Current Events > Pound plummets to 37 year low. Is in free fall due to gross conservative policy.

(+) Yeah! (+)

The United Kingdom Debt Management Office is raising its debt issuance plans for the current financial year by 72.4bn, to 234.1bn, to cover the cost of the unfunded tax cuts in todays mini-budget.

The DMO will need to issue an extra 62.4bn of gilts taking the total to 193.9bn plus another extra 10bn of short-term Treasury bills (to cover debt management needs).

Pound tumbles below $1.11 to fresh 37-year low

Sterling is tumbling more sharply, as the financial markets give their verdict to the swathe of unfunded tax cuts announced by Kwasi Kwarteng this morning.

The pound has dropped below $1.11 against the US dollar, for the first time since 1985, as investors baulk at the huge extra borrowing needed to fund todays plans.

Rachel Winter, Partner and Investment Manager at Killik & Co, says the recent weakness of sterling illustrates a lack of confidence in the governments plans.

FULL Article: https://www.theguardian.com/business/live/2022/sep/23/uk-consumer-confidence-economy-recession-mini-budget-tax-cuts-kwasi-kwarteng-business-live

https://twitter.com/PaulBrandITV/status/1573237525510070275
https://twitter.com/PaulBrandITV/status/1573236720740564993
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So for those not keeping track, The Tories in the UK who have a huge 80 seat majority have been dominating the election for a decade and the conversation for 2 decades

They have used to the queens death to give enormous tax cuts to the uber rich, legalise fracking, remove caps on bankers bonuses and stomp down hard on unions and civil rights, free speech, right to protest and specifically transgenders

From the same fellas that brought you Brexit and austerity, botched the handling of covid, destroyed the NHS and embraced calling rivals pedo defenders and investigations into their crimes as witch hunts.

The Tories are worse than Trump.

I'm just wondering when the users who "This is fine"ed and yelled at me for pointing out that someone is stabbing them are going go turn around and apologize and admit I always right every step of the way

Business communities are openly stating these policies don't help businesses or the economy. ALL it does is help the 1%

What is stamp duty? That isnt a terminology that Im familiar with (American). I looked it up, and it appears to be a tax for a stamp - what exactly requires to be stamped by you guys, which is then taxed?

Time for the dollar.

So, If I buy a pound of cheese, they just give me less cheese?

The_Popo posted...

What is stamp duty? That isnt a terminology that Im familiar with (American). I looked it up, and it appears to be a tax for a stamp - what exactly requires to be stamped by you guys, which is then taxed?

Stamp Duty is tax when you buy a property

How are you still trapped in the UK?

fbp posted...
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hockeybub89 posted...

How are you still trapped in the UK?

I'm very very seriously close to just packing up and leaving

Yet again, the conservative myth that cutting taxes without also cutting spending will somehow not be a disaster, despite being so every time it's happened.

I'm confused, how are tax cuts resulting in lower takehomes

whose taxes are getting cut

It's almost like rampant, unchecked greed will collapse any country

TaylorHeinicke posted...

I'm confused, how are tax cuts resulting in lower takehomes

Cut taxes without cutting spending, and you have to borrow asstons of money waiting for the assumed economic growth to pay off. Borrowing asstons of money tanks the value of your currency, which wrecks your economy, thus undermining that alleged growth that's going to happen any day now.

A tanked currency and wrecked economy causes imports to increase in cost, while domestic production is diverted to exports that pay better. So, despite taking home roughly the same number, its actual purchasing power is gutted.

Questionmarktarius posted...

Yet again, the conservative myth that cutting taxes without also cutting spending will somehow not be a disaster, despite being so every time it's happened.

And to make it worse, this time businsess and economic experts are openly claiming this budget makes no sense and will actively just make things worse

They're legit not even trying anymore. They know the right wing are immune to consequeces

Or maybe it's cuz all the money has the queen's face on it and is now worthless. Literally how did any of you guys miss that!?

Republicans in the states are practically licking their lips in anticipation at what the UK leaders are doing and doing everything in their power to make that a reality here as well.