It's all falling apart alarmingly fast for Boris Johnson across the water. How long you reckon he has left as British Prime Minister? Hours surely?
How many parties are they talking about now? I've lost count.
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Packrat
Monopoli
That's just it - It's the utterly self-inflicted nature of all of this that is so darkly amusing - Although not remotely funny for the average waged worker in the UK on the receiving end of all of this.
ALL of this could have been avoided if they actually knew what they were doing and spent more than 5 seconds thinking about the potential outcomes of their decisions before repeatedly leaping head first into the brick-wall of reality.
every currency is weak against the Dollar at the moment. There are huge concerns in Asia at the moment, after the Japanese government stepped in to help the Yen and the Yuan has hit it's lowest ever rate against the dollar as well. The euro effectively hit its lowest rate two weeks ago and has dropped further since, although it was lower before it was actually put in to circulation.
So that is pretty much every hard currency that is weak against the USD, except the Swiss Franc, with a lot of speculators expecting that to be next.
Its disaster capitalism writ plainly and unashamedly as government policy
And have all those other currencies seen their cost of borrowing spike massively at the same time?
Everyone knows that the Global economy is in a bad place right now and that there are impacts of varying sizes everywhere.
We could look at each of the elements and find examples of other countries being impacted in similar ways , but that it's only the UK that is getting hit by ALL of them at the same time and at the upper end of the impacts as well is the issue at hand.
It's the collective impact of all of the elements , made worse by utterly stupid policy decisions, that is seeing the UK hit far worse than everybody else right now.
Yep. Mogg and his friends will do their best to stay the course so that they can clean up when the IMF asset strip the country.
It was popular among the Tory leadership electorate, though.
It's funny, on the 24th September, a guy called John Maynard Friedman went through every related Wikipedia page and put the same suggestion in place.
It of course had nothing to do with the Labour government throwing around 35% pay rises to stay in power causing huge inflation 🙄
I responded to a post about all currencies, could you tell me (now that you are suddenly an economics expert) which part of my post was incorrect.
This time with a little less "but but but but....
It doesn’t look like he’s claiming your post was incorrect?
so it was a simple but but but then?
Not at all.
Simple question - In totality , Is the UK economy being collectively hit harder by all of the various external global factors than most other countries?
And then the follow-up question to that if the answer is yes , Why might that be?
Peoples answers to the above question are really the core of this thread don't you think?
The mentality of the Tory party since Brexit has been to do as they please despite advice given do the opposite. I am almost believe that anyone advising the Tory government to do something would best use reverse phycology and tell them to do it so that they will say " you can't us what to do" and then they do the opposite. It's kinda like dealing with a child
At this moment in time, yes it is. Due to the stupid decisions made in the mini budget.
I have never seen a British government be so out of touch with the BoE and the city. That is one of the biggest concerns. there is a long way to go though and as we head in to winter, things are only going to get uglier all across Europe and the world.
I know this is an Irish forum and as such looking down your noses on the British is par for the course, but all the talk of the IMF intervening and the likes is just pure bullocks though. It is wishful thinking from the usual suspects who like to paint the UK as some Orwellian dictatorship.
It's not about having a pop at the UK though Freddie, it's about looking on in amazement as the UK inflicts on itself yet another spectacularly goal. If you could get beyond your own prejudices you'd see that. Anyone with any sense knows that the UK's economy heading down the shitter will not bode well for any of us.
There has been an effort by a few of the usual over the last few days to derail every thread questioning Truss with attacks of "anti-Britishness" or "Ireland is worse" bllsht.
If you follow that particular exchange I was commenting on a poster poking fun at British import costs rising (bearing in mind the UK is one of Ireland's major trading partners)whilst the effects this will probably have on Ireland going completely over their head.
I wasn't laughing at any of that you liar.
I was laughing at Liz Truss crap speech about cheese and pork.
It was a DISGRACE 😂
Daniel Hannan being extra "Daniel Hannan" today
It's all Labours fault apparently...
Daniel Hannan: No, the pound isn’t crashing over a trifling batch of tax cuts. It’s because the markets are terrified of Starmer.
What the sterling sell-off may have reflected – and what those Deutsche Bank analysts may clumsily have been suggesting – is the belief that this budget has made a Labour victory more likely.
Sounds like we are in agreement for the most part then.
The Global Economy is in for a pretty rough ride over the next few months (and maybe years) and everyone is going to feel it, but the UK are currently doing little if anything to mitigate that and might in fact be making it a whole lot worse for themselves as well via their policy choices.
And as for the IMF bit - The IMF have taken the pretty unusual step of making comments on Kwartengs budget so they are clearly seeing something that concerns them , whether that ultimately means that they might step in is completely unknown at this point.
However I haven't seen the IMF comment on anyone elses Budget/Policy changes recently , so it's definitely something worth discussion and consideration.
Yeah. Here is another of those institutions just out to get the UK. Damn left!
So the BoE now needs to come to the rescue, just days after the supposed great mini-budget that was going back to real conservative roots and was going to deliver for everyone.
It is an absolute car crash. CX is probably going to have to resign, his credibility is shot and Truss has gone into hiding which suggests she has either no ability to deal with this, or doesn't want to.
CX?
Chancellor of the eXchequer
This is so baffling, honestly what did they think would happen, that everyone else would clap and they would be declared PM and Chancellor for life? Or like with brexit when they said one thing to the EU and another to the british press did they forget the rest of the world can see what happens and what they say at all times and can react accordingly?
Hard to see how Kwarteng can have any credibility left.
His very 1st act as Chancellor causes the BoE to have to step in and take emergency action because of how terrible everyone believes his actions are.
What does he do now?
Does he roll back the changes before they go live? , Does he try to soften it by adding some extra stuff for the "non-Rich"?
Or (which sadly is the more likely option) - Does he just plow on regardless, emboldened by extra servings of Dunning-Kruger for dinner?
The post is here mentioning uk imports of cheese complete with strange emoji(UK fourth behind Italy,France and Germany).Why would you find that funny considering the potential impact on EU countries exporting to the UK?
Everything we have seen the last few years makes me think he plows on.
It was a joke - A quick google of "Liz Truss Cheese" might help you understand.
He knows full well it was he is just trying to rabbit hole.
I would imagine Sterling was a handy buffer for the euro as it lost value against the USD, but fuel imports from Qatar and the US via the UK were reaching record highs. A weaker sterling is going to make these more expensive at a time when supply needs to ramp up.
Georgieva was probably looking out for the euro just to make sure her next job is secured.
'Unthinkable' that Bank having to fix fallout from government's mini-budget Sky's economics editor Ed Conway gives his analysis on the Bank of England's decision to buy government bonds.
This is an extraordinary moment.
We'll get to the details in a moment but before we do let's not lose sight of the big picture.
The Bank of England has just stepped in to fix a part of the financial market which had broken following the government's mini-budget last Friday. It has intervened - not with interest rate hikes but with an emergency financial stability operation - because part of the foundations for the economy had begun to malfunction.
I cannot remember another occasion like it.
We had interventions during the financial crisis, but they were reactions to genuinely global movements.
In this case, the UK is the only market seeing a breakdown quite like this. In this case the intervention was a direct reaction to UK economic policy. If the International Monetary Fund's statement last night seemed chastening, then this is a level up.
Now the details (in brief). Much of Britain's financial markets relies on buying and selling of normally dull government bonds to manage risk over the long run. This is part of the plumbing which allows money to flow from savers to borrowers.
And it's especially important for the pensions industry, where funds are especially reliant on long-dated bonds (those dated over 20 years). Those bond yields spiked at an unprecedented rate after the government's announcements on Friday, sparking real problems for these so-called "liability driven investors".
It's a complicated and obscure part of the market, but it was getting close to a serious collapse.
So the Bank has stepped in to buy those long-dated bonds and try to get it functioning again. That might sound a lot like quantitative easing, but there are important (if ostensibly subtle) differences.
QE was a pretty open-ended plan to boost the economy by getting cash flowing into people's pockets. This is a very specific (and time-limited, only two weeks) operation forensically focused on a few gummed-up categories of bonds.
Even so, there is a paradox here. Even as the Bank was in the process of trying to withdraw cash from the market, selling off the assets it bought in recent years as part of that QE scheme, it has been forced to do something which, at least to some extent, pushes in the opposite direction.
It has also been forced to pause its plan to reverse QE until October - though that may be the first of a number of pauses if the current instability persists.
Either way, this is a big moment. The Bank's statement on Monday was unusual. The IMF's statement on Tuesday was even more unusual. Today’s intervention is nearly unheard of.
For it to be a direct response to UK government policy is nearly unthinkable.
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