Rachel Reeves Faces Mounting Pressure Pound falls and Rising Borrowing Costs

[Nick Carter icp]

1 hour ago, gearbox said:

Cheap labour in East Asia....this was the case many years ago. These countries lead in the implementation of robots, China is deploying more than half of the robots in the world in recent years.

 

The reasons for their success is very simple - they study and work harder, and the governments have policies to promote this.

 

   Robots have an unfair advantage though , they can study and work harder because they don't have to sleep 

[The Cyclist]

26 minutes ago, mokwit said:

The question is what does China get in return?. China only acts in it's own interest. (Disclosure: I thought of this all by myself so don't have a link to post).

 

That will be the £600 million question. The certainly will not be doing anything for the benefit of the UK.

 

28 minutes ago, mokwit said:

I'm sure the Chinese negotiators were no match for someone of Rachel Reeves calibre [sarcasm].

 

I hear you 😀😀😀

 

29 minutes ago, mokwit said:

I found a link from a "credible" source that details some of the other concerns 🤣

 

https://www.independent.co.uk/news/uk/politics/rachel-reeves-economy-crisis-china-b2677818.html

 

I think we can dismiss the link as Tory rants 😀😀😀

[Chomper Higgot]

4 hours ago, mokwit said:

Perhaps this is exactly what the market is scared of and why the risk premium to in invest in Gilts has increased.

 

Who knows best, People who run billions of dollars or Rachel Reeves?

 

I don't have a link, as the above is my own thoughts. You do understand how that works? Perhaps not.

 

The interest rates on UK guilts is also linked to the rate at which the Bank of England (not the Government) is selling the guilts issued by Labour during the 2008 financial crisis and by the Tories during COVID.

 

 

[Chomper Higgot]

4 hours ago, The Cyclist said:

 

That will be the £600 million question. The certainly will not be doing anything for the benefit of the UK.

 

 

I hear you 😀😀😀

 

 

I think we can dismiss the link as Tory rants 😀😀😀

Hang on a minute, trade deals with China will certainly not be doing anything to benefit the UK?

 

So what was that ‘We’ll be able to make trade deals with the rest of the world’ a about?

[James105]

4 minutes ago, Chomper Higgot said:

 

The interest rates on UK guilts is also linked to the rate at which the Bank of England (not the Government) is selling the guilts issued by Labour during the 2008 financial crisis and by the Tories during COVID.

 

 

 

So they are linked to profligate spending then.  The idiot ex customer services rep has wasted tens of billions on pay rises for public sector buddies without asking for productivity improvements, given Mad Ed Milliband tens of billions to spaff away on net zero idiocy and other wasteful spending and has net zero plans for growth to cover this expenditure after implementing an anti-growth budget.  Her options now are to raise taxes which will cause growth to go backwards even further into recession or to cut spending as the markets see a Labour government as high risk so want higher interest rates for borrowing.   

 

Are you ready to admit that it is not looking very good and even the Tory morons were better than this clown show?  

[The Cyclist]

8 minutes ago, Chomper Higgot said:

Hang on a minute, trade deals with China will certainly not be doing anything to benefit the UK?

 

£120 million a year over the next 5 years from China does absolutely nothing when your debt repayments have just jumped by £1.5 Billion a month.

 

Now Professor clueless, show your working as to how this benefits the UK.

And if you cannot do that, now might be a good time to accept that you are indeed clueless, and that you might be better giving the keyboard back to a responsible adult.

[Chomper Higgot]

6 minutes ago, James105 said:

 

So they are linked to profligate spending then.  The idiot ex customer services rep has wasted tens of billions on pay rises for public sector buddies without asking for productivity improvements, given Mad Ed Milliband tens of billions to spaff away on net zero idiocy and other wasteful spending and has net zero plans for growth to cover this expenditure after implementing an anti-growth budget.  Her options now are to raise taxes which will cause growth to go backwards even further into recession or to cut spending as the markets see a Labour government as high risk so want higher interest rates for borrowing.   

 

Are you ready to admit that it is not looking very good and even the Tory morons were better than this clown show?  

I’m not sure how you blame the current chancellor for past Governments issuing gilts, and the BoE selling them off.

 

 

[The Cyclist]

12 minutes ago, mokwit said:

Gilts not Guilts. Seem to be picking up a pattern in your writing. is there more than one Chomper Higgot using this account?

 

Shift change at Labour HQ ?

[mokwit]

2 minutes ago, The Cyclist said:

 

Shift change at Labour HQ ?

Somebody posted a picture of her at PMQT before she escaped to put one over the Chinese negotiators (joke). looking very haggard with a thousand yard stare.

[mokwit]

6 minutes ago, Chomper Higgot said:

I mean precisely what I said.

 

Read it again until it sinks in.

 

If you are trying to link this to Truss and the BoE stepping in, that is not major factor to what is happening today. markets are FORWARD LOOKING, any market professional; will tell you that. You think it is static just as Labour think the economy is static.

 

With regard to your other "point" about BoE selling. Yes the BoE may step into the market to buy or sell, but it cannot sell Gilts held to maturity by institutions. It can't sell bonds it doesn't own because it already sold them, unless it bought them back from the market.

 

Nothing to sink in, stop trying to pretend you have superior knowledge when you don't know what you are talking about.

 

 

[The Cyclist]

9 minutes ago, mokwit said:

Somebody posted a picture of her at PMQT before she escaped to put one over the Chinese negotiators (joke). looking very haggard with a thousand yard stare.

 

Yes, it was me

 

I marked as " This is the look when you realise that you have just made a monumental ***up.

 

 

[The Cyclist]

14 minutes ago, Chomper Higgot said:

£120million a year is > £0 year.

 

Simple arithmetic not your thing. 

 

I'm sure that makes sense in your befuddled head

 

It certainly bears no resemblance to what I posted or what you quoted

[Chomper Higgot]

11 minutes ago, mokwit said:

If you are trying to link this to Truss and the BoE stepping in, that is not major factor to what is happening today. markets are FORWARD LOOKING, any market professional; will tell you that. You think it is static just as Labour think the economy is static.

 

With regard to your other "point" about BoE selling. Yes the BoE may step into the market to buy or sell, but it cannot sell Gilts held to maturity by institutions. It can't sell bonds it doesn't own because it already sold them, unless it bought them back from the market.

 

Nothing to sink in, stop trying to pretend you have superior knowledge when you don't know what you are talking about.

 

 

I didn’t mention Truss.

 

 

[The Cyclist]

9 minutes ago, Chomper Higgot said:

I already stated in an earlier post which Governments and underwear circumstances.

 

Wow, saved for posterity

 

I think that ' Outs ' the @Chomper Higgot account, for what it is.

[Chomper Higgot]

3 minutes ago, The Cyclist said:

 

Wow, saved for posterity

 

I think that ' Outs ' the @Chomper Higgot account, for what it is.

For your reference:

 

“Rachel Reeves Faces Mounting Pressure Pound falls and Rising Borrowing Costs”

[Rimmer]

Personal attack has been removed

 

A high number of trolling accusations and responses also removed.

[DonniePeverley]

13 hours ago, gearbox said:

Cheap labour in East Asia....this was the case many years ago. These countries lead in the implementation of robots, China is deploying more than half of the robots in the world in recent years.

 

The reasons for their success is very simple - they study and work harder, and the governments have policies to promote this.

 

 

My sister grounded her kids for not doing their homework, kids went and complained at school and then had social services down. Parents have no hope in the UK to keep their kids focussed if they are not inclinded to do so. 

[DonniePeverley]

The sheer waste in the UK economy is astonishing. There is plenty of money there. 

 

For example i had recent experience with a planning application that had to go to a meeting and then a vote for all the committee. I was shocked to see how many councillors that were around (all on hefty salaries) for such a small town. Three local councillors, then you had the overall councill comittee - there were loads of them ! You then had various other in the system (planning application, enviromental health officers, etc). There was a mayor on a hefty salary too, and then a crime police commissioner, followed by an MP. 

 

Noticed at the time that works that were being done  with public funds, were meant to be tendered to different organisations to get a fair quote, but were often given suspiciously to friends of councillors (or councillors had experienced their works) - it just stank. Corruption in plane site. 

 

Anything with government money in the Uk is abused - go see the waste in the NHS, Hs2 project is a fine example. 

 

They need to just rid the lot of em, strip down the government. 

[JoeyMac]

I have an infinity for the UK, even though the vast majority of people from there (that visit Thailand at least) are extremely racist in the views they hold, which is very unfortunate. 

 

Can someone explain to me why they could not build this bullet train HS2 properly, and why did expenses go out of control ?

 

Why are we constantly hearing about the decline of the UK? What are they doing wrong. Ever since the banking crisis they seem to have never recovered, and have switched from one crisis (Brexit, covid, Liz Truss) to another. Why? 

 

Is the population in the UK pretty thick that they are voting for some of the wrong people, a lack of investment in education maybe?

[superal]

On 1/12/2025 at 2:31 AM, gearbox said:

Cheap labour in East Asia....this was the case many years ago. These countries lead in the implementation of robots, China is deploying more than half of the robots in the world in recent years.

 

The reasons for their success is very simple - they study and work harder, and the governments have policies to promote this.

I agree that China is at the forefront of using robotics , however there are still many tasks that are dependent on human labour , such as making clothes . There are no shortages of cheap labour in an over populated China where the Chinese labour laws are ignored . These working practices would not be tolerated in the Western world . Bordering on legal slavery because if you do not have an income you will starve . The cheap Chinese labour comes mostly from rural areas where incomes are low . They go to the big cities to earn a much higher wage but they are exploited by the companies . Link below 

                                                 https://www.bbc.com/news/articles/cdrylgvr77jo  .  

Results are high profits for unashamed UK famous High Street retailers . Similar practices come out of Indian sweat shops . In Europe , workers are mostly protected and working laws are upheld .  So there is not a level playing field . Big Western companies buyers do not consider the how the product was made , nor the plight of the worker , only the procurement with the lowest price and acceptable quality .  

[RubenRemus]

All the right wing UK public finance experts here.... wonder why you're spending your days posting on a Thailand expat site instead of lending your incredible wisdom to political leadership in London.

We ALL know that the single biggest problem with UK economy is fallout from Brexit. So to prove your credentials, please do share your genius posts from 2016 where you advised against this brilliant move by the Tories. 

[JonnyF]

Hope all the lefty expats are enjoying what Rachel from accounts is doing to the THB/pound rate since the election on July 4th.

 

 

The economy was ticking over nicely until the election. Following her budget for recession it's all been downhill. 

 

Enjoy. It will get much worse. 

 

[JonnyF]

5 hours ago, JoeyMac said:

Is the population in the UK pretty thick

 

Everything is relative. 

 

Even time. 😄

 

5 hours ago, JoeyMac said:

I have an infinity for the UK

 

[RubenRemus]

1 hour ago, JonnyF said:

Hope all the lefty expats are enjoying what Rachel from accounts is doing to the THB/pound rate since the election on July 4th.

 

 

The economy was ticking over nicely until the election. Following her budget for recession it's all been downhill. 

 

Enjoy. It will get much worse. 

 

"Cabinet minister Michael Gove has claimed that the infamous Brexit campaign promise about leaving the EU leading to £350 a week for the NHS had been “delivered”. The levelling up secretary offered no evidence for his claim on a Brexit boost for the health service, as he recalled the notorious pledge on the side of the Vote Leave battle bus."

Unfortunately, getting hit in the face with reality is usually painful. Perhaps you'd like to return to smoke and mirrors?

[Chomper Higgot]

1 hour ago, JonnyF said:

Hope all the lefty expats are enjoying what Rachel from accounts is doing to the THB/pound rate since the election on July 4th.

 

 

The economy was ticking over nicely until the election. Following her budget for recession it's all been downhill. 

 

Enjoy. It will get much worse. 

 

It depends which direction an expat is sending money 😉

[JonnyF]

18 minutes ago, Chomper Higgot said:

It depends which direction an expat is sending money 😉

 

Indeed.

 

Works well for me, but that is small consolation compared to seeing the UK in turmoil.

[Will B Good]

2 hours ago, JonnyF said:

Hope all the lefty expats are enjoying what Rachel from accounts is doing to the THB/pound rate since the election on July 4th.

 

 

The economy was ticking over nicely until the election. Following her budget for recession it's all been downhill. 

 

Enjoy. It will get much worse. 

 

 

 

Almost as bad as Truss....44 down to 40.

[The Cyclist]

November GDP figures due out tomorrow

 

December CPI figure due on Wednesday.

 

Gilt yields still trending upwards.

 

 

[Will B Good]

2 minutes ago, The Cyclist said:

November GDP figures due out tomorrow

 

December CPI figure due on Wednesday.

 

Gilt yields still trending upwards.

 

 

 

Someone will be rubbing their hands with glee.....money to be made.

[The Cyclist]

1 minute ago, Will B Good said:

 

Someone will be rubbing their hands with glee.....money to be made.

 

Aye, Investors.

 

But as debt servicing costs rise, 2 things happen.

 

1. Cuts to Public services, and IMHO, certain parts do need  drastically cut, but wont happen.

 

2. Tax rises again,in April.

 

That is before we even consider the impact of a budget that was based on Growth, growth, growth, and growth at best has flatlined, and very likely contracted.

 

The impact f growing unemployment that will start in earnest from April.

 

All in all, its looking more and more like a big steaming pile of horse manure.

 

Then there is 2 compensation black holes that will need to be filled quite soon

 

1. Tainted blood scandal

 

2. Post Office scandal.

 

Perhaps someone will be able to inject a little ray of sunshine into the UK, just not seeing where it is coming from.