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.

Rich bankers will now be paying for nannies and gardeners

They always have been!! There won’t be a sudden increase in employment of nannies and gardeners by rich bankers. There’s a limit to the number of staff one family needs.

Sorry but banks have got round the cap by paying higher salaries = higher tax take.
Even KK said that the cap had not affected overall remuneration.

With a recession, there'll be less deals, less IPO's and less bonus = lower tax take.

Bonuses are also prone to being paid in very tax efficient ways.

The Tories are deliberately sabotaging the economy for the next government. They know that they're unlikely to win it so they're trashing it now so they can blame Labour. Arseholes.

is this another ‘it’s just as bad in Europe’ comment to justify what the tories have done. The pound is in a dire situation and is collapsing. Maybe check your facts

oh it’s not just Europe. Japanese Yen is as bad as I’ve EVER seen it, which hurts me on a personal level 🤮

12 years of austerity, public sector wage freezes, wage suppression, rich getting richer, energy bills sky rocketing, food banks, cost of living crisis, to the pound at its lowest ever.

tHe ToRiEs ArE tHe BeSt aT rUnNiNg The EcOnoMy 🤩

At least this means the Tories will be voted out at the next election

I am convinced that the current lot know that they have not a cat in hells chance of winning at the next election and have decided instead to make as much money for themselves and their friends as they possibly can. Nothing else could explain the blatant breathtaking policies they are steamrolling through.

Please, please everyone remember this in the next election. Anyone in those former red wall constituencies who voted Tory last time, please look at what they did to you. They lie, and lie and lie again. Please remember how you could not put your heating on, how you had to go to foodbanks, how you worried about money all the damn time, and please never but a cross next to a Tory candidate's name again.

Anyone that thinks the tories will get voted out is bonkers. Nothing will work. Literally nothing.

It's actually raisen slightly against the dollar and is now $1.06.

How do we know interest rates will be raised today? Has there been an announcement? I haven't heard anything on it yet.

But the B of E has been disconnected from the Government. (a Labour move, but agreed by both Conservatives and Labour to be a positive move!) - They should have raised by 0.75% last week, or even 1%. BUT because they didn't have advance notice of the Government policy they went with a conservative (small c) 0.5% rise, which has turned out to be the wrong move!

It’s absolutely bloody sickening.
I really think that there will be rioting,increase in crime ,more deaths than pandemic because of MH issues and poverty related problems plus a HUGE dollop of anger and resentment.
It’s a toxic cocktail!

For all Jeremy Corbyn's faults I don't doubt for a single second that he always had the average working person and less fortunate's best interests at heart and was never in it to enrich himself and his mates.

I'd take that attitude to governing a country any day of the week.

I can't believe wealthy people on here are arguing that, well, the rich will basically be able to afford more servants!.... FML.

Nevermind going back to the 1970s more like 1870s. They'll be reopening cannerys in the next budget and reducing the working age to 4.

@DuchessofAnkh77 would they normally have received advance notice?
Would an OBR report have settled nerves?

I really think that there will be rioting I think we need to start getting out on the streets NOW before it can get much worse. I'm genuinely terrified.

The pound collapse isnt all bad news, it makes british goods much cheaper for other countries to buy. it is possible that may well boost our exports and that may then indeed generate growth. perhaps things need to get worse in order to get better.
Anyone that claims to be able to predict the long term effects of these kind of changes is deluded, markets are incredibly complex. really the only way we find out if this works or not is to wait and see, and i highly doubt Liz Truss is deliberately wrecking the economy to make the bankers a short term buck, it just doesnt make any sense. it looks to me like shes surprisingly demonstrated some character by taking a bold decision that goes against the grain. It will either work or it wont.

Go and put some money on them winning. The bookies will give you mind blowing odds. You could clean up.

i highly doubt Liz Truss is deliberately wrecking the economy to make the bankers a short term buck

The chancellor and her will be under a lot of pressure from their investors and backers behind the scenes.

Why is sterling even expected to be worth more than the dollar? The UK doesn’t manufacture very much and the UK is a much smaller economy next to the USA. I don’t really understand why we expect the pound to be stronger than the dollar especially after Brexit.

Which British goods will other countries be buying? We hardly have a manufacturing industry left.

I don't really think the economy should be based on a Liz Truss gamble. Any half decent Tories who might have had a chance of doing something sensible are no longer in a position to make or influence decisions.

The currency markets generally don't give a stuff about whether the Government cuts taxes or how it spends taxpayers money.

What they do care about is how it's funded and quite simply if you increase your debt then you become a bigger risk and will therefore have to pay a higher interest rate. In the absence of higher interest rates then the pound devalues.

When the pound devalues the cost of goods priced in dollars (oil, raw materials like copper etc) go up leading to higher inflation. This then requires higher interest rates and so on

What is truly scary is the Chancellor's reaction is to double down on his bet and say he will further cut taxes and further increase debt.

A number of posters here are of the view that the true intention of the Tory budget was to benefit themselves and their rich mates. I don't believe this and have always believed in the cock up theory over conspiracy.

Quite bluntly the current Tory Government is incompetent, clueless and way out of their economic capability depth. After Cameron, May and Johnson this is very much the "D" Team and it shows.

The public don't just tolerate it, they keep voting for it! Again and again. And as you can see are still blaming Corbyn/Labour/"forriners"/anything but their own stupidity and arrogance. There is nothing we are getting that we don't deserve.

OP, are you arguing that our economy should be more like the US economy? The dollar is really strong at the moment. You might want to shield your eyes when you see their income tax rates and sales tax.

Too bad UK doesn’t really make anything anymore lol

Good points. Do you think Sunak would have been a better choice?

Please show me evidence that "trickle down" works. Is there a single reputable economist that thinks it does and can show evidence how?
It genuinely looks as though LT and KK are trying to trash the economy as a "final hurrah" for this awful decade of Tory rule, then they can sit back and watch Labour try to pick up the pieces, blaming them when they struggle.
It's fucking horrific.