Election Year or Fear!

[Andy_Faber]

Slightly off subject. Today’s treatment / scrutiny of Rachel Reeves. No matter what the issue, it’s not on imo. Maybe she’s having a breakdown, maybe a loved ones died, doesn’t matter. Have a heart.

[Geoff Parkstone]

Slightly off subject. Today’s treatment / scrutiny of Rachel Reeves. No matter what the issue, it’s not on imo. Maybe she’s having a breakdown, maybe a loved ones died, doesn’t matter. Have a heart.

Starmer needs a fall guy for his latest U Turn and Truss like impact on the money and bond markets.

[ramAnag]

Starmer needs a fall guy for his latest U Turn and Truss like impact on the money and bond markets.

Truss like impact? After her budget the GBP was worth $1.03. Tonight it is worth $1.36.

[Andy_Faber]

Truss like impact? After her budget the GBP was worth $1.03. Tonight it is worth $1.36.

Which rather ridicules your soothsaying about the pound going through the floor and staying there due to Brexit. I do recall GP explaining the reason for the ebbs and flows of currency but you wouldn?t have it

[Geoff Parkstone]

Truss like impact? After her budget the GBP was worth $1.03. Tonight it is worth $1.36.

If you don't believe me suggest you read the financial times (today's on line - probably tomorrow in print) where it says that the drop in sovereign debt prices today was at one point sharper than the Truss moment but recovered slightly to just the worst since some time in 2022.

But they probably are right wing media so lying and wrong.

[ramAnag]

If you don't believe me suggest you read the financial times (today's on line - probably tomorrow in print) where it says that the drop in sovereign debt prices today was at one point sharper than the Truss moment but recovered slightly to just the worst since some time in 2022.

I would guess around 23/9/22, but who am I to argue with the rat-a-tat-tat twins?

[Geoff Parkstone]

I would guess around 23/9/22, but who am I to argue with the rat-a-tat-tat twins?

Why do you ask for thoughts from "the economists" - is it just to argue with or ridicule?

One more observation before I close the book on teaching the unteachable teacher: the gilts sell off which spiked sovereign borrowing costs in this way is a sign that the market liked Reeves' policy and reflects badly on the U Turn forced on the government. The expectation is that either (a) taxes will rise to offset the 5 billion new hole in the original Reeves budget or (b) state borrowing will rise to fill the hole. Neither options are well received in capital markets, nor I suspect in the labour heirarchy who need a fall guy.

Over and out

[ramAnag]

Why do you ask for thoughts from "the economists" - is it just to argue with or ridicule?

One more observation before I close the book on teaching the unteachable teacher: the gilts sell off which spiked sovereign borrowing costs in this way is a sign that the market liked Reeves' policy and reflects badly on the U Turn forced on the government. The expectation is that either (a) taxes will rise to offset the 5 billion new hole in the original Reeves budget or (b) state borrowing will rise to fill the hole. Neither options are well received in capital markets, nor I suspect in the labour heirarchy who need a fall guy.

Over and out

Sorry, GP. Have been unable to respond because I have been driving about 500 miles to within striking difference of the tunnel today.

Thinking about things, neither you nor I have exactly covered ourselves in glory in recent days.
Tbh I don’t understand half the terminology you use, it’s often the way with ‘experts’. They have an almost secret language which is sometimes used to confuse and complicate. I’ve done it myself though obviously in a different area.

Neither do I ask for the thoughts of economists just to argue or ridicule and I apologise if it comes across that way.
My statement about the state of exchange rates after the Truss budget compared with now is a simple - possibly over simplified - fact and in answer to AF’s comment, I suspect the GBP/Euro rate has not got close to where it was before the Referendum since completion of the Brexit process.

All I was originally seeking was your opinion on how we can close the ever widening gap between rich and poor, change a situation where a tiny proportion of the population owns a huge percentage of the national/worlds wealth and where the rich are disproportionately well rewarded for the achievements of companies they own.
I perhaps over simplify economic issues because of my lack of technical understanding but it seems your higher level - where economics is concerned - has not really helped either as you have few, if any, answers and appear to be favouring a status quo which I suspect cannot be allowed to continue.

[Geoff Parkstone]

PS your guess was wrong, there was a bigger spike in sovereign debt cost in May 2022

[swaledale]

What is ridiculous is that its all supposition, forecasts and predictions which in the round are generally wrong! All in fact she has to do is modify her fiscal rules, tying herself to that was bloody stupid anyway.

As for economists, the OBR ad the flipping bank of England, one only has to look back in history to realise that most of what they forecast and predict doesn't actually happen.