They are not just words you simple minded buffoon. They are real tangible things. Commercial rent is a thing, business rates are a thing, Consumables and other suppllies are physical things. I appreciate you've proven time and again you lack the capacity for abstract thought but do try and keep up. Are you asking someone to read and explain this to you? I have suggested this to you before. It will help, I promise. Someone with some basic comprehension skills ideally. Now all those tangible things (not words, but actual things that have meaning) cost money. And the rising costs of those things have been as a result of MANY domestic and global influencers causing hyper-inflation including - Rising energy and fuel costs heavily influenced by the war in Ukraine, the remnants of the knock on effect on supply chains due to lockdown, the complete and utter debacle of the libertarian financial clusterfck dogma of Truss and Kwartang, Brexit affecting imports and exports. It's not ONE thing on its own but many <-------------------- all glaringly obvious to anyone who has a clue about the bleeding obvious And it is not, I repeat NOT because of QE you delusional, amoebic degenerate
"If regulators had seen the Sep22 pensions crisis coming - and Truss had been warned - she would have cancelled the mini-Budget. But no one did see it coming, so it suited a great many people to blame Truss for the whole debacle." Quite literally the first line of Nelson's tweet, you complete cockhead.
For the really simple minded: Commercial rent up, business rates up, consumables and other supplies up = INFLATION. Having caused INFLATION, the central banks (including the Bank of England) had to raise interest rates. So who sank those zombie businesses that had survived on zero interest credit and hardly any inflation? Oh, it was Truss/Kwarteng and Brexit. No, it was the people that gave them free money for a decade after the 2008 financial crash. Despite the clues being supplied, you are still too stupid to get it. Why did three of the biggest US bank collapses in history happen last year? Something to do with commercial property mortgages having to be refinanced at non-zero interest rates. Businesses just defaulted on the mortgages. Hundreds of small regional banks will go bust as their property portfolios decline by billions. Not quite 2008 again, as it is not dodgy sub-prime property derivatives. You still have not cottoned on to what is the big elephant in the room, so obvious even an amoeba must see it. You are an utter moron, totally beyond understanding anything economic, as you obviously think Starmer is going to fix this all magically with his ex Bank of England economist Chancellor. He is already backing away from his spending commitments on the great green saviour plan. Try this timeline: 20th September 2022: Bank of England Monetary Policy Committee (MPS) meeting ends. 21st September 2022: Bank of England MPC minutes released – they show interest rates on hold at 5.25 per cent and that the BoE is going to dispose of £100bn of its £800bn bond stockpile in the coming year. UK 10 year gilt yields rose 0.24 percentage points on that news. 22nd September 2022: Truss/Kwarteng mini-budget day. UK 10 year gilt yields rose another 0.16 percentage points after Kwarteng’s statement and sterling fell on the foreign exchanges. So what caused the ‘spike’ in the bond market? The BoE announcing increased Quantitative Tightening (up from £80bn to £100bn) or Kwarteng? Looks like a bit of both, but who got all the blame? According to MSM, gilts rose 0.4 percentage points because of the mini-budget. We know who bailed out the pension funds to the tune of £19bn.
Of course if you read the original Spectator article you would know that the pension fund crash was caused by the Bank of England and the pension funds selling off log dated gilts to meet their LDI requirements, not Truss. The cretin that was replying only referred to two other non-related events – the ones that I mentioned: sacking Tom Scholar ten days before the budget and not waiting for the useless OBR analysis. The Truss mini-budget led to the markets dumping government bonds but she got the blame for pension fund LDIs that the BoE had to bail out. The LDI funds selling off gilts was, arguably, something that the Pensions Regulator should have been dealing with but clearly the regulations are not good enough (the “regulators” to which Nelson refers). Try going on Google and looking for the collateral exhaustion threshold – it determines what bond assets pension funds have to hold to ensure that they can meet their liabilities. Or ask that great financial guru Treble, if he can get his head from up his arse for thirty seconds. He is still stuck in the Brexit/Truss fantasy that Starmer/Reeves are going to solve. It is strange that today the yield on UK 30 year gilts is actually higher than it was the day after the Truss mini-budget yet nobody is screaming about the fact that it had risen from less than 1 per cent in January 2022 to over 5 per cent in October 2023, a year after Truss left office. Now why has the bond yield been rising for over a year? That is because of Quantitative Tightening by the Bank of England, getting rid of the huge pile of gilts that it has amassed so that the country could live on free money for 15 years. The Magic Money Tree is dead.
Where the fck did you find this arsehole TL DR Let me guess, iT wAs tHAt BaNK of EnGlAnD what dun it So the whole world is wrong and you sat in your piss stained Y fronts in your bedsit along with the Tufton Street muppets are right? oooooooooooooookkkayyyyyy You really are financially illiterate aren't you? Tell us all about how you scraped that grade C in O Level maths back in the 70's.
