Do you want to discuss boring politics? (23 Viewers)

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duffer

duffer

Well-Known Member
fatso said:
It's a bit complicated, but under fractional reserve banking, a bank can borrow 10 million pounds (for example) from another bank at a ridiculously low rate called the LIBOR rate (London inter bank operating rate although this has just changed to the SOFR , secured overnight financial rate)

The borrowing bank can then lend (or invest) that money up to 8 times its value (the fraction from fractional reserve banking) and charge everyone its lending to a far higher rate than it originally borrowed at.

So they borrow £10 million and on the strength of that, they can lend £80million
And then charge interest on the £80 million even though £70million never even existed.
(It's all to do with the calculated risk of defaulting)

You have to understand that banks don't deal with money, they deal with RISK

That's why it's often so hard to qualify for high loans and mortgages.

The real crazy fucked up thing is that the original £10million that was borrowed never actually existed, it was part of the £80 million pounds that the lending bank was allowed to carry on its books when IT originally borrowed £10million from someone else previously!!!

So in banking, there is a theoretical unending supply of money. Banks are only kept in check by inflation rates and interest rates, which, if they get out of hand leads to lenders defaulting and the banks RISK getting too high.
So for banks the question is, how greedy can we be without our RISK becoming too high

As for savers, well the banks don't give a shiny rats shit for savers, the banks offer that service at a loss, as they are legally obliged to do in order to be called banks, and then be allowed access to the inter bank lending rates, and be able to operate under the fractional reserve banking process.

That's very simplistic but I hope it helps.
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Minor bit of pedantry, it's SONIA rather than LIBOR these days.

There is some stuff that goes on in mutuals, where there's a degree of balancing saving and lending, but it's obviously not one in, one out.

Provisioning (i.e. the amount held against debt) is still very much a hot button, tightly regulated thing where I am. As it bloody well should be too, given past horrors!

Edit: sorry, missed the SOFR thing. Not heard of it called that before...
 
Sky_Blue_Dreamer

Sky_Blue_Dreamer

Well-Known Member
duffer said:
Minor bit of pedantry, it's SONIA rather than LIBOR these days.

There is some stuff that goes on in mutuals, where there's a degree of balancing saving and lending, but it's obviously not one in, one out.

Provisioning (i.e. the amount held against debt) is still very much a hot button, tightly regulated thing where I am. As it bloody well should be too, given past horrors!

Edit: sorry, missed the SOFR thing. Not heard of it called that before...
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It's called that cos they can magically find money down the back of the SOFR
 
Sky_Blue_Dreamer

Sky_Blue_Dreamer

Well-Known Member
alexccfc99 said:
People need to be careful what they wish for in that respect

Had PR been a thing in the 70s you'd have had numerous National Front MP's in the commons, likewise with the BNP in the mid 00's

FPTP has it's drawbacks, however it does mostly keep crackpot/extremist candidates and parties out of elected office
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But it can be looked at differently.

I've already had a few people say "well they only won four seats so we don't need to worry about them'. And that's what increases their popularity until all of sudden they ARE getting elected and you're left wondering "HOW DID THAT HAPPEN?!" It's a warning sign that you need to take heed of and having PR in one of the chambers provides the means for people to take that threat seriously. Politicians and media can give more scrutiny and pick apart their beliefs/policies before they suddenly find that they're in charge. Of course there is the risk that for some dealing with that would just mean lurching more towards their position, but they don't that under the current system as well.

Similarly they seem complacent because Labour won a huge majority, whereas IMO it's a very fragile majority not based on increased belief in the party or its policies. It's based on wanting Tories out and Reform splitting the vote in many cases. Given incumbent govt invariably end up less popular I think Labour are going to have to do an exceptional job to retain power at the next GE, and even if every single metric improved significantly they would still only have a slim majority.
 
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fatso

fatso

Well-Known Member
duffer said:
Minor bit of pedantry, it's SONIA rather than LIBOR these days.

There is some stuff that goes on in mutuals, where there's a degree of balancing saving and lending, but it's obviously not one in, one out.

Provisioning (i.e. the amount held against debt) is still very much a hot button, tightly regulated thing where I am. As it bloody well should be too, given past horrors!

Edit: sorry, missed the SOFR thing. Not heard of it called that before...
Click to expand...
SONIA refers to sterling transactions only.

Sorry if you already know that.
 
SBAndy

SBAndy

Well-Known Member
Sky_Blue_Dreamer said:
But it can be looked at differently.

I've already had a few people say "well they only won four seats those so we don''t need to worry about them'. And that's what increases their popularity until all of sudden they ARE getting elected nd you're left wondering "HOW DID THT HAPPEN?!" It's a warning sign that you need to take heed of and having PR in one of the chambers provides the means for people to take that threat seriously. Politicians and media can give more scrutiny and pick apat their beliefs/policies before they suddenly find that their in charge. Of course there is the risk that for some dealing with that would just mean lurching more towards their position, but they don't that under the current system as well.

Similarly they seem complacent because Labour won a huge majority, whereas IMO it's a very fragile majority not based on increased belief in the party or its policies. It's based on wanting Tories out and Reform splitting the vote in many cases. Given incumbent govt invariably end up less popular I think Labour are going to have to do an exceptional job to retain power at the next GE, and even if every single metric improved significantly they would still only have a slim majority.
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Two points of order:

1. You don’t have to mimic the position to solve the issue.
2. If the SpAds have not picked up on the vote spread and suggest doing the same again then they’ve got rocks in their head. Besides, 5 years to change the perception.
 
shmmeee

shmmeee

Well-Known Member
SBAndy said:
Two points of order:

1. You don’t have to mimic the position to solve the issue.
2. If the SpAds have not picked up on the vote spread and suggest doing the same again then they’ve got rocks in their head. Besides, 5 years to change the perception.
Click to expand...

Also you had a fired up reform vote and a suppressed Labour vote. No one is pissing about with greens and Islamist bigots if there’s a narrative around the far right getting in.
 
MalcSB

MalcSB

Well-Known Member
Sky_Blue_Dreamer said:
But it can be looked at differently.

I've already had a few people say "well they only won four seats so we don't need to worry about them'. And that's what increases their popularity until all of sudden they ARE getting elected and you're left wondering "HOW DID THAT HAPPEN?!" It's a warning sign that you need to take heed of and having PR in one of the chambers provides the means for people to take that threat seriously. Politicians and media can give more scrutiny and pick apart their beliefs/policies before they suddenly find that they're in charge. Of course there is the risk that for some dealing with that would just mean lurching more towards their position, but they don't that under the current system as well.

Similarly they seem complacent because Labour won a huge majority, whereas IMO it's a very fragile majority not based on increased belief in the party or its policies. It's based on wanting Tories out and Reform splitting the vote in many cases. Given incumbent govt invariably end up less popular I think Labour are going to have to do an exceptional job to retain power at the next GE, and even if every single metric improved significantly they would still only have a slim majority.
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Your last paragraph is entirely irrelevant - all that matters is the number of seats. Well, that’s the response that every post I’ve made suggesting the same has received.
 
Sick Boy

Sick Boy

Super Moderator
Earlsdon_Skyblue1 said:
Not sure bailing people waiting to be deported is going to A) Do anything other than encourage more crossings and B) Win more votes next time round.

I'm not suggesting Rwanda is the answer, but this is a dangerous start from Starmer.

www.bbc.co.uk

Last two migrants bound for Rwanda to be bailed, home secretary says

New Prime Minister Keir Starmer confirms the scheme is now "dead and buried".
www.bbc.co.uk
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It’s a continuation of the previous government’s policy where 218 were bailed. What would you have done differently?
 
shmmeee

shmmeee

Well-Known Member
D

Deleted member 5849

Guest
Sick Boy said:
It’s a continuation of the previous government’s policy where 218 were bailed. What would you have done differently?
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What that report doesn't say is whether their asylum application had been rejected, or whether they're waiting for a decision. If it's the former then it's where it does fall down though isn't it, because what then happens is those people will undoubtedly bugger off! The approach should be actually deal with claims and appeals in a decent time frame, and then actually take action where needed instead of telling people to report at a certain date.
 
D

Deleted member 5849

Guest
Also quite like Britain's future relationship with the EU should be looser than it is now. How much looser do they want it?!?
 
Sick Boy

Sick Boy

Super Moderator
Deleted member 5849 said:
Also quite like Britain's future relationship with the EU should be looser than it is now. How much looser do they want it?!?
Click to expand...
GIF by Mashable
 
Grendel

Grendel

Well-Known Member
Brighton Sky Blue said:
The survey also found Reform voters to be much more highly educated than previously thought, with approximately 95% graduating from the University of Life, adding the comment ‘Screw Blockbusters!’ to the response box.
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This is also interesting - I did admittedly to my surprise know of a couple of 20 year olds vote reform

www.dazeddigital.com

How Reform UK won over so many Gen Z men

While the majority of young people plan to vote Green or Labour this week, support for Nigel Farage’s right-wing party is surging among 18- to 24-year-old men
www.dazeddigital.com www.dazeddigital.com
 
Grendel

Grendel

Well-Known Member
Brighton Sky Blue said:
The survey also found Reform voters to be much more highly educated than previously thought, with approximately 95% graduating from the University of Life, adding the comment ‘Screw Blockbusters!’ to the response box.
Click to expand...

Also of course Richard Branson was as you sneeringly state educated at the university of life while towering intellects such as Priti Patel were not
 
D

Deleted member 5849

Guest
Grendel said:
Also of course Richard Branson was as you sneeringly state educated at the university of life while towering intellects such as Priti Patel were not
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tbf, it's more the kind of person who puts that in their facebook profile, isn't it... which is usually put as some kind of reverse snobbery in itself, an active rejection of thinking. To avoid insulting or patronising friends who might lurk here ;) nobody else in my immediate family has a degree other than me, it doesn't mean my Dad didn't work hard to have a decent job, it doesn't make him stupid either does it.

But he doesn't feel the need to say he was educated at the University of Life!

I mean, people can be skilled in all manner of areas can't they, and some are more rewarded or recognised than others. That is part of the problem, as it happens, isn't it that nobody wants to pay for good care givers or nursery staff, to name but two example. They're two jobs I'd be utterly shit at!
 
B

Brighton Sky Blue

Well-Known Member
Grendel said:
Also of course Richard Branson was as you sneeringly state educated at the university of life while towering intellects such as Priti Patel were not
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The comment is aimed at the type of person who would state ‘university of life’ as opposed to just not going to uni. A bit like the Chris Finch reference I was aiming for
 
torchomatic

torchomatic

Well-Known Member
Earlsdon_Skyblue1 said:
Not sure bailing people waiting to be deported is going to A) Do anything other than encourage more crossings and B) Win more votes next time round.

I'm not suggesting Rwanda is the answer, but this is a dangerous start from Starmer.

www.bbc.co.uk

Last two migrants bound for Rwanda to be bailed, home secretary says

New Prime Minister Keir Starmer confirms the scheme is now "dead and buried".
www.bbc.co.uk
Click to expand...
Not very good at comprehension, are you?

218 bailed under Conservatives
The last 2 to be bailed under the new Government.
 
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