Bank Of England Intervention!

[Dubbag]

We can’t fix it, we have to do what the money markets/people want us to do!

If only it were that easy.
The market makers only make the market, they don't make the news that guides the market. When they fcuked it up big time and broke the system back in 2007/08 the market wasn't allowed to be made. Intervention back then we were told was absolute to keep the ATMs stocked.
The result is a very dysfunctional market that only works for super rich....not even rich, but super rich.

[kettering_baggie]

It looks to me like we have a ‘runaway train’ scenario; we are now waiting for it to hit the buffers!

As for the membership of the Tory Party choosing Truss, in the end it was, as they were never going to select Sunak. However, it was the Tory MPs that voted ‘tactically’ to get Liz Truss into the final two; had the voting amongst MPs been consistent then it is most likely that Penny Mordaunt would have been in the final two for the membership to choose from. Mordaunt would have won but would she have been significantly better than Truss? Almost certainly but it’s academic now.

[Dubbag]

No BoE meeting till November.
Thats too long an amount of time without intervention. Buying bonds is pyssing against the wind Japan did it early this week because they refuse to increase interest rates.
BoE will have to push rates up by a full point at minimum and possibly more to counter not rescinding the tax cuts.....

[wbaliquidator]

There is a much bigger game in town at the moment.
Uncle Sam is taking the opportunity to crush one of its adversaries not only in the battlefield but also economically.
Dollar is strong against every currency at the moment. Hence oil is high relative for us but not US as oil is based on dollars convenient for them
Big challenges in world with inflation, - why because of the energy weapon by Russia.

Increasing borrowing rates drives down demand,which leads to less energy needed , less everything in fact and likely recession. All major western economies are hiking interest rates at the moment , expect them to go skyward for some time. Expect 8- 10 base rate.
All sounds bad, and it is…. BUT
Less demand, oil prices go down like they are now – they are at pre-invasion prices already
Repression comes, even depression for some ( Not USA ) , oil then may go down to $60,

Then Russia is choked back actually it will cost more for them to pump it out then sell it . Putins gas in important but oil is his lifeblood.
USA gains in every way, restocking the various militaries round the world will make them trillions alone , especially as their biggest rival in arms sales will be bankrupt and who would want to buy crappy Russian munitions anyway

Problem is that Putin and the Kremlin know they are in a corner and no doubt will raise the stakes in some way or other

We are at the mercy of external forces at the moment. That said we have to be more savvy than trying very questionable basic schoolboy economics at this time.

[Titchfieldbaggie]

No BoE meeting till November.
Thats too long an amount of time without intervention. Buying bonds is pyssing against the wind Japan did it early this week because they refuse to increase interest rates.
BoE will have to push rates up by a full point at minimum and possibly more to counter not rescinding the tax cuts.....

It's the arrogance that upsets me, most. All budgets come with a forecast from the independent OBR. This so called 'Mini Budget' tried to circumvent this forecast, thinking they know better. Now we see a hastily convened meeting with the PM, no less, to allay the markets.

I'm no great fan of the IMF, but when they criticise this clusterf@ck, as if we are an emerging market and not a G7 country, I tend to listen. We have a long road ahead, and yes, in this matter, Labour would have done better

[kettering_baggie]

The Tory MPs are wholly to blame for this fiasco by instigating a change of leadership at absolutely the wrong time. Truss and Kwarteng look like a pair of comedians with no jokes; and to think that people called Boris a clown!

[Albionic68]

......I'm no great fan of the IMF, but when they criticise this clusterf@ck, as if we are an emerging market and not a G7 country, I tend to listen.....

Read about this yesterday. Widening gaps makes it harder to level them up.