Well the markets are teaching them a lesson that we’ll never forget and in the meantime the government has gone full Blackadder.
Pound tumbles. Government claims it would be madness to try and control the currency.
IMF issues warning. Government wheels out John fucking Redwood to wibble some shite about how the IMF is always wrong.
Pensions funds require BoE bail out due to plunging gilts market. No comment from the government initially and then some junior treasury minister claims there’s nothing to see here and we’re completely correct to be going for growth.
Now lenders are pulling out of the mortgage market, we’re on the verge of a house price crash, corporate bonds are going through the roof, sterling is continuing to fall, none of which is conducive to growth. Quite the contrary.
This is not going to end well. The men in grey suits and the Tory party donors will not take this chaos lying down. I foresee a total humbling of Truss and Kwarteng before the week is out.
A quote from a different article outlining her choices
Truss could attempt to blame Kwarteng for the chaos and force him out, though MPs are of the firm belief that it was Truss’s mini-budget just as much as it was his. She would then have to find another right-hand man or woman, solid enough to reassure the markets, but willing to serve in her deeply ideological cabinet.
BBC news Vicky Young just reported that government departments have been ordered to find efficiency savings so we can look forward to savage cuts to public services to pay for these tax cuts. Great news.
Even better, she reported that this government is no longer committed to raising benefits in line with inflation. After all, it is only fair that the very poorest pay for the removal of the 45% tax rate for the richest 5%. Totally 100% fair.
My neighbour/landlord went to school with Kwarteng. He says he was pretty much a maths genius, and highly unlikely to be acting without insight. He reckons they know exactly what they are doing, and don’t give a fuck what anyone thinks. They know they’re on the way out and it’s just about making as much cash as they can by shorting sterling etc, and burn the whole place down on the way out. The economy has tanked but a lot of unscrupulous individuals have made a lot of money in the last few days.
Personally I still favour groupthink and hubris. The grubby little believers in the IEA etc. have been wanking each other off about how radical and clever they are for so long that it never occurred to them that they were doing something really stupid.
All the financial institutions employ as many galaxy-brains as they can get their hands on. These guys have taken one look at Karteng’s “plans” (or lack thereof), said “nope, that’s dogshit” and advised appropriately.
And fully supported, one might say directed by, the Tax payers Alliance. This secretive lobbying group, funded by unknown actors, were behind Austerity and the other equally successful Tory economic policies of late.
I suspect their backers include tax dodging non Dom’s, the odd oligarch and culture capitalists various.
They have ready access to all Government ministers.
Government on R4 denying that this crisis was anything to do with them and that their policies are supported by those that matter, such as the CBI. It looks like the line is to keep mentioning Putin’s gas price rise, international turmoil and recession on the horizon anyway, the energy cost cap, and the need to attract high paid individuals to the City to justify the to rate tax cut.
