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Liz Truss must control herself because world advice in a disastrous recession

For past 25 years, and especially after financial crisis, i.e. global economy took a disastrous wrong turn for with whom we are going to pay a terrible price. AT one of the most serious intellectual errors since communism, many of the smartest in the world people thought they found secret to eternal prosperity. Forget hard work deferred gratification, decision post-industrial wastelands or actually earning onekeep aside creating, building and export: was easier way.

rejoiced on politicians, central banks kept interest rates low, favored borrowers over screensavers, printed money with throw and project an artificial arrow in house prices, tech hard stocks, cryptocurrencies, bond markets, art as well as more. This surrogate “wealth” was meant to encourage spending and investment, tax revenue would fund a generous welfare state, low rates allow rising government debt and there would be no need for difficult conversations on aging, science taxes, competitiveness, incentives or productivity.

But it was Potemkin. economy, facade, con. A lot of of “growthand there was no wealth real. The UK was stagnating, not booming. Housing prices “enriched” the haves and infuriated the have-nots. It was a bubble best, and at worst a Ponzi scheme keeping zombie projects alive and fueling obscene underperforming investments. Edward Chancellor “The Price” of Time is a brilliant primer for beginners on this tragedy.

This crazy experiment ends, killed off on money covid overdose seal, supply-side dislocation that accompanied the virus and the attempt to deliver economy in a coma, and Putin’s war, everything of which led to a sharp rise in consumer prices. Need to move from cheap to sustainable money will be traumatic and trigger vicious global recession, higher unemployment and bankruptcy. Long-term mortgage loans already by 7.1% in America when the old order is crumbling and financial markets in turmoil all over the world.

This is the context for punishment beating proportionately out to the UK. The restructuring that any other country will carry out also to undertake – especially higher borrowing costs – gone place in accelerated form in United Kingdom, triggered through financial ridiculous reaction of the markets to the budget. The pound fell disproportionately. A little pension the funds were caught out forcing the bank of England in intervene.

It is easy to understand why the chancellor did not predict such a reaction. When it comes to budgetary impact, the vast majority of politics announced It was already was tracked and cost of energy saving looks much lower. Costs are falling already because inflation is depressing public wages in the sector, and the fiscal burden continues to do its dirty work.

It was an ideological, intuitive reaction to the government. financial institutions do not understand properly. Elite mood music in 2022 set by left-wing American economists and hysterical tweeters who hate Truss, Brexit and the offer…side economy. Therefore it is extremely important for A government that rightly wants to smash orthodoxy must have many more active in explanation how it will grow economy and stabilize public finance and how Middle England will be better off.

Kvarteng and Trass broke many taboos: they dared to criticize the bank of England during the campaign, explaining that the rate hike was too slow, effectively making it softer version of my argument above. The markets agree that the Bank was worthless, especially compared to with Federal Reserve System of America. But prejudiced by their misreading of Brexit, they listened to those who deliberately misrepresented Trouss powerful analysis into asserting that she does not care about taming inflation is a despicable lie.

It was made worse from inexplicable failure raise rates more last a week and it’s dumb decision to start sale of pigs. Merchants also decided to interpret Trassa’s proposalside tax cuts as a hint that she doesn’t care about national debt is another ridiculous misunderstanding.

My mark of this budget policy does not have changed: they are excellent. Every idea announced positive for growth. The same applies to all other deregulation and tax initiatives that the Prime Minister is working on. onA: They must be accepted. this is possible to reinforce the trend rate of growth. A corporate tax increase would be a disaster. Reducing high marginal tax rates great. We need to build a lot of more.

The farm is exceptional in realizing it’s fake growth on never-never ends, and real bottom-up capitalism required instead. She wants to shrink current account deficit due to strengthening the city, increasing energy production and draining in enterprises. So outrageously arrogant of IMF, eccentric, hypocritical body what should were scrapped many years ago demand reversal. His focus on tiny fraction of Trussom tax cuts – £2bn liquidation of Gordon Brown’s main tax rate – proves that he is now clearly attuned to the left Joe Biden and should should be boycotted by reasonable governments.

justification for this is blatant intervention by the IMF, run Kristalina Georgieva, for six years as European Commissioner, was that Truss’s tax cuts would increase “inequality” and, apparently, according to fashionable nonsense, depress growth. It’s a shameful mix of market results with sincerely bad inequality (such as exists under feudalism or a corrupt kleptocracy) and an ideology masquerading as science. home driver of inequality in In recent years, there has been a bubble economy approved by the Davos Consensus. It is absurd to say that the IMF also did this one can’t tighten monetary policy with the weakening of the fiscal policy.

The Prime Minister must control himself. Her vision is exactly right for transition management post-Brexit economy built on sustainable expansion, not debt- fueled mirages. We must hope that the Bank’s belated intervention will stabilize the markets and give some kind of cover. Andrew Bailey, governor, should start does its job right.

great danger is that the left is trying to turn our rising interest rates into an “ERM II moment” by blaming on tax cuts by the prime minister, while in fact the end of cheap money would have happened anyway though more gradually. The stakes are extremely high and there can be no back-to pedal. Conservative MPs should back Prime Minister in full force.

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Adrian Ovalle
Adrian Ovalle
Adrian is working as the Editor at World Weekly News. He tries to provide our readers with the fastest news from all around the world before anywhere else.

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