Liz Truss - an unending void of horror and pain

[Woodchopper]

Why would Tory MPs agree to any vote of no confidence?

To save their arses, sorry pension, sorry seats. And continue to do what's best for their beloved constituents.

And how would calling a general election now help?
When they could gamble on replacing Truss with another leader and hope that in 2 years time, video emerges of Starmer eating a puppy whilst burning the Union flag?

I agree. This is like the fag end of the Major regime. A corrupt and incompetent government will carry on until the last possible moment before they're turfed out.

[El Pollo Diablo]

Apparently five year bond yields are now high (higher than Italy or Greece apparently), but I have no idea why this is a bad thing. Please can someone explain?

[Woodchopper]

Apparently five year bond yields are now high (higher than Italy or Greece apparently), but I have no idea why this is a bad thing. Please can someone explain?

The bond yield is the price that the government pays to borrow money. Its the interest rate, which has increased from 1.5% in early August to almost 5% now.

Similar to if your mortgage rate had increased by the same over a couple of months.

ETA: the rate is affected by the risk perceived by the lender that the debt will be worthless, such as due to inflation or default.

So when the rate is higher for the UK than Greece or Italy, the lender has more confidence in those economies.

This is a big problem as hitherto the UK government has been able to borrow money very cheaply because the UK was viewed as a safe haven. If that perception is blown then raising funds will become much more difficult.

[El Pollo Diablo]

Got you, ta.

[Little waster]

Apparently five year bond yields are now high (higher than Italy or Greece apparently), but I have no idea why this is a bad thing. Please can someone explain?

The bond yield is the price that the government pays to borrow money. Its the interest rate, which has increased from 1.5% in early August to almost 5% now.

Similar to if your mortgage rate had increased by the same over a couple of months.

Or to put it another way, the markets are currently pricing in a ~1-in-20 chance that the UK will be forced to default on its debts in the next 5 years.

[Woodchopper]

Apparently five year bond yields are now high (higher than Italy or Greece apparently), but I have no idea why this is a bad thing. Please can someone explain?

The bond yield is the price that the government pays to borrow money. Its the interest rate, which has increased from 1.5% in early August to almost 5% now.

Similar to if your mortgage rate had increased by the same over a couple of months.

Or to put it another way, the markets are currently pricing in a ~1-in-20 chance that the UK will be forced to default on its debts in the next 5 years.

More likely the risk that inflation will mean that the bond is worth f.ck all when its paid in five years.

[dyqik]

The bond yield is the price that the government pays to borrow money. Its the interest rate, which has increased from 1.5% in early August to almost 5% now.

Similar to if your mortgage rate had increased by the same over a couple of months.

Or to put it another way, the markets are currently pricing in a ~1-in-20 chance that the UK will be forced to default on its debts in the next 5 years.

More likely the risk that inflation will mean that the bond is worth f.ck all when its paid in five years.

And/or that the pound won't recover in exchange value, and so something needs to cover the losses that international investors have had in the past week or 250.

[Woodchopper]

Or to put it another way, the markets are currently pricing in a ~1-in-20 chance that the UK will be forced to default on its debts in the next 5 years.

More likely the risk that inflation will mean that the bond is worth f.ck all when its paid in five years.

And/or that the pound won't recover in exchange value, and so something needs to cover the losses that international investors have had in the past week or 250.

That as well.

[Grumble]

Apparently five year bond yields are now high (higher than Italy or Greece apparently), but I have no idea why this is a bad thing. Please can someone explain?

The bond yield is the price that the government pays to borrow money. Its the interest rate, which has increased from 1.5% in early August to almost 5% now.

Similar to if your mortgage rate had increased by the same over a couple of months.

Or to put it another way, the markets are currently pricing in a ~1-in-20 chance that the UK will be forced to default on its debts in the next 5 years.

It’s a good job we haven’t done anything rash like fix domestic fuel bills by committing to borrowing £100+ billion then, isn’t it?

[Little waster]

More likely the risk that inflation will mean that the bond is worth f.ck all when its paid in five years.

And/or that the pound won't recover in exchange value, and so something needs to cover the losses that international investors have had in the past week or 250.

That as well.

The fun bit is your run-of-the-mill right winger can simply dismiss the criticisms of the likes of Scrutable or JOB or the Guardian as just being the carping of disgruntled liberals upset they've spent the last decade (or three decades or seven decades) on the "wrong side of history" talking Britain down.

But they can't dismiss the markets as easily; people whose vast salaries depend on their supposed ability to get these sorts of calls right, people who in other circumstances they'd be arguing have markedly superior insights into the workings of economies and people who ironically have probably benefitted the most from the mini-budget.

You have those people essentially sat there saying to themselves "well that extra 400k a year is all very nice but the economy is still going to be a complete basketcase so I'd suggest we start moving all our funds into bottled water, gold bars and shotgun shells."

[Woodchopper]

And/or that the pound won't recover in exchange value, and so something needs to cover the losses that international investors have had in the past week or 250.

That as well.

The fun bit is your run-of-the-mill right winger can simply dismiss the criticisms of the likes of Scrutable or JOB or the Guardian as just being the carping of disgruntled liberals upset they've spent the last decade (or three decades or seven decades) on the "wrong side of history" talking Britain down.

But they can't dismiss the markets as easily; people whose vast salaries depend on their supposed ability to get these sorts of calls right, people who in other circumstances they'd be arguing have markedly superior insights into the workings of economies and people who ironically have probably benefitted the most from the mini-budget.

You have those people essentially sat there saying to themselves "well that extra 400k a year is all very nice but the economy is still going to be a complete basketcase so I'd suggest we start moving all our funds into bottled water, gold bars and shotgun shells."

My impression is that the Tory party is no longer the natural home of financiers and plutocrats. If it was then Sunak would have won.

The Tory party is the natural home of people over 60 who think Britain has been going to the dogs since the 60s. Most of them don't give a sh.t about the economy because they aren't working anyway. Inflation will though hit their pensions.

[TopBadger]

My impression is that the Tory party is no longer the natural home of financiers and plutocrats. If it was then Sunak would have won.

The Tory party is the natural home of people over 60 who think Britain has been going to the dogs since the 60s. Most of them don't give a sh.t about the economy because they aren't working anyway. Inflation will though hit their pensions.

Then their journey to becoming UKIP is complete...

[El Pollo Diablo]

Meanwhile, Taylor Wimpey's share price has just dropped by 6.7% today, along with the other major housebuilding companies.

Which I find pleasing, on a personal level. We are trying to move house soon, and our sellers want to buy a new build, because they are idiots. One of the local Taylor Wimpey plots is what they really, really want, and they will not be budged. Taylor Wimpey, however, have said that they are absolutely f.cking not going to release the units in that phase for sale until December at the earliest, for tax reasons*. So whilst our buyers have already completed and are in temporary accommodation (not because of us), and whilst our mortgage offer runs out at the end of March, we might still time out because of those f.cking a..eholes.

But, maybe the expectation of a rise to 6% base rates and a crash in the housing market, as is now being speculated, might mean they get a move on and stop f.cking around. Maybe.





*f.cked if I know what tax reasons, you tell me.

[Woodchopper]

My impression is that the Tory party is no longer the natural home of financiers and plutocrats. If it was then Sunak would have won.

The Tory party is the natural home of people over 60 who think Britain has been going to the dogs since the 60s. Most of them don't give a sh.t about the economy because they aren't working anyway. Inflation will though hit their pensions.

Then their journey to becoming UKIP is complete...

Cameron's strategy was for the Tory party to consume UKIP with the promise of a Brexit referendum. In the event UKIP took over the Tory party.

[Brightonian]

New nickname for Truss: Margarine Thatcher: https://twitter.com/RussInCheshire/stat ... 79299?s=19

[Sciolus]

More likely the risk that inflation will mean that the bond is worth f.ck all when its paid in five years.

That's probably the main reason, but also, if you publicly declare that you are going to buy a zillion pounds worth of $thing, the price of $thing is likely to go up.

[TopBadger]

New nickname for Truss: Margarine Thatcher: https://twitter.com/RussInCheshire/stat ... 79299?s=19

That was epic!

[Bird on a Fire]

New nickname for Truss: Margarine Thatcher: https://twitter.com/RussInCheshire/stat ... 79299?s=19

That was epic!

He does it every week!

[Bird on a Fire]

Good news for Remainers: joining the euro is looking tastier by the minute.

Brexit could yet be a footnote in the history of the consolidation of the European Federation.

I just hope it involves guillotines.

[Bird on a Fire]

Boris Johnson rehabilitation is already starting btw. "At least he was genuinely quite green" "At least he didn't co-pilot the planes into the GBP" "At least under his watch fiscal policy didn't appear to be inspired by watching Steve Carell in The Big Short on Netflix after a night on champagne, coke and hypocritically unpatriotic foreign cheers and thinking it looked like a good idea" and the most annoying part is that they've got a f.cking point

[Bird on a Fire]

like missing the days of Boris Piccaninny Watermelon Letterbox Cake Bumboys Vampires Haircut Inconclusive-Cocaine-Event Wall-Spaffer Spunk-Burster f.ck-Business f.ck-The-Families Get-Off-My-f.cking-Laptop Turds Johnson is already basically fair enough, and wow

[Bird on a Fire]

Watching bad numbers get bigger that quickly gave me those cosy early-lockdown-throwback feels, y'know

[Bird on a Fire]

BREAKING: Oxford University closes PPE degrees, effective immediately, out of embarrassment.

[Bird on a Fire]

She's even tried to get fracking started, presumably for the lols of sacking all the workers a bit later when the arse inevitably falls out of that market too.

[El Pollo Diablo]

I'm sensing alcohol was involved here