The £

HugalHugal Shipmate
So the pound is at its lowest rate against the US Dollar since the Dollar began in the 1700. The pound is better against the Euro than the Dollar. What a state we are in.
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Comments

  • Just think, when we got that lovely loan under the Marshall Plan to rebuild Britain after WW2, the pound that it was used to prop up was worth FOUR dollars.
  • Bishops FingerBishops Finger Shipmate
    edited September 27
    Indeed. A state of chaos, with incompetent mountebanks trying to run (ruin?) it.

    Kwasi *No Comment* Kwarteng is meeting with bankers today, probably to receive their grateful thanks for putting yet more wonga into their own pockets:

    https://www.theguardian.com/business/2022/sep/27/kwasi-kwarteng-crisis-bankers-pound-government-bonds
  • EnochEnoch Shipmate
    This is yet another Etonian and a man who is supposed to have got a PhD in Economics. It shows that the best education money can buy doesn't proof you against snake oil salesmen dressed up in academic dress.

  • Baptist TrainfanBaptist Trainfan Shipmate
    edited September 27
    I still remember Harold Wilson from 1967: "From now the pound abroad is worth 14% or so less in terms of other currencies. It does not mean, of course, that the pound here in Britain, in your pocket or purse or in your bank, has been devalued.” It was rubbish then and it's rubbish today.

    PS The rate dropped from $2.80 to $2.40!!!
  • Next question: How does it stand against the ruble?
  • Economic illiteracy on an epic scale. Simple, effective tax reform on dividends to benefit industry, particularly the ability of firms to invest in R&D, absent. Inadequate sticking plaster applied to energy costs, ignoring supply issues. Quick and easy measures that would stabilise the domestic housing market long-term nowhere in sight. Food security unaddressed.

    The "response" from HMG? Blame currency traders for the tanking pound. Purest hogwash: the currency markets are looking at the Treasury team and the supine BoE and acting accordingly.

    We have a Chancellor who causes chaos and a Bank Governor with the instincts of an ostrich in a sandstorm. God help us all.
  • Before the Ukraine invasion: about 98 roubles/£.

    It then shot up to over 160 roubles/£ but soon came down to around 70/£.

    It's now about 63/£. Make your own conclusions.
  • BoogieBoogie Heaven Host
    I'm scared about mortgage rates. We don't need a mortgage, but those in the chain below us do. Hopefully we will complete before anyone gets the jitters.

    🤔😥
  • Alan29Alan29 Shipmate
    I am torn between glee at Truss and Quasi so quickly falling on their faces and discomfort at the implications of this mess for me and mine.
    At the moment glee is winning.
  • chrisstileschrisstiles Hell Host
    edited September 27
    Enoch wrote: »
    This is yet another Etonian and a man who is supposed to have got a PhD in Economics.

    His PhD is in Economic History rather than Economics.
    Economic illiteracy on an epic scale.

    On one level yes, on another it's straight out of the play book of the Tufton Street lot. People like Kate Andrews and Julian Jessop were very bullish about the whole thing until the last few days where they suddenly became a lot more circumspect.

    At a more macro level, a big part of the reason they had any credibility previously is because of the uncritical platform given to them by broadcast media.
  • Alan29 wrote: »
    I am torn between glee at Truss and Quasi so quickly falling on their faces and discomfort at the implications of this mess for me and mine.
    At the moment glee is winning.

    I'd be more inclined to glee if I thought there would be any long term consequences for the tories.
  • Alan29Alan29 Shipmate
    Alan29 wrote: »
    I am torn between glee at Truss and Quasi so quickly falling on their faces and discomfort at the implications of this mess for me and mine.
    At the moment glee is winning.

    I'd be more inclined to glee if I thought there would be any long term consequences for the tories.

    I live in joyful hope.
  • Enoch wrote: »
    This is yet another Etonian and a man who is supposed to have got a PhD in Economics.
    The school he attended is irrelevant.
    His PhD is in Economic History rather than Economics.
    On current form doesn't seem to have grasped that either.

    The fact is "Trussonomics" = "trickle-down" economics = Reaganomics = Barber "dash for growth" - and none of the last three worked.
  • Bishops FingerBishops Finger Shipmate
    edited September 27
    You have to hand it to this *government*. In less than a month, they've killed the Queen, buried her, and totally fu*ked up the economy.

    The nuclear strike on Moscow is scheduled for next week...

    (IRONY)
  • Baptist TrainfanBaptist Trainfan Shipmate
    edited September 27
    Or it would be if we could afford the fuel ... or had enough soldiers to pump up sufficient lemonade-bottle rockets.
  • You have to hand it to this *government*. In less than a month, they've killed the Queen, buried her, and totally fu*ked up the economy.

    The latter is true, but a healthy country doesn't experience this kind of turmoil as a result of a single budget, what's happening has been years in the making.
  • Yes indeed - this present *government* being the result of aeons (well, it feels like that) of tory misrule.
    :rage:

    O how I long for a sensible government run by sensible adults with compassion, honesty, and integrity.

    O look... 🐷🐷🐷🐷 flying across the sky...
  • Hmm ... read the first few sentences of this article: https://www.independent.co.uk/voices/truss-kwarteng-pound-sterling-crash-b2175585.html

    (We've had a lot of geese flying across our sky for the last day or two).
  • Hmm ... read the first few sentences of this article: https://www.independent.co.uk/voices/truss-kwarteng-pound-sterling-crash-b2175585.html

    (We've had a lot of geese flying across our sky for the last day or two).

    Reading the last few lines of : https://news.sky.com/story/liz-truss-had-to-be-convinced-to-issue-govt-statement-to-calm-markets-after-meeting-with-chancellor-12706352

    "Some in government are understood to see the market assault on the pound and government debt as a plot by the left, something which has surprised city traders."
  • Someone (I blame Putin, or possibly Johnson) has put something into the tories' tea, increasing their already obvious bonkersness by about 100%.

  • A plot by the left, yes, and the moon landings were filmed in an Arizona warehouse.
  • Perhaps the Earth really is flat?
    :flushed:
  • If this is a correct story, we have conspiracism in government.
  • A plot by the left, yes, and the moon landings were filmed in an Arizona warehouse.

    Don't be silly, it was New Mexico.
  • A plot by the left, yes, and the moon landings were filmed in an Arizona warehouse.

    Don't be silly, it was New Mexico.

    It only looked like that. In fact, the lefties had rigged the whole thing. The weird thing about the falling pound/leftist plot is that it sounds like Trump.
  • I had to chuckle at today's headline in the Daily Star - a photo of Quasi (complete with red nose) and the words *Honey, I shrunk the quids*...
    🤣🤣
  • A plot by the left, yes, and the moon landings were filmed in an Arizona warehouse.

    The moon landings were actually filmed by Stanley Kubrick. NASA originally wanted to do the shooting on a sound stage, but Kubrick was such a purist about the lighting he insisted on doing the shots on location instead.
  • TurquoiseTasticTurquoiseTastic Kerygmania Host
    Alan29 wrote: »
    Alan29 wrote: »
    I am torn between glee at Truss and Quasi so quickly falling on their faces and discomfort at the implications of this mess for me and mine.
    At the moment glee is winning.

    I'd be more inclined to glee if I thought there would be any long term consequences for the tories.

    I live in joyful hope.

    Glee is entirely inappropriate. If the Conservatives lose the next election because of tanking the economy then the presumably Labour replacements will inherit an almighty mess, for which voters will rapidly start blaming them. Unless they then fix it pretty sharpish - which may be impossible - I can totally see a backlash towards the populist right in a few years' time, Boris Reborn or worse...
  • HugalHugal Shipmate
    Not even a month in and this cabinet have tanked the pound. Who will lend us the money to cover the bill for the tax cuts? UK government bonds have tanked as well
  • Hugal wrote: »
    Not even a month in and this cabinet have tanked the pound. Who will lend us the money to cover the bill for the tax cuts? UK government bonds have tanked as well

    They could always fund it by cutting services further: https://www.theguardian.com/commentisfree/2022/sep/27/kwasi-kwarteng-cut-taxes-austerity
  • Alan Cresswell Alan Cresswell Admin, 8th Day Host
    What a great idea. After more than a decade of strangling economic growth through austerity, adding in a load of extra costs to businesses by cutting off the European markets and access to skilled staff, totally mismanaging the pandemic response knocking the economy even more than the pandemic hit other national economies, and then giving billions of tax revenue from hard working people of Britain to the idle rich investors in fossil fuels and bankers and then cutting the taxes of the idle rich while still taxing the hard working people of Britain. Now, cap that damage to the economy by yet more austerity. People of Britain, get used to living in a third world economy, struggling to get by, only able to buy things if you can scrape together hard currency like US dollars and Euros because the British pound is worthless. Except of course for the rich, who like their third world counterparts live in luxury and own the government.
  • My move towards working remotely is looking more and more sensible if it puts me in line to get paid in dollars (not really fussed if they're US, Canadian, Australian or New Zealand at this point).
  • Evidently the Gnomes of Zurich are back.
    Meanwhile a Tory MP was on the radio yesteday saying that axing HS2 would fix he problem.
  • And now the IMF have weighed in.
  • Bishops FingerBishops Finger Shipmate
    edited September 28
    Alas, the Toxic Toddlers won't take any notice.

    They know what is best for us...

    (IRONY)
  • DafydDafyd Hell Host
    So it seems Truss and Kwarteng are taking the line that the government knows better than the markets?
  • KarlLBKarlLB Shipmate
    Dafyd wrote: »
    So it seems Truss and Kwarteng are taking the line that the government knows better than the markets?

    Oh the irony, from right-libertarian free marketeers...
  • DafydDafyd Hell Host
    Quite.
  • chrisstileschrisstiles Hell Host
    edited September 28
    And now the IMF have weighed in.

    This is all very amusing but their policy prescription will be something along the lines of "... and therefore we need to see more spending cuts".
  • It says on the Noos this afternoon that Kamikwasi isn't going to resign, and that his disastrous and bonkers policy is not going to be reversed.

    Had the Bank of England not intervened today, it appears that many pensions (perhaps mine included :scream: ) might have been badly affected.

    What will it take to get the lunatics at 10 and 11 Downing Street to see sense?
  • Yes, journos saying there could be a "run dynamic" on pension funds. That sounds very grisly, involving insolvencies. Where are the government?
  • Lizzy and Kwazzy are in hiding - can't think why...

    The rest of the *government* are running around like headless chickens, and many tory MPs are drafting their letters to the 1922 Committee (I hope).
  • One month ago:
    Telford wrote: »
    What it means is that the opposition can say what they like without having to test their ideas. Governments do not have a magic money tree and are supposed to be able to find the money they need to spend. They can't keep borrowing indefintely.

    The simple truth is that no government would be able to get us through the present crisis without people having some financial pain.

    Today:
    In line with its financial stability objective, the Bank of England stands ready to restore market functioning and reduce any risks from contagion to credit conditions for UK households and businesses.

    To achieve this, the Bank will carry out temporary purchases of long-dated UK government bonds from 28 September. The purpose of these purchases will be to restore orderly market conditions. The purchases will be carried out on whatever scale is necessary to effect this outcome. The operation will be fully indemnified by HM Treasury.

    I guess they found that magic money tree after all and only some people need financial pain.
  • KarlLBKarlLB Shipmate
    And now the IMF have weighed in.

    This is all very amusing but their policy prescription will be something along the lines of "... and therefore we need to see more spending cuts".

    That will doubtless be what it is.

    What was it Neil Kinnock said?

    "– I warn you not to be ordinary

    – I warn you not to be young

    – I warn you not to fall ill

    – I warn you not to get old."

    Truss models herself on Thatcher. The same warning apply.

  • Bishops FingerBishops Finger Shipmate
    edited September 28
    Meanwhile, Lizzy is (we are told) *standing by* Kwazzy as the train wreck continues.

    Mixing metaphors, perhaps, but that fridge must be quite roomy.

    Some people (not sure who exactly) are pleading with Volodymyr Zelenskiy to have a word with Lizzy, to urge her to come out of hiding, and BLOODY WELL DO SOMETHING!

    (President Zelenskiy, of course, whilst no doubt concerned at the economic disaster unfolding, has fatter fish to fry, and is hoping that the UK will continue to support Ukraine in the face of Putin's lunacy. God knows, we have enough lunatics of our own to contend with.)
  • It's been an amazing sequence of Tory PMs, Cameron, May, Johnson, Truss. You could talk about a deterioration, but really, they are all incompetent, and blinded by various things, Brexit, right wing fantasies, desire to help the rich, arrogance, etc. They remind me of Russian Tsars, useless and arrogant.
  • The rest of the *government* are running around like headless chickens, and many tory MPs are drafting their letters to the 1922 Committee (I hope).
    Apparently the Rules say that there can't be another vote of no confidence until a year has elapsed since the previous one. Or does that only apply to a "sitting" leader who wins such a vote?

  • The rest of the *government* are running around like headless chickens, and many tory MPs are drafting their letters to the 1922 Committee (I hope).
    Apparently the Rules say that there can't be another vote of no confidence until a year has elapsed since the previous one. Or does that only apply to a "sitting" leader who wins such a vote?

    Good point. I don't know, but I think it applies, as you say, to a sitting leader who has won a vote. That doesn't apply to the present encumbrance incumbent.
  • Baptist TrainfanBaptist Trainfan Shipmate
    edited September 28
    Is there a present incumbent? She hasn't been seen in public for a week.

    Is this now a statutory requirement for Tory PMs at a time of crisis?

    Interesting article: https://tinyurl.com/mv5d4bev - this is (allegedly) a non-partisan website.
  • Alan29Alan29 Shipmate
    Is there a present incumbent? She hasn't been seen in public for a week.

    Is this now a statutory requirement for Tory PMs at a time of crisis?

    Now that Johnson's fridge has been vacated ... msybe that is whrte she is.
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