The Conservative Party

Brewster's millions said:
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.
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Great post - absolutely spot on.
 
Kwartang already hiding from the media over the shitshow he's created.

He's accountable to us not the hedgefund owners he's sucking off.
 
Well who'd have thought it. The pound now higher against the dollar now (1.0899) than prior to the mini budget. Deary me that doesn't fit the narrative at all, does it.

Queue the usual lefties wading in with some deflection or other. ...
 
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Chippy_boy said:
So when Labour are in power and world events cause economic disaster and hardship, it's not Labours fault. But when the Tories are in power, and with COVID we have the worst economic shock since WW2, immediately followed by a war in Europe causing a 10X increase in gas prices, the lefties on here say the Tories are to blame for our predicament. Right.
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If what you say is correct every country would be in the same boat and the pound would be stable relative to all those countries. It’s not.
 
we used to grow our own hops in Kent - I suppose those fields were more profitable if we built housing estates on them - people will prefer the decimal rather imperial way when its £10 a pint - makes the price of a round much easier to calculate

www.lbc.co.uk

Price of beer set to soar as plunging pound sees the cost of imported hops skyrocket

A leading brewery boss has warned the price of beer could be set to soar, as the pound plummeting against the dollar leads to the increased cost of hop imports.
www.lbc.co.uk www.lbc.co.uk
 
Chippy_boy said:
Well who'd have thought it. The pound now higher against the dollar now (1.0899) than prior to the mini budget. Deary me that doesn't fit the narrative at all, does it.

Queue the usual lefties wading in with some deflection or other. ...
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What narrative the pound has tanked the market sees us as an emerging market currency, I am not sure what recognition you are looking for here? Don't tell me you've just shit in you're hands and forgot to clap.
 
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Mike D said:
What narrative the pound has tanked the market sees us as an emerging market currency, I am not sure what recognition you are looking for here? It’s like you have just been punched in the face and are got teeth knocked out, you are telling it’s okay because you've still got a few teeth left.
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‘Tis but a scratch…
 
This all takes me back to the good(?) old days on the brexit forum.
People supporting a view no matter how much evidence- tangible and theoretical- was put in front of them by those bloody experts, and jumping on the slightest thing that they feel may be supportive no matter how out of context and fleeting they are.
And all the time all it needed was less talking down the country and more belief and faith, and surely in the fullness of time black would indeed become white.
 
Chippy_boy said:
Well who'd have thought it. The pound now higher against the dollar now (1.0899) than prior to the mini budget. Deary me that doesn't fit the narrative at all, does it.

Queue the usual lefties wading in with some deflection or other. ...
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You know why though? The markets are now pricing in a 1-2% rate increase and a likely emergency statement from the BOE. Absolutely nothing to do with the cavalier politics currently on show, no matter how much you try to conflate the 2. In fact, you seemed to be suggesting that the BOE policy should be to reduce interest rates and thus support the Government, unless I’ve misunderstood? There would be an absolute rout if that happened.
 
"Only by enticing the tastiest bathers into the water can we attract sharks of the calibre that will boost Amity's growth."

FdXLOmgXgAIykbP
 
bluethrunthru said:
not laughing now is he?

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You'd think he'd say something at least semi reassuring like "I'll be making a statement within the next 24 hours" instead of refusing to comment because he's a clueless **** whose Truss budget has fucked the pound and is on its way to increasing inflation even more. The Peter Principle in action. He really has no fucking idea.
 
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