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28-09-22, 07:16 AM | #1 |
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Economics
Does "will not hesitate" mean something different when economists/bankers use it? The BoE says it will not hesitate to intervene if there's a run on the £...
... in November. £1 = $1.066 this morning, when I sent money to my son in US in Aug it was $1.19, in May it was $1.28 If the state of our government was a soap opera I'd sit back and say: "Pass the popcorn, it's about to get interesting". Unfortunately this affects us all. Today, the IMF said in round about terms: WTF are you doing UK? Maybe the Chancellor should listen?
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28-09-22, 08:16 AM | #2 |
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Re: Economics
The tories have truss in place and know they are going to be out of government (if "government" is how you can describe what they are doing) before much longer, so they are just asset stripping now.
Although, if they carry on down the current fascism inspired path, they may be about for a lot longer. Witness Truss congratulating the new fascist leader in Italy. I seem to recall Italy's last dabble with fascist government didn't end well. Last edited by garynortheast; 28-09-22 at 08:17 AM. |
28-09-22, 08:29 AM | #3 |
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Re: Economics
its not the gov's fault its the boe brexit and covid but mainly covid suppose you could add in putin.
when a gov gives free money away to its working population there is something wrong. they have been doing it since working tax credits and such like and they still continue to do so. |
28-09-22, 09:34 AM | #4 |
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Re: Economics
https://www.bloomberg.com/news/artic...er-bloomberguk tldr: UK markets have lost $500 billion since Truss took over makes the £32 billion of Test and Trace a bargain.
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28-09-22, 10:23 AM | #5 |
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Re: Economics
Yesterday's Daily Star wins the headlines competition:
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28-09-22, 11:34 AM | #6 |
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Re: Economics
The whole shooting match is just monumentally screwed up.
The idea that the BoE is responsible for controlling inflation when it only has one tool in the box, and that's totally the wrong tool for this particular case, is utterly stupid. Raising interest rates suppresses demand, but this is a supply side driven inflation situation, it just costs more to make and do stuff (fuel/energy/raw materials etc). If demand is driven down, as it will be when people can't afford their bills, it means businesses go bust. Growth? You must be joking. If you think 10% inflation is the peak, just wait a few months. Unfortunately the inflation figures will be suppressed a bit when we get to 12months after the first big energy rate rise, the increase will get consolidated into the new annual baseline, so the govt will try to sell this as getting inflation under control, but the prices will still be stratospherically high (just not going up even further as quickly). That's where the trick of abandoning the pension triple lock will get us, if you set the increase much lower than inflation/wages for a year it gets locked in for ever, then when the headline inflation drops after a year they'll say the pensions don't need to increase much. Kerching for the Treasury ..... for ever more. Unfortunately the utterly catastrophic and idiotic actions of Truss/Kwarteng have made it necessary for the BoE to raise rates just to try to stop the £ collapsing completely. Some people need a damn good slap, utter sh*t-for-brains numbskulls. ... apart from that it's going well .......... (PS ... and it looks like the £ is still going down against the $ and Euro..)
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"Artificial Intelligence is no match for natural stupidity" Last edited by embee; 28-09-22 at 11:59 AM. |
28-09-22, 12:34 PM | #7 |
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Re: Economics
'when a gov gives free money away to its working population there is something wrong.'
When a civilised and supposedly rich country needs foodbanks there is something wrong, and they existed before Covid but now are busier than ever. |
28-09-22, 01:56 PM | #8 |
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Re: Economics
The BoE has stepped in to stabilise the bond market. (not totally successfully)
So, the BoE has had to step in to protect the economy from the Conservative government's policies. I think that is a first.
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28-09-22, 03:16 PM | #9 | |
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Re: Economics
Quote:
you have to remember that when the BOE cut interest rates other big country's like America had to do the same. the low interest rates also affected the stock market. thanks ****y pants Brown. or am i wrong again.... |
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28-09-22, 04:17 PM | #10 |
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Re: Economics
Assuming you're correct, the Tories have had over 12 years to fix it. This current debacle though is a triumph of ideology over sense. Remember Sunak? He called Truss' plan "fairy tale economics". The most positive of economists said it was a gamble, the IMF said "stop", even the White House recommended "fiscal prudence".
Trickle down economics works on paper but not in real life anywhere it has been tried. Didn't we leave the gold standard in 1931? G.Brown sold off the gold reserves but notified the markets in advance causing its value to drop but that was much later. He did pump massive amounts of money to save the UK banks which would have collapsed (taking the economy with it). All of that, though, was from external forces (if you ignore the lack of regulation), this current fiasco is self inflicted.
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