The Conservative Party

[Brewster's millions]

Agreed. It could be a game of bluff, but Bailey going public like this and saying policy is pulling in different directions, tells me that Kwarteng and Truss are not listening to him in private. Someone has to intervene because this is not sustainable.

There’s a weird Mexican stand off at the moment, and we could have a bit of a shit show next week as things come to a head.

Ironically, the emergency gilt purchase schemes introduced by the BoE over the past fortnight haven’t really been used that much by the pension funds, and the BoE’s purchases have been relatively small. Partly this reflects the less generous pricing implemented by the BoE relative to earlier schemes, and sometimes it’s only the presence of the BoE in the market, rather than its activity levels, which makes the difference. But I also think that pension funds are reluctant to sell gilts at current levels - unless they really need to - as they expect Truss to go fairly soon and gilts to then re-price in response.

None of this helps Bailey from a financial stability perspective - he can only do so much to get pension funds to reduce their gilt holdings - so he’s being very vocal now to cover himself if things go wrong again next week.

Bottom line is that if government is still in place on Monday, then I think we could have another lurch lower in gilts that would eventually force the BoE to act, and Truss to go, as the government would not be tenable. This is of course what the market wants in any case, hence the stand-off. It’s all very circular but we could have some fireworks over the next week or so.

 

[bluethrunthru]

There’s a weird Mexican stand off at the moment, and we could have a bit of a shit show next week as things come to a head.

Ironically, the emergency gilt purchase schemes introduced by the BoE over the past fortnight haven’t really been used that much by the pension funds, and the BoE’s purchases have been relatively small. Partly this reflects the less generous pricing implemented by the BoE relative to earlier schemes, and sometimes it’s only the presence of the BoE in the market, rather than its activity levels, which makes the difference. But I also think that pension funds are reluctant to sell gilts at current levels - unless they really need to - as they expect Truss to go fairly soon and gilts to then re-price in response.

None of this helps Bailey from a financial stability perspective - he can only do so much to get pension funds to reduce their gilt holdings - so he’s being very vocal now to cover himself if things go wrong again next week.

Bottom line is that if government is still in place on Monday, then I think we could have another lurch lower in gilts that would eventually force the BoE to act, and Truss to go, as the government would not be tenable. This is of course what the market wants in any case, hence the stand-off. It’s all very circular but we could have some fireworks over the next week or so.

I'd expect the giveaway over the weekend will be who can they persuade to back them from the cabinet on TV and who will write support pieces in the Sunday papers. I have noticed my MP Simon Clarke who was previously the Chief Sec to the Treasury who was a vocal supporter of Truss and Kwarteng and the mini budget in the aftermath seems to have gone to ground. If it Johnny or Jemima Belsen - St.John who are minister for paper clips and stationery then you know no fucker wants any part and they are all busy polishing up their CV's

 

[mat]

Thing is already people are printing and selling T-shirts and hoodies with it on and taking the piss - I have no idea who is head of the "3 word slogan" dept but they are getting worse and worse.

Sounds like a great name for a punk band.

 

[The Future’s Blue!]

It’s a mess isn’t it!

And more.

 

[WestGorton]

And I’m thinking that they’ve done it on purpose to put you, and many others, in a position where the rich steal your pension and you have to work longer.

Horrible to say but that is the only thing I can think of with their current policy.

I know. I am on that point and have a very modest pot. Not moaning as many have nothing. However thus odious corrupt political party want to ruin everything.

 

[The Future’s Blue!]

I know. I am on that point and have a very modest pot. Not moaning as many have nothing. However thus odious corrupt political party want to ruin everything.

Everybody in the lower level are in the same boat, mate, but there is a crossover point where those with a modest portfolio lose while those who can diversify will move it and make a greater share. This leads to forced sales of such things as owner properties which are bought up by people who aren’t making as much money in the market and can afford to hold until the impact is over.

If this goes the way that many think, we should all have a voice to moan as we’ve all been taken for fools.

Personally, I’d like to bring this country to a halt and get rid of, what I believe to be, a corrupt government. I owe that to my children and forebears.

 

[The Future’s Blue!]

There’s a weird Mexican stand off at the moment, and we could have a bit of a shit show next week as things come to a head.

Ironically, the emergency gilt purchase schemes introduced by the BoE over the past fortnight haven’t really been used that much by the pension funds, and the BoE’s purchases have been relatively small. Partly this reflects the less generous pricing implemented by the BoE relative to earlier schemes, and sometimes it’s only the presence of the BoE in the market, rather than its activity levels, which makes the difference. But I also think that pension funds are reluctant to sell gilts at current levels - unless they really need to - as they expect Truss to go fairly soon and gilts to then re-price in response.

None of this helps Bailey from a financial stability perspective - he can only do so much to get pension funds to reduce their gilt holdings - so he’s being very vocal now to cover himself if things go wrong again next week.

Bottom line is that if government is still in place on Monday, then I think we could have another lurch lower in gilts that would eventually force the BoE to act, and Truss to go, as the government would not be tenable. This is of course what the market wants in any case, hence the stand-off. It’s all very circular but we could have some fireworks over the next week or so.

I enjoy your inputs, mate, but every time I read your posts I get a little more confused ;-)

 

[bluethrunthru]

Sounds like a great name for a punk band.

I presume you mean Anti Growth Coalition ? I have to say I'd also be tempted to use 3 word slogan as a name too

 

[mat]

I presume you mean Anti Growth Coalition ? I have to say I'd also be tempted to use 3 word slogan as a name too

Would make a great double bill.

 

[bluethrunthru]

Personally, I’d like to bring this country to a halt and get rid of, what I believe to be, a corrupt government.

I think that has to be OUR end game. The system is actually rigged against the people from the Civil List to the Honours List from FPTP to Postal voting - yes its gonna make us all suffer but I think it will just hasten the country to the point where they are taking us. Maybe grind the place to a halt and just say we ain't moving until you fuck off - this shambles cannot go on.