Do you want to discuss boring politics? (245 Viewers)
- Thread starter mrtrench
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David O'Day
Well-Known Member
just pointing out once again you had got your figures wrong, that's all
David O'Day
Well-Known Member
Anyway for the adults in the room while borrowing does not in itself cause inflation the way it is dealt with afterwards can.
For example the monetisation of debt does lead to inflationary pressures. In the great recession there is a good case that the monetisation of debt (the BoE creating money to purchase UK gilts and bonds) did increase inflation but as we were entering a deflationary period this actually helped.
For example the monetisation of debt does lead to inflationary pressures. In the great recession there is a good case that the monetisation of debt (the BoE creating money to purchase UK gilts and bonds) did increase inflation but as we were entering a deflationary period this actually helped.
David O'Day
Well-Known Member
Also if the market doesn't trust you and thinks your economically plan is reckless this will lead to sterling losing value and the inflationary pressures that come with that.
Saying "fuck it, just do it" isn't a mental way to run an economy.
Saying "fuck it, just do it" isn't a mental way to run an economy.
chiefdave
Well-Known Member
that's pretty much where I'm at tbh. Wasn't expecting Starmer to be far left or anything like that but other than getting the current lot out don't really see any reason to vote Labour under his leadership.
they'll get in this time but I'm not convinced by the the idea this is all just so he gets in and then we'll see left wing policies being enacted. think on current form there's every danger the tories regroup and we only have Labour in for one term
fernandopartridge
Well-Known Member
I'm not getting any figures wrong - i'm just pointing out that the UK runs a budget deficit (which is necessary no matter what)
David O'Day
Well-Known Member
Cool bro
Ian1779
Well-Known Member
David O'Day
Well-Known Member
No one said that did they and if people actually had read story they would see that.
You need the economy not to collapse again, if it does you then you are fucked and so is the environment.
David O'Day
Well-Known Member
i've explained the issues that will happen if we have to start the monetarisation of public borrowing
Ian1779
Well-Known Member
I’m not sure the environment is sitting there thinking ‘we’ll let’s see what the economy does before we make our move’
fernandopartridge
Well-Known Member
the BoE isn't buying gilts and hasn't for nearly 3 years
David O'Day
Well-Known Member
If come 2024 Labour say "let's borrow an extra 28 billion on top on the billions that will already need to be borrowed" there is a very real chance that the markets who lend the money will be worried. As pointed out this leads to higher rates, the chance we will have to created money to buy our own gilts and bonds and even the chance of sterling devaluation. Not to mention the higher rates lead to less of teh tax take being usable for non debt repayment and this leads to even more borrowing
If this happens it's harder to borrow the money needed in the future
If this happens it's harder to borrow the money needed in the future
fernandopartridge
Well-Known Member
The markets do not care about the borrowing, they care about what it is being spent on. I think you and the briefcases are missing the point.
skybluetony176
Well-Known Member
I think you’d be pretty naive to vote Labour on that basis. Funny thing is I keep hearing it from both sides. People saying they won’t vote Labour because it’s a trick to get your vote and when he gets in he’s going he’s going to be a communist and also people saying that they will vote Labour because you shouldn’t believe the policies he’s really a lefty.
David O'Day
Well-Known Member
He's a centre-left social democrat.
There's many reason to if want slag of the current labour party but a basic understanding of macroeconomics is not one of them
fernandopartridge
Well-Known Member
Literally the conservative party is doing what it does
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Northants Sky Blue
Well-Known Member
We shouldn't be surprised how brazen it is.
But still, this is some next level shit.
Dame Andrea fucking Jenkyns?
fernandopartridge
Well-Known Member
clint van damme
Well-Known Member
For services to syrups?
Grendel
Well-Known Member
Services to Andy street
skybluetony176
Well-Known Member
Dorries standing down as an MP with immediate effect. By election O’clock. Can’t see the Tories losing it though. One of the safest Tory seats in the country IIRC.
David O'Day
Well-Known Member
yeah, it'll be interesting to see the result though as the local council saw the tories take a bit of a kicking
It'll be a good indicator of how badly the tories are doing in the most truest of blue areas
clint van damme
Well-Known Member
Had to Google it, didn't realise.
Would have thought the raider could have done better for himself.
David O'Day
Well-Known Member
Wow, didn't realise that.
David O'Day
Well-Known Member
It's madness that Sunak is briefing he waved through the list. How stupid is he, I get he wants to bury Johnson as they now hate each other but this just makes him look even weaker than he already did.
chiefdave
Well-Known Member
Understanding macroeconomics not going to do us much good when the planet is inhabitable
David O'Day
Well-Known Member
You can't save the planet when people won't lend you the billions you need as you crashed the economy at your first budget.
It's been push back a couple of years not cancelled
D
Deleted member 5849
Guest
Well you learn something every day. I actually thought Andy Street was half sane for a Tory, and now he's blown it all away!
Ian1779
Well-Known Member
fernandopartridge
Well-Known Member
The British government does not need to borrow money
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Terry Gibson's perm
Well-Known Member
Bye bye Boris thanks for fuck all