williemillersmoustache Posted September 28, 2022 Share Posted September 28, 2022 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? 1 Quote Link to comment Share on other sites More sharing options...
vikingTON Posted September 28, 2022 Share Posted September 28, 2022 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. 0 Quote Link to comment Share on other sites More sharing options...
Ludo*1 Posted September 28, 2022 Share Posted September 28, 2022 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? 0 Quote Link to comment Share on other sites More sharing options...
BFTD Posted September 28, 2022 Share Posted September 28, 2022 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. 0 Quote Link to comment Share on other sites More sharing options...
williemillersmoustache Posted September 28, 2022 Share Posted September 28, 2022 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. 0 Quote Link to comment Share on other sites More sharing options...
williemillersmoustache Posted September 28, 2022 Share Posted September 28, 2022 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? 0 Quote Link to comment Share on other sites More sharing options...
Jeff Venom Posted September 28, 2022 Share Posted September 28, 2022 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. 0 Quote Link to comment Share on other sites More sharing options...
Dawson Park Boy Posted September 28, 2022 Share Posted September 28, 2022 Just now, Jeff Venom said: Wonder how pension-obsessed DPB will spin this one. To put things into context, the help for energy bills will cost £160b supported by every party. The top rate tax cut will cost £2bn. Please, get real. 0 Quote Link to comment Share on other sites More sharing options...
Salt n Vinegar Posted September 28, 2022 Share Posted September 28, 2022 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? 0 Quote Link to comment Share on other sites More sharing options...
scottsdad Posted September 28, 2022 Share Posted September 28, 2022 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. 1 Quote Link to comment Share on other sites More sharing options...
Michael W Posted September 28, 2022 Share Posted September 28, 2022 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. 0 Quote Link to comment Share on other sites More sharing options...
scottsdad Posted September 28, 2022 Share Posted September 28, 2022 Daniel Hannan: No, the pound isn’t crashing over a trifling batch of tax cuts. It’s because the markets are terrified of Starmer. Good job, Dan. Mission accomplished. Everyone can relax now. 0 Quote Link to comment Share on other sites More sharing options...
Granny Danger Posted September 28, 2022 Share Posted September 28, 2022 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. 0 Quote Link to comment Share on other sites More sharing options...
flyingscot Posted September 28, 2022 Share Posted September 28, 2022 17 minutes ago, scottsdad said: 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. Surely it's all Labour's fault... At least I suspect that is what some will claim 0 Quote Link to comment Share on other sites More sharing options...
williemillersmoustache Posted September 28, 2022 Share Posted September 28, 2022 3 minutes ago, flyingscot said: Surely it's all Labour's fault... At least I suspect that is what some will claim Not that I do more than glance at these rags but their front pages havev been very Meghan Markle heavy over the last few days. 0 Quote Link to comment Share on other sites More sharing options...
carpetmonster Posted September 28, 2022 Share Posted September 28, 2022 7 minutes ago, flyingscot said: Surely it's all Labour's fault... At least I suspect that is what some will claim Already happened 0 Quote Link to comment Share on other sites More sharing options...
Detournement Posted September 28, 2022 Share Posted September 28, 2022 55 minutes ago, virginton said: That's not quite true, as interest rates were going to increase to at least 4% anyway. All by themselves? 0 Quote Link to comment Share on other sites More sharing options...
Dawson Park Boy Posted September 28, 2022 Share Posted September 28, 2022 4 minutes ago, Detournement said: All by themselves? Yes- because of world wide inflation, the US Fed increasing rates and Europe doing the same. Absolutely inevitable no matter who was in power. 0 Quote Link to comment Share on other sites More sharing options...
Granny Danger Posted September 28, 2022 Share Posted September 28, 2022 Imagine if a Labour government had caused chaos like this. 0 Quote Link to comment Share on other sites More sharing options...
RiG Posted September 28, 2022 Share Posted September 28, 2022 lol 0 Quote Link to comment Share on other sites More sharing options...
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