WTF is happening in the UK?

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TheGreenAnger
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Re: WTF is happening in the UK?

#4841 Post by TheGreenAnger » Fri Sep 30, 2022 7:40 am

Former chancellor calls PM’s meeting with Office for Budget Responsibility a ‘welcome move’
Former chancellor George Osborne called it a “welcome move” after it emerged that Liz Truss and Chancellor Kwasi Kwarteng will meet with the Office for Budget Responsibility (OBR) on Friday.

He tweeted: “In the space of one week we’ve gone from the OBR being dismissed to the PM turning up to its meetings.

“Turns out the credibility of the institution we created 12 years ago to bring honesty to the public finances is more enduring than that of its critics.”
https://www.independent.co.uk/news/uk/p ... 81678.html

Maybe some light is beginning to dawn in a dim mind!
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Rescued by Sunak?

#4842 Post by Boac » Fri Sep 30, 2022 9:19 am

The latest economic figures show that the UK did NOT enter recession in the second quarter of the year and the international money dealers think that is all jolly good and the pound has recovered. I expect the truss and Kami will claim that as a victory for their policies.

Am I relieved?

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Re: WTF is happening in the UK?

#4843 Post by TheGreenAnger » Fri Sep 30, 2022 11:44 am

People with mortgages and pensions will be somewhat underwhelmed methinks.
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Re: WTF is happening in the UK?

#4844 Post by Seenenough » Fri Sep 30, 2022 11:46 am

TheGreenAnger wrote:
Fri Sep 30, 2022 11:44 am
People with mortgages and pensions will be somewhat underwhelmed methinks.
Why would they be underwhelmed?

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Re: WTF is happening in the UK?

#4845 Post by TheGreenAnger » Fri Sep 30, 2022 11:48 am

Seenenough wrote:
Fri Sep 30, 2022 11:46 am
TheGreenAnger wrote:
Fri Sep 30, 2022 11:44 am
People with mortgages and pensions will be somewhat underwhelmed methinks.
Why would they be underwhelmed?
I doubt that the words interest and pension diminution would interest you.
My necessaries are embark'd: farewell. Adieu! I have too grieved a heart to take a tedious leave.

Seenenough

Re: WTF is happening in the UK?

#4846 Post by Seenenough » Fri Sep 30, 2022 12:08 pm

TheGreenAnger wrote:
Fri Sep 30, 2022 11:48 am
Seenenough wrote:
Fri Sep 30, 2022 11:46 am
TheGreenAnger wrote:
Fri Sep 30, 2022 11:44 am
People with mortgages and pensions will be somewhat underwhelmed methinks.
Why would they be underwhelmed?
I doubt that the words interest and pension diminution would interest you.
Harsher austerity in the UK is unavoidable-The problems in the UK's economy that were evident way back in 2012 were never corrected.-Its the old put a frog in the pot of water thing-It was too easy to do nothing and hope and pray that things would get better next year which we now know turned into any more next years and now money markets are telling the UK treasury that this cannot go on.

Nothing was done and now some extreme adjustments cannot be avoided as the only solution is to stop spending money that the UK does not generate.

The future looks bleak for many but there is no magic wand that anyone can wave to make the problem disappear.

Thankfully I moved most of what I had in the UK to the US when I moved here.

PS-you might want to get your treasury to call Uncle Joe.He is printing loads of Dollars and is handing it out like its Christmas.He also has lots of oil and gas to sell at discounted prices to help you all but for what ever reason he won't let go of it.

Seenenough

Re: WTF is happening in the UK?

#4847 Post by Seenenough » Fri Sep 30, 2022 1:30 pm

Here is part of a Bloomberg article which seems to support the fact that when America sneezes that the rest of the world will catch a cold.
It is even more worrying that the Dollar strengthens despite the Biden Admin giving money away everywhere.

Essentially the UK can do nothing about it as it is just along for the ride.

I'm beginning to wonder if this is not an intended US tactic to neutralize or mitigate China's world domination intentions.

Also our old democrat loving buddy George Soros?Looking more and more to me that he has shorted everyone ,with the help of Janet Yellen ,again the Dollar maybe.

Couple this with some unexplained Baltic mishaps and the mind races.

But what do I know as the Forums resident economist tells me that I am "innumerate"

It is a long article would suggest look it up and read it

BTW Biden cares jack for anyone else because he is totally focused, or should I say his handlers are ,to save their political butts and maintaining their grip.


The Unstoppable Dollar Is Wreaking Havoc Everywhere But America
The Federal Reserve’s focus on taming inflation is inflicting a world of pain on other economies.

The mighty dollar is steamrolling everything right now, causing issues for economies almost everywhere—except in the US. That means that, for now at least, it’s not America’s problem and the historic central-bank-fueled surge in the greenback is unlikely to abate anytime soon.

By some measures the US currency is already stronger than ever, eclipsing the highs of the Covid-19 pandemic from early 2020. The pain it’s inflicting has echoes of the mid-1980s, when foreign exchange chaos forced the world’s most important finance officials to join hands and impose a solution on markets. Right now, though, it’s every country for itself as the US administration pushes back on the idea of coordinated market action.

With the risk of economic damage spreading, officials from Tokyo to Santiago have been drawn into the fray to prop up their currencies with improvised solutions such as selling dollars directly into the market. But Federal Reserve chief Jerome Powell is squarely focused on fighting inflation at home, doubling down on rate-hiking plans that have supercharged the dollar. And US Treasury Secretary Janet Yellen has said she believes financial markets are working as they should.

.......

Currency Change from 12/31/21 to 9/27/22
British pound -20.7%
Japanese yen -20.5
South Korean won -16.4
Euro -15.6
Chilean peso -13.7
Australian dollar -11.4
Chinese yuan -11.3
Indian rupee -8.7
Swiss franc -8.0
Canadian dollar -7.9
Mexican peso 0.7

.....

A combination of alluring interest rates in the US and the comfort of feeling your money is safer in dollar-denominated assets is helping buoy the greenback. In more normal times, officials might welcome a weakening of their currencies, which tends to stimulate growth by making exports more competitive while encouraging consumers and businesses to buy local. But these aren’t normal times. Right now the problem bedeviling officials from Frankfurt to Seoul is high inflation—and weak currencies add fuel to that by increasing the cost of imported products and stimulating domestic growth. So some governments and central banks need to respond to the ongoing battering.

Britain’s pound is just the latest major currency in the spotlight after new government fiscal plans sparked a dramatic loss of confidence in sterling. But it was, like its peers, under tremendous pressure before that, trading near multidecade lows. Elsewhere, the yen has weakened so much that Japan’s government has stepped directly into markets on several occasions since Sept. 22; India, Chile, and others have also felt compelled to intervene. Europe’s common currency, meanwhile, has sunk below parity with the dollar under the weight of the region’s energy crisis, and China’s government has waged its own fight on behalf of the renminbi.


Source: Bloomberg

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Re: WTF is happening in the UK?

#4848 Post by ricardian » Fri Sep 30, 2022 5:19 pm

From Stephen Baker (on Facebook, he is happy to be quoted):
Whilst I rant often and prodigiously about the ineptitude of the various Tory administrations slowly running this great country into the ground; I rarely make public utterances about my day job as a tax professional. Mainly as a courtesy to my clients but also to maintain a sense of ethical detachment. I spent just over 5 years with HM Revenue & Customs learning my trade, leaving the department at the rank of Inspector (Higher Officer) before 15 years in private practice - currently with PricewaterhouseCoopers LLP in the City.
Yesterday’s “mini Budget” (which announced more tax cuts than any Budget or Autumn Statement I recall in over 20 years) felt like the last dying gasp of a political party out of ideas, talent, brains or any sense of purpose and direction for the country. The fact there is now a run on sterling on the currency markets tells you almost everything you need to know. Thanks to my day job and various senior contacts I still have, I happen to know that HMRC were neither consulted or informed of yesterday’s big ticket announcements. Worryingly too, a number of key Treasury officials were locked out of the decision making process until the Chancellor made his Commons speech. One has to question the wisdom of this approach and form of government.
From April next year I will personally stand to benefit by around £3000 a year. A tax and NIC cut I’m neither asking for or think is responsible. And I’ll do what every fiscally responsible person my age in my financial circumstances does with the extra cash: top up my pension fund and pay down my mortgage. How that benefits society, my neighbours, our public services or the queues of people I see every week at food-banks in the relatively affluent town I live in; have no idea. Trickle down economics is a proven fallacy. Tax cuts to disproportionately benefit the richest during a cost of living and energy crisis is morally repugnant and reprehensible.
The real spit my coffee out moment happened when the Chancellor announced the repeal of IR35 - anti avoidance legislation to ensure that workers who use shell companies to disguise their PAYE status (and pay themselves in dividends instead) are being taxed correctly. It’s estimated that some £100M in back taxes, NIC and penalties is already due to HMRC from other government departments (including the Home Office and DWP) who haven’t been applying these rules correctly since 2017. Is this now written off? Would like to know as a taxpayer! That number is insignificant compared to the PAYE being forgone in the private sector when these rules cease to apply from April next year. I spoke to two Heads of Taxes at major FTSE companies yesterday and the mood music is one of complete astonishment. I genuinely think the Chancellor hasn’t been briefed correctly by Treasury officials as no one in the tax profession welcomes this. I find it staggering that the man has a PhD in Economics yet is so breathtakingly dumb. In 15 minutes with a white board and three marker pens I could educate him as to why the IR35 move alone spells doom for Treasury receipts and tax fairness.
Someone very senior and experienced in government circles I spoke to yesterday said this: They know it’s all over and can’t win a majority in 2 years. So this is all about how much can they put in motion now to quickly benefit their wealthiest friends and donors, that Labour then can’t risk un-doing immediately.
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Seenenough

Re: WTF is happening in the UK?

#4849 Post by Seenenough » Fri Sep 30, 2022 5:38 pm

From above

"From April next year I will personally stand to benefit by around £3000 a year. A tax and NIC cut I’m neither asking for or think is responsible. And I’ll do what every fiscally responsible person my age in my financial circumstances does with the extra cash: top up my pension fund and pay down my mortgage. How that benefits society, my neighbours, our public services or the queues of people I see every week at food-banks in the relatively affluent town I live in; have no idea. Trickle down economics is a proven fallacy. Tax cuts to disproportionately benefit the richest during a cost of living and energy crisis is morally repugnant and reprehensible."

If he feels so bad about getting a tax cut and using it why does he not donate it back the the treasury or donate it to the local food bank to satisfy his need to benefit society?

It looks like the tax on 200 000 Pounds in the UK runs at about 42% where as the same amount in the US runs at about 35%

After that in the UK it runs at 45% where as the max rate in the US runs at 37%.

While all the moral right or wrong debates going on it seems no notice is given to the Chinese real estate market which is looking very perilous and I would suggest is a very real and large problem hanging over the world economy.

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Re: WTF is happening in the UK?

#4850 Post by G-CPTN » Sat Oct 01, 2022 4:55 am


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Re: WTF is happening in the UK?

#4851 Post by Boac » Sat Oct 01, 2022 7:23 am

We not only have leaking sewerage in the UK but also, apparently, a leaking Environment Agency. https://www.theguardian.com/environment ... 1664604986

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Re: WTF is happening in the UK?

#4852 Post by Woody » Sat Oct 01, 2022 8:01 am

My contribution to solving the energy crisis, I’m turning off my wine cooler today, you’ll thank me for my sacrifice later B-)
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Re: WTF is happening in the UK?

#4853 Post by Boac » Sat Oct 01, 2022 8:39 am

I'll drink to that - cheers!

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Re: WTF is happening in the UK?

#4854 Post by Boac » Sat Oct 01, 2022 10:42 am

Twatter offering some possible insight into the way the Conservative party works:

Kwasi Kwarteng went to Eton
Kwasi Kwarteng worked for Hedge Funds
Kwasi Kwarteng worked for Crispin Odey
Kwasi Kwarteng met Crispin Odey 2 months ago
Crispin Odey bet the markets would crash
Kwasi Kwarteng crashed the markets
Crispin Odey donated £873,288.15 to Leave Campaigns & contributed £14.9M of the total £24.1M in donations & loans given to them in 5 months..

..then Kwasi Kwarteng's ex-boss made £220M betting Brexit would crash pound sterling in a major catastrophe

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Re: WTF is happening in the UK?

#4855 Post by Seenenough » Sat Oct 01, 2022 12:06 pm

What has Eaton got to do with it, Bo?

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Re: WTF is happening in the UK?

#4856 Post by Boac » Sat Oct 01, 2022 1:20 pm

What is Eaton, Seen? If you mean Eton, Seen, ask Twatter. Not my words (again!).

Seenenough

Re: WTF is happening in the UK?

#4857 Post by Seenenough » Sat Oct 01, 2022 1:26 pm

Boac wrote:
Sat Oct 01, 2022 1:20 pm
What is Eaton, Seen? If you mean Eton, Seen, ask Twatter. Not my words (again!).
I see you made the quick correction to your oopsie by repeat posting in your private capacity and not as the Administrator which you have now conveniently removed.

Obviously I meant Eton.

I might then ask you what "Twatter" is.Surely you mean Twitter (which BTW I am not subscribed to despite it being free of subscription fees)

You are very good at saying things in such a way as it was not you who said it.

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Re: WTF is happening in the UK?

#4858 Post by Boac » Sat Oct 01, 2022 9:08 pm

Shock headline in 'The Evening Standard'

Truss faces difficult week at Tory Party conference

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Re: WTF is happening in the UK?

#4859 Post by Boac » Sat Oct 01, 2022 9:14 pm


Seenenough

Re: WTF is happening in the UK?

#4860 Post by Seenenough » Sat Oct 01, 2022 9:27 pm

Boac wrote:
Sat Oct 01, 2022 9:14 pm
Round and round it goes https://www.theguardian.com/politics/20 ... 1664658442
I would worry more about what is going on in your own office, Bo

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