The I cant believe it’s not politics thread.

[Parafox]

52 minutes ago, Steve_Guppy_Left_Foot said:

In real terms with the rate of inflation minimum wage and benefits are being cut every day. But in literal terms its all over the news, they are planning on cutting benefits, unless of course you're an idiot or a troll. Likely both. 

They've not "slashed benefits", however:

 

After the announcements of tax cuts and Government borrowing last week the UK economy was thrown into turmoil, with the value of the pound dropping and the Bank of England having to intervene. Yesterday Mr Kwarteng refused to say that Universal Credit and other benefits will be increased to match inflation - which could go over 10%.

Instead the benefits are expected to rise by just 5.4% - meaning in real terms they will be cut because the amount of the increase will be much lower than the rate at which everything is getting more expensive. Think tank the Resolution Foundation said the uprating of benefits by earnings instead of inflation next year would cost a typical low-income working family with two children over £1,000 a year.

Edited 2 October 2022 by Parafox

[gerblod]

On 30/09/2022 at 23:16, Spiritwalker said:

Having transferred my life savings from the bank into funds and shares I’m

finding it quite distressing. Every time Lizz Truss or the Chancellor appear on the

telly my personal finances take a large hit.

I woke up on Friday morning and straightaway thought of buying gold. Trouble is I've gone for a six-month notice account, so I'll have to wait another four months before I can retrieve it. Truss and Kwarteng are showing the same kind of obduracy and fantasies that Hitler displayed in his bunker as the Soviets were taking over Berlin. Sheer stupidity and arrogance when the experts are telling them they're wrong. 

[HighPeakFox]

I chose not to attack anyone on the right today - typical leftist.

[skinnydipper]

From time to time I miss the likes of Matt P and Up the League Fox participating on this forum 

[Facecloth]

6 minutes ago, skinnydipper said:

From time to time I miss the likes of Matt P and Up the League Fox participating on this forum 

If you're talking good political discussion, I agree about MattP on most part.

[Fazzer 7]

1 hour ago, Steve_Guppy_Left_Foot said:

In real terms with the rate of inflation minimum wage and benefits are being cut every day. But in literal terms its all over the news, they are planning on cutting benefits, unless of course you're an idiot or a troll. Likely both. 

Okay, so they haven’t slashed benefits then. You’re just speculating. 

[Sly]

Did you ever think a day would come when Michael Gove would talk more sense than the Prime Minister 😂 

[Sly]

Could Liz Truss actually get pushed out of Government by Christmas? 

[Fazzer 7]

1 hour ago, Parafox said:

They've not "slashed benefits", however:

 

After the announcements of tax cuts and Government borrowing last week the UK economy was thrown into turmoil, with the value of the pound dropping and the Bank of England having to intervene. Yesterday Mr Kwarteng refused to say that Universal Credit and other benefits will be increased to match inflation - which could go over 10%.

Instead the benefits are expected to rise by just 5.4% - meaning in real terms they will be cut because the amount of the increase will be much lower than the rate at which everything is getting more expensive. Think tank the Resolution Foundation said the uprating of benefits by earnings instead of inflation next year would cost a typical low-income working family with two children over £1,000 a year.

Not many are going to receive a 10+% wage increase though. Chances are inflation has or is near to the peak and will likely start a slow decent next Spring. 

[Foxdiamond]

8 minutes ago, Sly said:

Did you ever think a day would come when Michael Gove would talk more sense than the Prime Minister 😂 

Barmy to think if Johnson not told one lie too many Truss would still be in his cabinet and her nutty ideas would be just that and not government policy 

[Foxdiamond]

3 minutes ago, Fazzer 7 said:

Not many are going to receive a 10+% wage increase though. Chances are inflation has or is near to the peak and will likely start a slow decent next Spring. 

In the meantime the very wealthy are rolling in extra dosh

[WigstonWanderer]

Got a feeling this pension funds crisis has some way to go. Sounds a bit like 2008 with LDIs in place of CDOs.

 

https://www.reuters.com/world/uk/under-water-how-bank-england-threw-markets-lifeline-2022-10-02/

 

If I’ve understood correctly LDIs are derivatives that get more valuable as government bond (gilt) yields fall. They have been used by pension funds to protect against low interest rates.

 

However, if yields rise they fall in value, and like any derivatives, the holder may be subject to a margin call. Ordinarily this can be done in orderly fashion and holders can unwind their positions, but in this case yields rose too quickly causing pension funds to have to sell gilts to finance the margin calls. This in turn caused gilt yields to rise further, a downward spiral.

 

The BoE’s 65B intervention is all very well, but the market in LDIs is apparently 1.6T! Just hope they all know what they’re doing and it all works out or the whole thing could destabilise the banking sector.

Edited 2 October 2022 by WigstonWanderer

[Fazzer 7]

Truss u turns on 45% tax rate cut. It’s delayed. 

[urban.spaceman]

3 minutes ago, Fazzer 7 said:

Truss u turns on 45% tax rate cut. It’s delayed. 

You are crying into your caviar son

[st albans fox]

9 minutes ago, Fazzer 7 said:

Truss u turns on 45% tax rate cut. It’s delayed. 

Can’t see anything in the media ?

 

She only said this morning that she isn’t for turning 

 

the only reason I can think of is that she has realised that the bank bench rebellion on it would sink the whole budget in parliament 

 

but I’m still surprised 

 

EXIT:  she seems to be removing this particular part of the cuts from the vote on the mini budget and delaying it until after the OBR report is released. she’s not delaying the cut which is due to commence next April 
 

Edited 2 October 2022 by st albans fox

[Fazzer 7]

20 minutes ago, st albans fox said:

Can’t see anything in the media ?

 

She only said this morning that she isn’t for turning 

 

the only reason I can think of is that she has realised that the bank bench rebellion on it would sink the whole budget in parliament 

 

but I’m still surprised 

 

EXIT:  she seems to be removing this particular part of the cuts from the vote on the mini budget and delaying it until after the OBR report is released. she’s not delaying the cut which is due to commence next April 
 

Telegraph!

[st albans fox]

1 minute ago, Fazzer 7 said:

Telegraph!

Only the vote on it is delayed, not the policy ….

[Captain...]

6 hours ago, Daggers said:

It's a perfectly legitimate question.

It's not, you have a rare chance to ask the PM some questions, why are you wasting our time asking her a question we all know the answer to. It's just weird. It's like asking Rodgers "How many games have you won this season?" 

 

There is very good point to be made that she doesn't actually have a mandate to make these changes, and asking her how she can justify it, but instead you ask a stupid question and end up discussing semantics. The reality is she does have a mandate to enact change, she followed the agreed democratic process and is trying, admittedly very badly, to navigate unprecedented times. Yes you can argue she doesn't have a mandate to deviate so dramatically from the 2019 manifesto, but shit has seriously hit the fan since then. Something needed to be done, obviously not this, but she had the mandate to do something. 

 

[Fazzer 7]

27 minutes ago, urban.spaceman said:

You are crying into your caviar son

Hardly, I don’t pay income tax 😂 It is a tad embarrassing though, for Truss. It is more of a delay than a u turn, according to the telegraph. 

[Fazzer 7]

1 minute ago, st albans fox said:

Only the vote on it is delayed, not the policy ….

Correct, quite likely to be voted out though. 

[filthyfox]

6 minutes ago, Fazzer 7 said:

Telegraph!

Says it all really!

[st albans fox]

1 minute ago, Fazzer 7 said:

Correct, quite likely to be voted out though. 

I assume that they hope the OBR report will show that it can be funded without borrowing (ref cuts they will be making ) 

 

so it then becomes a question of not borrowing to drop the rate but cutting to reduce it.  Perhaps that’s palatable to enough of the MP’s 

[filthyfox]

2 minutes ago, Fazzer 7 said:

Correct, quite likely to be voted out though. 

I hope so.  Although, with my MP in that high earner bracket, he will be troughing it through.

 

Can't make comments about pigs in Parliament though, can we?

[Mickyblueeyes]

When it comes to the current cabinet, the tories are really setting out the worst of the worse within their party. Their leadership contest and reluctance to oust Boris showed that. There are genuine conservative members and supporters who can’t live with this current set of decisions and that says it all. 
 

There is no one else who leads that party waiting in the wings and I very much doubt Truss within her own party repairs her reputation after this. 
 

i have never associated with a party - I’ve always voted on policy and if that means Tory or Labour, so be it. I find it completely alien when someone has this affiliation with a set of individuals as some sort of saviours - both sides are simply career politicians they are not out there to save me or you. The retired Derek Skinner is an example of an exception but his type won’t ever lead a party (Corbyn was perhaps the exception) which is why his sort, regardless of your policies and politics are needed - on both sides. 
 

With a GE, the question is, is Labour ready to lead and with a very large majority it seems they will likely get based on the current polls. I don’t know if they are. They certainly need to step in because the tories need a heavy rebuild but are their policies and direction set up for it - wondering  if they’re 2/3 years away from being there. The manifesto will be interesting if we get a GE early next year. That unfortunately puts me in a quite negative state where (for very different reasons) I’m hoping again we will not be settling again for the best of a bad bunch. 

[urban.spaceman]

Here we go...