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The Official Liz Truss no longer PM but still a Clusterfuck thread


Clown Job

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Correct me if I'm wrong but the only things that the Tories revere are, Power & Wealth.  

Surely by shafting their ability to hold on to Power(the polls) and apart from some spectacularly beneficial insider trading they're incinerating their ability to hold on to Wealth (the markets) they've got to be close to men in white coats time for Truss and Kwarteng? 

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2 hours ago, Hedgecutter said:

Just looking at a situation of somebody having an outstanding mortgage balance of 'just' 100k.  At 1.8% interest, that's £500pm, but a mere jump to 5% becomes £660pm, which is suddenly an extra £1,920 per year.

Compare that to the energy price hike (based on the average bill going from £1,971 up to £3,549) which has had the country wetting itself for months now.  Truss and Kwarteng have somehow managed to take a rise that was (by their own admission) going to cripple households, and within a week of some real work manage to kick off an additional, even larger rise somewhere else through nothing other than incompetence.

That's not quite true, as interest rates were going to increase to at least 4% anyway. They are however going to add about 2% onto that, so the difference between those rates is the actual cost to some (but by no means all) households. Energy costs are a much more direct and universal issue to society than SVR mortgage rates. 

The wider premise that record low interest rates need to be kept low because people budgeted for that is hardly valid either. It's just that rather than smoothly reversing out of that cul-de-sac, they've skidded off the road entirely and down an enormous fucking cliff. 

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So what's the script with this BoE move? Is it a case of them backing the government or undermining it? I know the reality is that they're trying to save their arses in response to Kwasi's move but how will this be interpreted?

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4 minutes ago, williemillersmoustache said:

Correct me if I'm wrong but the only things that the Tories revere are, Power & Wealth.  

Surely by shafting their ability to hold on to Power(the polls) and apart from some spectacularly beneficial insider trading they're incinerating their ability to hold on to Wealth (the markets) they've got to be close to men in white coats time for Truss and Kwarteng? 

I think the folk speculating that they're rather not win the next election might have a point.

Someone else in cherge while the shit's really hitting the fan, and unable to do much about it in the short term, might not be a bad idea. After five years, Labour would have taken most of the blame, and you'd have a stick to beat them with for another few decades. Until 2024, wring as much out of the exchequer for your mates as possible in exchange for your post-politics rewards, also ensure you're going to lose the election you don't want to win, then retire to the Winchester for five years and wait for this all to blow over.

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1 minute ago, Ludo*1 said:

So what's the script with this BoE move? Is it a case of them backing the government or undermining it? I know the reality is that they're trying to save their arses in response to Kwasi's move but how will this be interpreted?

Like a traffic policeman leaning in the car window and taking your keys. 

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4 minutes ago, BFTD said:

I think the folk speculating that they're rather not win the next election might have a point.

Someone else in cherge while the shit's really hitting the fan, and unable to do much about it in the short term, might not be a bad idea. After five years, Labour would have taken most of the blame, and you'd have a stick to beat them with for another few decades. Until 2024, wring as much out of the exchequer for your mates as possible in exchange for your post-politics rewards, also ensure you're going to lose the election you don't want to win, then retire to the Winchester for five years and wait for this all to blow over.

Cabinet and donors maybe but presumably most of the shire tories want to keep their jobs?

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36 minutes ago, Paco said:

Political journos seem to think there’s a genuine chance Kwarteng won’t last the week as chancellor.

Pension funds seemed close to collapse before the BoE’s intervention (underwritten by the Treasury, at yet more huge cost to the taxpayer). Some might yet fall.

Wonder how pension-obsessed DPB will spin this one. 

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9 minutes ago, Ludo*1 said:

So what's the script with this BoE move? Is it a case of them backing the government or undermining it? I know the reality is that they're trying to save their arses in response to Kwasi's move but how will this be interpreted?

Nothing to see here. 

The Bank of England has to step in to try to solve a financial car crash caused by the Government less than a week ago. Perfectly normal. Don't look over here... look over there... erm erm erm flags! Royalty! Talking Britain down! The IMF has self-declared as a left wing organisation!  

Time for a "Who will be the next (temporary) leader of the Conservative Party" thread? 😂

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It is horrific, but you can't take your eyes off it. The UK Prime Minister and Chancellor, barely in the door, have ripped up every rule. High borrowing, low tax, in an energy crisis - no wonder all the money is leaving the UK. 

Pension funds were at risk and so the BoE has stepped in.

Just ask yourself - if Labour did this, would the Daily Mail be running articles talking about "cool heads" "keeping your nerve" and so on? No chance. 

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9 minutes ago, Ludo*1 said:

So what's the script with this BoE move? Is it a case of them backing the government or undermining it? I know the reality is that they're trying to save their arses in response to Kwasi's move but how will this be interpreted?

They are doing what they have to because the government have made a rip-roaring c**t of it and have tanked the currency. Notionally, they are acting against the government, but have done so because of the situation the government have created. 

Of course, the BoE being forced to step in in such a way has seen the Pound drop again. Much like unfunded, daft fiscal policies, the markets also do not like money being pumped in at will. 

A mess of Truss and Kwarteng's own doing. 

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1 hour ago, ICTChris said:

Your legs weigh more, best lose one of them if that's your goal.

 

Anyway, the Bank of England has taken action to stabilise markets - significant intervention in the gilt market.

I’d certainly prefer to be legless rather than armless.

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