New Prime Minister Liz Truss has come to power with a plan to save Britain [see photo]. Most economic commentators are trashing PM Truss because they have no imagination. Bold moves from Government are as rare as rocking horse poo and so the traditional economic class is up in arms against PM Truss.
What has she done. She has cut taxes and paid for them with borrowings. She has used fiscal policy to attack consumer inflation [she claims it will reduce it by 5%] because she will ease the impact of energy prices on consumers and businesses. Her actions will also reduce the risk of energy shortages. And she will increase fiscal spending in targeted areas. All this makes sense to me.
The moronic part of the PM Truss package is her continued backing and financial support for the corrupt Zelensky Regime in Ukraine. Ukraine is about to be obliterated by Russia because it continues to insist that it become part of NATO and there is no amount of British Taxpayers funds that can save the incompetent Zelinsky Regime. Her rhetoric about Putin is blatantly provocative and downright stupid [to my mind].
The incompetence of the Bank of England is being loaded onto the shoulders of PM Truss and this of course is ridiculous. The BoE was selling bonds because it has too much debt on its books. Independently the major players in this market [including pension funds] had huge margin calls on their bets against rising interest rates on bonds. The bond rate hit 5% and so the BoE had to suspend its fire sale. Immediately the bond interest rate fell to 4% and the British pound fell. The British pound has more decline to come I expect before it finds real market support.
The real damage was done by Boris [who was a great supporter of the aggressive Zelensky/NATO/US alliance] and with his Green policies which destroyed the Britain energy market. And so on and so on....
I totally support what PM Liz Truss has put into policy settings and I believe she will prevail over the next 5 years; but, to do that she must win the next election.
Richard.
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