Kwasi economics....

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albion

Guest
When the £ hits $1 I imagine the word 'parity' will be another kwazy positive. Since Brexit, when it started at $1.40, the slide has been quite predictable.
 
A

albion

Guest
The Mail to the rescue.
https://www.thisismoney.co.uk/money...amp/ALEX-BRUMMER-Sterlings-rebound-hopes.html

Investors will soon love us as we just print money?
 
deptfordmarmoset

deptfordmarmoset

Über Member
My prediction is that when the ''going for growth'' story fails, it will be blamed on the imminent global recession. It will be treated as an unfortunate factor outside of government's control. They'll say it was unpredictable but it won't have been.

The pound's fall in the exchange rate will mean that inflationary pressures will increase. Petrol, for example, is traded with the dollar and we've just lost something like 7% on sterling so that's 10p to put back onto the sterling price of a gallon of petrol. The same inflationary pressure will apply to all imported raw materials traded in dollars, slightly less for euro-traded materials.

That money given to the well-off is our debt to be paid back at rising interest rates, a debt burden that will suck more and more money out of the economy making growth even less likely.

I hope that I'm 100% wrong.
 
A

albion

Guest
The very scary thing is that it can stoke runaway inflation. They will hardly be able to pay for the fuel cap, never mind that Brexit sponsor tax giveaway.
 
deptfordmarmoset

deptfordmarmoset

Über Member
albion said:
The very scary thing is that it can stoke runaway inflation. They will hardly be able to pay for the fuel cap, never mind that Brexit sponsor tax giveaway.
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The housing market could be in for a very rough time too - the BoE is going to have to hoik interest rates to keep inflation below the 20% rate, which is pretty much where it's heading. So mortgage rates rising at a time of probable global recession and near certain UK recession is going to mean a lot of defaulted homes.
 
deptfordmarmoset

deptfordmarmoset

Über Member
albion said:
https://www.theguardian.com/busines...-underlines-schoolboy-error-by-kwasi-kwarteng

In describing it as a schoolboy error, the point is that they do not give a fcuk and have not since Boris Johnson sported his massive hangover type shock on finding he had won the Brexit vote.
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Are you sure that it was a schoolboy error though? It looked like a deliberate move to further destabilise the pound. If you promise further unfunded tax cuts when the markets are already spooked, what do you think will happen.

View: https://twitter.com/gem_abbott/status/1574340607409111040
 
BoldonLad

BoldonLad

Old man on a bike. Not a member of a clique.
Location
South Tyneside
deptfordmarmoset said:
The housing market could be in for a very rough time too - the BoE is going to have to hoik interest rates to keep inflation below the 20% rate, which is pretty much where it's heading. So mortgage rates rising at a time of probable global recession and near certain UK recession is going to mean a lot of defaulted homes.
Click to expand...

Action replay of the 1970's, what joy
 
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