Stop voting for fucking Tories

[Torquemada 1420]

Sh*t has really hit the fan now.

We have the IMF taking action not seen since Callahan in 1976 and now the BofE has pressed the panic button:
"emergency action to prop up the UK government bond market, reversing plans to sell gilts and, instead, buying long-dated debt. Were this market to continue or worsen, there would be a material risk to UK financial stability”.

[PCPhil]

This the moment when you need someone of impartiality, wise experience and expertise in money matters. Anyone heard Bimbo’s views yet?

[Torquemada 1420]

This the moment when you need someone of impartiality, wise experience and expertise in money matters. Anyone heard Bimbo’s views yet?

Hey. When Truss goes, Coffey is PM

[Hal Jordan]

This the moment when you need someone of impartiality, wise experience and expertise in money matters. Anyone heard Bimbo’s views yet?

"Not proper Conservatives."

I also like how we're finished blaming the last Labour Government for everything and have moved to blaming one that hasn't even won the next election.

[Tichtheid]

This is the doing of Remainers in the City who hate that poor Jacob Ree-Mogg, apparently.

This is the position taken by a guy who shorted the pound and made a million and a half for himself and a good few bob for his hedge fund - he can't possibly be blamed for this as he was grouse shooting in Scotland on Friday.

[tabascoboy]

Tweet author is Political Correspondent with Sky News

[Insane_Homer]

[sturginho]

A summary of the silliest reactions

[I like neeps]

This is the doing of Remainers in the City who hate that poor Jacob Ree-Mogg, apparently.

This is the position taken by a guy who shorted the pound and made a million and a half for himself and a good few bob for his hedge fund - he can't possibly be blamed for this as he was grouse shooting in Scotland on Friday.

The same man who has made literally hundreds of millions shorting the pound is saying unpatriotic remainers are shorting the pound.

Occam's razor suggests Odey is a remainer in brexiteer clothing.

[tabascoboy]

[fishfoodie]

This is actually a genius move by the treasury !

1) They are buying all that old money with QE II's head on it, which is now a worth much, much more than face value, because they won't make any more of it.

&
2) When they start issuing the new, KC III notes, they can issue it in more useful denominations.

You'll be able to go into your fancy Coffee shop, & peel off a few, billion pound notes to pay for your Latte, & know you've really arrived !

[yermum]

The shorting by Odey and then blaming remainers is actually disgusting stuff. Like so many times since Brexit I just can't believe the brazeness of it all. How in fucks name there hasn't been riots in the streets is probably worse

We are too busy sobbing into our QE2 teacloths and tugging our forelocks

[I like neeps]

The shorting by Odey and then blaming remainers is actually disgusting stuff. Like so many times since Brexit I just can't believe the brazeness of it all. How in fucks name there hasn't been riots in the streets is probably worse

We are too busy sobbing into our QE2 teacloths and tugging our forelocks

You HATE your country if you don't support Odey getting richer HATE IT

It's unpatriotic and you're leftie commie Britain hating cuck if you don't support a man who does believe in Britain getting very rich from making bets against Britain at every opportunity.

[Torquemada 1420]

This is actually a genius move by the treasury !

1) They are buying all that old money with QE II's head on it, which is now a worth much, much more than face value, because they won't make any more of it.

&
2) When they start issuing the new, KC III notes, they can issue it in more useful denominations.

You'll be able to go into your fancy Coffee shop, & peel off a few, billion pound notes to pay for your Latte, & know you've really arrived !

[I like neeps]

After creating policies that screw the young the Tories thought they'd do their bit for intergenerational fairness and screw the oldies too. Fair play Liz, fair play.

[SaintK]

.............and still the PM and Chancellor are in hiding. I wonder why?

[Torquemada 1420]

After creating policies that screw the young the Tories thought they'd do their bit for intergenerational fairness and screw the oldies too. Fair play Liz, fair play.

All FS schemes are underpinned by Gilts. They are all running with huge deficits already. Plummeting Gilt values would already have seen them all breaching their solvency requirements.

[_Os_]

After creating policies that screw the young the Tories thought they'd do their bit for intergenerational fairness and screw the oldies too. Fair play Liz, fair play.

Looks like it was stemmed using reserves to buy 30 year UK bonds, but the UK reserve isn't large (£200bn?). So my question is, if there's no u-turn and the two morons continue hiding. Then how long can the BoE continue using their reserves to buy 30 year UK bonds (I have no clue how big the market is they're trying to hold up), they plan to keep going into October, but if the two morons are still hammering away can they keep going until deep into 2024 when there's an election? They could just get printing maybe, but more QE will boost inflation.

Seems a bit like putting a finger in the dyke and hoping something comes along (Kamikhazi 's removal and a climb down)?

So that's the £, housing market, SME loans, and pensions ... all gambled on tax cuts slanted towards the ultra wealthy who already weren't heavily taxed at all, will produce growth to close the deficit they've blown open and will then reduce borrowing.

[tabascoboy]

(continues..."kind of savage devaluation was always going to wreak havoc."

[I like neeps]

The old "call Zelensky, ask for a nice tweet and insha'Allah" crisis response.

[SaintK]

The old "call Zelensky, ask for a nice tweet and insha'Allah" crisis response.

Yeah, lets talk to Ukraine buit skulk and hide from the UK electorate and press.
Fucking cowards.

[Torquemada 1420]

After creating policies that screw the young the Tories thought they'd do their bit for intergenerational fairness and screw the oldies too. Fair play Liz, fair play.

Looks like it was stemmed using reserves to buy 30 year UK bonds, but the UK reserve isn't large (£200bn?). So my question is, if there's no u-turn and the two morons continue hiding. Then how long can the BoE continue using their reserves to buy 30 year UK bonds (I have no clue how big the market is they're trying to hold up), they plan to keep going into October, but if the two morons are still hammering away can they keep going until deep into 2024 when there's an election? They could just get printing maybe, but more QE will boost inflation.

Seems a bit like putting a finger in the dyke and hoping something comes along (Kamikhazi 's removal and a climb down)?

So that's the £, housing market, SME loans, and pensions ... all gambled on tax cuts slanted towards the ultra wealthy who already weren't heavily taxed at all, will produce growth to close the deficit they've blown open and will then reduce borrowing.

Spot on. A point I've just made in a circular. Printing money to swallow up the Tories debt mountain was an easy-ish ride whilst inflation/interest rates were low. And even then the BofE had started unwinding its position a few months back because 14 years of Banana Republic economics had to come to an end.

[Tichtheid]

From the FT



https://www.ft.com/content/a46e53bb-e23 ... f71d2e57ef

One former cabinet minister told the Financial Times: “I think (Kwarteng)’s dead but in the Tory party death can take many forms. It can take a long time. There’s a political vacuum.”

Another Tory MP, a member of the government, said: “Liz has a pretty quick choice to make: either she bullets her chancellor and changes course or she could lose her premiership within a month.

“She will struggle to get any legislation through parliament unless she changes course because we won’t vote for it. We won’t ever get to vote on this package because the markets will destroy it first.”


Truss has something in common with Johnson, when it hits the fan, she is nowhere to be seen

[SaintK]

Holy shit! It's not our fault it's Putin's

[I like neeps]

From the FT



https://www.ft.com/content/a46e53bb-e23 ... f71d2e57ef

One former cabinet minister told the Financial Times: “I think (Kwarteng)’s dead but in the Tory party death can take many forms. It can take a long time. There’s a political vacuum.”

Another Tory MP, a member of the government, said: “Liz has a pretty quick choice to make: either she bullets her chancellor and changes course or she could lose her premiership within a month.

“She will struggle to get any legislation through parliament unless she changes course because we won’t vote for it. We won’t ever get to vote on this package because the markets will destroy it first.”


Truss has something in common with Johnson, when it hits the fan, she is nowhere to be seen

Tory MPs are partly responsible. If they make clear in significant number they aren't voting for these tax cuts publicly then Truss and Kwarteng cannot continue with them and will refine the policies.

Interesting if anyone listens to eggchasers Phil's brother is the only Tory MP who has said that they are following the wrong policy.

[I like neeps]

Labour literally could not write a better campaign slogan than the Tories are cutting public services to pay for tax rises for the 1%. Keir Starmer must be a puddle.of excitement right now.

[fishfoodie]

Well if they want to make cuts in Whitehall, Dizzy Lizzie could lead the way by reducing the number of MPs in the Government, but she promised ~150 of them places, to guarantee their support in the Leadership !!

[Line6 HXFX]

Well if ever there was a time to sell everything, leave your job and get a camper van and a drone..and create a van life YouTube channel..nows the time folks.

[Insane_Homer]

I think we can safely say 'project fear' was understated by some margin.

[fishfoodie]

I think we can safely say 'project fear' was understated by some margin.

To be fair; if you'd suggest half of what's happened in the last week, you'd probably have been sectioned.

[I like neeps]

I think we can safely say 'project fear' was understated by some margin.

To be fair; if you'd suggest half of what's happened in the last week, you'd probably have been sectioned.

Aside from maybe the pensions margin call....the Tory MPs favoured leadership candidate Rishi Sunak did suggest this would happen...

[_Os_]

Meanwhile in Tory alternate reality.

Your employer must be purged, your mortgage must be purged, your pension must be purged (government debt must not be purged though, that must be heavily expanded). All because of the last 10 years, which was all the fault of the BoE not the Tories.

[I like neeps]

Meanwhile in Tory alternate reality.

Your employer must be purged, your mortgage must be purged, your pension must be purged (government debt must not be purged though, that must be heavily expanded). All because of the last 10 years, which was all the fault of the BoE not the Tories.

Lilico is a total mentalist....

... But, capitalism does rely on some creative destruction from time to time and bubbles do need to be the popped. The Western economies do need money moved from unproductive assets (zombie companies, mortgages) into productive assets (ideas, growth companies). Because otherwise capitalism would collapse in on itself... Again.

But the problem is central banks and policy makers have inflated bubbles relentlessly so people don't want their livelihoods creatively destroyed. It's a pickle.

[SaintK]

So here we have it folks. The last 6 days are down to Putin and the global energy crisis. We;ll that's the line she's used in all her regional radio interviews this morning.
Batshit delusional!!!

Truss suggests Putin primarily to blame for UK's economic crisis
Next we go to BBC Radio Bristol, where James Hanson is presenting.

Liz Truss is delivering the spiel about cutting energy bills.

Q: The Bank of England has had to step in to clean up the mess you caused. This has never happened.

Truss says we are facing a difficult global situation.

Q: But this is not about Putin?

Truss says this is about Putin and the war in Ukraine.

She claims the “vast majority” of the package announced on Friday was about energy support.

Q: You did not have to make it worse. You spooked the markets. Can you guarantee that pensions are safe?

Truss says the Bank of England does a very good job delivering financial stablility.

She says:

This is a global financial situation. Currencies are under pressure around the world.

[_Os_]

After creating policies that screw the young the Tories thought they'd do their bit for intergenerational fairness and screw the oldies too. Fair play Liz, fair play.

Looks like it was stemmed using reserves to buy 30 year UK bonds, but the UK reserve isn't large (£200bn?). So my question is, if there's no u-turn and the two morons continue hiding. Then how long can the BoE continue using their reserves to buy 30 year UK bonds (I have no clue how big the market is they're trying to hold up), they plan to keep going into October, but if the two morons are still hammering away can they keep going until deep into 2024 when there's an election? They could just get printing maybe, but more QE will boost inflation.

Seems a bit like putting a finger in the dyke and hoping something comes along (Kamikhazi 's removal and a climb down)?

So that's the £, housing market, SME loans, and pensions ... all gambled on tax cuts slanted towards the ultra wealthy who already weren't heavily taxed at all, will produce growth to close the deficit they've blown open and will then reduce borrowing.

Spot on. A point I've just made in a circular. Printing money to swallow up the Tories debt mountain was an easy-ish ride whilst inflation/interest rates were low. And even then the BofE had started unwinding its position a few months back because 14 years of Banana Republic economics had to come to an end.

Good to meet again Torq.

I haven't had the time to try and work out how the 30 year bond buying was funded. Some reports are saying from reserves, others are saying from some form of QE, either way it's just a short term fix. I've found a report saying there's £1.5 trillion of UK pension assets hedged in LDIs (Liability Driven Investment), which seem to be the issue here (pensions hedging liabilities, yields on bonds rise sharply as there's reduced demand because of the huge supply of new UK bonds the two morons intend adding, triggering collateral calls for margin payments). Much like the entire mortgage market (£1.6 trillion) that's surely too big for any intervention to stop collapsing long term? If confidence is lost in the UK it seems unlikely the BoE can somehow keep holding back the tide forever, the US and Euro zone are definitely exposed and must be preparing themselves.

Maybe there's 2 weeks or a month in this limbo, where the two morons are trying to hide and hope it goes away, and if there's still no climb down then a collapse?

I would count this as a second order impact. something that could've been seen with enough knowledge (which I do not have, so didn't see coming at all). If this is what the two morons are committed to there'll be more of these. Then there's the third order impacts which no one sees coming.

[_Os_]

Meanwhile in Tory alternate reality.

Your employer must be purged, your mortgage must be purged, your pension must be purged (government debt must not be purged though, that must be heavily expanded). All because of the last 10 years, which was all the fault of the BoE not the Tories.

Lilico is a total mentalist....

... But, capitalism does rely on some creative destruction from time to time and bubbles do need to be the popped. The Western economies do need money moved from unproductive assets (zombie companies, mortgages) into productive assets (ideas, growth companies). Because otherwise capitalism would collapse in on itself... Again.

But the problem is central banks and policy makers have inflated bubbles relentlessly so people don't want their livelihoods creatively destroyed. It's a pickle.

Be careful of the ZANU-PF solution, which is what Lilico is about really. He thinks you can take a complicated but entirely solvable issue, and violently smash everything to pieces then grind the pieces into dust, then somehow from that nothing you can build a much better future than if there hadn't been the violent smashing at all. He has a violent revolutionary mindset, a lot of Tories do now, especially the type now in power.

There's a big difference between 5 years or so at an average Bank Rate of 3% combined with some fiscal tightening (but not austerity that will harm growth), and total madmen immediately demanding 7% along with debt fuelled growth (or more likely no growth and just the debt) combined with austerity MK2. I've seen Tories demanding DEFRA is entirely ended as part of their coming austerity drive.

[Slick]

I must admit that this thread has made me smile a few times in the last months with the ludicrous conspiracy theories, particularly from the likes of dpidin, neeps, os and Saint.

And here we are.... fucking hell, I, obviously naively, thought none of this could actually happen in our country.

[I like neeps]

Meanwhile in Tory alternate reality.

Your employer must be purged, your mortgage must be purged, your pension must be purged (government debt must not be purged though, that must be heavily expanded). All because of the last 10 years, which was all the fault of the BoE not the Tories.

Lilico is a total mentalist....

... But, capitalism does rely on some creative destruction from time to time and bubbles do need to be the popped. The Western economies do need money moved from unproductive assets (zombie companies, mortgages) into productive assets (ideas, growth companies). Because otherwise capitalism would collapse in on itself... Again.

But the problem is central banks and policy makers have inflated bubbles relentlessly so people don't want their livelihoods creatively destroyed. It's a pickle.

Be careful of the ZANU-PF solution, which is what Lilico is about really. He thinks you can take a complicated but entirely solvable issue, and violently smash everything to pieces then grind the pieces into dust, then somehow from that nothing you can build a much better future than if there hadn't been the violent smashing at all. He has a violent revolutionary mindset, a lot of Tories do now, especially the type now in power.

There's a big difference between 5 years or so at an average Bank Rate of 3% combined with some fiscal tightening (but not austerity that will harm growth), and total madmen immediately demanding 7% along with debt fuelled growth (or more likely no growth and just the debt) combined with austerity MK2. I've seen Tories demanding DEFRA is entirely ended as part of their coming austerity drive.

I don't agree with his solutions at all but he has at least identified the problem. An ultra low interest rate environment and asset bubbles are bad for the economy.

For example - cheap borrowing meant capital was allocated towards capital which policy encouraged and that meant capital was not productive and asset wealth inequality acted as an anchor on the economy. Bad!

Mortgage prices collapses meaning people's retirement security and savings and disposable income are washed away due to crazy policy. Also bad!

[dpedin]

I must admit that this thread has made me smile a few times in the last months with the ludicrous conspiracy theories, particularly from the likes of dpidin, neeps, os and Saint.

And here we are.... fucking hell, I, obviously naively, thought none of this could actually happen in our country.

Cheers mate - I too wish I had been completely wrong about all of this. We have in effect had a right wing coup in this country and are now run by a bunch of zealots and ideologues who are backed by shady right wing funding via Tufton Street 'Think Tanks'. The appointments of Taxpayer Alliance and IEA economists as PM and Gov advisors and the sacking over the last few years of the key sensible civil servants has been about putting their guys/operatives in place to enact this economic shitfest. The warnings from Biden, IMF, EU etc are not just about the mini budget but more general warnings about these nutters plans for the UK. The markets know and have reacted. Nothing will change until Truss, Kamikaze and the rest are ousted and it needs to happen very very quickly. Putin is laughing ....

[I like neeps]

I must admit that this thread has made me smile a few times in the last months with the ludicrous conspiracy theories, particularly from the likes of dpidin, neeps, os and Saint.

And here we are.... fucking hell, I, obviously naively, thought none of this could actually happen in our country.

I'm surprised people didn't realise it is the logical end point to 5 years of the Tories taking an axe to all the things that could stop this happening in our country...