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mac
Joined: 07 Mar 1999 Posts: 17780 Location: Berkeley, California
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Posted: Mon Oct 03, 2022 7:53 pm Post subject: British conservatives |
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After massive cuts for the rich (does anyone else remember voodoo economics?), the pound collapses.
From CNBC, September 7:
Quote: | The British pound on Wednesday plummeted to its lowest level against the U.S. dollar since 1985.
Sterling fell to $1.1407 in afternoon trade in London — a level not seen in 37 years — as investors responded to the U.K.’s darkening economic landscape with a new prime minister at the helm.
It was last seen trading down 0.4% at $1.1469. |
Uh, never mind:
“LONDON — The new British government said “we get it” as it abandoned plans to abolish the top rate of income tax, a key part of its centerpiece economic policy that spooked the markets and pushed the British pound to an all-time low against the U.S. dollar.
In a major U-turn, Prime Minister Liz Truss said Monday that the proposal to scrap the 45 percent rate for people earning more than 150,000 pounds ($168,000) had become a “distraction.” “.
Support for labor now up by 33%. Nothing quite like self-inflicted wounds to change the political dynamic.
“Political turmoil
Amid the fallout, support for the Tories has tanked, with YouGov putting the opposition Labour Party 33 points ahead. A survey by Opinium for the Observer newspaper showed three-quarters of UK voters, including 71% of those who backed the Tories in the last election, believe Truss and Kwarteng have “lost control” of the economy.
Cutting taxes for Britain’s highest earners is proving especially toxic among Tory MPs, who fear the accompanying government cost savings Truss and her ministers say are needed will play into the hands of Keir Starmer’s Labour. |
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mac
Joined: 07 Mar 1999 Posts: 17780 Location: Berkeley, California
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Posted: Fri Oct 14, 2022 11:51 am Post subject: |
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Quote: | LONDON — British Prime Minister Liz Truss was propelled into high office by her bold promises to supercharge the country’s flagging economy with big tax cuts for corporations and high earners.
Now her vision for growth, which emphasized supply-side economics, has crashed into reality.
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Her premiership and government are reeling, as markets — and members of her own party — wondered how she could simultaneously slash taxes and maintain social programs without deep borrowing. The short answer? Her math didn’t add up.
On Friday, Truss announced that her architect for growth, Kwasi Kwarteng, was resigning as chancellor of the exchequer, Britain’s title for the finance minster. |
Ready, shoot, aim. |
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boggsman1
Joined: 24 Jun 2002 Posts: 9146 Location: at a computer
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Posted: Fri Oct 14, 2022 2:09 pm Post subject: |
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Brexit also a disaster, manipulating or shorting the pound is a lot easier than the Euro. Double digit inflation, a pension problem , and an unstable political situation has the UK at the forefront of a potential GFC 2 .... |
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mac
Joined: 07 Mar 1999 Posts: 17780 Location: Berkeley, California
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Posted: Fri Oct 14, 2022 3:29 pm Post subject: |
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boggsman1 wrote: | Brexit also a disaster, manipulating or shorting the pound is a lot easier than the Euro. Double digit inflation, a pension problem , and an unstable political situation has the UK at the forefront of a potential GFC 2 .... |
Is this what happens when you put nationalism above all other criteria in policy making? Get those Polish carpenters out of here? |
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