35 sats \ 6 replies \ @gd 14 Oct 2022 \ on: Daily discussion thread
GM all. Looks like there's a chance the UK's Chancellor is going to be packing up his desk today after 5 weeks on the job.
I guess Truss is in trouble too? Those unfunded tax cuts will probably be completely removed. I'm no expert but it seems like the British press smells blood in the water. Her days may be numbered?
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Chancellor is gone.
Truss is certainly in trouble, I guess the question is "Is sacking the chancellor enough to settle everyone in Government?".
I think more so than the press, the markets smell blood in the water. Large liquidations are very profitable and the UK seems to have some in reach.
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I guess it depends on the Bank Of England. They obviously scared Truss, but it remains to be seen whether they really stop the bond buying
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Absolutely. I think whether they stop Gilt purchases is subjective. We know that they will have to buy bonds in the future (probably sooner rather than later). I wouldn't be surprised to see more long-duration Gilts get added to the BoE's balance sheet in the coming weeks.
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They call that a twist, right?
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It's all a pantomime don't forget. This will continue to be a merry-go-round of exits, firings and resignations.
Each new successor shall introduce even worse measures to take the U.K. closer to a crisis. The markets dislike inconsistency and that is precisely what they are getting by buying Sterling or U.K. debt.
The ongoing witch hunt (pun not intended) is a distraction, it seems to me they want to get it over with and cause maximum distaste in time for winter.
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