UK economy.

[Frnc]

Two articles on current situation.

1.
"Moody’s Warns Large Unfunded UK Tax Cuts Threaten Credit Rating

(Bloomberg) -- Moody’s Investors Service warned the UK government that its new mini-budget, which included sweeping tax cuts that sent the pound to a record low, risks doing lasting damage to the nation’s debt affordability.

“Large unfunded tax cuts are credit negative,” it said in a statement. Such a move will “lead to structurally higher deficits amid rising borrowing costs, a weaker growth outlook and acute public spending pressure stemming from the pandemic and a decade of austerity.”"
https://uk.finance.yahoo.com/news/moody ... 27822.html

Moodys forecast almost zero growth (0.3%) next year, and growth not returning to its potential until 2026.

2. "IMF Tells UK to ‘Re-Evaluate’ Tax Cut as Global Criticism Mounts

(Bloomberg) -- The International Monetary Fund delivered a stinging rebuke of the UK’s new unfunded tax cuts by calling them excessive and in need of revision, adding to criticism of a plan which has sent the pound to a record low.

“Given elevated inflation pressures in many countries, including the UK, we do not recommend large and untargeted fiscal packages at this juncture, as it is important that fiscal policy does not work at cross purposes to monetary policy,” a spokesperson for the Washington-based lender said Tuesday in a statement. “Furthermore, the nature of the UK measures will likely increase inequality.”

The IMF said that Chancellor Kwasi Kwarteng should use a plan scheduled for release in November to “consider ways to provide support that is more targeted and re-evaluate the tax measures, especially those that benefit high-income earners.”

Prime Minister Liz Truss’s decision to cut taxes by the most since the early 1970s and cover them via borrowing at a time of surging inflation has rattled financial markets and drawn concern from international policy makers and economists."
https://ca.finance.yahoo.com/news/imf-s ... 19782.html

[jennyjj01]

Two articles on current situation.

1."Moody’s Warns Large Unfunded UK Tax Cuts Threaten Credit Rating

2. "IMF Tells UK to ‘Re-Evaluate’ Tax Cut as Global Criticism Mounts

Prime Minister Liz Truss’s decision to cut taxes by the most since the early 1970s and cover them via borrowing at a time of surging inflation has rattled financial markets and drawn concern from international policy makers and economists."
https://ca.finance.yahoo.com/news/imf-s ... 19782.html

FRNC, I quite agree that the budget is getting scathing criticism and the IMC remarks are almost unprecedented. But it was a deeply political policy decision.
I know how it impacts me and that's what I'll need to address. I know it's bu66ered up my finances. Like you, I'm waiting on my pension and will not benefit one iota from the budget.

No point us airing our views: Let's discuss dealing with it on a macro level. I think that was Jansman's intention.
Time to buy gold? Bitcoin? Shares? Bonds? Bunkers? Compost? Baked beans?

[Frnc]

Two articles on current situation.

1."Moody’s Warns Large Unfunded UK Tax Cuts Threaten Credit Rating

2. "IMF Tells UK to ‘Re-Evaluate’ Tax Cut as Global Criticism Mounts

Prime Minister Liz Truss’s decision to cut taxes by the most since the early 1970s and cover them via borrowing at a time of surging inflation has rattled financial markets and drawn concern from international policy makers and economists."
https://ca.finance.yahoo.com/news/imf-s ... 19782.html

FRNC, I quite agree that the budget is getting scathing criticism and the IMC remarks are almost unprecedented. But it was a deeply political policy decision.
I know how it impacts me and that's what I'll need to address. I know it's bu66ered up my finances. Like you, I'm waiting on my pension and will not benefit one iota from the budget.

No point us airing our views: Let's discuss dealing with it on a macro level. I think that was Jansman's intention.
Time to buy gold? Bitcoin? Shares? Bonds? Bunkers? Compost? Baked beans?

I was looking at gold the other day but it's not cheap at the moment, about the same as the peak last September, and they hardly had anything in.
Bitcoin I don't trust.
Bonds, maybe, fixed interest fixed term, not government. I have a few. I'd wait, as interest rates are likely to go up again. Best I'm getting is 3%. Or you could buy government ones. I don't know if individuals can buy small amounts. It's mainly big companies who buy them.

[Frnc]

BoE is to buy bonds from now to mid Oct to try to shore up the price and the market, partly because pension funds were at risk.

Former BoE Former deputy governor of monetary policy just said the level of debt servicing meant "a very fundamental rethinking of the boundaries of the state” “You have to be prepared, say, to move away from our own health service, which is free at the point of delivery to one funded by social insurance like they do in Germany.”

[jennyjj01]

Former BoE Former deputy governor of monetary policy just said the level of debt servicing meant "a very fundamental rethinking of the boundaries of the state” “You have to be prepared, say, to move away from our own health service, which is free at the point of delivery to one funded by social insurance like they do in Germany.”

In other words, a stealth de-funding of public services...
... Less useful healthcare ---> Shorter lifespan.
... Less Social care ---> Less end of life care.
... Less policing ---> Less law enforcement ---> More crime.

Sounds like an invitation to societal decay, to me.

Every man for himself. Better prep to be more independent, as we preppers do.

Still, we'll be ok when it trickles down

[pseudonym]

Someone's been buying a lot of precious metals, my go-to stockist is out of a lot of stock at the moment and that hasn't happened in a long while.

[Winterprep]

Yeah I’ve noticed certain stockist are out of items just now. My last sovereign purchases were £100 each lower than they are now!

WP

[diamond lil]

If you hear a strange noise, it's me sawing off Scotland along the border. >>>>>>>>>>>>> out of here!

[Arzosah]

If you hear a strange noise, it's me sawing off Scotland along the border. >>>>>>>>>>>>> out of here!

We quite understand

[Arzosah]

If anyone's waiting more than a few weeks to make new investments, whatever those investments might be, a potential place to stash the money is premium bonds - you're "gambling" with the interest, so to speak, but if you need to cash in to take advantage of your next opportunity, they send your capital back to you quite quickly.