[Politics] Liz Truss **RESIGNS 20/10/2022**

[DavidinSouthampton]

Aaah good, The Baron of Schadenfreude is in the House.

Do you really think anybody is enjoying seeing our country and our economy going down the pan?

What happened to Mr Cameron’s “we’re all in this together”. Everybody is affected by all this, but there are some who can afford to pay increased prices for….. well, everything. And the most well off are going to be more well off.

 

[mejonaNO12 aka riskit]

Can someone explain to Thicko here the following.....and a "you are completely wrong" is fine.

Am I right that the VERY basic logic of interest rate rises are to encourage us to save?

Yet NI is decreased in an effort to encourage us to spend and boost the economy.

Which one am I meant to be doing?

At the moment, ultimately, any extra cash I have each month isnt going to be spent in the economy. I'm using it towards the higher bills.

 

[The Clamp]

She was warned and warned and warned her strategy would not work. 6 hours in and Sterling is tanking. Stupid cow.

 

[Audax]

GBP rallied briefly, but appears to be heading south again - back down to US$1.1027. At this point I think we just want to see it stabilise in that 1.10 to 1.60 range for a bit. Definitely do not want to see it head below 1.10 into 1.09 territory, I can see any breach of that 1:10 barrier being a further trigger.

Related news - the cost of all the extra government borrowing that'll be needed to fund this budget is currently also going through the roof. Already into 2008 GFC territory.

 

[Is it PotG?]

Do you really think anybody is enjoying seeing our country and our economy going down the pan?

What happened to Mr Cameron’s “we’re all in this together”. Everybody is affected by all this, but there are some who can afford to pay increased prices for….. well, everything. And the most well off are going to be more well off.

Tbh, no I don't.

It is difficult for everyone, however ever since the Brexit vote it just seems that some punters hope of failure in order to be able to cock a snook and say 'I told you so'.

I feel it is a calculated gamble, hopefully one that will pay off.

Quite frankly, right now, I have no idea but I certainly hope it does.

 

[beorhthelm]

Can someone explain to Thicko here the following.....and a "you are completely wrong" is fine.

Am I right that the VERY basic logic of interest rate rises are to encourage us to save?

Yet NI is decreased in an effort to encourage us to spend and boost the economy.

Which one am I meant to be doing?

At the moment, ultimately, any extra cash I have each month isnt going to be spent in the economy. I'm using it towards the higher bills.

spot on with your confusion. and it'll play out at a wider level. policies are too late or too early to have positive impact while sending conflicting messages.

 

[BLOCK F]

It's based on huge amounts of borrowing. There is no money coming in to pay for the cuts - so every cut is borrowed money. The hope is that corporation tax cuts, higher rate cuts will get businesses investing and people spending - but that is a high risk strategy at a time of uncertainty on so many fronts.

This isn't borrowing to invest in education, the NHS, or public services, this is huge borrowing on a gamble of trickle down economics. You are right, completely ideological, illogical, and reckless.

As a Conservative voter, I have to agree with you 100%.

 

[Bold Seagull]

Tbh, no I don't.

It is difficult for everyone, however ever since the Brexit vote it just seems that some punters hope of failure in order to be able to cock a snook and say 'I told you so'.

I feel it is a calculated gamble, hopefully one that will pay off.

Quite frankly, right now, I have no idea but I certainly hope it does.

You're not hoping Brexit was going to be a great success so you could say "I told you so"? I was at least hoping those that voted for it were hoping to be able to say that...

 

[rogersix]

Man my cynicism is at an all time high today.

Watch this lot, just watch them, win the next GE as well.

We'll be a couple of years on from Boris and his lies (that some voters don't care about anyway) and all it'll take is the usual "immigrants!" "they tried to stop Brexit!" drum banging and hey-presto four more years of Tory rule.

Nailed on, guaranteed, save this post and hail me as an oracle.

i think a lot of the brexit voters now realize that they have been mugged, it will be a lot more in two years time, cold comfort i know

 

[Is it PotG?]

You're not hoping Brexit was going to be a great success so you could say "I told you so"? I was at least hoping those that voted for it were hoping to be able to say that...

Not at all what I said, but you knew that.

 

[Blazing Apostle]

Brexit has already been shown to have failed miserably.....where are the calculations for the gamble?

 

[The Clamp]

Tbh, no I don't.

It is difficult for everyone, however ever since the Brexit vote it just seems that some punters hope of failure in order to be able to cock a snook and say 'I told you so'.

I feel it is a calculated gamble, hopefully one that will pay off.

Quite frankly, right now, I have no idea but I certainly hope it does.

You don’t seem to get it. Pointing out that all the things we predicted about Brexit and the Tory government is not “cocking a snook”, it is pointing out we were right. And it’s a disaster.

For example I predict the next Brexit disaster will be worker’s rights. Slashed holiday entitlement and right to strike severely limited.

When it happens, believe me, none of us will be happy.

 

[raymondo]

You don’t seem to get it. Pointing out that all the things we predicted about Brexit and the Tory government is not “cocking a snook”, it is pointing out we were right. And it’s a disaster.

For example I predict the next Brexit disaster will be worker’s rights. Slashed holiday entitlement and right to strike severely limited.

When it happens, believe me, none of us will be happy.

...and food quality, environment...

 

[Guy Fawkes]

You create economic growth by spending more on infrastructure, education & training for the population.

What we have here are massive inflationary tax cuts that create a mind-boggling deficit and the only growth it provides is to the top 1%'s earnings.

It's as though they've given up on the 2024 election and are just trying to make things as shit as possible for the new government.

But people need money in their pocket to be able to spend, and for years now we have seen disposable income shrink. (Higher bills, suppression of wage growth meaning artificial measures have been needed like a minimum wage, a housing market that was allowed to run out of control (great if you already owned, but terrible if you didn't at the time - but it led to extra borrowing against that increase which temporarily funded spending) and the knock on effect for renters having to pay more, 0% credit cards which encouraged people to get into debt, higher taxation and the increased need to get revenue from the public to pay for ever more expensive services (from additional taxes on energy (for green projects), to taxes on street parking (via parking meters) which also drives customer numbers down in retail areas as it makes things more expensive and so on..... but all reduce disposable income.

This shrinking disposable income means more have to turn to things like food banks, to have to decide between food or warmth, etc... as the rising cost of living squeezes people further and means the number of those with next to no disposable income increase and are suffering more as they try to make ends meet.

House prices and the effects on rents, etc are the main driver of this imo, but there is now no easy fix (market should have been cooled (like by increasing stamp duty) instead of being allowed to run at 10%+ increases annually but that horse has now bolted) - You can't cut housing costs by forcing prices down because it will create a large number of owners who will be left with negative equity, and why the housing market was propped up during the economic crash that led to austerity. The market wasn't allowed to correct.

Natural wage growth, especially amongst the lowest earners has to be the priority imo, but that is easier said than done.

I don't agree with the top tax rate being abolished at all. I'd rather have seen the point at which it's started to be paid increased, which should then put more money into peoples pockets. (although again that wouldn't help those who already don't pay tax due to already earning less that that amount or are unemployed)

I'm not sure if spending on infrastructure will solve much either as i'm not sure there would be enough in terms of the number of projects undertaken, which would have to be significant to have much effect, or where they take place (may only affect and therefore benefit a localised area) etc....

Investing in Education and training is likely to help, but in the longer term and not neccessarily seeing any real benefits from it for years to come when there is an immediate need now for economic stimulation

 

[Kinky Gerbil]

Can’t say if I had a wish it would be that Sunak was leader.

That was the choice, sadly.

Truss was always the worst option, however giving money away may see them re-elected.

 

[Audax]

Can someone explain to Thicko here the following.....and a "you are completely wrong" is fine.

Am I right that the VERY basic logic of interest rate rises are to encourage us to save?

Yet NI is decreased in an effort to encourage us to spend and boost the economy.

Which one am I meant to be doing?

At the moment, ultimately, any extra cash I have each month isnt going to be spent in the economy. I'm using it towards the higher bills.

Yes. Interest rate rises are supposed to suppress demand and thus reduce inflationary pressure.

The problem we have at the moment is our current inflation isn't driven by demand-side pressure. It's driven by supply-side problems, which can't be corrected for by interest rate hikes. So BoE is currently fighting a losing battle against inflation.

It's a battle that will get even harder after this budget: government is pushing growth, to push growth they're cutting taxes and increasing govt borrowing. That's going to create demand-side inflation pressures on top of the existing supply-side pressures. Even worse if the current market reaction to this budget is sustained - even if the value of sterling stabilises at it's current level, it's still down more than 2c vs the USD. That's going to put pressure on the prices of everything we import. If sustained, expect to see fuel prices at the pump start to rise again. As an example of the potential impact the current devaluation of GBP could have: let's assume an iPad costs US$500. At 8am this morning, that equated to £447. As of right now, that's £453. If that were to be carried into retail pricing, that's over 1.3% of new inflation.

 

[CHAPPERS]

When are the Tories going to break down their membership demographic so we can see just how many non UK voters voted for this ****ing shower?

 

[DavidinSouthampton]

Tbh, no I don't.

It is difficult for everyone, however ever since the Brexit vote it just seems that some punters hope of failure in order to be able to cock a snook and say 'I told you so'.

I feel it is a calculated gamble, hopefully one that will pay off.

Quite frankly, right now, I have no idea but I certainly hope it does.

Fair enough!

All the way through, I was convinced Brexit was going to be bad, and it’s been far worse than I thought.

I hope this succeeds too, but I can’t see that it has any chance. Surely everyone realises that trickle-down theory doesn’t work

Just to lead the way I am expecting Jacob Rees-Mogg to announce he is going to build a 6ft tall wall right across his expensive estate just to provide training opportunities and jobs for everyone, paid at living wage or more, of course.

Then once it’s finished he can operate a similar scheme around demolition and recycling…… repeat ad nauseam.

 

[rippleman]

Can someone explain to Thicko here the following.....and a "you are completely wrong" is fine.

Am I right that the VERY basic logic of interest rate rises are to encourage us to save?

Yet NI is decreased in an effort to encourage us to spend and boost the economy.

Which one am I meant to be doing?

At the moment, ultimately, any extra cash I have each month isnt going to be spent in the economy. I'm using it towards the higher bills.

It's a Tory budget; it isn't supposed to make any sense. And it certainly isn't meant to provide help for the sick or impoverished.

 

[Is it PotG?]

Fair enough!

All the way through, I was convinced Brexit was going to be bad, and it’s been far worse than I thought.

I hope this succeeds too, but I can’t see that it has any chance. Surely everyone realises that trickle-down theory doesn’t work

Just to lead the way I am expecting Jacob Rees-Mogg to announce he is going to build a 6ft tall wall right across his expensive estate just to provide training opportunities and jobs for everyone, paid at living wage or more, of course.

Then once it’s finished he can operate a similar scheme around demolition and recycling…… repeat ad nauseam.

I haven't read all of the concerns. Is the worry that it will fail in the medium term the main bugbear, or is that it appears to favour the super wealthy?