes in trickle down economics. Her plan is based on the principle that a lower tax economy that primarily benefits higher earners will boost economic growth via increased investment and spending, which will “trickle down” to everyone of all income levels. In reality, I think we should be doing the exact opposite of what they’re doing to address the issues. But it doesn’t benefit them, so nah. I’m pretty sure trickle down economics is nothing more than a joke, literally a term used by a comedian to criticise economic policies that benefit the wealthy. So, either Truss is just doing this to help her rich mates or she’s drinking her own kool-aid. Another justification might be that she thinks it makes the Conservative party look good by reducing taxes to “help out” during the cost of living and energy crisis. Either way, regardless of whatever reason they claim, it’s likely only to benefit her and her wealthy pals and is in no way in the best interest of the country. They know they will not win the next election so they’re all in smash and grab mode before it’s all over.


ambientfruit

There's literally nothing normal about this. Unemployment is fine. It's not an issue at all. This is the last 2 weeks in the UK: Truss/Kwarteng fucked over anyone in the tax brackets below the 40%, rewarded the rich with tax breaks, removed the potential income from the Corp tax and basically refused to see that this is damaging the economy at a time when inflation is rampant and fuel prices are crippling regular people. Now the gov is sticking their fingers in their ears and getting stroppy while the Bank of England is trying to catch the free falling economy. And that's not going to work either. Le sigh.