Black Monday anyone? The tories should be in jail

[Upthebracket22]

The pound is now at its lowest point against the dollar since decimalisation in 1971 at 1.03. It’s probably going lower and the Bank of England will likely need to step in with an emergency interest rate rise today. Black Monday possibly?

All because of the mini budget on Friday. The Tories should be in jail. Especially if their rich backers were shorting the pound as it appears to get rich.

Anyone going to the US on holiday: www.dailymail.co.uk/news/article-11254129/Holidaymakers-offered-just-85-cents-pound-airports-following-Sterling-slump.html

It's all good. My parents came to the UK to escape poverty and the 'natives' did not like them either, as a kid I remember being shouted at that I was 'tarred with a tar brush' and 'where you REALLY from anyway'. Asians don't have the monopoly on disliking outsiders - it's human nature.

My family didn't care we just got out heads down, worked like crazy and mainly hung out with our own communities just like immigrant groups do everywhere including the gaijin in Asia.

If the UK is no longer offering opportunities then leave and seek 'em elsewhere - that's what migrants do - and we usually do well at it whether that's in the official, grey or black economies.

@MarshaBradyo as per my post the West is on a gradual downward trajectory so when I vote I do it not on the basis of who's got the big ideas, because none of the mainstream parties do, just on the basis of who looks the most vaguely competent. Kier Starmer looks vaguely competent and will hopefully be able to encourage his front bench to at least pretend to vague competency, so I'll probably vote for him. I think we could do with a change no matter how cosmetic, may as well give the other lot a go.

when I vote I do it not on the basis of who's got the big ideas, because none of the mainstream parties do, just on the basis of who looks the most vaguely competent

One of the most sensible things I’ve ever read on MN. If only everyone did this.

It's like where's Boris all over again but she was going to hit the ground on day one. Maybe, just maybe she's having a rare moment of reflection like what the fuck have done WTAFF. At a time of crisis, which this most certainly is it is the job or the PM and or her Chancellor to steady nerves and explain themselves. But no,zada,nilch. They made all this shit up in their narrow echo chamber and thought themselves genii (or geniuses) or at least she thought KK was. Coke can be a cruel mistress or whatever it was KK is on as exhibited at the Queen's funeral.

Coke can be a cruel mistress or whatever it was KK is on as exhibited at the Queen's funeral

Yes his behaviour was downright weird wasn't it. I get serious psychopathic vibes from him.

I would also like to add for those who think learning Mandarin only equips you to work in mainland China: there are still huge opportunities in HK, I know someone out there - plus, with China buying up swathes of European and African infrastructure (per the CCP's Belt & Road Initiative) - you can go to either of those continents and get in on those deals. UAE also a good place to spend some time and you can use Mandarin there. China is spreading its empire apace and I want my children to be equipped to thrive. Learning French is so last century.

Has anyone checked the fridges?

Some rumours are that he suffers from ADHD (he apparently supports some charities in that sector) and is on one of the amphetamine medications which would result in the head twitching, gurning and borderline psychotic behaviour.

Yet that’s the only time he’s been seen doing it in public. I’m not buying it, I think he was off his face.

I remember similar being said about Thatcher but people kept voting for her :(

Poll tax, anyone?

There is a whole thread from drugs illegal, Tourettes to neuroatypical. Whatever it is if it affects your deportment in public life at the highest office of state then an explanation is needed for sure.

www.mumsnet.com/talk/am_i_being_unreasonable/4640058-to-think-kwasi-is-unhinged-on-drugs

Those on mortgage fixed rates won't find any good deals once that rate ends :(

According to PM last night only a third of houses have mortgages on them another impact of older population and previous financial policies. Plus with mortgages there are fixed rates are more common and there's been a shift to 5+ years fixed rate being more common than 2 - plus there is some stress testing - they were thinking impact might be les than in previous decades.

Tallies with what in our family - due to age vast majority paid mortgages off - rest are in council or HA rentals.

We're one of the few with a mortgage - and we're okay for a few years and when we do look like many have considered rising interest rates.

In fact higher saving rates would be welcomed by many in our family - some people will be affected but I'm not sure it will have same impact as in the past.

What's upsetting most people in RL we know is inflation - every bill going up food inflation - that's already hurting and hitting everyone.

I vote I do it not on the basis of who's got the big ideas, because none of the mainstream parties do, just on the basis of who looks the most vaguely competent. Kier Starmer looks vaguely competent and will hopefully be able to encourage his front bench to at least pretend to vague competency, so I'll probably vote for him. I think we could do with a change no matter how cosmetic, may as well give the other lot a go.
This is how I tend to vote - and compared to Truss they do look better but I also factor in local MP unfortunately who I don't think does a good job and is Labour.

I won't vote tory - but were I am there are other viable options where I am.

Maybe hitting the ground on day one was her going face down in the dirt?

I wondered that too. Then I had a lightbulb moment. Gilts are borrowed money, aren’t they?! There isn’t a Barclays-for-countries, like I had vaguely supposed. That’s why their yields are up, when traditionally they are a low return because they’re safe. A sure thing. Lending to someone who can’t go bust and take your money with them. So if they’re high expensive, organisations who lend (invest) money to the UK government and presumably know something about these things are genuinely concerned that it might go bust? Or whatever happens to governments instead (what does happen?!). Which is why the pound has also gone down so much, because world-finance-people think that the UK has gone insane and is in serious trouble?

So, not content with plunging whole swathes of the public into the poverty and debt, they’ve now done it with the national finances, too? Great. Thanks.

I'm only quoting what I've heard on the tv and radio about mortgage deals etc. they won't have any good ones around.
It affects everyone of us however you look at it and that's without the cost of living and the energy bills and inflation.

Time to have a look at our next PM live

What Kwarteng is doing is straight out of the Libertarian playbook in the US (which is precisely were he learned it). None of this is new.

1. By cutting taxes (mostly at the top) they create a large budgetary deficit
2. Market prices in higher long-term risk for Sovereign Debt
3. They now "have to" cut spending to reduce that risk as debt service payments are too costly.

How they cut spending is likely:

1. Keeping public pay increases below inflation

(Real wages are then naturally eroded so spending goes down)

1. They squeeze NHS further in real terms
2. They squeeze education further in real terms
3. It is very unlikely they will touch the triple lock as they need the grey vote. I expect them to keep them nice and happy with lots of extras.

The goal of (2) and (3) is to get more people to shift from public to private, thus the state spends less, and the costs are shifted to the individual (this is the classic libertarian viewpoint).

None of this is new. The last time they tried this in the US (Kansas) on a large scale it was an epic failure. But keep in mind that since it was a US State, it is still being backed by the financial power of the Federal Govt in the US.

What they are doing in the UK is a classic "Big Bang" Libertarian approach with NO SAFETY NET.

Thats they key here. No safety net.

When this goes sideways from an economic standpoint (which it will in 12 - 24 months), there is nobody there to backstop the whole country.

What will happen is that interest rates for our debt will shoot up (as we are now considered a risk by investors), leading to a sovereign credit downgrade for the UK.

That extra debt service cost for the UK will leave us crippled for a good 3-5 years, until we are able to bring tax revenue back up a bit relative to spending.

Thats what is waiting for the UK.

I'm welling up at his speech. There is hope.

As i understand it, Gilts are basically uk gov IOU's promising a fixed rate return.

The yield is the effective rate of return, as a ratio to value, so higher yield, higher rate of return and less the gilt is actually worth - last year gilt yield (10yr) was 0.5%, now around 4%, German gilt yield is 2.2%, so Germany can borrow many at half the rate the UK can now.

Bare in mind, we are being told how much Germany is worse off than the UK because we don't use Russian gas..... you'd have thought the markets would be tripping over themselves to lend us money and they will BUT at super high rates

This isn't just the nations finances, its ours, anyone with a work place pension will have seen it drop in value, as so much of a pension is in bonds and gilts.

It seems to me that everyone is missing the point. What other reason can
there be for the current economic woes than that Truss is a left-wing
sleeper fifth columnist? Her unwavering vision can only come from a desire
to make the Tory party unelectable, and she is succeeding admirably. The
appointment of "down the Khasi" Kwarteng as Chancellor of the Exchequer
was a masterstroke. According to his Wikipedia entry, he worked at Odey
Asset Management, a company whose founder, according to his Wikipedia
entry, is "known for his bearish outlook". His previous employer must be
very proud of him.

Probably more a case of the second hit of an empty rotting barrel being scraped, and a barrel into which Boris had taken a big dump before vacating the premises and then woozy on a good claret threw up what was left of his guts. Or something like that anyway - apologies for anybody eating.

Crikey absolutely barnstorming speech by Keir he's really on the ball.

Isn’t he? I feel a glimmer of hope at last. Don’t drop that Ming vase, Keir.

Just an addendum to your post.

With any DC workplace scheme, you should have the ability to pick what units in which fund you want your pension contributions invested in.

My advice (if you have not done this already) is to move all of your pension assets to ex-UK funds. US based investment are the best long-term choice to ride out the coming global problems.

Happy and grim in equal measure. Was at RAR in Vicky Park 78? Saw the Smiths at the GLC farewell concert. And Mari Wilson - what became of her.

Used to know loads of RCP ppl in Hackney. Rumoured by other lefties to be a CIA front cos of their suspiciously well produced paper.

But who knows ? One is in the Lords , one was an advisor to Johnson , another runs a Tory Borough. Others run Spiked.com . Perhaps some ppl are just natural extremists. Or must always be in leadership, principles notwithstanding.