The Conservative Party

[domalino]

Or perhaps neither. It might not have been a hard cap but it was certainly meddling and putting downward pressure on pay, because no company is going to change from paying say £100k basic and up to £900k in bonuses for outstanding performance, to saying OK you can have £1m in basic pay for just turning up and doing a dreadful job.

For someone pretending to know what they are talking about, I would have thought you might have considered that.

It was not a wage cap, you understand this so I guess we must be going with intentionally dishonest.

As for “downward pressure” what does Kwasi have to say?

“All the bonus cap did was to push up the basic salaries of bankers”


So not downward pressure then? Just sensible financial regulation adopted by the entire EU to prevent risky banking activity.

 

[west didsblue]

Oh the fucking irony. You've forgotten the last Labour government's parting note, clearly.

You do know that the note was a joke don’t you. It was back in the day when the two parties had some respect for each other. Politicising that joke was one of many instances that broke down that respect.

 

[Chippy_boy]

I agree with this bit - astonishing failure to read how it would go down.

Out of interest, do you have an opinion for why the exchange rate changed so much?

Re your question, obviously markets are in part about fundamentals, but more so these days about sentiment. And in that context, I have to confess I am puzzled why the pound fell as it did. Although I expect it will recover.

There seem to be some strange dynamics going on at the moment. For a start, people do not seem to be recognising that inflation is really not our main issue right now. You have two types of inflation - supply side and demand side. Traditionally, inflation is about too much demand for not enough supply, and prices therefore go up. The normal response to address this is higher interest rates, to reduce peoples' available funds, and to encourage them to save their money - both of which depress demand and lower inflation.

But this is different, it's not about excess demand, it's about structural adjustment to supply costs. Costs of supply have gone up, resulting in high inflation figures. Demand has not got up.

Therefore, raising interest rates, is preciseky the wrong thing to do. Our big risk is recession, not inflation. Inflation will naturally return to low single figures once supply costs stabilize - even if stabilizing at a higher level. If energy costs actually decrease then potentially inflation will fall dramatically, possibly even become negative.

The problem is helping support demand, helping people to pay their bills and have enough left over to buy stuff. For that, we need to keep interest rates low, not put them up!. What on earth is the point of Truss giving the average person a four or five hundred pounds in their back pocket to spend, when a 0.5% interest rate rise could take 2x that off people in terms of increased mortgage cost?

I am surprised the BoE doesn't seem to recognise this. But then again it has a very limited brief, to control inflation. And only 1 tool in the box to do it, interest rates. Nevertheless they should not be putting rates up right now.

My guess - to finally answer your question - is that the markets fear the tax cuts will fuel further interest rate rises.

 

[Bodicoteblue]

Lefty bollocks! Haha! I suppose being a selfish **** is the way forward and we know you’re a selfish **** because most of your posts on these kinds of threads come with big flashing neon sign that say ‘I’m chippy and I’m a selfish ****’

yep, it was rather an aggressive statement of indifference!

 

[Chippy_boy]

You do know that the note was a joke don’t you.

No, I don't, and nor do you.

 

[Chippy_boy]

It was not a wage cap, you understand this so I guess we must be going with intentionally dishonest.

As for “downward pressure” what does Kwasi have to say?

“All the bonus cap did was to push up the basic salaries of bankers”


So not downward pressure then? Just sensible financial regulation adopted by the entire EU to prevent risky banking activity.

Oh do keep up. Downward pressure on overall pay. God this is tedious.

 

[west didsblue]

Not trawling through this thread, but the left's objections to the removal of the cap on bankers' bonuses is deeply flawed and the media coverage of it, pitiful.

It's as if the left think the government pays the bankers. They do not; the banks do.

Removing the cap isn't the government "giving the rich" anything, because they aren't giving them anything in the first place. In fact, if the bankers get paid more and since 99.99% of them, if not 100% are on PAYE, then the government will receive more tax, not less.

All this change is about is the government saying (quite rightly), "how much a company wants to pay its employees is fuck all to do with the government, and it is entirely wrong for the government to be meddling in companies' affairs by setting wage caps".

If wage caps on bankers' bonuses are OK, then why not caps on footballers pay? So we could encourage all the top talent to fuck off out of the UK and play abroad. I am sure that would be popular, NOT. So it seems people are quite happy for us to attract the best footballers with attractive pay packages, but that's not OK for our banks? That's a ludicrous position for the lefties to take. Many are bitter and resentful idiots though, so not unexpected.

I think you’ve forgotten the huge bailouts that stopped some of the banks going bust in 2008. That was using public money ultimately provided by you, me and every taxpayer. That gives us a say in how banks conduct their business because if the same thing happens again we will be bailing them out again. If a football club runs out of money it goes bust so it’s rightly down to them how much they pay their employees.

 

[west didsblue]

No, I don't, and nor do you.

Well you’re an idiot then. Governments don’t run out of money.

 

[Chippy_boy]

Lefty bollocks! Haha! I suppose being a selfish **** is the way forward and we know you’re a selfish **** because most of your posts on these kinds of threads come with big flashing neon sign that say ‘I’m chippy and I’m a selfish ****’

Hehehehehe

You have no idea do you, not one tiny little clue. I do find the bitterness of some lefties like you, very sad. I am not rich, nor am I banker. I am just a regular employee like you, but unlike you I don't have one massive chip on my shoulder and I don't resent people who are much better off than me.

 

[Phil1]

Hehehehehe

You have no idea do you, not one tiny little clue. I do find the bitterness of some lefties like you, very sad. I am not rich, nor am I banker. I am just a regular employee like you, but unlike you I don't have one massive chip on my shoulder and I don't resent people who are much better off than me.

What on earth gives you the impression that I’m a lefty? And what on earth makes you think I have a chip on my shoulder about anyone that might be wealthier than me?
I think you’re a selfish **** because every one of your posts on the politics threads scream out you’re a selfish ****. I don’t care if you’re wealthy or not, it’s your mindset I don’t agree with.
I’ve done alright by the way. I won’t be worrying about bills I can’t afford anytime soon but I can certainly have empathy with those who will.