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

[jfman]

Originally Posted by Jaymoss

yeah of course people are gonna buy that BS hahaha

Oh I can think of at least one…

[denphone]

Originally Posted by Damien

Quite a few Tory outriders are now taking the line the currency collapse is Labour's fault.

Lord Ashcroft today: https://twitter.com/LordAshcroft/sta...48712921157633



Daniel Hannan: Daniel Hannan: No, the pound isn’t crashing over a trifling batch of tax cuts. It’s because the markets are terrified of Starmer.

The Conservative government have been in power for 12 years and yet it always seems its somebody elses fault rather then their own.

The really must think that Joe Public are mugs which of course they ain't.

[jfman]

The magic money tree is out. The Bank of England will start QE buying up government bonds. “Whatever scale is necessary” to restore orderly market conditions.

[ianch99]

Originally Posted by Damien

Quite a few Tory outriders are now taking the line the currency collapse is Labour's fault.

Lord Ashcroft today: https://twitter.com/LordAshcroft/sta...48712921157633



Daniel Hannan: Daniel Hannan: No, the pound isn’t crashing over a trifling batch of tax cuts. It’s because the markets are terrified of Starmer.

This is sheer desperation. They know their time is up, I suspect from now on they will get quieter & quieter as they line up their exit routes. Expect a raft of "exciting" big business board appointments for next year.

I think, when we look back from 2024, this time will be pivotal: the death of the Queen, the final, long awaited, reveal of what the Tory Party really is about and the seeming electability of the opposition party. A line in the sand on how this country is run ...

Seems appropriate to get this one out again…

[jfman]

Originally Posted by ianch99

This is sheer desperation. They know their time is up, I suspect from now on they will get quieter & quieter as they line up their exit routes. Expect a raft of "exciting" big business board appointments for next year.

I think, when we look back from 2024, this time will be pivotal: the death of the Queen, the final, long awaited, reveal of what the Tory Party really is about and the seeming electability of the opposition party. A line in the sand on how this country is run ...

Prepare to read plenty of smears scaremongering about the “left” despite a) it being a legitimate political stance and b) minimal influence over any major political party.

The bogeyman of high taxes and state involvement won’t stake up when the Tories are free wheeling the economy into a recession and the fake free markets have no solutions. Culture wars are irrelevant when people are getting hit this hard in the pocket so the right cannot return to its safe hunting ground.

The Bank of England has intervened in the gilt market due to concerns over pension funds:

https://twitter.com/SamCoatesSky/sta...68642617995264

I'm told by a city source it's hard to overstate how serious the situation is today. There is concern over the health of pension funds and this is why the Bank of England has acted

I don't actually understand this but economics journalists are saying it's bad.

Originally Posted by Damien

The Bank of England has intervened in the gilt market due to concerns over pension funds:

https://twitter.com/SamCoatesSky/sta...68642617995264



I don't actually understand this but economics journalists are saying it's bad.

Something to do with final salary pensions being linked to 30-year bonds, I believe…

https://twitter.com/spignal/status/1...mH8UoyYdNCNQMQ

[1andrew1]

Originally Posted by Damien

The Bank of England has intervened in the gilt market due to concerns over pension funds:

https://twitter.com/SamCoatesSky/sta...68642617995264

I don't actually understand this but economics journalists are saying it's bad.

It may be related to the fact that this is causing the value of final-salary pension schemes to reduce. Left unresolved, this would lead to more potential pension deficits and employers and the government having to top up these pension funds.

[denphone]

Originally Posted by Damien

The Bank of England has intervened in the gilt market due to concerns over pension funds:

https://twitter.com/SamCoatesSky/sta...68642617995264



I don't actually understand this but economics journalists are saying it's bad.

Sam Coates from Sky.

One Tory MP:

It is actually incredible that the UK central bank has had to step in to protect the UK from the actions of the UK's own government! I mean, just think of that for a moment!

A humiliation.

[1andrew1]

Originally Posted by denphone

Sam Coates from Sky.

One Tory MP:

It is actually incredible that the UK central bank has had to step in to protect the UK from the actions of the UK's own government! I mean, just think of that for a moment!

Thank goodness Gordon Brown gave the Bank of England its independence!

Think how much worse it would be if it wasn't! I daren't!

The absence of Conservative supporters actively commenting in this thread suggests to me that they now acknowledge the unfunded mini budget was exactly what the economists warned beforehand it would be: a costly error.

Originally Posted by 1andrew1

It may be related to the fact that this is causing the value of final-salary pension schemes to reduce. Left unresolved, this would lead to more potential pension deficits and employers and the government having to top up these pension funds.

I think so yes. If you’re in a defined contribution scheme (which is what almost all private sector pension schemes are now) then if the market falls, the value of the pension falls, but that’s a “feature” of the product so no problem (well, it’s a problem if it’s your pension but not for the provider, because they continue to pay what they promised). If on the other hand you’re one of the lucky ones in a defined benefit scheme, which is what final salary schemes are, then the pension provider has a massive problem if the value of the fund is squeezed too much, because they are already committed to pay out a certain amount so they have to find the shortfall from somewhere.

One of the electoral risks for Truss here is that, while there are very few private sector final salary pension schemes open today, a significant portion of the core Tory vote will have been in one in the past, and if their pension schemes start collapsing and needing rescued by the Pension Protection Scheme, unless they are already retired they wouldn’t get their full pension from the PPS, and the PPS’ annual updating to allow for inflation is capped at 2.5% which is likely to be far less generous than their pension scheme would have been (mine is capped at 5%).

[papa smurf]

Originally Posted by 1andrew1

Thank goodness Gordon Brown gave the Bank of England its independence!

Think how much worse it would be if it wasn't! I daren't!

The absence of Conservative supporters actively commenting in this thread suggests to me that they now acknowledge the unfunded mini budget was exactly what the economists warned beforehand it would be: a costly error.

It says you're boring the arse off us and we just can't be bothered with this drivel

[mrmistoffelees]

Originally Posted by papa smurf

It says you're boring the arse off us and we just can't be bothered with this drivel

Good to know that that you class the GCSE levels of economics on display by the PM and the chancellor as drivel.

What are the chances they u-turn on the mini-budget?