The £ v the $

[baggiematt]

A large part of the problem is the currency speculators though.

It’s becoming more and more apparent to me that governments don’t really have any control of the economy anymore.

The money men , the “markets” control everything.

If any government wants to try something different ( this might be something a lot of us either agree with or don’t agree with ) it actually doesn’t matter.

If things are not being done in the centre ground or just a tad to the right or to the left of centre then the “markets” give a massive tug on the invisible leash to pull us back to where they want us.

It seems to me that the government just can’t win.

Everyone moaning about energy prices and cost of living so government gives energy support to individuals and business and tax break to both.

The markets don’t like it so the £ gets driven into the ground and it looks like interest rates will rise significantly to help bolster the £.

Then people start moaning because their mortgage repayments rise, wiping out the help they’ve been given!

There seems to be no way of squaring the circle.

Put a finger in the dyke and another leak springs out elsewhere.......or multiple leaks!

A large part of the problem is both us as people and also the media.

We as people want instant fixes and help from government because we no longer accept their are ups and downs in the economy.

In the 70’s, 80’s and 90’s we had recessions and we just sucked it up and weathered the storm as a public, people nowadays want instant gratification and are not willing to see a drop in their living standards.

The media are constantly negative about everything, they don’t give anything a chance to succeed or fail, the public are so depressed at hearing this stuff every day that we are into a spiral of self fulfilling doom.

For the record, I don’t think this was a good budget.

Raising lower earners tax thresholds and hammering energy companies with windfall taxes was the way to go.

I would’ve also implemented a tax on the likes of Facebook, Google and Amazon and based it not on profits but on the turnover they do within the U.K.

Big players can easily fiddle how much profit they make but they can’t fiddle how much turnover they do in a region.

This is the way to catch them.

You're absolutely spot on Mick. Economically we're stuck between a rock and a hard place.

You either sort out the inflation or you create growth...doing both together is pretty much impossible as the measures to manipulate one or the other are the opposite. Truss has chosen to focus on growth, Sunak wanted to focus on inflation.

Supply side economics worked incredibly well post late 80s and more recently in Trumps America. It does create wealth inequalities though, absolutely no doubt about it. However, it's entirely possible that this could be a necessary evil to boost growth and save us from stagflation in the medium term. The media are finding every economist they can who tells them it's wrong and not giving a balanced argument to the issue...but why would they do that, it doesn't sell papers!

[mickd1961]

You're absolutely spot on Mick. Economically we're stuck between a rock and a hard place.

You either sort out the inflation or you create growth...doing both together is pretty much impossible as the measures to manipulate one or the other are the opposite. Truss has chosen to focus on growth, Sunak wanted to focus on inflation.

Supply side economics worked incredibly well post late 80s and more recently in Trumps America. It does create wealth inequalities though, absolutely no doubt about it. However, it's entirely possible that this could be a necessary evil to boost growth and save us from stagflation in the medium term. The media are finding every economist they can who tells them it's wrong and not giving a balanced argument to the issue...but why would they do that, it doesn't sell papers!

Matt, I fully believe that the media presenters( not necessarily the media owners and custodians such as at the BBC ) have decided they want a Left Wing government, I haven't heard a positive comment from the BBC, ITV, Channel 4 or SKY for a very long time.

Beth Rigby and Robert Peston are the absolute worst, ultra Left Wing and on a constant downer all of the time.

I see nothing other than a Labour coalition from Hell next time around with Sturgeon propping them up and the tail wagging the dog, in all likelihood we are looking at a ten year stretch of Labour in charge from late 2024 onwards.

No doubt they'll be better than the present lot in certain areas and worse in others, especially for business but ultimately it'll be "the market" that dictates.

I've just recently reached the conclusion that it's all pointless.

Until we are back in the Eu "the markets" won't be happy and so we might as wellies on with it and rejoin.

This all depends on Starmer having the balls to promise another referendum which I don't think he has the guts to do, maybe the end game is a Sturgeon price of support is a new referendum?

It's a pity the Lib Dems have such a wet leader rather than someone charismatic.

[WBA123]

Matt, I fully believe that the media presenters( not necessarily the media owners and custodians such as at the BBC ) have decided they want a Left Wing government, I haven't heard a positive comment from the BBC, ITV, Channel 4 or SKY for a very long time.

Beth Rigby and Robert Peston are the absolute worst, ultra Left Wing and on a constant downer all of the time.

I see nothing other than a Labour coalition from Hell next time around with Sturgeon propping them up and the tail wagging the dog, in all likelihood we are looking at a ten year stretch of Labour in charge from late 2024 onwards.

No doubt they'll be better than the present lot in certain areas and worse in others, especially for business but ultimately it'll be "the market" that dictates.

I've just recently reached the conclusion that it's all pointless.

Until we are back in the Eu "the markets" won't be happy and so we might as wellies on with it and rejoin.

This all depends on Starmer having the balls to promise another referendum which I don't think he has the guts to do, maybe the end game is a Sturgeon price of support is a new referendum?

It's a pity the Lib Dems have such a wet leader rather than someone charismatic.

In fairness to Sky, BBC, ITV, Channel 4 - it is very hard to be positive about this budget and this Government. I just think the Tories are being found out and the market pressures are going to tell.

It's hard to even think the Tories are good for business. They've damaged business confidence beyond repair with Brexit and offered us nothing but slow growth since they came to power in 2010.

[baggieal]

In fairness to Sky, BBC, ITV, Channel 4 - it is very hard to be positive about this budget and this Government. I just think the Tories are being found out and the market pressures are going to tell.

It's hard to even think the Tories are good for business. They've damaged business confidence beyond repair with Brexit and offered us nothing but slow growth since they came to power in 2010.

Totally agree! To also say the USA steel deal is years away takes the biscuit! Oh for another party leader to have the bollox to press for another Brexit vote!!!

With all the trauma and cost of living crisis - to do next to nothing for those who cant afford to eat or live then give a huge tax break to those on 150K plus is sick! Does Truss really want to dig her own grave already? Unbelievable!

[WBA123]

Totally agree! To also say the USA steel deal is years away takes the biscuit! Oh for another party leader to have the bollox to press for another Brexit vote!!!

With all the trauma and cost of living crisis - to do next to nothing for those who cant afford to eat or live then give a huge tax break to those on 150K plus is sick! Does Truss really want to dig her own grave already? Unbelievable!

This is quite an unbelievable, ill-thought-out economic strategy from this Government you have to say. A real act of self-harm not just to the country, but to their own party. This does not increase their chances of being re-elected in 2 years' time.

For all of Johnson's faults, he knew how to spin his image and he knew how to promote PR. I don't think Truss is in the same ballpark as Johnson for this.

So...maybe I was wrong to think the Tories would still win the next election. I get the feeling today that even traditional Daily Mail Tory readers are turning on the Govt.

[westcountryvillain]

OR is it a case of getting worse before it gets better, with the timing of the next election in mind? I agree with all of the above comments on the mini budget which royally screws over the low earners whilst the rich will hardly notice a few grand extra in the bank for the next asset to buy.

Calculate the true cost of living and make that non taxable, everyone has a fundamental right to be warm, fed & clothed with a broadband connection plus the means to get around their locality.

[Dubbag]

This fella might have it right...

“Investors seem inclined to regard the UK Conservative party as a doomsday cult,” said Paul Donovan at UBS Global Wealth Management.

[Titchfieldbaggie]

This fella might have it right...

“Investors seem inclined to regard the UK Conservative party as a doomsday cult,” said Paul Donovan at UBS Global Wealth Management.

Shorting the Pound. George Soros made a fortune from Black Wednesday, when we were supposed to join the ERM, with Norman Lamont having to pull out. Traders have learnt from this and any global disruptions to the markets, fuel the speculation. We survived then, and we will survive now.

[kettering_baggie]

This fella might have it right...

“Investors seem inclined to regard the UK Conservative party as a doomsday cult,” said Paul Donovan at UBS Global Wealth Management.

I don’t know about the Conservative Party but I now think that the whole Human race is a doomsday cult!

[Dubbag]

I don’t know about the Conservative Party but I now think that the whole Human race is a doomsday cult!

Can understand that all right.