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UK Politics - Closing Down Sale


Derfel Cadarn
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Thread on the backdrop to what is happening right now, off the back of claims by JRM that this isn't due to Gov policy. Summary being that it's complex, Truss' mini budget was a very dumb move at a time of extreme nervousness, against a backdrop of the reality that we are not living a fairy kingdom of free money caused by QE and that return to 'normality' hitting us like a car crash and general mismanagement making everything worse.
 

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But none of this resolves the fact that we’re dealing with three separate crises rolled into one:
1. The fact that the world is struggling to wean itself off the medicine of cheap money and central bank intervention. The UK risks becoming a test case in how not to do this.

2. In hindsight there are some ENORMOUS questions about how and why pension schemes were allowed to follow these investment strategies. And actually that wasn’t the BoE’s job, but the Pensions Regulator, which has been curiously absent from the recent debate…

3. The government has just introduced a new, dangerous dynamic: an uncosted budget and a team who seem to lack the credibility their predecessors enjoyed.
Many of the above issues were global. But this last one seems to be the straw that broke the market’s back in the UK.

 

Edited by Heartofice
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I can't remember a time - it must surely be unprecedented? - when both a Prime Minister and a Chancellor have had to deny they'll be resigning/sacked within six weeks of taking office (a chunk of which, as noted above, was a time in which political activity was effectively suspended).

https://www.bbc.co.uk/news/uk-politics-63244805

The crazy thing is it's not unbelievable that one or both might actually go by early November.

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Looks like she will finally perform the long overdue fiscal u-turn, to solve the Truss issue of the markets (yes, I had to get this in, since the start of the next UK Pol thread is so far in the future, there's a chance she might not even be PM anymore by then).

My bold prediction, she stays on, but Krazi Kwarteng will be out.

Edited by A Horse Named Stranger
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