@kxim.bsky.social
They've been engaging in QT since Q3 2022, with the losses associated with these sales costing the UK government c.30bn in 2023 and c.40bn in 2024. Not responsible for all of the rise in rates but definitely a big contributor and out of line with the ECB and the Fed Reserve in QT.
January 14, 2025 at 1:51 PM
They've been engaging in QT since Q3 2022, with the losses associated with these sales costing the UK government c.30bn in 2023 and c.40bn in 2024. Not responsible for all of the rise in rates but definitely a big contributor and out of line with the ECB and the Fed Reserve in QT.
Yeah agree on growth particularly in the private sector which Labour has no plan for - & yes I am inc. that crap announced on AI.
But plenty of levers within their power they just aren't using to improve things e.g. telling BoE to slow QT & reduce base rates, or increasing taxes on the super rich.
But plenty of levers within their power they just aren't using to improve things e.g. telling BoE to slow QT & reduce base rates, or increasing taxes on the super rich.
January 14, 2025 at 1:00 PM
Yeah agree on growth particularly in the private sector which Labour has no plan for - & yes I am inc. that crap announced on AI.
But plenty of levers within their power they just aren't using to improve things e.g. telling BoE to slow QT & reduce base rates, or increasing taxes on the super rich.
But plenty of levers within their power they just aren't using to improve things e.g. telling BoE to slow QT & reduce base rates, or increasing taxes on the super rich.
Rates have been trending upwards since 2022 to extent they have now outstripped growth + inflation. BoE has engaged in QT selling bonds since then, and chosen to accelerate it recently out of line with other countries. People have been raising concerns about the pace of QT since early 2024
January 14, 2025 at 12:04 PM
Rates have been trending upwards since 2022 to extent they have now outstripped growth + inflation. BoE has engaged in QT selling bonds since then, and chosen to accelerate it recently out of line with other countries. People have been raising concerns about the pace of QT since early 2024
Should clarify as well, not all of the upward pressure on rates will be a result of this quantitative tightening, as will also be impacted by global trends and risk assessments outwith our control e.g. Trump's tariffs etc.
But it is the one within our control.
But it is the one within our control.
January 14, 2025 at 11:52 AM
Should clarify as well, not all of the upward pressure on rates will be a result of this quantitative tightening, as will also be impacted by global trends and risk assessments outwith our control e.g. Trump's tariffs etc.
But it is the one within our control.
But it is the one within our control.
We are in January. They've been selling 100 billion per year.
January 14, 2025 at 11:42 AM
We are in January. They've been selling 100 billion per year.
The BoE can just sit with the bonds it bought from the UK government as part of QE and not offload them to private markets and prevent much of this upward pressure on rates.
January 14, 2025 at 11:27 AM
The BoE can just sit with the bonds it bought from the UK government as part of QE and not offload them to private markets and prevent much of this upward pressure on rates.
That's incorrect, BoE is offloading bonds on mass & as there is a lack of buyers (as you mentioned) this is forcing value down. As interest is inversely related to bond value, rates are going up & now higher than total of growth + inflation. Meaning debt is rising. Hence pressure to cut spending.
January 14, 2025 at 11:20 AM
That's incorrect, BoE is offloading bonds on mass & as there is a lack of buyers (as you mentioned) this is forcing value down. As interest is inversely related to bond value, rates are going up & now higher than total of growth + inflation. Meaning debt is rising. Hence pressure to cut spending.
I want the BoE to be told by the Chancellor using the powers she has, to stop selling the bonds they purchased during 2008 and covid at a loss and forcing up rates. Yes.
And I also want the UK government's response to debt outstripping growth to be taxes on the rich, not austerity.
And I also want the UK government's response to debt outstripping growth to be taxes on the rich, not austerity.
January 14, 2025 at 10:48 AM
I want the BoE to be told by the Chancellor using the powers she has, to stop selling the bonds they purchased during 2008 and covid at a loss and forcing up rates. Yes.
And I also want the UK government's response to debt outstripping growth to be taxes on the rich, not austerity.
And I also want the UK government's response to debt outstripping growth to be taxes on the rich, not austerity.
Call me crazy but if we have an econonic / political model that allows an unelected body to sell UK bonds at a loss, in order to deliberately force up the cost of government borrowing (at a time of low growth & lowering inflation), to induce austerity, then we should probably do away with that model
January 14, 2025 at 9:49 AM
Call me crazy but if we have an econonic / political model that allows an unelected body to sell UK bonds at a loss, in order to deliberately force up the cost of government borrowing (at a time of low growth & lowering inflation), to induce austerity, then we should probably do away with that model
Looking forward to the next hose-pipe ban while an AI server consumes 500ml of water to tell someone their headaches are cancer...
Or the next energy crisis, while it consumes the equivalent energy to fully charge a phone, to generate an image of a Mr Bean with tits.
Or the next energy crisis, while it consumes the equivalent energy to fully charge a phone, to generate an image of a Mr Bean with tits.
January 13, 2025 at 10:27 AM
Looking forward to the next hose-pipe ban while an AI server consumes 500ml of water to tell someone their headaches are cancer...
Or the next energy crisis, while it consumes the equivalent energy to fully charge a phone, to generate an image of a Mr Bean with tits.
Or the next energy crisis, while it consumes the equivalent energy to fully charge a phone, to generate an image of a Mr Bean with tits.
I am also certain any actual benefits from the 'growth' this will drive will not end up in the hands of already wealthy private individuals and corporations.
January 13, 2025 at 10:02 AM
I am also certain any actual benefits from the 'growth' this will drive will not end up in the hands of already wealthy private individuals and corporations.
Has anyone explained to them the amount of energy & water consumed by servers used for AI processing, or its tendency to be super racist by exaggerating discrimination found in datasets it's trained on?
I for one, am super confident they've thought all this through...
I for one, am super confident they've thought all this through...
January 13, 2025 at 10:00 AM
Has anyone explained to them the amount of energy & water consumed by servers used for AI processing, or its tendency to be super racist by exaggerating discrimination found in datasets it's trained on?
I for one, am super confident they've thought all this through...
I for one, am super confident they've thought all this through...
Very true - no need for dual identities when everyone in the establishment essentially thinks the same way (with a narrow window for deviation in either direction, but with strongly defined limits), goes to the same schools, sends their kids to the same schools, works in the same industries etc.
December 24, 2024 at 1:42 PM
Very true - no need for dual identities when everyone in the establishment essentially thinks the same way (with a narrow window for deviation in either direction, but with strongly defined limits), goes to the same schools, sends their kids to the same schools, works in the same industries etc.
Right of the Labour Party tank the 2019 election, & now complaining at lefties for being critical of Keith (milk toast) Starmer, for failing to address the material issues facing people today, & instead appealing to markets, & surrendering the narrative on the big issues to Tories / Reform.
December 24, 2024 at 1:36 PM
Right of the Labour Party tank the 2019 election, & now complaining at lefties for being critical of Keith (milk toast) Starmer, for failing to address the material issues facing people today, & instead appealing to markets, & surrendering the narrative on the big issues to Tories / Reform.
Oh no, lost another centrist to the pit of cognitive dissonance.
December 24, 2024 at 12:42 PM
Oh no, lost another centrist to the pit of cognitive dissonance.
Agreed, lot more of this and a lot less of the other
December 24, 2024 at 12:36 PM
Agreed, lot more of this and a lot less of the other
This would unfortunately, give him more time for his "music".
December 23, 2024 at 10:58 PM
This would unfortunately, give him more time for his "music".
How'd you make a peach crumble?...
Kick in it in the nuts.
Some random person on the internet, "this reminds of the rotten peaches that were on my mother's dinning room when we found her decomposing body after she'd been dead for 2 weeks."
Kick in it in the nuts.
Some random person on the internet, "this reminds of the rotten peaches that were on my mother's dinning room when we found her decomposing body after she'd been dead for 2 weeks."
December 23, 2024 at 9:15 AM
How'd you make a peach crumble?...
Kick in it in the nuts.
Some random person on the internet, "this reminds of the rotten peaches that were on my mother's dinning room when we found her decomposing body after she'd been dead for 2 weeks."
Kick in it in the nuts.
Some random person on the internet, "this reminds of the rotten peaches that were on my mother's dinning room when we found her decomposing body after she'd been dead for 2 weeks."
Good see Keir (I am going to remove sleaze from British Politics) Starmer rewarding a person that's being forced to resign from government on multiple occasions due to scandals with a new role. Definitely won't back fire.
Can someone check if Keir even knows how to spell competent.
Can someone check if Keir even knows how to spell competent.
December 21, 2024 at 7:53 PM
Good see Keir (I am going to remove sleaze from British Politics) Starmer rewarding a person that's being forced to resign from government on multiple occasions due to scandals with a new role. Definitely won't back fire.
Can someone check if Keir even knows how to spell competent.
Can someone check if Keir even knows how to spell competent.
Find it very depressing & ironic, the same liberals claiming swing voters who voted Trump just didn't understand how good the economy actually was because they were too stupid & gullible, are simultaneously sharing poor quality data to support their arguments. Really feels like no lessons learned.
December 21, 2024 at 6:54 PM
Find it very depressing & ironic, the same liberals claiming swing voters who voted Trump just didn't understand how good the economy actually was because they were too stupid & gullible, are simultaneously sharing poor quality data to support their arguments. Really feels like no lessons learned.
Just to add to this, the data doesn't pass the sniff test at all, attitudes to personal financial circumstances might shift over a year, but it will not shift over a single month, unless (as you suggest) responses aren't actually based on real world circumstances & instead are entirely political.
December 21, 2024 at 6:48 PM
Just to add to this, the data doesn't pass the sniff test at all, attitudes to personal financial circumstances might shift over a year, but it will not shift over a single month, unless (as you suggest) responses aren't actually based on real world circumstances & instead are entirely political.