The Conservative Party

[bluejon]

https://www.independent.co.uk/news/...ts-pound-sterling-dollar-latest-b2175108.html

Letters of no confidence in the premiership of Liz Truss have begun stacking up amid panic over her government’s economic proposals, a former Conservative minister has claimed.

An ex-minister in Boris Johnson’s government told Sky News that the letters which could trigger a confidence vote have already been sent to 1922 Committee chair Sir Graham Brady.

I was in no doubt she'd be thrown out by her own MPs, but the speed of this is incredible. Obviously have to wait to see if they get to the threshold, but this is what happens when the MPs and the tory membership completely disagree on who they want in charge. A bit similar to when Corbyn got in (MPs didn't want him, membership did) but with the party in question currently in power. Bonkers.

 

[The Future’s Blue!]

They only like them/us when we're working in poorly paid jobs creating vast wealth for themselves and their chums. Pensioners and the disabled they want dead as soon as possible and they're doing quite a good job ensuring that happens. In fact it's probably the only thing they've done/are doing with great success.

Criminal.

 

[Alan Harper's Tash]

 

[mat]

When’s it Francois’ turn?

 

[bluejon]

View attachment 56659

VIve La Francois

 

[blue44]

I'm still amased my foriegn wife wants to stay and live here.
i told her after covid we should sell up and go to hers.
she declined and still does,our son is in his last year of school now so its a no no now anyhow.
i could currently buy a restaurant/bar/guesthouse in her home city for roughly £80,000 and make a go of it.
if it all fails ,we just come back.

City,is all i ever would miss.

 

[Dave Ewing's Back 'eader]

I'm still amased my foriegn wife wants to stay and live here.
i told her after covid we should sell up and go to hers.
she declined and still does,our son is in his last year of school now so its a no no now anyhow.
i could currently buy a restaurant/bar/guesthouse in her home city for roughly £80,000 and make a go of it.
if it all fails ,we just come back.

City,is all i ever would miss.

Listen, Liverpool is no fit place to take yer family. Yer've done yer good lady a service by takin' her out of that den of iniquity, but suggesting yer go back . . . . . . . . .

 

[blue44]

Listen, Liverpool is no fit place to take yer family. Yer've done yer good lady a service by takin' her out of that den of iniquity, but suggesting yer go back . . . . . . . . .

gettin your wires crossed fella
my lady is Thai and Udon Thani .

 

[Dave Ewing's Back 'eader]

gettin your wires crossed fella
my lady is Thai and Udon Thani .

The bag I carry on the back of my Brommie is made in Thailand, and it is superb - the bag, that is, not Thailand! Never been but I hear there are a lot of snakes 'n stuff yer don't get on the Rochdale Canal towpath.

 

[Brewster's millions]

The independent article has an interesting quote: “The issue is government fiscal policy is opposite to Bank of England monetary policy – so they are fighting each other. What Kwasi gives, the Bank takes away ... You cannot have monetary policy and fiscal policy at loggerheads.”

Absolutely correct. The government need to realign the BoE's inflation targets and remit, or else all the benefits of the tax cuts will be wiped out. As I have repeatedly said, interest rate rises right now are absolutely the wrong thing to do, but under its current remit, the BoE is kind of obligated to impose them. Their brief does extend to keeping inflation around 2% in the medium term however, so they have some leeway.

Changing the BoE’s remit now would obviously lead to a rout across the market (I know you’re not advocating changing it right now), so we’re stuck in a bad situation for the foreseeable future.

The problem at the moment is that the government is pushing ahead with a radical fiscal package at the same time as the BoE is facing unprecedented uncertainty as to how and when to unwind QE. The question of how to unwind QE has hung over the market for years - not just in relation to the UK - and most thought it would occur only when fiscal surpluses are being recorded, or at least small deficits, such that the supply of gilts (normal issuance and those sold from the APF) would not overwhelm the market. Obviously that isn’t happening now, and I was surprised that the government pushed ahead with the tax cuts so soon after underwriting utility bills, the cost of which is in theory open ended. I’m not against tax cuts per se, but the timing was wrong in my book.

The other protagonist in this is of course the BoE, which got itself behind the curve in terms of rates, and which is now pushing ahead with large hikes to try to regain credibility. These rate hikes obviously dictate the fiscal outlook via the APF, so both fiscal and monetary policies are in flux and aggravating each other, causing the bigger market reaction. I would think that the BoE is extremely happy with the events of the past week as they’ll be absolved of most of the blame, when in fact they should be coming under severe scrutiny.