Sterling collapses as investors fly into dollars • Hacker News Board

Re: Sterling collapses as investors fly into dollars

#21

Post by jleyank » Mon, Sep 26, 2022, 11:35 AM UTC

wucaworld wrote: post #7

LatteLazy wrote: post #4

Years of working to make our country worse have led to our country getting worse. Who could have foreseen that! The UK is in such a weird place right now. There are a group who legitimately want things to get worse because it serves their personal interest, and a group who think no matter how dumb we are, things will not get worse because we are the best country ever. They're conspiring to wreck the whole place. From…

Would you mind sharing changes you feel on the ground? I am from Canada, and feel we are facing unprecedented problems in our society. What is global, and why is created by bad policy ? Biggest issues in Canada: 1) stupidly priced real estate due to decade plus of factors (rates, building starts, land use, immigration, tax policy quirks) 2) since last year, inflation accelerated making all costs of living too high..…

Peter, is that you? Reads like any of the provincial or federal conservative websites. Don’t forget that people have agendas. Dislike public services, strange they have funding and staffing issues…. And how can one lower house prices without lowering the value of people’s houses? Yeah, it’s all paper money, but they react far differently during a run up rather than a run down.

And I don’t think any one country (even China or the us) is capable of causing the current inflationary trends. Googling suggests CERB ended in 2020. Pick the current acronyms to keep your political ads up to date.

Re: Sterling collapses as investors fly into dollars

#22

Post by jleyank » Mon, Sep 26, 2022, 11:38 AM UTC

wucaworld wrote: post #12

zarzavat wrote: post #9

Earlier quoted context omitted.

The UK has very unstable economic policy. Despite one party being in charge for the last 12 years, each prime minister has wrought radically different economic policies. Under Cameron was austerity, services were cut and much pain was endured to “get the deficit down”. Under Johnson we had an investment-based economic policy, and then under Truss we are seeing tax cuts for the rich funded by borrowing which is an eco…

Thanks for the insight. In Canada, things have been more consistent politically at least. Good point that the same party in power can still result in diverging directions. I don’t feel this as much despite changes in parties at the federal and provincial level over the last dozen years. E.g. federally, big changes were relaxation of immigration, govt support for lower income earners and cannabis legalization. Provinc…

Provincial leadership, while it’s shown sparks of both good and bad policy during covid, is conservative. Federal leadership is a liberal minority. They have been at odds at times, sometimes significantly.

Re: Sterling collapses as investors fly into dollars

#23

Post by wucaworld » Mon, Sep 26, 2022, 12:10 PM UTC

Nextgrid wrote: post #19

wucaworld wrote: post #7

Earlier quoted context omitted.

Would you mind sharing changes you feel on the ground? I am from Canada, and feel we are facing unprecedented problems in our society. What is global, and why is created by bad policy ? Biggest issues in Canada: 1) stupidly priced real estate due to decade plus of factors (rates, building starts, land use, immigration, tax policy quirks) 2) since last year, inflation accelerated making all costs of living too high..…

> the tax cut being proposed in the uk at least addresses #3 above It doesn't address it in any meaningful way. That tax cut only benefits the significantly well-off while doing nothing about the lower classes. In the lower class, this cut doesn't give you any further incentive to work (you're screwed and won't be able to afford your rent or energy bills regardless so may as well not even bother), and the upper class…

The suggestion you propose is interesting .. no tax on first k dollars where we raise k from existing levels. Helps rich and poor. I’d be fine with this if it was time limited. E.g. until the war is over and things have adjusted from the pandemic. This would fan inflation due to increase in demand but if time limited to 1 year or 2, it could be palatable.

Re: Sterling collapses as investors fly into dollars

#24

Post by mytailorisrich » Mon, Sep 26, 2022, 1:04 PM UTC

Nextgrid wrote: post #19

wucaworld wrote: post #7

Earlier quoted context omitted.

Would you mind sharing changes you feel on the ground? I am from Canada, and feel we are facing unprecedented problems in our society. What is global, and why is created by bad policy ? Biggest issues in Canada: 1) stupidly priced real estate due to decade plus of factors (rates, building starts, land use, immigration, tax policy quirks) 2) since last year, inflation accelerated making all costs of living too high..…

> the tax cut being proposed in the uk at least addresses #3 above It doesn't address it in any meaningful way. That tax cut only benefits the significantly well-off while doing nothing about the lower classes. In the lower class, this cut doesn't give you any further incentive to work (you're screwed and won't be able to afford your rent or energy bills regardless so may as well not even bother), and the upper class…

The tax cuts announced benefit everyone in employment even if indeed the top earners benefit the most because the 45% income tax rate (which didn't exist before 2010, btw) is abolished.

The cancellation of the planned corporation tax increase is absolutely the correct thing to do, IMHO. Increasing from 19% to 25% would have made the UK's rate one of the highest in Europe at a time when looking not business friendly is the last thing the country need

Re: Sterling collapses as investors fly into dollars

#25

Post by mytailorisrich » Mon, Sep 26, 2022, 1:21 PM UTC

zarzavat wrote: post #9

wucaworld wrote: post #7

Earlier quoted context omitted.

Would you mind sharing changes you feel on the ground? I am from Canada, and feel we are facing unprecedented problems in our society. What is global, and why is created by bad policy ? Biggest issues in Canada: 1) stupidly priced real estate due to decade plus of factors (rates, building starts, land use, immigration, tax policy quirks) 2) since last year, inflation accelerated making all costs of living too high..…

The UK has very unstable economic policy. Despite one party being in charge for the last 12 years, each prime minister has wrought radically different economic policies. Under Cameron was austerity, services were cut and much pain was endured to “get the deficit down”. Under Johnson we had an investment-based economic policy, and then under Truss we are seeing tax cuts for the rich funded by borrowing which is an eco…

> Truss we are seeing tax cuts for the rich funded by borrowing which is an economic policy that I’m not sure has a name because it’s so stupid

So far the government has announced income tax and NI reduction for everyone, removal of the 45% income tax rate, and cancellation of a plan corporation tax increase.

Only the removal of the 45% income tax rate is targeted at the rich and I suspect that this might be the cheapest of the 3 measures, but indeed symbolically it does not look that good.