They are basically back to implementing QE , which was supposed to have been finished with.
UK Government debt now seen by the market as riskier that Italian or Greek debt
UK Economy
It just looks like a lose / lose to me. I just can't comprehend why they did it.
Borrow to lower taxes is a big gamble at a moment like this. Also likely to stock inflation. Not much upside.
But you also run the risk of looking irresponsible and losing forever your tag of 'we can be trusted with the economy'.
I just can't see the update of this policy from many angles? How do you pull yourself back from this at the next election. You can't.
It may be a while before people feel they can trust the current crop again.
Borrow to lower taxes is a big gamble at a moment like this. Also likely to stock inflation. Not much upside.
But you also run the risk of looking irresponsible and losing forever your tag of 'we can be trusted with the economy'.
I just can't see the update of this policy from many angles? How do you pull yourself back from this at the next election. You can't.
It may be a while before people feel they can trust the current crop again.
Y, Rishi was right. I'm surprised he is not being interviewed. Maybe he is just keeping a low profile.
He's fav to be next Tory leader and second fav for next PM. He was also the Tory MP's choice but overruled by people who paid £20 for a vote and some free food.
Tory members choosing their party leader is one thing. But such a small group should not be allowed to choose a Prime Minister
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Archery1969
- Posts: 4478
- Joined: Thu Oct 24, 2019 8:25 am
What baffles me is that the BOE doesn’t have enough gold reserves to buy or guarantee the bond/debt.
Last time I checked they only had £460 billion in gold reserves but they already guaranteeing £890 billion and climbing.
The markets probably know this which could cause us as a country to be declared financially bankrupt.
No wonder Labour has called for Parliament to be recalled as when they come to power there won’t be any money for doing 1/3 of what they announced at conference.
The BOE knows full well it can’t make that kind of announcement as they don’t have the collateral etc.
We might end up worse than Venezuela at this rate.
Last time I checked they only had £460 billion in gold reserves but they already guaranteeing £890 billion and climbing.
The markets probably know this which could cause us as a country to be declared financially bankrupt.
No wonder Labour has called for Parliament to be recalled as when they come to power there won’t be any money for doing 1/3 of what they announced at conference.
The BOE knows full well it can’t make that kind of announcement as they don’t have the collateral etc.
We might end up worse than Venezuela at this rate.
Look on the bright side, if the pound collapses we'll all be multi-millionaires.
The general consensus amongst economists is that reversing the budget and reconsidering would stop the crisis. The downside is that it would cause Truss and Kwarteng a little embarrassment and give comedians a few jokes to crack so it's not feasible.