UK Economy
Regardless of your allegience, that mini budget does seem to have been politically naive.
Just fresh out of the pandemic and in the middle of a war in Europe it's a really hamfisted political move. Pretty sure most higher rate tax payers wouldn't have a problem paying more tax into the system after a brutal few years for the country. No need to fund tax cuts through borrowing, it just looks irresponsible. Which is how the markets have judged it.
Difficult to understand the thinking that went into this.
Just fresh out of the pandemic and in the middle of a war in Europe it's a really hamfisted political move. Pretty sure most higher rate tax payers wouldn't have a problem paying more tax into the system after a brutal few years for the country. No need to fund tax cuts through borrowing, it just looks irresponsible. Which is how the markets have judged it.
Difficult to understand the thinking that went into this.
When I was young I used to think politicians were the smartest of the lot, now I’ve realised they’re probably dumber than the average person.Euler wrote: ↑Wed Sep 28, 2022 8:18 amRegardless of your allegience, that mini budget does seem to have been politically naive.
Just fresh out of the pandemic and in the middle of a war in Europe it's a really hamfisted political move. Pretty sure most higher rate tax payers wouldn't have a problem paying more tax into the system after a brutal few years for the country. No need to fund tax cuts through borrowing, it just looks irresponsible. Which is how the markets have judged it.
Difficult to understand the thinking that went into this.
Maybe I am misremembering but politicians seemed to be smarter in the past, or at least competant. The likes of Johnson and Truss would have been laughed at even getting near a cabinet position, never mind being prime minister. I think a lot changed after 2016
yup, welcome KamakwasiArchangel wrote: ↑Wed Sep 28, 2022 9:54 amMaybe I am misremembering but politicians seemed to be smarter in the past, or at least competant. The likes of Johnson and Truss would have been laughed at even getting near a cabinet position, never mind being prime minister. I think a lot changed after 2016
I'm beginning to wonder if cameras in the house of commons and the extra media coverage in modern day have attracted more showmen than smart brains.Archangel wrote: ↑Wed Sep 28, 2022 9:54 amMaybe I am misremembering but politicians seemed to be smarter in the past, or at least competant. The likes of Johnson and Truss would have been laughed at even getting near a cabinet position, never mind being prime minister. I think a lot changed after 2016
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Archery1969
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BOE to buy all Government debt via bonds. 
This stuff baffles me. My understanding (
) is BOE has over the last 13yrs bought over £890 billion of govt debt.They were intending to start selling it off, but Liz/Kwarsi have soundly screwed that idea.
So (if I'm right) the BOE today have said they're going to buy as much govt bonds as it takes to calm the markets.
What really puzzles me is where does the BOE get the money to spend these vast sums?
I always thought we lend money to banks who lend it to the BoE who lends it to the government, in which case, they would by buying debt that they already own. Obviously I'm missing something. The only thing I'm sure of - we're in a right flipping mess!!greenmark wrote: ↑Wed Sep 28, 2022 2:05 pmThis stuff baffles me. My understanding (
They were intending to start selling it off, but Liz/Kwarsi have soundly screwed that idea.
So (if I'm right) the BOE today have said they're going to buy as much govt bonds as it takes to calm the markets.
What really puzzles me is where does the BOE get the money to spend these vast sums?