Kwarteng says highest rate of income tax being abolished, and basic rate being cut to 19% from next April

[ninian opinian]

100% correct!

By the way, it.looks like right wing fantasy and lunacy is showing no signs of abating any time soon.

I just read that "respected" Brexit worshipping guru Daniel Hannan has reportedly suggested that the damaging market turmoil of the past few days has absolutely nothing to do with the Truss/Kwarteng mini budget. He says it's all to do with market reaction to and fear of the increased likelihood of an incoming Labour government! ��

Well he was spot on about the wonderful benefits Brexit would bring us so does he know something even leading economists don't and perhaps he's bang on the money again?

The idea that the markets react today to mere possibilities, that might be two years away, is utterly preposterous.

[Delbert]

Perhaps you forget the QE from ten years ago, this buy back of gilts was always going to happen, it just so happens to be happening now. Poor political timing, of course. But pretty much planned. And it makes the lesser educated feel as if the Tories are to blame, which isn't a bad thing.

The BoE is planning that the gilt buyback will reduce inflation as liquidity is removed from the system. I doubt the markets will be affected as this buy back will have already been factored into long bond pricing.

As a “lesser educated” type I must confess to thinking this fiasco was down to years of Conservative economic mismanagement, the Brexit disaster stripping every inch of resilience from the economy, the Tufton Street mob and their hidden backers and Tory press holding undue influence over UK political policy, Crispin Odey and his hedge fund pals gloating as they short the pound and bet on the bond markets and f*ck the pensions of millions of ordinary workers etc etc. But no I was wrong and instead must blame an unfortunate co-incidence - that this crisis is ENTIRELY due to a buy back of gilts dating from quantitative easing 10 years ago which just happens to coincide TO THE DAY with what pretty well every respected economist and many, many Tory MPs consider to have been a weapons-grade disaster Trussonomics budget from the Chancellor Kwasi Kwarteng. Who knew?!

[Ninja]

I see Truss has mysteriously vanished.

[HiVis]

Sorry? You're claiming the panicky buyback of gilts today was planned years ago? What have you been smoking?

Thats not what I said.

Read it again, the BoE was always planning to buy back the gilts it issued 10 years ago, that's how gilts work.

The buy back has been brought forward. Go and read about QE.

[HiVis]

Actually it was you who suggested the economy had "nosedived" earlier today. Maybe you were being imprecise?

I said the economy nosedived in 2007/8 and 2020. I also made it clear that, imho, neither event was due to the government of the day.

I'm not sure if you really have a total lack of comprehenduon or you're just being obtuse.

[HiVis]

As a “lesser educated” type I must confess to thinking this fiasco was down to years of Conservative economic mismanagement, the Brexit disaster stripping every inch of resilience from the economy, the Tufton Street mob and their hidden backers and Tory press holding undue influence over UK political policy, Crispin Odey and his hedge fund pals gloating as they short the pound and bet on the bond markets and f*ck the pensions of millions of ordinary workers etc etc. But no I was wrong and instead must blame an unfortunate co-incidence - that this crisis is ENTIRELY due to a buy back of gilts dating from quantitative easing 10 years ago which just happens to coincide TO THE DAY with what pretty well every respected economist and many, many Tory MPs consider to have been a weapons-grade disaster Trussonomics budget from the Chancellor Kwasi Kwarteng. Who knew?!

You're taking what I said out of context. The gilt buyback was always going to happen. The fact its happening now is, to a certain degree, coincidental.

It doesn't detract from the rest of the points you make, which by and large I agree with.

My comment is that the gilts were going to be bought by the BoE at some point. That's how QE works.

[az city]

I said the economy nosedived in 2007/8 and 2020. I also made it clear that, imho, neither event was due to the government of the day.

I'm not sure if you really have a total lack of comprehenduon or you're just being obtuse.

Actually, you seem incapable of expressing yourself clearly.

What exactly is "comprehenduon"? If you have it, I don't want anything to do with it, thank you.

[az city]

Thats not what I said.

Read it again, the BoE was always planning to buy back the gilts it issued 10 years ago, that's how gilts work.

The buy back has been brought forward. Go and read about QE.

Old chum, the BoE doesn't "buy back" maturing bonds, it pays back the principal and the final coupon upon maturity. And actually in may cases the BoE just issues more to replace those that are maturing. It effectively rolls over its debt obligations.

Anyway, today's bond market intervention had absolutely nothing to do with maturing bonds.

Tell us where you get your government bond market "expertise" from.

[ninian opinian]

To all you “Council House Tory’s”, this is what they really think about you https://twitter.com/the_tuc/status/1...4ctcobsN9UjZJQ

[Delbert]

You're taking what I said out of context. The gilt buyback was always going to happen. The fact its happening now is, to a certain degree, coincidental.

It doesn't detract from the rest of the points you make, which by and large I agree with.

My comment is that the gilts were going to be bought by the BoE at some point. That's how QE works.

Well I’ve watched several leading economists today and unsurprisingly none of them think this disaster has been caused by a gilt buy back stemming from quantitative easing 10 years ago. Instead all of them think it’s been precipitated by the reckless incompetence of the PM and her Chancellor over the last few days.

Professor Jonathan Portes said the market reaction was due to “the moron risk premium where all are agreed they are so incompetent you simply don’t know what they’re going to do next”.

Danny Blanchflower said “I have never seen such raging incompetence ever”.

Yanis Varoufakis said “It’s a rookie mistake I have to confess”.

[Hilts]

When will the vote of no confidence go in.?

Truss to be the shortest PM in history.,?

Bring on the next idiot.

[HiVis]

Actually, you seem incapable of expressing yourself clearly.

What exactly is "comprehenduon"? If you have it, I don't want anything to do with it, thank you.

It's a typo, deal with it.

[HiVis]

Old chum, the BoE doesn't "buy back" maturing bonds, it pays back the principal and the final coupon upon maturity. And actually in may cases the BoE just issues more to replace those that are maturing. It effectively rolls over its debt obligations.

Anyway, today's bond market intervention had absolutely nothing to do with maturing bonds.

Tell us where you get your government bond market "expertise" from.

I used to trade gilts, I was there in the first round of QE.

Stick to reading your course books

:bigthumbup:

[HiVis]

Well I’ve watched several leading economists today and unsurprisingly none of them think this disaster has been caused by a gilt buy back stemming from quantitative easing 10 years ago. Instead all of them think it’s been precipitated by the reckless incompetence of the PM and her Chancellor over the last few days.

Professor Jonathan Portes said the market reaction was due to “the moron risk premium where all are agreed they are so incompetent you simply don’t know what they’re going to do next”.

Danny Blanchflower said “I have never seen such raging incompetence ever”.

Yanis Varoufakis said “It’s a rookie mistake I have to confess”.

The markets are spooked by the lack of forecast from the OBR and the contradiction in policy to what BoE are trying to achieve.

[SLUDGE FACTORY]

The markets are spooked by the lack of forecast from the OBR and the contradiction in policy to what BoE are trying to achieve.

You silly tory clown 🤡

[HiVis]

You silly tory clown 🤡

I want this government gone as much as you. Tory. Don't be silly.

[SLUDGE FACTORY]

I want this government gone as much as you. Tory. Don't be silly.

You are doing a very good job of defending liz truss

Right wing Plaid Cymru

[HiVis]

You are doing a very good job of defending liz truss

Right wing Plaid Cymru

I've not defended anyone. I think Truss is reactionary and populist, and we're going to be worse off than better.

[Dorcus]

I've not defended anyone. I think Truss is reactionary and populist, and we're going to be worse off than better.

Sensible comment 👍

[az city]

I used to trade gilts, I was there in the first round of QE.

Stick to reading your course books

:bigthumbup:

What? In 1694?

[HiVis]

What? In 1694?

Try again sweetcheeks

[Canton Kev]

Try again sweetcheeks

Abhorrent misogynistic and derogatory name calling. Shocking. The exact type of social cleansing that is endemic in the right these days.

I do hope James and Wales-Bales condemn such language.

[HiVis]

Abhorrent misogynistic and derogatory name calling. Shocking. The exact type of social cleansing that is endemic in the right these days.

I do hope James and Wales-Bales condemn such language.

I'll retract whatever has offended you, just don't lump me I with those two.

[A Quiet Monkfish]

The markets are spooked by the lack of forecast from the OBR and the contradiction in policy to what BoE are trying to achieve.

"spooked" ? Or an opportunity to make some significant short-term financial gains under the cloak of bad politics ?

[TWGL1]

Institute Of Fiscal Studies

Huge government borrowing .....not funded

Inflation 40 year high

Tax cuts for the wealthy

Interest rates 14 year high

Pound at lowest v dollar since 1985

Markets very fragile

Artificial boom created instead of real growth

God help us

UK announces getting rid of the 45% tax rate that will cost £2.4bn next year - IMF intervenes and markets in meltdown.

UK pledges more than £2.4bn to Ukraine and no market response

Same outcome - £2.4bn cost to UK taxpayer

https://twitter.com/statsjamie/statu...NQi6VqYfUZUNjg