Recently I wrote 2 articles namely “UK is in a mess” and “Tax cut is not a good strategy”. This article should be interesting to you.
After Boris Johnson resignation, 11 candidates announced leadership bids but only eight got the required backing of 20 MPs needed to get through the first round.
Eventually Liz Truss was elected to be the new Prime Minister. Her election slogan of Tax Cut helped her win many more votes and immediately her new finance minister, Chancellor Kwasi Kwarteng announced a tax-slashing 'mini-budget' comprising of £45 billion of cuts, and a huge welfare system shake-up.
He outlined his plans to MPs in the Commons in an emergency announcement on Friday, as Liz Truss' government set out its plan to tackle the rising cost of living and tame inflation.
Mr Kwarteng introduced a package of measures, including: stamp duty cuts, cancelling a planned corporation tax rise, and confirming help for households and businesses struggling with soaring energy bills.
A huge increase in government borrowing will fund the tax cuts for the plan, which Mr Kwarteng said would deliver higher wages, greater opportunities and fund public services.
As a result, British pound plunges, bonds sink after government announces tax cuts. The pound has been on a precipitous fall against the greenback this year, hitting levels this month not seen since 1985 when it fell to $1.042.
Investors also ditched U.K. bonds amid a rise in expected government debt. Paul Johnson, director of the Institute for Fiscal Studies, said markets appeared “spooked” by the scale of the “fiscal giveaway,” and said it represented the highest level of tax cuts in half a century.
Yields on 2-year U.K. government bonds hit their highest level since October 2007, and 10-year yields reached the highest level since 2010. Yields move inversely to prices.
Bank of England
THE Bank of England has been forced to intervene in an attempt to avoid a full-blown financial crisis after Liz Truss’s government announced tax cuts for the rich.
It comes after the collapse of the pound following Chancellor Kwasi Kwarteng’s “mini-budget” announcement last Friday.
The central bank said that if the current “dysfunction in this market [were] to continue or worsen, there would be a material risk to UK financial stability”.
It announced it would launch a temporary UK Government bond-buying programme on "whatever scale is necessary" as an emergency move.
In a statement, the Bank of England said: “In line with its financial stability objective, the Bank of England stands ready to restore market functioning and reduce any risks from contagion to credit conditions for UK households and businesses.
“To achieve this, the Bank will carry out temporary purchases of long-dated UK government bonds from 28 September. The purpose of these purchases will be to restore orderly market conditions. The purchases will be carried out on whatever scale is necessary to effect this outcome. The operation will be fully indemnified by HM Treasury.”
The economics editor of the Financial Time, Chris Giles, tweeted: “This is......bad.” He went on: “Entirely self-inflicted wound, forcing the BoE to restart the printing presses to bail out pension funds which were falling over this morning........ because no one in financial markets liked the ‘mini-budget’.
It comes after a day in which the Bank of England was forced to launch a temporary bond-buying programme as it took emergency action to prevent "material risk" to UK financial stability.
The Bank of England said on Monday it would not hesitate to change interest rates and was monitoring markets “very closely”, after the pound plunged to a record low and British bond prices collapsed in response to the new government’s financial plans.
Such was the market turmoil on Monday there was growing speculation in financial markets that the BoE would make an emergency interest rate rise after it hiked rates only last week to 2.25% from 1.75%.
Interest hike has a wide ranging affect especially home buyers.
According to the US Census, 64.8 % of the home buyers need a mortgage to buy a home. The British home buyers would also borrowing money to buy homes. That means most British people will be affected by the interest hike, a self-inflicted wound.
Created by Koon Yew Yin | Aug 19, 2024
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Created by Koon Yew Yin | Jul 15, 2024
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The fact that you use racial slurs against the Indians is a good sign. That hate against non-chinese is important to keep chinese blood pure. You must channel that hate towards Ibans too.
2022-09-30 23:41
Yutpo! You are so proud of your 2 inches! Go and show everyone how great you are! I mean, you can break coconut with your 2 inches rigtht!
2022-09-30 23:42
As a chinese, my dong is big, hard, and straight. Very proud, only chinese women/men are worthy of it.
2022-09-30 23:44
Remind me of Mahathir! He constantly brag of his 'tuan melayu'! And yet he spend 300 days in London! Come back for the remain 65 days just to talk about his fake malay gene!
2022-09-30 23:44
Yutpo! Please dude! The Lims have been talking about superior chinese race for decades! We don't need another one!
2022-09-30 23:46
The Lims are hopeless, mix to much with indians like Karpal Singh. Not enough hate for indians and other non-chinese like you and me.
2022-09-30 23:48
I really don't understand some people who take credit of others! Just because your chinese friends are succesful, doesn't mean you are succesful too! Taking credit is just a lazy man hobby Yutpo!
2022-09-30 23:49
Just like my neighbor, everyday talk about how successful his son is in US! So what! His son is successful but he isn't! The son has succesful laundry business in US, but the father didn't even provide a cent for his son business! But everyday take credit for his son business!
2022-09-30 23:51
Common prosperity, we chinese who follow Xi and other CPC leaders share in the success of ethnic Chinese. But some chinese like to mix to much and give away our success to non-chinese.
2022-09-30 23:52
Where's qqq, he should know what I'm talking about. We're much alike he and I. You too Tobby, I too love using racial slurs against the indians and other non-chinese in Malaysia.
2022-09-30 23:56
My friend, why do you say it's unfortunate that indians are pariah? It's a good thing, makes the job of attaining full Chinese supremecy easier. By keep calling them pariahs, they will stay that way and not try to usurp us superior Chinese. Confidence in the hands of the inferior race is dangerous for us. Their population already a lot. But your son go marry Ibans for what?!! They're inferior too. Mud to your precious chinese blood.
2022-10-01 00:12
Tobby u are wrong.the one who learn and go through each stages of life will suceed.regardless of race.more indian are getting better include the malay.y because there continue learning...tq.
2022-10-01 00:12
Look at how successful China is, that's because of very little mixing. You want to live in a world like China, common prosperity, amazing country where happiness reins, then you must follow the absolute fact that mixing and being together with non-chinese is a no no. No tolerance, non of this rukun negara, 1Malysia nonsense. Just read Xi Jinping thoughts.
2022-10-01 00:21
Shamefully, it seems some of the non-chinese have caught wind of this fact. Just look at how intolerant parties like UMNO/PAS are, it makes me mad that they're copying China's strategy of homogenuity. But they're still inferior, cant even read Mandarin wat hahaha.
2022-10-01 00:24
China talk cock la
Bising one kampung about Taiwan but support Russia land grab
And this country is not just for Chinese, don’t like it here can always go back China
2022-10-01 00:50
UpAgain! Hihihaha! Cool down dude! Yutpo just trolling! He is an indian by the way!
2022-10-01 01:32
I rather you just accuse me of being a dog. At least they're great companions. Not like these non-chinese who doesn't know better.
2022-10-01 01:39
Tobby, I'm telling you, you must get your son to divorce his Iban wife. Mixing will only cause social decline, just like how UK mixing with non-whites caused UK's decline, you said so yourself.
2022-10-01 01:46
So if tetiba Taiwan or Tibet announce independence, China will still be peaceful ka
Hahahah
2022-10-01 08:49
Maybe Hong Kong should have a referendum too. Like Qqq say, China will peacefully accept and Xi will just smile and laugh
2022-10-01 10:16
You know, there was this debate between US and China officials! US told off the China officials, why don't you guys leave Hong Kong alone! Let Hong Kong decide if they want to go independent!
Then of course, the China officials gently remind the ignorant US officials, dudes, Hong Kong was under British control for 100 years! Then how come British didn't just give Hongkies total control back then! Hongkies were subordinate to their white masters back then!
Then of course the US officials suddently change tune and quickly change the topic!
2022-10-01 13:28
Genesis 10
New International Version -
The Table of Nations
10:1 This is the account of Shem, Ham and Japheth, Noah’s sons,
The Japhethites
10:2 The sons of Japheth:
Gomer, Magog, Madai, Javan, Tubal, Meshek and Tiras.
The Hamites (Ham) -
10:6 The sons of Ham:
Cush, Egypt, Put and Canaan.
>> Canaan, the father of Sinites…amongst others.
The Chinese came from Sinites.
10: 15 Canaan was the father of
Sidon his firstborn,[g] and of the Hittites, 16 Jebusites, Amorites, Girgashites, 17 Hivites, Arkites,
Sinites,
The Semites (Shem)
10:21 Sons were also born to Shem, whose older brother was Japheth,
#Japheth is the eldest son, youngest is Shem.
WHY anti-Semitism? The Israelites came from Shem.
Cush, another son of Ham, went to live in Africa. “Cushy” means black. The black people.
Japheth went to the West.
Tubal is the first musician found in the Bible. Magog/Gog, the region of Russia.
2022-10-01 13:29
Read
https://malaysia.yahoo.com/news/strong-us-dollar-unstoppable-force-153400244.html
In order to defend your own currency, the central bank would sell USD (the reserve) and pick up the depreciating currency which is excessively supplied/circulating in the open market.
The country will end up will lesser Reserve.
The over-supply of the currency could be due to constant/ever increasing of demand for the USD for imports of goods and services. The economy could be hardly able to reduce the selling of the local currency in exchange for the USD which is appreciating for paying those imports.
2022-10-01 14:30
This is why mixing is wrong. Look at UK, mixing whites with non-whites, now in decline. Unfortunately, many like chinese in Malaysia also mixing, like Tobby and his Iban pet.
2022-10-01 14:31
world Financial Crisis bcs of worldwide too relying on main USD. why worldwide dont want to accept RMB as alternative? US barbarian always try portraying china as world threat to ensure over-valued USD sustained? Europe and Russia divided. China and Asia divided, so that USD always save heaven currency? Pitting and provoke all against each other.
2022-10-01 19:31
It's not that worldwide dont want to use RMB, it's because China doesn't let them. CPC puts lots of capital controls on RMB, cannot take out of China very easily. This is a good thing so that non-chinese cannot use RMB for dumb things like speculation that would only cause currency problem. Non-chinese dont know how to use money properly. So just let them use the USD/GBP/etc. if they use RMB kacau China only wan.
2022-10-01 19:39
Us Chinese also dont share our resources with non-chinese. If they were smart, they wouldn't need our help. But what to do, they're inferior races. Just let them go into ruin, and leave us alone. Don't mix, not good.
2022-10-01 19:42
Asia culture is too diverse that hard to accept RMB as common bloc currency to compete with EURO or USD. toilet paper USD is too over printed with no other better competitor
2022-10-01 19:45
RMB as common block curency? Lol, no thank you. Look at how the bankrupt greeks cause problems for all other EU counties just because they share the same currency. Only s.tupid people would think that giving the philipinos, Indians, Malaysians (particularly the bumis and indians) wide access to RMB is a good thing. Mixing with other races will only hamper chinese progress. All other races are inferior.
2022-10-01 19:51
KUI LOR always talk about anti trust. must have room for healthy competition but all rhetoric. till now, cannot accept multi polar world with Russia and China as new world power competitors. US, EU just want to want to maintain dominance, monopoly in everything by using old tactic divide and conquer which always workable
2022-10-01 19:52
US is taking us for a dumbass! Hiking interest rate was not about fighting inflation! It's all about strengthening the worthless dollar! Then everybody will rush and get dollar!
The only way to beat US is not to trade is US dollar!
2022-10-01 19:54
Multi polar world with Russia? Hahaha, they are still white people just like the rest of the western world. Only deserving as useful i.diot to achieve Xi Jinping's China Dream. A Unipolar world with China as the hegemon is the way to go. A world run by Chinese, while the rest of the dogs just follow and be obedient to us chinese.
2022-10-01 19:57
Tobby, your Iban pet has really spoiled your brain. You think raising interest rates will really help the dollar? Hgher financing cost will only hurt the US economy, thus in the long term, weaken the US economy. That's why China reduce interest rates instead.
2022-10-01 20:00
Tobby, your future descendents no longer chinese. Better you teach your grandchildren from that Iban pet of yours to be obedient to chinese people. Dont kacau us Chinese.
2022-10-01 20:05
Chinaman
You really s.tupid lah to support multipollar world with Russia as competitors. Chinese work so hard to make China economy into the biggest in the world, while the Russians are drunk with oil money until their economy is barely larger than Australia despite having more than 4x the population. You really think that China should consider them as equals? HAH, the Russians are inferior, after 7 months cant even get Ukraine. China would have succeded in a week.
2022-10-01 20:21
No worries la, sure WW3 in less than a decade
That time winner Tolong control loser population
Earth too many people anyway
2022-10-01 21:39
China has plenty of time. Time is on us Chinese side. It's inevitable that China will become #1 again. All Chinese should be proud, and stand together against the non-Chinese.
2022-10-01 22:48
Innovation in US and EU are declining! Tell me, other than Apple, what US brand offer smartphone! As for EU, gone are the days of Erisson and Nokia, they keep recycling those nostalgic phones that nobody wants!
China has so many smartphone brands! China also has plenty of EV brand! And China innovations are now ahead of US and EU!
Once China master the manufacturing of chips, then China doesn't need US and EU anymore!
2022-10-02 00:57
Yeah, and the mainstream media blaming Russia for it! As if the whole world are dumbass!
2022-10-02 15:56
Yellan tried but was unable to unwind QE. The mere mention of tapering of bond purchases by Fed is enough to cause interest rates to rise. The treasury issues the bonds and another government arm is buying the very bonds. It is printing money. Truss planned to issue the big chunks of bonds and place it in the bond market. Fund managers quickly exited the bond market before it is too late. Better to exit earlier than later.
2022-10-03 09:18
Yutpo890
You should read Xi Jinping thoughts. Learn the truth and way forward for humanity. Do not taint your pure chinese blood my friend. It's too precious. We chinese must only mate with each other.
2022-09-30 23:36