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JJ Barnett
JJ Barnett
4 months ago

“Is this the end for Liz Truss?”
Lol, well if the globalists and left-leaning power brokers who’ve comfortably controlled global affairs for the past few decades still retain control, then yes… it is the end for Truss.
What is happening is the ‘elite’ left liberal classes that dominate the media and banking sectors are throwing the toddler tantrum that they throw when any government tries to do anything remotely conservative. It doesn’t matter if that thing is related to tax, or to immigration, or to fracking… that’s not the point. The chattering & Davos classes are used to being in charge and controlling the direction of travel no matter who we elect.

They throw all their toys out of the pram, at once, if anyone defies them… and scream and holler that the sky is falling and it’s a DISASTER, and the only way to avoid the DISASTER is to immediately return to the left liberal agenda… and hand over more of our money and liberty to the Davos class. Natch.
I think this kind of overblown shrieking should just be ignored. Send the toddlers to their room and let them tantrum it all out. They’ll come back when they’ve exhausted themselves and want some dinner.

Case in point re the insincerity of this confected hysteria: George Osborne, our former Chancellor, appeared on the Andrew Neil show this week and stated that ‘the markets are punishing Liz Truss for failing to balance her budget’. Right…
Of all people, George Osborne knows full well that is not what is happening. We can be sure he knows this — and is therefore engaging in a bout of very useful political lying — because Mr Osborne also dropped higher rate taxes, on a backdrop of media squealing… and yet the tax receipts after making those cuts …went up.

So Mr Osborne is a classic shill of the modern era. He will literally say or do anything he is being paid to say/do — even if that contradicts the thing he was saying/doing just 5 minutes ago. He lowered taxes as instructed by his donors/handlers, and proved that all that media shrieking about the end of the world was not correct. But now he lives amongst those left liberal media classes, so obviously he has changed his environment and therefore his reality — now he can be sure that proven reality [lower tax rates = higher tax take] is not really true… The “truth” is what the media and affluent classes think is truth. He is showing off the success of his ‘re-education’ in the ideology of his current milieu.
No wonder people hate politics. These people are absolute cretins. Not a fixed principle among them.

Last edited 4 months ago by Jem Barnett
David Harris
David Harris
4 months ago
Reply to  JJ Barnett

Excellent take down of the humbug dispensed by the Left Illiberal fascists controlling to much of our world.

Liam O'Mahony
Liam O'Mahony
4 months ago
Reply to  David Harris

They’re everywhere man! I found one under the bed this morning. Another popped out of my teapot! Left illiberal fascists. Didn’t those guys used to be on the Right? A topsy turvy world indeed!!

JJ Barnett
JJ Barnett
4 months ago
Reply to  Liam O'Mahony

Yes, that phenomenon is called the Pendulum of Authoritarianism.

20-30 years ago it was mainly the Right (and in particular the religious right) that were concerned with nannying everyone and trying to enforce their own flavour of moral piety as law and culture. The Left at that time was the centre of gravity for the ‘individual rights’ movement that countered this energy and agenda.

The pendulum has now swung out to the Left, and it’s the leftists who are acting like nasty authoritarians, and morally pompous bullies. And as such, the counter-reaction (defending liberty, free speech etc) is coming largely from the Right.

Last edited 4 months ago by Jem Barnett
Peter Joy
Peter Joy
4 months ago
Reply to  Liam O'Mahony

That’s not really a very effective rebuttal of JJB’s post, now, is it? With what specific points he has made do you disagree? He’s completely wrong about Osborne – Davos Man personified – and the WEF, then, is he?

Mr Sketerzen Bhoto
Mr Sketerzen Bhoto
4 months ago
Reply to  David Harris

Liz truss is fighting globalisation by (checks notes) increasing immigration and lowering taxes for globalist elites.

Aaron James
Aaron James
4 months ago
Reply to  JJ Barnett

”toddler tantrum that they throw when any government tries to do anything remotely conservative.”

If anyone tried to do anything conservative it would look nothing like Truss. Think DeSantis…… Boris was just a Biden Mini-Me, and Truss is stepping into his shoes.

The economy and all the disasters tearing the British economy apart and destroying the working people are from 1) decade of QE – 2) Insane Plandemic Response -3) Insane war by proxy in Ukraine – 4) Green energy strategy.

100% self inflicted – by Tories. And the mad Liz says they are exactly correct. She said Boris did covid and Ukraine correctly.

That’s like telling some San Francisco street addict OD-ing on fentanyl that it looks like he has made wise life choices, the same you would have made if you were he.

Jeremy Smith
Jeremy Smith
4 months ago
Reply to  Aaron James

You missed low productivity and a huge debt burden by the UK nation.

Liam O'Mahony
Liam O'Mahony
4 months ago
Reply to  Jeremy Smith

…much of the debt is from the Covid bonanza! Wealth Transfer no.1 the mini budget being WT2.

Last edited 4 months ago by Liam O'Mahony
Liam O'Mahony
Liam O'Mahony
4 months ago
Reply to  Aaron James

I agree but I think it’s unfair to blame the late queen, RIP.. “a decade of QE”? sorry: bad joke!

JJ Barnett
JJ Barnett
4 months ago
Reply to  Aaron James

I actually don’t disagree with anything you’ve said there Aaron.

I think it’s a sign of how royally f**ked we are that just a hint of tax cuts (even when announced right beside the big-state lunacy of more energy subsidies) still caused a near total meltdown of the chatterati class.

Imagine what a real conservative agenda would cause. And that’s what we need, unapologetic small-state conservatism on every policy front. I can’t see anyone who could stand up and lead such a agenda, they’d have to be stronger than titanium to manage it. If someone would like to volunteer to save the nation, I will happily buy the earplugs, in readiness for the attended squealing! 🙂

Stephen Follows
Stephen Follows
4 months ago
Reply to  JJ Barnett

 I can’t see anyone who could stand up and lead such a agenda’
Another Thatcher. This is exactly what she was confronted with in the early 1980s, as the article says. Unfortunately, she’s dead and there’s no-one around with her bravery – with the possible exception of Badenoch and she’s not yet experienced enough.

Mr Sketerzen Bhoto
Mr Sketerzen Bhoto
4 months ago
Reply to  JJ Barnett

What we need is fighters in the culture war. Your small state is part of the problem. Also the meltdown wasn’t just the chatterati class, it was the markets.

Stephen Follows
Stephen Follows
4 months ago
Reply to  Aaron James

2) Insane Plandemic Response’
You know as well as I do that that was forced on Boris by exactly the same toddler shrieking that’s attacking Truss now. Perhaps he should have been stronger, but it’s understandable why he wasn’t.

Walter Marvell
Walter Marvell
4 months ago
Reply to  JJ Barnett

We can all applaud a loud affirmation of the need for growth and support for the enterprise culture. The Growth Plan has many many good features. But the Kwazi loudhailer tactic and lack of any detail on spending means all its merit has been buried and probably lost by the overwhelmingly negative clusterf*** reaction. Remainiacs have been triggered – the promised bonfire of EU regulations was the first gesture towards a real Brexit and thus was bound to see them and the Media unleash Hell. Truss probably hoped she could ignore such PR/Media rage if the markets looked on kindly on her dream. But Truss and Kwazi have made a set of very serious strategic errors which were highly likely to trigger market meltdown. The biggest wasnt just a void on spending plans (aftera 100bn energy handout). They are just madly horribly out of step with the hapless morons at the Bank of England who had failed to raise interest rates by the necessary 1% or more only days before. That bond market rout really should have been anticipated. Now alas they are on a very slippery slope. Recession is here. Businesses are tanking from the double whammy of lockdown and energy. Over extended householders are hunkering down in shock at the sudden end of the cheap money Lalaland era. And her next move has to be what?? Reforms to planning or the NHS? Dream on! The Blob will not yield. There is a terrible risk that the UK is on a spiral down, 90% caused by 20 year of greed and Statism – not one speech. But slippy Rishi is not at conference and is sniping from the sidelines. The Tories are a panic stricken disloyal rabble. How can she possibly create brass from all this muck??

Katharine Eyre
Katharine Eyre
4 months ago
Reply to  Walter Marvell

Do you really think that a full explanation of what the plan was would have made it any better? You would have had the same hysteria, the same reaction – because what the Tories are doing is a) against everything these liberal elites believe in (even if it’s obvious the previous system is no longer sustainable and needs to change), and b) is a gamble based on a number of contingencies. Trying to explain the plan to people when you have no idea what contingencies are going to occur and which not is going to be about as useful as a chocolate fireguard when dealing with fractious, paranoid types that decided long ago to hate everything you do. I think the “just do it” approach was the only way. Deal out a fait accomplis, let everyone go a bit mental. But then you’ll have swung them out of their comfort zone and force them into dealing with the consequences and a way forward rather than hanging onto the status quo.
I don’t say any of this lightly, as it does seem like a big gamble (and I’m not an economist so I can’t criticise or praise what’s been done from that perspective) – but when the existing system needs to change, then you simply can’t make an omelette without breaking some eggs.

Last edited 4 months ago by Katharine Eyre
Liam O'Mahony
Liam O'Mahony
4 months ago
Reply to  Katharine Eyre

..something in your contribution told me your weren’t an economist …like all of it!

Katharine Eyre
Katharine Eyre
4 months ago
Reply to  Liam O'Mahony

And your solution is…?

David Owsley
David Owsley
4 months ago
Reply to  Liam O'Mahony

…that would be the economists that are consistently wrong? Some of the comments I’ve seen by ‘economists’ I wouldn’t expect from school children.

Prashant Kotak
Prashant Kotak
4 months ago
Reply to  Liam O'Mahony

I think that is the biggest compliment you can give to anyone. And conversely, calling someone an economist is bad enough to provoke pistols at dawn.

Erm, oh!, just realised, you’re not an economist are you?

Walter Marvell
Walter Marvell
4 months ago
Reply to  Katharine Eyre

I totally get your ‘Go For It!’ argument. On the day I too thought- wow, give it to ’em and even today salute the courage and the principle. But….I just wonder if they could and should have matched courage with guile. A boxer does not go out with haymakers seeking a K.O in round 1 minute 1. The fact was the markets were really really narked about the hapless hopeless Bank yet again ducking the need for interest rate rises..and the stern bond markets could hardly ignore yet another unfunded mega giveaway of maybe 100bn. It was all too volatile. They could have done gas, NI, and tax help for poor to middle classes. The irrelevant 45% for 600000 top earners should have been held back as it alone became the story (no matter that about half our our ‘Rich’ are NHS GPs consultant council leaders and other Blobby technocrats, not gritty entrepreneurs). Now it is too late. They alone will be blamed and held accountable for the (long overdue) rise in interest rates which will murder so many over extended families and pummelled post lock businesses. They have lost control of the narrative and events which is a failure. In the end they too must now think – we should have boxed way more clever. The Remainiac Hyenas most hated Brex because it threatened their ill gotten million pound a decade untaxed property wealth accumulation. Now that threat is real and the Bubbles bursting. Watch them rage.

Katharine Eyre
Katharine Eyre
4 months ago
Reply to  Walter Marvell

I see your point, but this is a government with not a lot of time on its hands. They are at most two years away from a GE and need to use all the time they have to let the consequences of these policies filter through by the time election campaigning time comes. Your suggested strategy of “boxing clever” assumes either they’ve got more time than they have or that the desired results of the policies will become apparent very quickly, which I am not sure is the case. Like I said – someone here was always going to get burnt. “Overextended families” – how many of them borrowed up to the hilt assuming that low interest rate lalaland would go on forever? Isn’t that their risk and responsibility? I know plenty of people who have taken unreasonable risks with their borrowing and are exposed to problems now which they wouldn’t have been had they been a bit more modest. My sympathy for them is severely limited. And those rising interest rates might possibly please the savers who havebeen getting pummeled these last 12 years while property owners have just sat there getting rich on their equity. The tables are turning.

Last edited 4 months ago by Katharine Eyre
Walter Marvell
Walter Marvell
4 months ago
Reply to  Katharine Eyre

There was no sympathy in my note for the Over Extended and the beneficiaries of the awful status quo shaped by the Blairite Orthodoxy. The rigged for gain property market in London and SE has warped our society with greed. A correction was long overdue. We have been in lalaland sitting on a gas pipe with Russian mines timed to go for over a decade!!!! BUT…I think we differ in belief in the impact and timing of tax cut benefits. The cheap money era was all set to go boom when Kwazi stood up. 0.5 to 2.15% was another pathetic inadequate nudge by the Bank and the markets were righly narked. With the inflation beast already on the rampage and energy costs pulverising business, it was clear as day that we were/are already in a very nasty recessionary spiral. One that the imminent 4% interest rates would speed. I simply do not believe that the tax cuts will have the hoped for shoter term impact in such abnormal negative circumstances. Everyone is scared and hunkering down. The cuts will of course be ace in the medium term..but that medium term lands far beyond the next election. And by not boxing clever, and allowing themselves to be made responsible for all our economic ills – by the markets of all people – I fear L&K may have given their many enemies just too much rope.

Paul Walsh
Paul Walsh
4 months ago
Reply to  Walter Marvell

I think you are right about the markets expecting a bigger hike a couple of days before the mini budget. I also read that tax savings don’t actually come in until April, so maybe they could have held back on this. The universal media reaction all seems a bit contrived, the other option seemed to be raise taxes and interest rates, would this have been more popular?

Andrew Martin
Andrew Martin
4 months ago
Reply to  Walter Marvell

Just a point to make that the 45% tax rate was introduced by a Conservative led government in 2010. Prior to that it was 40% under 13 years of Labour rule. Hmmm.. it just shows how much Labour has changed with its politics of envy theme.

Andrew Martin
Andrew Martin
4 months ago
Reply to  Katharine Eyre

It doesn’t help when that leftist thinktank the IMF is sending out political statements to the UK Government which should not be in it’s remit. Andrew Bailey at the Bank of England took his eye off the ball on Inflation which now runs rampant. Perhaps he should stop sending cheques to the LGBTQ community and concentrate on doing what he is paid for. Yes the left wing groupthink exists here too which is precisely why it is making a right hash of everything.

Katharine Eyre
Katharine Eyre
4 months ago
Reply to  Andrew Martin

The IMF statements were ill-advised, it should have stayed out of the matter. It has also been either wrong or seriously behind the curve on several key issues in the past so what statements come out of there have bruised credibility anyway.

Mr Sketerzen Bhoto
Mr Sketerzen Bhoto
4 months ago
Reply to  Andrew Martin

The IMF is a thoroughly right wing capitalist institution. It’s to the left of ultra globalist Liz Truss alright.

Liam O'Mahony
Liam O'Mahony
4 months ago
Reply to  Walter Marvell

..the two arch Tories will be eaten alive by their own (smarter) Tories! Looks loke Rishi is back in? ..or maybe Boris?

Stephen Follows
Stephen Follows
4 months ago
Reply to  Liam O'Mahony

Kemi. That was who the grassroots really wanted in the first place. But she should have until after the next election, at the very least.

Mr Sketerzen Bhoto
Mr Sketerzen Bhoto
4 months ago

I’d vote for Kemi. The grass roots rejected her however.

Wilfred Davis
Wilfred Davis
4 months ago

The grass roots rejected her however.

Are you sure? My impression was that she had a lot of popular support.

Stephen Follows
Stephen Follows
4 months ago
Reply to  Walter Marvell

As someone who’s surrounded by them, I’d say it’s always a good idea to be ‘out of step with hapless morons’.

Jeremy Smith
Jeremy Smith
4 months ago
Reply to  JJ Barnett

Traders in the CIty are left wing…
Or did they get a memo from the Davos crowd to attack £?

Roger Irwin
Roger Irwin
4 months ago
Reply to  Jeremy Smith

Look more carefully at FOREX data. The budget anouncement has had a small impact. The market does not like surprises, so that was to be expected.
In the last few months the dollar has been gaining on every major currency. The Euro has dropped below parity for the first time ever, and even the Chinese are at their lowest ever rate. And this fall, or more correctly dollar surge, has been going on for months.
When you are already at a record low, even a small change makes a new record low.
Of course all economics journalists and analysts are fully aware of this. So, when they try and make you believe that the mini-budget has caused the pound to fall to record lows, they are b******g you and taking you for an idiot.

JJ Barnett
JJ Barnett
4 months ago
Reply to  Jeremy Smith

Traders are not left wing, in the same manner that the Davos set are not genuine committed environmentalists.

But they will wear the outfits, and read the scriptures, and follow in the wake of these agendas… because it’s lucrative to do so. These agendas are major profit centres, I don’t know how anyone can still be unclear on that topic at this stage.

Iris C
Iris C
4 months ago
Reply to  Jeremy Smith

Traders in the city are out to make a profit whether they are right or left wing

Nicky Samengo-Turner
Nicky Samengo-Turner
4 months ago
Reply to  Iris C

prop traders and hedge fund traders are, and most traders are actually acting on behalf of institutional clients who also wish to make money- that is their job, in order that YOUR pension fund, unit trust, life policy or other investments continues to give YOU what you paid and saved for- the banale ignorance of capital markets on this medium if frightening, only exceeded by people who make the most toe-curling crass, mis informed and non researched statements of… err… ” opinion” displaying such ignorance!

Liam O'Mahony
Liam O'Mahony
4 months ago
Reply to  JJ Barnett

Silly me! I thought it was the hard-nosed, money driven, ruthless, non ideological markets that reaction so strongly to the maxi-budget! No! It was the leftist media elites that drove the markets! Wow! This is amazing! We live and learn… mirabile dictum as Boris might say!

JJ Barnett
JJ Barnett
4 months ago
Reply to  Liam O'Mahony

I used to be a forex trader.

The media rounded on the government and signalled their clear intention to create a sustained media panic. The goal of a trader is to sniff out the opportunities for arbitrage and profit, so then of course traders are looking to the BoE to see if Bailey is going to hang Truss out there, or signal BoE support for her agenda [with robust rate tightening].

Bailey is a weak BoE boss in general, but his timidity re rate tightening has been noticeable, particularly given the fact that Fed gave him clear cover for 0.75 and he still only plumped for 0.5.

So I would short the pound aggressively (with tight stops) to flush out the bank’s response to having their position pressed. It’s not personal, it’s just the game. But the media play a huge part in this game, and increasingly the media launch and then drive the agenda, and it’s not surprising that the markets see the blood in the water and go in for a bite.

Last edited 4 months ago by Jem Barnett
Nicky Samengo-Turner
Nicky Samengo-Turner
4 months ago
Reply to  JJ Barnett

Thank you! All you financio luddites please take notice?!

Michael Davis
Michael Davis
4 months ago
Reply to  Liam O'Mahony

Haven’t you got ajob or something, or is this your job

Peter Joy
Peter Joy
4 months ago
Reply to  Michael Davis

Given the snarking inanity of his posts, I suspect he is unemployed and likely to remain so.
But you never know: perhaps G. Soros and the B&G Gates Foundation are paying him to refudiate their critics and reckon he’s doing a fine job.

Last edited 4 months ago by Peter Joy
John Sullivan
John Sullivan
4 months ago
Reply to  JJ Barnett

Another brilliant contribution. Thank you.

David Owsley
David Owsley
4 months ago
Reply to  John Sullivan

agreed

Stephen Follows
Stephen Follows
4 months ago
Reply to  John Sullivan

I think we need a few Unherd articles by Mr Barnett.

JJ Barnett
JJ Barnett
4 months ago

Miss Barnett actually, but I greatly appreciate the hat tips, gents.

The great benefit of Unherd is the high quality of intellectually diverse commenters, the robust and interesting conversational interaction… and perhaps most importantly, the way we can push each other to think better.

A rare pleasure indeed.

hayden eastwood
hayden eastwood
4 months ago
Reply to  JJ Barnett

What is conservative about spending money you don’t have? I thought the magic money tree was the left’s main problem. I stand corrected after seeing the tori faithful usher in Truss’ “spend now and pay later” manifesto.

The markets are reacting as they are because they can see this is madness.

The Toris are not remotely conservative as you claim, and neither are their policies:

1. They spend money that they don’t have.
2. They have increased migration to over 500 000 per year
3. They have gutted what remains of our human liberties by giving police powers to divine our thoughts and intentions with odious hate crime legislation
4. They have done nothing to conserve British architecture and heritage, instead colluding with the left’s brutalist vandals to destroy our towns and cities.
5. They have presided over the cultural capture of our Universities
6. They have completely neglected policing crime and instead used the police as a revenue collection service, fining honest people for minor things like traffic offences while allowing streets to be openly terrorised by gangs.
7. They adopt and subscribe to New Speak

The list could go on and on.

Stop giving them the credit for being conservative. They are not.

JJ Barnett
JJ Barnett
4 months ago

I agree with you Hayden, the Tories have been in power 12 years and achieved nothing conservative whatsoever in that time.

We just had a complete media and ‘elite’ classes meltdown because of a few tax cuts, none of which go far enough in my view [I mean, why not scrap VAT, it’s a no brainer on a number of metrics!]. And all those were packaged up with a terrible corporate welfare policy on energy, that could have been written by Gordon Brown.

Where are the spending cuts? — where is the social policy agenda? — where is the announcement of ECHR withdrawal? …etc.

The events of this week underscore how successful the progressives have been at moving the Overton window to the left over the years and capturing the entire apparatus of State, and all the parties. All this howling over a couple of measly tax cuts is just ridiculous. The left have won the war, completely, because even the party whose name is “Conservative” are too afraid to announce some tax cuts without tacking on a socialist bailout for the mess they’ve created trying to centrally plan the energy market. And they’re way, way too afraid to grasp the nettle on spending, immigration, or social issues.

Pfft. A pox on all their houses!

Last edited 4 months ago by Jem Barnett
Stephen Follows
Stephen Follows
4 months ago
Reply to  JJ Barnett

I agree with you Hayden, the Tories have been in power 12 years and achieved nothing conservative whatsoever in that time.’

And you wonder why, seeing the reaction when Truss and Kwarteng start doing conservative things?

Most politicians want a quiet life as much as the rest of us. Good for T and K that they’re prepared to do without one.

JJ Barnett
JJ Barnett
4 months ago

Indeed, good point. Credit where it’s due.

Also, a grateful hat tip to one Mr Jacob Rees Mogg this week, for his artful intervention in the matter of PayPal revoking the accounts of the Free Speech Union and others. As you say, most of our leaders prefer not to wade into these matters because it isn’t worth the grief of taking on cancel culture and the woke demons. But it has to be done, the time for equivocating is long past.
So my thanks to JRM for sticking his neck out, his comments did bring about a reversal in PayPal’s policy …which goes to show that some of these things are actually paper tigers, and if you just stand up to them they melt away.

If Truss and Kwarteng can invest in some earplugs and keep their eyes on the prize, that would be great news for the country. Next up: spending cuts.

Peter Joy
Peter Joy
4 months ago
Reply to  JJ Barnett

Sticking his neck out? Hardly. Talk is cheap – and in stinking Paypal’s case, does not seem to have had any effect.
Is Mogg going to withdraw their banking license- or do anything else that would hurt these rich Leftist pigs or bring them to heel or even get their stinking Woke owner’s attention? Not a chance. Even if he wanted to, the Civil Service would block him, and he’d quietly back down.
Soft words is all we’ll ever get from this empty sham of a Tory party.

Last edited 4 months ago by Peter Joy
JJ Barnett
JJ Barnett
4 months ago
Reply to  Peter Joy

PayPal has actually reversed course and reinstated the accounts of Free Speech Union, Daily Sceptic etc — all the ones they purged last week.
JRM did the “speak softly and carry a big stick” routine, which works well for government, they should do it more. And if that softly spoken ‘invitation’ to self-correct doesn’t yield the right result …then of course there is always the option of using the big stick; give any companies engaging in this kind of behaviour a regulatory smack.

I actually think this is what Truss clearly should have done re energy. First try the ‘invitation’ to behave better, but deliver it while holding the stick that makes it clear that a smack will follow if the invitation is not accepted. The energy market is in a right state due to Net Zero agenda adherence, decades of negligent governance around the crucial issue of energy security, and of course, successive governments’ attempts to ‘pick winners’ and try to centrally plan / subsidise / punish, and generally being so arrogant and deluded as to attempt to fight reality and the collective wisdom embodied in the millions of decisions that happen in a free market.

Instead of offering corporate welfare, she should have said to the energy firms that what they are doing looks, to her eye, to be a lot like racketeering …they exploited a prior government’s mistake of introducing price caps linked to metrics like inflation, and then acted in concert with one another to all raise their prices to the maximum of the cap at once, denying consumers choice. I think the smart play would have been to give a speech, nominally about the ‘cost of living crisis’, but really about stating that what’s happening in the energy market is considered by this new conservative administration to be an attempt to collude in a manner that is most unbecoming, and possibly …potentially… could be viewed as not legally kosher.

“I plan to rectify the mistakes that have opened the door to this behaviour. It’s disappointing to see that many energy firms have knowingly raised prices well above what is necessary or sensible due to that error on the part of government, and the ungenerous view would be that some anti-free market behaviour has taken place that may warrant investigation. I will be watching this matter closely and will take what I see as appropriate measures, to restore competition and a spirit of fair play to the marketplace, one that is in keeping with the laws and customs of the United Kingdom.”

No more would need to be said, they would get the message: Cool the jets on the shameless profiteering or you might get windfall-taxed up the wazoo. I’m actually not for things like windfall taxes, personally, but then I’m also not for governments b*ggering up the markets in the first place with ham fisted attempts at central planning. Now that they have, Pandora’s box is already open, so to speak. I hope we can slowly walk back all this insanity but I do wish that the conservatives would stop pussyfooting about and start signalling a clear agenda, and a willingness to implement it despite any and all hollering from the shock troops of their adversaries. The leftists would never be derailed by opprobrium from their adversaries, they’d wear it like a badge of honour and forward march. The Tories need to stop pandering to people who despise them, and implement a programme based on what’s necessary to right the ship of State.

Nicky Samengo-Turner
Nicky Samengo-Turner
4 months ago

Every country spends money that it does not have?! Do you know, let alone understand how fixed- income, currency and associated derivatives markets, and the effect of index/tracker and of course hedge funds and prop traders work? If not, go and find out…

Delia Barkley-Delieu
Delia Barkley-Delieu
4 months ago

Like so many of us, I abhor the woke, liberal ideology of the modern left, so I find myself agreeing with you.

It goes without saying that the left, controlling our press, news, major institutions, et al, has an overwhelming voice which is unreasonably critical of anything the government proposes, this latest budget being a case in point.

However, I suspect the fact that Conservatives have held power for over a decade and have done sod all regarding the issues you outlined above, makes many of those who elected a Conservative government wonder what game they are playing.They have allowed the problems to flourish, and done nothing to curb the growth of the often ridiculous, outlandish liberal voice, the wokism, a left wing fascism, which not only affects the way in which we live, but tries to control the way in which we’re obliged to think too.

It’s been a huge disappointment to their supporters that Cameron, May and Johnstone have done nothing to address those problems.

Several economists have pointed out the merits of the Kwarteng budget, and have been reasonable in saying its effects will not be instant, that it needs time for the benefits to filter through, and much depends on the outlined ‘supply’ aspects kicking in too.

Has Truss got time to prove the screaming messes, the doom-mongers wrong? Two years until a GE. The budget could be her Falklands moment, if the left will ever give her credit for getting it right. Discount that last thought. It won’t happen.

If however we begin to feel the benefits of her change of tactics AND she genuinely, robustly attacks the problems facing the UK, then the majority who wanted Boris to lead us may keep the faith.

She has a huge task ahead of her, given the reaction to the budget and the wall of opposition gleefully telling us the budget is a disaster and she’s doomed already. They are licking their lips in anticipation, looking to the fall of the right.

Go Kwarteng, go Truss. Shake it up. I wish them well.

TERRY JESSOP
TERRY JESSOP
4 months ago

Well said Delia. The Tory party catastrophists and bed-wetters who are screaming loudest are largely the same people who were screaming at Boris for his “criminal behaviour” in not preventing the childish employees at No. !0 from having a few drinks and hors d’oeuvres in the open-air garden attached to their place of work. Reap what you sow! Personally I wouldn’t have sacked Boris for such a minor peccadillo. There are plenty of bad things that Boris did (the whole lockdown mess and his plans for “nett zero” head the list of bad decisions in my book), but the crimes that he was actually accused of were pretty minor. Now that you have elected Liz Truss to lead your party the least you can do is to support her efforts. And can I give a small pat on the back to Jacob Rees Mogg for what he has done so far. Keep it up JRM; sacking half the Civil Service would be a good start!

Ron Wigley
Ron Wigley
4 months ago
Reply to  JJ Barnett

JJ Barnett, wish I had written that, it should be on the front page of every newspaper in the country.

JJ Barnett
JJ Barnett
4 months ago
Reply to  Ron Wigley

Ron, I think we need a Common Sense Society, where the [I suspect a majority] of people can effectively combat the “think tanks” with our own “let’s actually think… tank” …as opposed to the current “here’s what corporate sponsors have paid us to think… tank”.

What do you say?

Mr Sketerzen Bhoto
Mr Sketerzen Bhoto
4 months ago
Reply to  JJ Barnett

The idea that Liz Truss is not a globalist or is in some kind of opposition to the ideology of Davos is laughable. She’s a full on neoliberal – which means she supports smaller states, lower taxes and (most importantly for this argument) the free movement of people and capital.

Google “ Immigration rules are set to be loosened as part of Liz Truss’s mission to boost growth.”. And the point of lower taxes will be to encourage high earners, the biggest supporters, and beneficiaries of free movement of capital and labour.

This is hardly red wall stuff.

She’s not Trump, who did oppose some of globalisation. Trump is more of a National capitalist – his wealth doesn’t depend on exports, or outsourcing.

The reason the markets are upset is not because of the tax cuts but the increase in the deficit.

Peter Wilson Close
Peter Wilson Close
4 months ago
Reply to  JJ Barnett

If we want affordable housing we are only going to achieve that by BOTH driving down house prices with interest rates rising to more normal levels [4-6%??] and at the same time allowing salaries and wages to rise to meet the falling property prices by pumping money into the true economy. This is exactly what Truss and Kwarteng are attempting to achieve. The trouble is the majority of bankers, financiers, journalists, politicians and even economists [even IMF] were educated/indoctrinated after Bretton Woods was sidelined in the 1970s and Banks were deregulated by Thatcher in the 1980s. They all believe that all money HAS to be created as debt only because they have known nothing else [apart from QE which they resent!] Before deregulation half of the money in our economy was Sovereign “debt free” money – although altruists will claim this is recorded as a debt to the BOE!

Edward Seymour
Edward Seymour
4 months ago

They got Boris. Job done. Next? The forces in the world opposed to governments acting as governments of sovereign countries do not rest. Italy has just been allowed to vote for its first PM in years. Now they will hobble her or destroy her. The same cultural leftists here were forced to take 2 weeks off from destroying Truss by the death of the Queen. Now its business as usual and they will not rest until the Tories are replaced by Labour. Then they will try to destroy the UK itself through threatening our territorial integrity via Scottish nationalism.

Steve Murray
Steve Murray
4 months ago
Reply to  Edward Seymour

I still have some faith that the UK electorate can see through the hyperbole and tantrums of the MSM as the mouthpiece of the liberal left.

The reaction of the markets and the IMF are instructive of one thing only – a British PM seeking to break the mould of their cosy consensus. We’ll hear from Liz Truss when she’s ready, not when the toddlers scream for her. That could be today, but good to see her not knee-jerking in response to the media.

Last edited 4 months ago by Steve Murray
R E P
R E P
4 months ago
Reply to  Steve Murray

The UK electorate will do as they are told – the BoE will ensure there is a lot of pain.

Steve Murray
Steve Murray
4 months ago
Reply to  R E P

“The UK electorate will do as they are told”
One word… Brexit.
Did you miss the vote?

Last edited 4 months ago by Steve Murray
Bill Tomlinson
Bill Tomlinson
4 months ago
Reply to  Steve Murray

“The exception demonstrates the rule.”

Liam O'Mahony
Liam O'Mahony
4 months ago
Reply to  Steve Murray

..more knee buckling I think? Your point might make sense of the UK was self-sufficient. Sadly it’s not even close to being so. Most of your cream buns come from the City of London and that makes its money in the global market! If the UK reverts to a war footing and you pull up the drawbridge you can do your own thing. However, it’ll be a cold, hungry and lonely thing.

Steve Murray
Steve Murray
4 months ago
Reply to  Liam O'Mahony

There’s no war footing, no drawbridge, nor will there be, nor was that ever the intention.
We’re not cold, hungry or lonely nor will we be.
Nor has our global trading diminished, just the terms of trade post-EU and that’ll play out on a much longer timescale.
The City of London is poised to attract greater amounts of business as we become ever more free of EU regulations.
Apart from that… we’re doomed, obviously.

Andrew E Walker
Andrew E Walker
4 months ago
Reply to  Steve Murray

The problem is that Truss has nothing rational to say.

Katharine Eyre
Katharine Eyre
4 months ago
Reply to  Edward Seymour

If they’re going postal about the market turmoil unleashed by the mini-budget – God only knows what will happen in the event that Scottish independence becomes reality. I’m guessing Wee Jimmy Krankie is using this as another way to push independence as the answer to all ills when in fact she’ll be getting the same x 1000.

R E P
R E P
4 months ago
Reply to  Katharine Eyre

The US under Biden may welcome that…

Katharine Eyre
Katharine Eyre
4 months ago
Reply to  R E P

The US under Biden is a world power on the retreat. Internally divided, externally weak – bamboozled by its own role in the world. And lead by someone who doesn’t seem to know what day it is. Their moral authority is seriously limited. And what would they do for Scotland – make it the 51st federal state? Won’t be another Seward’s Folly, that’s for sure.

Liam O'Mahony
Liam O'Mahony
4 months ago
Reply to  Katharine Eyre

Biden is Celtic: the US$ is really strong just now. Looking good for Scotland I’d say.

Katharine Eyre
Katharine Eyre
4 months ago
Reply to  Liam O'Mahony

Biden (a president who will be history in 2 years’ time and clearly has declining cognitive faculties) has an Irish grandfather + the US$ is strong = Scottish independence is going to be a cinch? Interesting reasoning.

Last edited 4 months ago by Katharine Eyre
Liam O'Mahony
Liam O'Mahony
4 months ago
Reply to  Katharine Eyre

Naw: that’s just wishful thinking: Scotland will be fine.. look at Ireland: 2nd highest GDP pc in the world! We’ll look after Scotland in a new Federation of Celtic States (+NI).. plus Wales later on when they see how well the canny Scots are doing.. and all back into the EU of course!

Katharine Eyre
Katharine Eyre
4 months ago
Reply to  Liam O'Mahony

May be a surprise to you but the “reasoning” you are presenting me with here – which basically boils down to “we’re Celtic, so everything is going to work out fine” – isn’t really that convincing. A Federation of Celtic states…hahaha, I think the people of the RoI are nervous enough about the prospect of having to pay for the North upon reunification…never mind having Wales and Scotland joining in (at least one of would a guaranteed basketcase if it was independent).

Last edited 4 months ago by Katharine Eyre
CHARLES STANHOPE
CHARLES STANHOPE
4 months ago
Reply to  Edward Seymour

To be fair to Boris, he ‘got himself’.
If he had devoted an iota of his time to being a true Tory perhaps I and many others, including the fabled Red Wall, may have forgiven him.
If Truss & Co are to triumph, as they must, there must not be even a scintilla of compromise with the loonies of Quislington and their fellow travellers or we are truly lost.

Liam O'Mahony
Liam O'Mahony
4 months ago

Boris was a give-away Leftie! That’s why Labour were at a loss with him as PM. Now they are looking good!

Liam O'Mahony
Liam O'Mahony
4 months ago
Reply to  Edward Seymour

Yep: there’s the real risk! Right there as the Yanks say! Labour might wreck the economy. Meanwhile, back on planet Earth….

Stephen Follows
Stephen Follows
4 months ago
Reply to  Edward Seymour

Don’t forget the stitch-up Labour will be able to achieve when they bring in PR. That will kill off the right in this country completely, and don’t they know it.

Douglas Proudfoot
Douglas Proudfoot
4 months ago
Reply to  Edward Seymour

The US experience is that fracking can be a very big deal. The difference in the US is that mineral rights are privately owned. For legalized fracking to make a difference in the UK, Liz has to have a bureacracy that actually grants mineral leases in a timely fashion, and makes regulatory decisions quickly so that drilling actually happens.

Due to Biden’s war on fossil fuels, there are lots of fracking assets and experts idle in the US. If Liz can get the bureaucratic part of fracking going quickly, a lot of English speaking guys with strange accents could be easily lured to British gas fields.

The US went from a net importer of natural gas to a net exporter in about 3 years of fracking. The UK could do the same, if Liz Truss can kick enough bureacratic butts. She should start by firing a few for insubbordination, pour encourager les autres.

Peter B
Peter B
4 months ago

Message to the author: you cannot increase productivity by importing more cheap labour from abroad. This has precisely the opposite effect. It is surprising this still needs saying.
There is massive inefficiency and waste in this country from which a step change in productivity could be easily extracted. To take two simple examples:
First, eliminate all the value destroying “jobs” in diversity, equality and inclusion. Scrap these and employ the best people for the jobs. An added bonus if those doing the diversity jobs can do something useful instead (but this cannot be a certainty).
Second, adopt sensible energy policies which do not make UK industries uncompetitive (and waste consumer income on needlessly inflated energy bills). This will also help fix the balance of payments as we source more of our own energy from the UK.

Paul MacDonnell
Paul MacDonnell
4 months ago
Reply to  Peter B

It’s more fundamental than that. Eliminating all the “diversity” stuff is marginal – though symbolically it would be significant. In reality the economic model of healthcare, planning, and education needs to be reformed.

R E P
R E P
4 months ago

Not possible to reform them as our politicians don’t run them…

Liam O'Mahony
Liam O'Mahony
4 months ago
Reply to  R E P

..like I said: public ownership! How much better spent all those wasted billions would have been of they’d been spent on re-acquiring your own utilities!

Liam O'Mahony
Liam O'Mahony
4 months ago
Reply to  Peter B

Item 2 = energy back into public ownership?? “Sensible energy policies” is a bit like KK’s lack of clarity on the mini-budget!

Patrick Moore
Patrick Moore
4 months ago
Reply to  Peter B

Absolutely right with one of the major impacts on productivity being the ethos shattering impact of these ‘virtuous’ and unproductive aspects of business overheads on company work forces who see all routes to promotion being based on diversity, equality and inclusion criteria rather than performance. The rot became obvious in the Public Sector several years ago and it can now be seen moving into the Private Sector with ESG being promoted as a key benchmark for investment. Far worse than that is the Armed Forces, which are highly dependent on exemplorary team working, are now catching the disease.

Tony Reardon
Tony Reardon
4 months ago

I lived through the early seventies as a working adult in London and remember the massive price rises. However, I think that there were many events that contributed to this inflation and wage/price spiral, well beyond the Barber tax cuts in the March 1972 budget. For example:
Feb 1971 Decimalisation
August 1971 Nixon stops converting US dollars to gold at fixed price
January 1972 Miner’s strike and state of emergency. Settled with 27% wage increase. Unemployment exceeds 1 million for first time
June 1972 Pound floats
November 1972 Counter-Inflation measures with Price and Pay code (wage freeze)
January 1973 UK joins EEC
April 1973 VAT (10%) introduced
October 1973 OPEC Oil Shock
Not sure that many of these circumstances apply today to worry about these quite minor tax measures of Truss.

Aaron James
Aaron James
4 months ago
Reply to  Tony Reardon

”these quite minor tax measures of Truss.”

yea, well that is just part of her madness ”LIZ Truss is set to spend nearly £100bn to freeze energy bills for households and businesses at £2,500 a year, according to reports. The new Prime Minister is set to address the country this…
That little Friday mini-budget destroyed the pound – it was $1.09 by the time she finished talking….
Truss was borrowing hundred Billion to pay peoples gas bills – By creating Debt – that causes massive inflation – wile the Treasury increases interest to Reduce Inflation!

Then the tax loss – so less tax income to pay increased the debt – AND also a higher interest on the debt.

This was insane, a circular firing squad. The finance people said – these guys are nuts, I am out of here, and sold the ££££ and said ‘I am Gilt Free’ haha –

Bill Tomlinson
Bill Tomlinson
4 months ago
Reply to  Aaron James

Exactly right!

The Chancellor’s foot is on the accelerator, while the BoE’s foot is on the brake ….

An investor not interested in politics, but only in the well-being of his investment, would be asking himself
“Does this shower know what the hell they are doing?”.

And the answer he would give himself would be a resounding “NO”.
Multiply that by millions of investors around the world – and the cause of this week’s financial mayhem becomes obvious.

Michael Davis
Michael Davis
4 months ago
Reply to  Bill Tomlinson

The question should be addressed to the Governor. It almost seems deliberate stupidity to increase by 50 basis points when the Fed went up 75 bp
This was nuts without the mini budget, it was criminal if he knew what the statement contained
What are his motivations

Liam O'Mahony
Liam O'Mahony
4 months ago
Reply to  Aaron James

You did right! Run for the hills (of Scotland)..

Roger Irwin
Roger Irwin
4 months ago
Reply to  Aaron James

How much freezing energy bills will cost depends entirely on the price of energy. With sector adapting to the changes that price will not remain high — there is enough gas capacity in the world without Russian supplies.
Also, despite what many suggest, there is already a sort of windfall tax on energy with both extractors and suppliers paying more tax on higher gas prices.
When articles and politicians say “could be”, they mean they have assumed that energy prices remain fixed at the highest imaginable levels. The cost is the gross cost, not net of the additional income.
You should be asking yourself why so many authorative people are trying to fool you. And if they aren’t, why are you trying to mislead others by suggesting that the government will be £100 billion worse off.
And while we’re on the subject of fooling people, in January the dollar was at 1.35, so the 1.09 you quoted is a big drop. The bit you missed is that before the announcement the value had, over the course of several months, fallen to 1.13.
Once again, why are you trying to mislead peole?

CHARLES STANHOPE
CHARLES STANHOPE
4 months ago
Reply to  Tony Reardon

How right you are Sir!

Incidentally, additionally in that period 1971-3, nearly three hundred members of the ‘Security Forces’ were killed suppressing the Irish Rebellion.

However and to lapse into the vernacular, the ‘ yooof’ of today are a bunch of bed-wetting spastics who are about learn some very hard lessons. Whether they will withstand such a shock is uncertain.

Last edited 4 months ago by stanhopecharles344
Liam O'Mahony
Liam O'Mahony
4 months ago

Correction! The “rebellion” did not take place in Ireland. It took place in the UK! GB caused the original problem (partition), ignored the later discrimination/gerrymandering, backed the ruthless suppression of Human Rights marches and sent in the SAS to exacerbate the problem (like the Azov battalion in the Donbas).
You made it! You broke it! You own it! And you can bloody well fix an’ all! Nothing to do with us mate. We didn’t have hand, act or part in it.

David Owsley
David Owsley
4 months ago
Reply to  Liam O'Mahony

GB didn’t cause the problem, unless you mean by allowing Irish Independence. Thought that was what you wanted? Just because the NE bit of Ireland voted the very next day to remain part of the UK isn’t the UK’s fault. Stopping the discrimination was the very reason troops were initially sent. Only the Human Rights marches that shoot at soldiers: they need suppressing.
So, we didn’t make it, we didn’t break it but we were (and still are) attacked for trying to sort it.
You’re either 8 years old or a troll.

CHARLES STANHOPE
CHARLES STANHOPE
4 months ago
Reply to  Liam O'Mahony

I didn’t say it was in Ireland!

As to the rest of your rant, yes I agree “we made it”.
The only honourable solution now is for us to get rid of the place. It is an expensive anachronism and we must jettison it forthwith.

If the Republic won’t take it then let the EU have it.
I gather it costs even more to subsidise than Scotland, despite being only a quarter the size.

Last edited 4 months ago by stanhopecharles344
David Owsley
David Owsley
4 months ago

loathe to admit it but gave you an uptick just for ‘bed-wetting spastics

CHARLES STANHOPE
CHARLES STANHOPE
4 months ago
Reply to  David Owsley

It’s known as Red Wall lingo.

R E P
R E P
4 months ago
Reply to  Tony Reardon

This is more like Suez with an international attack on sterling with the aim of regime change. (i.e. back to the Blair/Cameron/May/Johnson agenda.) The cost of living crisis will be used to say we need the EU.

Roger Irwin
Roger Irwin
4 months ago
Reply to  R E P

Things are every bit as bad, or worse, in the Eurozone.

Liam O'Mahony
Liam O'Mahony
4 months ago
Reply to  R E P

In the UK the cost of living crisis will be used to say “we need a non-moronic government” ie by the poor, cold, hungry, jobless British! But yes, failing that the EU might be a good option too!

Jeremy Smith
Jeremy Smith
4 months ago
Reply to  Tony Reardon

Total debts of UK (GOV + consumer + Business) as % of GDP
1974-80%
2022 – 320%

CHARLES STANHOPE
CHARLES STANHOPE
4 months ago
Reply to  Jeremy Smith

Welcome back.

Nicky Samengo-Turner
Nicky Samengo-Turner
4 months ago
Reply to  Tony Reardon

No electronic trading, hedge funds, or derivatives in those days, plus a completely different micro economy.

Richard Abbot
Richard Abbot
4 months ago

Economics ought not to be seen in a vacuum. The ‘Barber Boom’ failed for many reasons, not least that it was overtaken by events, namely the 1973 Oil Shock and the 3-Day Week. The multiple tax cuts of Howe and Lawson were more successful, but how much of that was to do with the transformation in labour relations?
The problem is welfare-ism. You will never increase productivity when so many people don’t, won’t or can’t work. The dying system was designed to increase the number of those people (such folk being perfect Labour voting stock). That’s what really needs to change.

Liam O'Mahony
Liam O'Mahony
4 months ago
Reply to  Richard Abbot

Didn’t Hitler have similar notions? The old ubermench approach.. what form of euthanasia do you have in mind for me? I’m a pensioner.

Richard Abbot
Richard Abbot
4 months ago
Reply to  Liam O'Mahony

Please remove your Hitler Googles. They are clouding your judgement.

AC Harper
AC Harper
4 months ago

And yet, Truss and Kwarteng have shown they are prepared to be deeply ideological and challenge the fragile status quo.

The status quo is fragile because the approved medicine doesn’t work, and higher doses will not make it work. Those people who administer the economic medicine are frightened that it will be shown to be a fraudulent nostrum that only manages to make the economic doctors wealthier.
Will Truss and Kwarteng succeed? They stand more chance of success than merely repeating doses of snake oil.

Paul MacDonnell
Paul MacDonnell
4 months ago

So far as I can see (and I didn’t read the government’s statement) Kwarteng announced just a few things. Lower stamp duty, lower rates of income tax at the top end and – and this is the elephant in the room – massive additional spending of money yet to be borrowed NOT for any kind of investment but for protecting the population from the consequences of previous energy policies for which the Tories must take much of the blame. Do I have that right?
I think Kwarteng thought he was addressing a UK audience only or parrying a combative interviewer on BBC R4. Hence he seemed to be doing what ministers usually do in close domestic political situations – viz. start telling their interlocutor how much money they’re blowing. Boris Johnson spent the best part of three years doing little else.
So, translated for the ears of the foreigners who were also listening to his speech, this is what Kwarteng said: “We’ve just blown half a trillion pounds on a policy to close the economy despite the fact that the UK, of all countries in the western world, really, really, needs to improve supply chains and paths to trade. And, apart from tax cuts at the upper end, we’re going to blow…who knows…another half a trillion and hope that cutting tax on a bunch of chaps in the City will generate real economic growth.”
And the world replied: “Huh?”
The fact that he didn’t chart a path with a timeline of wider reforms was the problem. Truss has succeeded the worst post-war Prime Minister. Johnson campaigned as Winston Churchill and governed as a socialist with what was, even for a socialist, a dedication to spending as much money as possible. His instincts have been pro-woke, pro-lockdown, and his fiscal policy? A lemming-like sprint over the cliff that would do credit to any south American populist.
The markets instinctively know that lockdowns were a disaster, that Brexit broke chains of supply, labour, and trade that have not been repaired or replaced, that Johnson massively increased the debt of this country because he, along with the entire elite class, panicked. That this was unnecessary can be proved by “the science”. How? By examining Sweden and Florida, as the control group in a global policy experiement. The result? Lockdowns make no difference. End of discussion.
The pound has been sliding for many months now as a direct consequence of a litany of policy errors by, what was in essence, far-left fiscal lunacy.
Kwarteng made a speech announcing tax cuts for higher earners and even more debt for the UK.
That’s why the markets replied: “Huh?”

Last edited 4 months ago by Paul MacDonnell
Edward Seymour
Edward Seymour
4 months ago

Paul I think you set out the problems Britain faces very well, but your description of tax cuts as benefiting “a bunch of chaps in the City” is unfair. Of course such “chaps” benefit, given the vast proportion of the tax revenue provided by the top percentage of earners, but everyone stands to benefit from lower taxes, either directly or in terms of economic growth or the bigger pie.

Paul MacDonnell
Paul MacDonnell
4 months ago
Reply to  Edward Seymour

Your point is well made. And I agree whole heartedly. The core of my criticism is that they have failed to chart a course. The real issue is that these tax cuts will not just lead to greater productivity but will need to be paid for, as it were, with increased productivity. And that will require reform of the economy beyond the tax cuts themselves. As the Economist suggests (and I regard the Economist as a rather left-wing paper but I agree with it here): if Tory voters pocket the tax cuts and then stymie all the reforms needed to pay for them then that will be a disaster. Now you may say that tax cuts alone need no justification. I agree with this with one proviso. That works if the government isn’t running a huge deficit. The trouble is that the UK is borrowing money for day to day spending. That is the road to perdition. Truss & Co need to come to very close quarters with reforms and with curtailing public spending – or the bond markets will come for them like Tolkien’s Ringwraiths.

Liam O'Mahony
Liam O'Mahony
4 months ago

Yes. It never occurred to LT+KK that international markets might be listening. Indeed they weren’t even talking to the UK. They were talking solely to their mates!

Liam O'Mahony
Liam O'Mahony
4 months ago
Reply to  Edward Seymour

..pie yes: but sadly, pie in the sky!

Liam O'Mahony
Liam O'Mahony
4 months ago

…sounds about right to me.

Steve Elliott
Steve Elliott
4 months ago

We need Gordon Brown back. He famously cured the cycle of boom and bust single handedly as he himself boasted.

John Sullivan
John Sullivan
4 months ago

An utterly incoherent article, while managing to sit on the fence over whether a strategy for growth is a good or a bad thing. Congratulations.

“Should it fall on red, Britain’s youth will be lumped with yet more debt”

You mean a few paltry billions to add to the 500 billion already wasted on the Covid madness? Or perhaps the hundreds of billions more already spent, with further hundreds of billions yet to be spent, on the cLiMaTe EmErGeNcY and ‘Net Zero’ lunacy? No? Then maybe the 230b gobbled up annually by the UK’s completely incompetent ‘healthcare’ sector? ‘Britain’s youth’ have been so indoctrinated by decades of Long March communist twaddle, they actually celebrate everything which has impoverished them.

So it’s recalcitrant elderly Tories who prevent development of our housing and national infrastructure? And the price of housing clearly has nothing to do with the huge growth in the UK population in recent decades – caused largely by the uncontrolled immigration for which you advocate.

Wow. What planet do you live on? The one where virtue-signalling lefties don’t camp in tree houses, glue themselves to motorways and works of art, or bemoan ’emissions’ from any and every activity which contributes to an affluent comfortable lifestyle, while screaming in apoplectic rage every time a criminal illegal immigrant is threatened with deportation?

Wake up, open your eyes and write something based on a factual analysis. Or go work for the BBC. Truss and Kwarteng have made a very decent start. That the usual neo-Marxist globalist suspects are determined to take them down is nothing but the most positive of signs.

Last edited 4 months ago by john.sullivan
R E P
R E P
4 months ago

The UK regime got rid of Boris and the international regime has been waiting for an opportunity to punish Britain for Brexit…could be faster than Boris defenestration, especially as so many people in national politics are so ignorant of how things work. (US/EU want Labour…)

Last edited 4 months ago by Robert Pay
Jeremy Smith
Jeremy Smith
4 months ago
Reply to  R E P

Yes, traders in the city that “bet” against £/UK are part of the global cabal that hates UK…they also eat British (or English if you prefer that?!) children.

Henry Haslam
Henry Haslam
4 months ago

Growth seems to have become an ideology, unrelated to real life – and therefore very unConservative.
If we look at GDP over 50 years and more, it seems to have being going up fairly steadily, regardless of government or of economic policy. It looks after itself, not much influenced by government. The main discontinuities are the dips due to the 2020 lockdown, the banking crisis and the inflation peaks of the last century. After each of these, GDP returned to its normal trend.
I’m interested to read in the article that Geoffrey Howe’s famous budget, critiqued by so many economists, was designed to reduce inflation – and that it was successful. There’s a lesson there. Government should concentrate on where it can make a difference (inflation, interest rates, poverty, public services) not on GDP, which looks after itself, irrespective of government policy.

Number Fan
Number Fan
4 months ago
Reply to  Henry Haslam

Please go have a look at the GDP graphs (especially real terms, per capita) again. Growth clearly doesn’t “look after itself”. For the UK it has not returned to the trend before the Global Financial Crisis – indeed if we accept that GDP in 2005 or so was partly inflated by economic “froth”, our growth has virtually flatlined since the early 2000s. As Sam Ashworth-Hayes points out, our new trend per capita growth rate since the GFC is just 0.6% per year, well below the historic trend of about 2%. This makes a huge difference – an annual rate of 2% means living standards double in about a generation (three decades or so) but at 0.6% would take well over a century. Not all countries have suffered the same collapse in trend growth – while some like Italy have had it even worse than the UK, with their economies not even recovering to the levels of 2000, others have got back onto a higher-growth course. Poland will on current trends move above UK per capita GDP in just twelve years’ time and by 2040 be a substantially richer country than Britain.

While it’s true that it’s easier for a developing country to play “catch up” by copying richer countries, so Poland’s rate of growth might be expected to fall as it gets richer, even on current data there is only one US state (Mississippi) that is poorer than the UK despite America’s vast regional differences. So the British problem is certainly not that we have hit a fundamental, technological limit on growth. It is that we have fallen into a sluggish equilibrium from which we are struggling to escape. Whether Trussonomics will get us out of the quagmire is another question – but even a casual glance at the numbers shows that we are in one.

Christopher Barclay
Christopher Barclay
4 months ago

Kwarteng put the horse before the cart. Britain has little spare capacity to increase production. Tax cuts now will only lead to more imports. The supply side measures should have been implemented first, in order to use current capacity more efficiently and to inspire investment in new capacity. The tax cuts could have been held back until after the next election (as Lawson did in 1987) in order to give voters an incentive to vote Conservative.

William Cameron
William Cameron
4 months ago

If Kwasi had produced some proof (or even workings) of what was going to pay for his tax cuts he might have got away with it. But saying to your bank manager you propose to borrow lots of money because a horse might win next week -but you cannot name the horse- tends not to work.
KK’ sadly has all the arrogance of an Old Etonian – but none of the charm.

Liam O'Mahony
Liam O'Mahony
4 months ago

…yes: the bank manager usually wants to see a business plan before he approves the loan: it’s a nuisance of course but you can see his point!

Last edited 4 months ago by Liam O'Mahony
Nick Faulks
Nick Faulks
4 months ago

Oh no, three weeks have passed and still Liz Truss has not solved all of the nation’s problems. Clearly the woman is useless and has to go.

Kevin L
Kevin L
4 months ago
Reply to  Nick Faulks

I think people are mostly objecting to the problems she and her chancellor have created over the last few days.

Stephen Follows
Stephen Follows
4 months ago
Reply to  Kevin L

The problems that her opponents have created in response, you mean.

j watson
j watson
4 months ago

‘Her opponents’? She’s been in the same Govt for most of last decade.
Were her views so fundamentally different it would leave a big question mark over her integrity that she stayed.
No what’s happened here is classic hubris.

Liam O'Mahony
Liam O'Mahony
4 months ago

..excuse me? I thought it was Putin who caused the whole thing? Didn’t Liz Yruss just say so maybe 100 times since emerging from the rabbit hole?

Liam O'Mahony
Liam O'Mahony
4 months ago
Reply to  Kevin L

…not to mention the last few years! Or is that not relevant? Did anyone check out her performance as a minister? No? I thought not. There is no chance anyone would have made her PM if they had done so!

Liam O'Mahony
Liam O'Mahony
4 months ago
Reply to  Nick Faulks

..you’ve got to admit she’s done a lot in three weeks! It usually takes much longer to wreck a country’s economy! She hit the ground running, went underground and has now emerged sorry she didn’t have an actual plan for the drastic action. I’ve seen PMs do less than that in a whole tenure!

j watson
j watson
4 months ago

Some fascinating paradoxes here, perhaps less so in the article and more in the comments.
‘Apparent free marketeers railing against the free market’
‘Neo liberals doing the old Marxist trick – ‘the reason it hasn’t worked is we haven’t been Marxist/Neo-Liberal enough (select as appropriate)’
‘It’s not working so let’s wheel out a bogey-man to blame. I know what about Remainers again ?’
‘Bankers now finding themselves lumped in with the liberal metropolitan media elite’
‘It just needs us to concrete over large parts of the South-East and get on with it’
Comedy-Tragedy-Romance or Satire – take your pick.

Kevin L
Kevin L
4 months ago
Reply to  j watson

If you believe the commenters here, the number of groups that are not dominated by elite left-liberals shrinks every day. The only ones who are not elites are the people who run the country and the people who own the Mail, Express and Telegraph.

Liam O'Mahony
Liam O'Mahony
4 months ago
Reply to  j watson

It’s hard market conditions for the 99% and pure socialism for the bankers!

René Descartes
René Descartes
4 months ago

The main problem seems to be Truss’s unwillingness or inability to communicate. At first I hoped her wooden puppet demeanour wouldn’t matter but it does. She has finally come out of hiding but is now behaving like a scared and scary rabbit caught in the headlights, totally unable to give a straight answer to a straight question. Even Starmer is a model of clear communication and bonhomie compared with her. No wonder the markets, the Conservatives and the men and women on the Clapham omnibus are all losing hope. If she won’t do a policy U-turn (and she probably shouldn’t) then she has jolly well got to do a presentation one, or else we are all doomed.

Last edited 4 months ago by René Descartes
Liam O'Mahony
Liam O'Mahony
4 months ago

Her inability to project herself isn’t helpful but it’s hardly the big problem now is it? There’s also the herd of elephants in the Conservatory!

Dan Star
Dan Star
4 months ago

Mattias Desmet calls the global phenomenon ‘Technocratic Totalitarianism’. They are so sure they are right they will send the word off the cliff. Shall we have WW3? They were pretty sure they were gods in the 1920s too.

Barry Stokes
Barry Stokes
4 months ago

I sincerely hope that it’s not the end, but the beginning.

chris Barton
chris Barton
4 months ago

I personally hope the Tories implode, split and are replaced with the poor loving “Labour” party who will also make a complete hash of everything. Only then will we maybe get a new party that isn’t just a different stripe of the Uniparty.

Simon Adams
Simon Adams
4 months ago
Reply to  chris Barton

Yes sadly I think that’s the case. It needs a new generation to see how bad Labour are, and for the Conservative party to be cleansed of the 55 Tufton Street influence.

Stephen Follows
Stephen Follows
4 months ago
Reply to  chris Barton

That’s all very well, but Labour are planning to replace first-past-the-post with PR, in order to ensure that nobody can ever succeed them.

j watson
j watson
4 months ago

Surveys suggest the next generation a little more centre left and a little more Woke. You’ll love it.

Liam O'Mahony
Liam O'Mahony
4 months ago

PR will ensure more popular, coalition govts where the lunacy of Liz Truss et al will be impossible since the coalition partner/s will not stand for it. With more shades of opinion represented future govts will be centrist, less dramatic and more broad based. There will be far more continuity as well: replacing the idiotic “dismantle everything and build the opposite” every few years. We’ve had PR in Ireland forever: it works really well. Sensible, balanced govt. and let the businessmen get on in a stable economic environment where foreign investors fall over themselves trying to set up shop in the country.

Liam O'Mahony
Liam O'Mahony
4 months ago
Reply to  chris Barton

I think that’s the plan anyway isn’t it? ie to eliminate govt altogether and have the New World Order take over?

Steve Elliott
Steve Elliott
4 months ago

I’m not an economist but I have been reading recently about Modern Monetary Theory (MMT) which I know raises hackles in some circles. But one thing the books say which sounds right is that a country which has a Fiat Currency like the UK cannot default on its debts. So why have the sterling bond markets taken a dive over recent days?

Bill Tomlinson
Bill Tomlinson
4 months ago
Reply to  Steve Elliott

Steve: Countries which have a Fiat Currency can and do default on their debts. Think Argentina and Greece, to take two at random.

Or – God help us – think Zimbabwe.

I have been looking for the opportunity to suggest that
Kwasi-nomics
be renamed
Mugabe-nomics.

Steve Elliott
Steve Elliott
4 months ago
Reply to  Bill Tomlinson

Thanks Bill, but Greece was in the eurozone when it defaulted so it wasn’t a fiat currency for Greece. Wasn’t that the whole problem with Greece? Because it could default the interest rates on it’s borrowing rapidly rose until it was unaffordable.
With Argentina I think the problem was that they borrowed dollars which wasn’t a fiat currency for Argentina. It was an external currency.
I don’t know about Zimbabwe. They’d had loans from the IMF, the World Bank and the African Development Bank and had defaulted on those. I don’t know if that’s the same thing.
My understanding is still that a country which issues bonds in it’s own fiat currency cannot default unless it chooses to. The US certainly can’t. See here –
https://www.forbes.com/sites/johntharvey/2012/09/10/impossible-to-default/?sh=735bdfa61180
I think the UK is in the same position. It issues sterling bonds and it can always create sterling to pay the bonds and the interest on them. It may not be a good idea but I think it can do it.

Bill Tomlinson
Bill Tomlinson
4 months ago
Reply to  Steve Elliott

The definition of a Fiat Currency is one which has value because some authority says it has. (The main difficulty with Bitcoin is that there is no authority behind it.)

By contrast, a convertible currency is one that may always be exchanged for something with intrinsic value – usually gold.

Remember the “good old days” when English banknotes bore the words “I promise to pay the bearer” – followed by the signature of the Governor of the BoE?

That meant you could take a £5 note to the BoE and they would exchange it for gold. Don’t try it today!!

The history of it is that, centuries ago, there were people called goldsmiths – roughly what today we should call manufacturing jewellers – so needed to keep gold on their premises. For obvious reasons, it was kept in strong-rooms.

For equally obvious reasons, wealthy people didn’t want to leave their gold lying around the house, so they arranged with a goldsmith to keep it in his strong -room.

The goldsmith would issue them with a receipt. If you wanted to make a withdrawal you would hand over a receipt and the goldsmith would give you back your gold.

Those receipts were the ancestors of banknotes. Some people would pay their debts by endorsing a receipt to a creditor. Those endorsed receipts were the ancestors of cheques.

The point of all this is that a default occurs when the “goldsmith” is unable to pay in gold, and the creditor is not willing to accept any more receipts.

Steve Elliott
Steve Elliott
4 months ago
Reply to  Bill Tomlinson

We’re off the gold standard now, Bill, as is the US. The UK and the US came off the gold standard quite a while ago. You haven’t been able to change your banknotes for gold for a long time despite what it says on the note.
When a company or a country buys a UK government bond in sterling all he gets is a piece of paper. When the bond reaches its term the UK gives the owner of the bond the face value of the bond plus the interest in sterling which it can create out of thin air – yes it can.
Neither the US or the UK can default on that kind of loan unless it wants to.

Liam O'Mahony
Liam O'Mahony
4 months ago
Reply to  Bill Tomlinson

“Misery acquaints a man with strange bedfellows”. That’s some list you’re bringing into the discussion! Brrrr..

Jeremy Smith
Jeremy Smith
4 months ago

It is funny to read the comments and “discover” that the default position is “patriotism”.
The global cabal (they also eat English children) is attacking £ and UK.

CHARLES STANHOPE
CHARLES STANHOPE
4 months ago
Reply to  Jeremy Smith

“Patriotism is the last refuge of the scoundrel”, as that great Englishman the late Dr Samuel Johnson (much despised by one Andrew McDonald of this forum) said. But is he correct?
I seem to recall that you and your young family have recently ‘joined’ us, or am I mistaken?

Steve Elliott
Steve Elliott
4 months ago

I can see how patriotism can be misused. There was a lot of criticism of the patriot act in the US which I think was intended to help in the fight against terrorism but the worry was that it could be used against anyone who criticised the country.
I read somewhere about the McCarthy trials that one question put to the witnesses was “Do you love your country?” and I may be wrong but I seem to remember that George Galloway was asked that very question by Keith Vaz.

Steve Murray
Steve Murray
4 months ago
Reply to  Jeremy Smith

The default position is… all of this is far too early to call. Once people stop knee-jerking, we can have a sensible debate with a fuller picture of events over a slightly longer period than 10 minutes. He who laughs last…

Roger Irwin
Roger Irwin
4 months ago
Reply to  Jeremy Smith

Is it attacking the Pound?
It has actually fallen comparitevly little against other mafor currencies.
It was already at record lows against the dollar…along with every other currency.

William Cameron
William Cameron
4 months ago

Sadly they are economically illiterate. House prices are not primarily high because of shortage. They are high because banks keep lending too much money on them. If high house prices are proof of shortage then falling house prices must be proof of surplus. And watch house prices fall as interest rates rise and lenders cut back lending.

Number Fan
Number Fan
4 months ago

Price changes are not a definitive proof of shortage or surplus since many factors affect prices: however, there is evidence of insufficient housing stock based on the proportion of owner-occupiers falling, age of first purchase rising, and statistics on overcrowding increasing. A fall in price may help with affordability but ultimately we will need more new homes to be built (or the population to substantially fall).

Liam O'Mahony
Liam O'Mahony
4 months ago

Both factors are relevant. Supply and demand + availability and size of mortgages: and other factors play a large part too: not least greed and ideology.

Rachel Taylor
Rachel Taylor
4 months ago

My concern is that the energy subsidy is completely barking mad. How can a society afford to shield all its members from the effective of an external price rise? Borrowing to pay for it is exactly the same as all the other extravagant gestures of the last 3 decades. In terms of this policy alone, I suspect the efficient thing to have done would have been to subsidise prices for a short time but to claw it back through the tax system from people who could afford to pay. That way, at least, people get to see that welfare has a cost.
As for the tax measures, they seem to restore a little bit of balance to the level of taxation. The increase in Corporation Tax was never a good idea.

Liam O'Mahony
Liam O'Mahony
4 months ago
Reply to  Rachel Taylor

If I’m mega wealthy and spend over £2,500 on my energy bill already to run my 8 bed home and heat my swimming poor and sauna etc. can I now turn everything up and still be guaranteed to pay only £2,500? Wow.. great deal! What a great government!

Peter Joy
Peter Joy
4 months ago

The Barber Boom wasn’t even Barber’s idea. It was Heath’s. Barber was only obeying orders. Like Wilson, Heath imagined the government could simply ‘buy’ economic growth. It didn’t work out that way.

Alex Colchester
Alex Colchester
4 months ago

Was this article written in a foreign language and translated by a bot? It’s the only explanation I have.

Martin Goodfellow
Martin Goodfellow
4 months ago

‘The end of Liz Truss’ ? Unfortunately not, but there may be more dangerous characters from the Tory party, who could replace her.
She is a loose cannon, wreaking havoc on us at the moment. (My stocks and shares are down £400.)
We need a better PM.

Jeff Butcher
Jeff Butcher
4 months ago

Never mind that she was elected 3 weeks ago and I haven’t seen hide nor hair of her. In fact I’ve seen more Jonathan Pie. Has she gone camping or something? Hiding in a bunker?

Edward Seymour
Edward Seymour
4 months ago
Reply to  Jeff Butcher

You saw her throughout the Royal mourning period. There was an enforced break in public politics.

Katharine Eyre
Katharine Eyre
4 months ago
Reply to  Jeff Butcher

She might be doing a Machiavelli and allowing her foot soldiers to become cannon fodder while staying above the fray. Hanging back while the hysteria subsides before making her statement. Macron does this to good effect. It means you burn up some of your team quite quickly (Kwarteng is the fall guy right now – who knows how long he’ll survive) but Truss is pursuing the right strategy if she wants to stay in place (for now – all political careers end in failure, lest we forget).

Steve Elliott
Steve Elliott
4 months ago
Reply to  Jeff Butcher

Maybe she’s where she should be, in her office working.

Stephen Follows
Stephen Follows
4 months ago
Reply to  Jeff Butcher

I could have sworn that was her reading a lesson in the Abbey.

Charlie Rose
Charlie Rose
4 months ago

 “This will boost growth across the UK helping more people afford to live near good jobs.”
Technology made cities obsolete in theory; COVID made cities obsolete in practice.
Sure, it would be great to live in London. But many people don’t have to “go” into work, and can instead perform their work…in the Bahamas if they like. The way to make housing in the cities more affordable is competition. Competition comes by allowing productive people to telework, if even from a satellite office, and to do so far enough from the cities with expensive housing.

Last edited 4 months ago by realfugpa
Kevin L
Kevin L
4 months ago
Reply to  Charlie Rose

And yet house prices in cities are still going up (until the last few days anyway).
I’ve been telecommuting for the last several years but I still choose to live in a city because cities are nice places to live.

Simon Adams
Simon Adams
4 months ago

The biggest problem with both the Labour Party and the Conservative party are their members. They often can’t see the wood for the trees. That’s what got Corbyn elected, and now Truss.

There was a fair chance a Sunak led party would have been re-elected. Most people would understand the global challenges, including Covid and Ukraine, and even Brexit related challenges. However it’s difficult to see how the average person will understand following 55 Tufton Street ideology just for the sake of it, especially when conservative voters would prefer some kind of attempt to balance the books. The BOE has been forced to follow an OPPOSITE strategy to the government, a schizophrenia that can only fragment the state, surely?

Hiring a hitman to put poison in Putin’s tea would be a more defensible narrative in terms of a solution to our current problems than crashing the economy and trashing the countryside. I can’t imagine a Labour government would be any better, but I guess we will find out in two years time now.

John Ramsden
John Ramsden
4 months ago
Reply to  Simon Adams

> especially when conservative voters would prefer some kind of attempt to balance the books.
It would be bonkers to attempt to balance the books, even if it was remotely possible now (although it might be a good idea to claim and pretend one was trying, in order to gain the approval of those who simplistically equate national finances with personal finances).
If, by some combination of a miracle and spectacular stupidity, the Tories (or some other party) ever did manage to balance the books then they would be handing their opposition a nice fat credit line with which to promise voters lots of lovely goodies and the opposition would walk the next election! That’s why Maggie Thatcher and Ronald Reagan merrily ramped up the national debt in their respective countries.

Simon Adams
Simon Adams
4 months ago
Reply to  John Ramsden

Of course personal finances are different to national finances. However having balanced books is not having no debt (even in personal finances it’s fine to have a mortgage), it’s not having a structural deficit.

The markets would not have lost confidence in the UK if we just had debt, but because it’s opening up the potential for debts to spiral out of control as interest rates go up. At least with personal finance, you can downsize your house if raising interest rates mean that you can’t pay your mortgage. However if all the extra government spending goes on increased costs, and government income doesn’t increase, the equivalent of downsizing – when public services from rubbish collection to GP services are already failing – will be devastating.

Last edited 4 months ago by Simon Adams
Liam O'Mahony
Liam O'Mahony
4 months ago
Reply to  Simon Adams

You can’t imagine Labour doing any better? Can you imagine them doing any worse? If so I’d love to know how!
Money in the pockets of the poor is spent almost immediately and locally on UK food, football matches and and beer, thereby stimulating growth (the mantra); whereas money in the hands of the wealthy will be saved or spent on Italian super cars, French yachts and Greek villas and will do sweet fanny Adams for the UK economy. The normal route for money in ‘trickle’ up, not down!

James Kirk
James Kirk
4 months ago

Three ways to deal with inflation. Interest rates, which hit mortgagees. A price freeze – enforce that! Or let energy prices go up with the market. What’s it to be? Shut the schools, hypothermic elderly, the poor and overstretched mortgagees. Closed pubs and businesses? A maze of means testing?
Handouts to the wealthy, a poor, badly timed political decision but makes no difference to Mr High St at about £10 quid a family. They may even buy something from the people you work for, or employ somebody, the intention.
Thanks to Blair, arithmetic is a mystic skill of yesteryear, oddly ignored by the biased whose ambitions are never far below the surface.

Vijay Kant
Vijay Kant
4 months ago

Economics is one subject that is not exact. There are infinite variables that could affect the economy of a country. It is therefore natural that different solutions to a problem should be tried in economics. No economist has ever forecast anything with certainty. This government should therefore be given a benefit of the doubt with its handling of the current economic problems. It is said in science that unless you are making mistakes you are not learning anything. A change of approach to the current economic problem is therefore a welcome sign to me.

Liam O'Mahony
Liam O'Mahony
4 months ago
Reply to  Vijay Kant

With expert economists merely ‘guessing’ I wonder what the PM & CoE are doing? I suppose ‘gambling’ is appropriate? ‘Not sure I’d like to invest into that scenario thank you very much! No wonder the markets and IMF took fright! With that level of uncertainty surely the appropriate action would be prudent rather than reckless, cautionary rather than foolhardy, err on the side of safety rather than put the family fortune on a dodgy horse?

Tony North
Tony North
4 months ago

Two years from now the pound will be up…the national debt down …..interest rates will be at a more historically sensible balance between savers and borrowers. Truss and co will survive the markets and Starmer smirking at his newly loyal Party.

Liam O'Mahony
Liam O'Mahony
4 months ago
Reply to  Tony North

I can see some sense in your argument: I assume you mean the £ will be up sh¡t creek and inyerest rates down to toilet I presume?

Edward De Beukelaer
Edward De Beukelaer
4 months ago

Interesting discussions and many varied opinions. What is miss in the discussions is an analysis to try and understand who will eventually benefit. Will it be people who do work or will it be those who make their money work. It would be lovely to see some examinations about none monetary value in all this. This may sound silly, nevertheless when you create the situations where people find value in their lives they become productive and need less financial support from the state (social , can and medical costs) …. for more info: Schumacher small is beautiful and H Cottam book Radical. Also, if you are courageous, mcGilchrist The Matter with Things.

Nicky Samengo-Turner
Nicky Samengo-Turner
4 months ago

I have a simple solution for Lizsettee ToileTruss… another Great Reform act, leaving the vote to the top and bottom of society, and disenfranchising the middle… job done?

Peter Wilson Close
Peter Wilson Close
4 months ago

We do need rate rises to curb house price inflation but the rise will scupper the true economy so we need to print some new sovereign money to stimulate or at least stabilise it. BOE has printed no new money for the economy since the banks were deregulated in the 80s. The only money printed has been QE in 2008 and 2020 and none of it “trickled down” as BOE hoped/expected. The result is we have an £2700bn economy almost totally funded on bank created credit – i.e. debt. It’s absolute nonsense but none of these fools [bankers, financiers, even most economists, journalists, politicians] understand how money functions: https://www.opendemocracy.net/…/return-to-sovereign-money/

Liam O'Mahony
Liam O'Mahony
4 months ago

You’ll need something to back it though.. what have you got?

Peter Wilson Close
Peter Wilson Close
4 months ago

Truss and Kwarteng are right. It needs a bit of “heel and toe” to use a motor racing expression. Higher interest rates to curb inflation in existing assets and from externally driven prices. But pumping new money into the economy. However there is also a supply side and available labour problem. It’s not going to be easy but at least they understand what the problem is unlike the majority of journalists, politicians, financiers, bankers and even economists [and now IMF!] who haven’t a clue how money functions and where it comes from. There is a magic money tree but it must be used with discretion. Unfortunately all the above have forgotten it even exists as too many of them were educated after Bretton Woods collapsed and Thatcher deregulated commercial banking in 1985

Alan Hawkes
Alan Hawkes
4 months ago

The reference to the 364 economists gave me the idea for a collective noun: an error of economists.

Gavin Thomas
Gavin Thomas
4 months ago

Lowering taxes (which are still higher than the IMF sheltering, USA), stimulating growth, cutting public expenditure, reducing the ‘big state’, promoting exports, budgeting for national interests and not borrowing (much) more are all conservative traits…
…no wonder the ‘establishment’: Tory MPs, Whitehall, globalist financial institutions and the media are upset!
This is CHANGE – and they don’t like it – they prefer to borrow more, tax more and control more.

D Frost
D Frost
4 months ago

I’ve seen so many media organizations crowing about how Liz Truss is finished. For Pete’s sake, she’s been in office a month! I think they’re just terrified of the idea that she might succeed.

Liam O'Mahony
Liam O'Mahony
4 months ago
Reply to  D Frost

I’m terrified pigs will learn to fly!

Perry de Havilland
Perry de Havilland
4 months ago

Her economic plan can be “salvaged” by not listening to wets & Blue Blairites who hate the idea of anyone deviating from the failed orthodoxy.
She needs to stick to her guns and use the three line whip without hesitation or remorse.

Kevin Donnelly
Kevin Donnelly
3 months ago

Revert back? Nearly as bad as continue on.

MI6 UK
MI6 UK
4 months ago

For Liz Truss the definition of economic bliss seems to include interest rates skyrocketing, Sterling plummeting, inflation surging, food and energy prices rampant, pension funds haemorrhaging, the NHS collapsing and strikes spreading like Covid-19. Who is really driving it?
 
Perhaps the UK’s kindergarten economics is being driven by Hugh O’Leary? He is after all an accountant but we are having difficulty checking whether he is a turf, a tax, a chartered, a certified or just an unqualified one. If you don’t know who he is, he is arguably now the head of one of the most influential families in the UK so Google him if you don’t know because you should know and he may well feature in future scandals that will rock this Tory government.
 
Talking of future British Government scandals, don’t be surprised if Putin features and Brandon Lewis plays a prominent role. Lewis is Truss’s Justice Secretary (pardon the joke), stars in Private Eye, is anagrammed as the Baron Swindler and may even have a Russian passport or two. Furthermore, while we are on topic about Truss The Cuss and scandals the real issue is not so much her childish economics but her trustworthiness.
 
Ask Hugh O’Leary what he thought of her 18 month affair with former Tory MP Mark Field or ask the shadow attorney general if Truss is honest. It seems Truss has spent over £10,000 of taxpayers’ dosh on private catering; beauty treatment; vintage wines; flash home furnishings; and even £1,841 at the Norwich City club shop. Mind you, the barbers at Finishing Touches are happy; they got paid over £4,000 but does Truss look any the better for it? As for her supporting Norwich City Football Club, they too were relegated!
 
In the meantime if you are interested in articles naming dozens of Tory Party bigwigs et al once under the influence of Russia best read the article for July 21, 2021, in the news section of Bill Fairclough’s Burlington Files website at https://theburlingtonfiles.org/news_2021.07.21.php. While you are at it, you might also want to read Fairclough’s raw noir spy thriller, Beyond Enkription; it’s a must read not only for espionage cognoscente but also decrypted people.