Liz Truss Resigns [Who'll be the next Prime Minister?]

The "mini fiscal event" - the gift that keeps on giving…

https://www.bbc.co.uk/news/business-...5Bpost+type%5D

Bank of England in fresh emergency move to calm markets

The Bank of England has warned of a "material risk" to financial stability as it made a fresh emergency move to try to calm markets.

It said it would buy more government bonds to try to stabilise the price and prevent a sell-off that could put some pension funds at risk of collapse.

It has made multiple interventions in markets since the government's mini-budget spooked investors.

The chancellor promised huge tax cuts without saying how he would fund them.

On Monday, he brought forward his plan to balance the government's finances by three weeks to 31 October in a bid to reassure the markets…

… Explaining its intervention on Tuesday, the Bank of England said government bonds had seen a "significant re-pricing" since the start of the week and warned there was a risk of a fresh downturn in markets.

It said it would now buy a wider range of bonds as well as continue to buy bonds as part of the original emergency measures it launched on 28 September.

"A material risk to UK financial stability" are words the Bank of England uses rarely. It's even more rare for several senior Bank executives to have indicated part of the blame for the turmoil may lie at the government's door, the result of domestic policy.

They're not alone. The sharp rise in the cost of new government borrowing - the interest on those bonds - reflects an anxiety amongst investors that its tax-cutting plans risk the UK overstretching itself. And it's pensions funds and borrowers who are hit by the fallout.

It's the Bank who - again, a rare event - had to try to ease their pain. But it's made it clear that the medicine is a stop gap - and the lingering unease in the market emphasises it's ultimately looking to what it sees as the source of its unease - the chancellor's approach - for a remedy.

Resolving this crisis of faith will ultimately depend on what the chancellor unveils in his Hallowe'en plan. If the IFS is right, the price of restoring credibility could involve upwards of £60bn worth of cuts to public spending.

update

https://twitter.com/jrmaidment/statu...mUQzgbBGowDpgw

Downing Street said Cabinet did not discuss the Bank of England's latest big economic intervention this morning.

The Bank warned at 7am that a sell-off in the UK govt bond market posed a “material risk to UK financial stability”.

Was not brought up at main Cabinet meeting.

Well, that should restore the Markets' confidence...

[Dave42]

Originally Posted by Hugh

The "mini fiscal event" - the gift that keeps on giving…

https://www.bbc.co.uk/news/business-...5Bpost+type%5D



update

https://twitter.com/jrmaidment/statu...mUQzgbBGowDpgw



Well, that should restore the Markets' confidence...

BOE saving us more from our own government could not make it up

[TheDaddy]

Originally Posted by OLD BOY

At last, a sane voice. You have to admire the left for organising such a United front against these measures. These measures are exactly what is needed.

All this crap about everyone struggling to pay their bills, flocking to Aldi, etc. Well, I’m a pensioner myself, I’ve not changed my habits and my supermarket bills end up much the same as normal months. Although my fuel bill went up in April, I’ve now had a monthly £66 government rebate on my bill, not to mention the subsidy already paid out by the government.

Granted, the very poorest can’t pay more as they have nothing to pay with, but they have been helped at every turn by this Conservative government, which the left wantonly ignore to make it look as though they have been abandoned.

The fiscal measures are needed to turn the economy around. The only legitimate criticism that exists is that the detailed plan to pay off the debt has not been made available and the OBR has not been allowed to review it. Well, given that the people of this country needed their subsidy now, there was no time to lose in getting it out there. The government has not finalised the detailed plan to pay off the debt, although they know how to achieve it, and that plan will be forthcoming when it is complete in November. The OBR can then study it to its heart’s content.

The markets have reacted badly owing to the lack of detail, but they will get over it and things will return to normal.

Liz Truss has less than two years to prove what she’s made of and that her radical plans are robust. She is a woman on a mission, and she ain’t gonna hang around.

Finally a prediction you might get right

Originally Posted by OLD BOY

Except that there will be spending cuts, that has already been made clear. The Civil Service is to be cut down, saving salaries and building costs. Those quangos still need extinguishing where they are not providing essential services as well.

It has been made clear also the the planning rules are to be streamlined to assist companies to build things faster. The Brexit benefits have not yet been tapped into and we will have a bonfire of the EU regulations that have been holding us back as well.

The increased growth from a whole raft of measures including those already outlined in brief will help us pay off the debt.

Aside from the fact leaving the EU has created a whole raft of legislation, bureaucracy and paperwork I think you'll find we like a lot of the EU regulations for workers, most of us don't want to be sacked if we get ill or refuse to do 60 hours a week plus, we like our holiday entitlement and no matter what the government says we don't want to adopt china's working practices, where suicide is often more preferable than returning to work after lunch, of course dizzy lizzy doesn't understand this coz she's a humanoid and how many more years do they want to extinguish the quangos, call me dave was promising that a decade back

Originally Posted by ianch99

Because he is a hypocrite; he has in the past sold the UK out when pretending he is all about Brexit Britain and now he is wheeled out to gaslight us, trying to convince us the sky is green, really?

He is yesterday's politician, desperately trying to be relevant in today's world and failing miserably. His time is over, he just needs to accept this and move back into obscurity.

John Deadwood

Originally Posted by jfman

Rubbish Old Boy, worse than your usual. There’s one side to this debate and one only. Truss is free wheeling the economy into chaos and you think it’s alright because some work experience kid wrote a policy paper for a think tank once.

If anyone is going to break established groupthink of the macroeconomic world I can absolutely assure you it will not be Liz Truss

By hysterical reaction I assume you mean those funds worth billions betting against the UK to the extent we have to print money to bet against them? Surely you of all people should admire their entrepreneurial spirit.

Those funds Krazy Kwarteng had lunch with before his made his statement, it's so sleazy no wonder he couldn't stop himself laughing at a certain persons funeral

[1andrew1]

This is damning for a party that once positioned itself on its fiscal abilities.

The IFS reckons the “credibility cost” of the mini-Budget was about £10bn in extra debt payments each year. With that money we could fund significant tax cuts. We could build more than a hundred new hospitals.

It’s a LOT of money - but it’s now going on higher debt interest bills.

The “credibility cost” will also dent econ growth. Because millions of households will have higher mortgage costs & hence less to spend, it means lower GDP in future.

Citi reckons roughly 0.1-0.2 percentage points off GDP. Quite literally the opposite of “growth, growth, growth”

Ed Conway, Sky News.
https://twitter.com/EdConwaySky/stat...91163619319809

https://www.reuters.com/markets/euro...il-2022-10-11/

LONDON, Oct 11 (Reuters) - Finance minister Kwasi Kwarteng on Tuesday committed to work with regulators to understand what has happened to the market for long-dated British government bonds in recent weeks, with a particular focus on the role of pension funds.

"We will be absolutely committed to getting to the bottom of what's happened in the long - particularly long-dated gilt market where it's been over-levered over the last few weeks," he told parliament.

[ianch99]

Is this true?

According to last month's Private Eye @KwasiKwarteng has been working for Odey's hedge fund on the side as a paid 'political advisor' at £20k a month since he was elected as an MP in 2010.

If so, how is this allowed? Baffled ..

Nothing in the Register of Members Interests…

(Did a random check over a few years, starting in 2010).

Update - according to the Mirror

Mr Kwarteng was paid £10,000 for giving political advice to the company between February and August 2011.

https://www.mirror.co.uk/news/politi...kwasi-28095367

I think the original Private Eye story is from the same time (2011).

[1andrew1]

Originally Posted by ianch99

Is this true?
If so, how is this allowed? Baffled ..

If true,I think it should be in here:
https://www.parliament.uk/mps-lords-...ial-interests/

No current interests registered:
https://members.parliament.uk/member...teredinterests

[jfman]

I'm always amazed the amount of these high skilled, intelligent individuals who could trouser tens of thousands per month for a few hours work here and there that can be bothered with public service. £80k a year to get bored by constituents stories, heckled by journalists, get berated in the bowels of the internet.

If it were me I'd be out of the House of Commons quicker than you could say:

"I’m out of here. This is just a left-leaning snake pit. Have a nice life y’all!”

It's almost as if this additional income depends on it.

[papa smurf]

He may have forgotten to register it, starmer does it regularly.

[denphone]

Originally Posted by papa smurf

He may have forgotten to register it, starmer does it regularly.

Well done for todays whataboutery.

[1andrew1]

Originally Posted by denphone

Well done for todays whataboutery.

Agreed. And washed down by a litre of false equivalence too.

[papa smurf]

Originally Posted by denphone

Well done for todays whataboutery.

But in his defence he only did it 8 times

https://www.theguardian.com/politics...r-of-interests

Originally Posted by papa smurf

But in his defence he only did it 8 times

https://www.theguardian.com/politics...r-of-interests

The commissioner has now found that leader of the opposition failed to register eight interests – five more than alleged in the original complaint.

However, she noted the “breaches were minor and/or inadvertent, and that there was no deliberate attempt to mislead”.

[Julian]

Originally Posted by denphone

Well done for todays whataboutery.

Again as in other threads this is not whataboutery it's identifying that it's a cross party issue.

They are all as bad as each other....