Should we trust Sunak or the next PM to fix the Country's problems? (title revised 24/10/22)

[honeybee13]

Maybe this is why she didn't want an ethics adviser.

 

Liz Truss ‘promised chief of staff next Tory election campaign in exchange for No 10 job’ | Conservatives | The Guardian

WWW.THEGUARDIAN.COM

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Exclusive: Senior Conservatives warn ‘quid pro quo’ arrangement with Mark Fullbrook spells ‘electoral doom’

 

 

[honeybee13]

Ken Clarke's opinion on the budget. 'Like South America', also Italy.

 

Ken Clarke Says Kwasi Kwarteng's Tax Cuts Are Like Something Out Of Latin America

WWW.HUFFINGTONPOST.CO.UK

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The Tory grandee said the handouts for the rich could lead to even higher inflation and a collapse in the pound.

 

[honeybee13]

The markets are underwhelmed by the 'fiscal event'. Kwarteng and Truss should be worried.

 

And I don't think it's going to take very long for members of the public to spot that the tax reductions only apply to the very rich.

[honeybee13]

Nomura are predicting that the pound will hit parity with the dollar by the end of November and lower than that by the end of the year. Their quote 'Hope is not a strategy.'

 

BoE are expected to raise interest rates imminently but No10 is refusing to comment on the situation.

 

Is it possible that Tory MPs will rebel in sufficient numbers to vote down the budget?

[honeybee13]

From the Guardian's economics editor. Maybe getting rid of the respected Perm Sec at the Treasury wasn't such a great idea?

 

Pound’s plummet underlines schoolboy error by Kwasi Kwarteng | Sterling | The Guardian

WWW.THEGUARDIAN.COM

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Chancellor added to market worries by pledging further tax cuts in full budget planned for later this year

 

[honeybee13]

Oh, I'm pretty sure the perm sec would have disagreed, yes. But getting rid of all the experts and experienced civil servants isn't a smart move and will rebound on them.

 

I see there are reports of letters going to the 1922 committee already, after the mini budget.

[honeybee13]

The privileges committee wasn't really supposed to start investigating until September.

 

They released a repudation of Lord Pannick's challenge earlier today. The one trying to kybosh the enquiry - they basically said it showed a misunderstanding of parliamentary procedures and had confused it with criminal law.

[honeybee13]

From Baron O'Neill, ex-chairman of Goldman Sachs.

 

'By not allowing the OBR to come up with an independent assessment, it’s just created a view around the world that what on earth is going on inside the British Government and that there aren’t really many adults in the room, let’s say.'

 

Financial people would like a joint statement with Andrew Bailey and Kwarteng to calm the markets, but the BoE could reassure investors with a statement. Others think Kwarteng and Truss should explain their strategy.

[honeybee13]

A number of professional economists are talking about a sterling crisis and not understanding why Andrew Bailey and Kwarteng are talking about making announcements in two months' time.

 

It's also been said that both of them have credibility problems.

[honeybee13]

I'm not sure how good this government [and the last one] are at co-operating with near neighbours and using Macron and the French as a political punchbag hasn't been clever.

 

I'm amazed the French are still helping at all after what's been said about them but I keep reading that the UK isn't paying over all the money it's promised.

[honeybee13]

OH has just had a conference call with a UK investment house cancelled. Kwarteng has called a meeting with a lot of large institutions this morning and I hope they don't hold back on what they think.

 

I've also read that he's meeting the BoE, whatever difference that might make.

 

Has anyone seen the PM?

[honeybee13]

For someone who's only been PM for three weeks, Truss is acquiring nicknames quite fast. 

 

I can't decide between Mad Mary or the one that City traders are tweeting. They're calling her Daggers, as in Dagenham, two stops beyond Barking [on the London underground.]

[honeybee13]

Oh yes, and there are rumours of the 1922 committee calling an EGM to change the rule that the PM is immune from a no confidence vote for the first 12 months.

 

[honeybee13]

Oh dear. Apparently things aren't good between KK and the BoE either.

 

AFAIK the PM hasn't been seen for two days now.

 

Liz Truss had to be convinced to issue statement amid market turmoil after mini-budget

NEWS.SKY.COM

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The prime minister's initial instinct had been to stand firm and say little or nothing while faced with market turmoil, spiking borrowing costs, and the...

 

[honeybee13]

And KK used to work for him...

[honeybee13]

Here's Danny Blanchflower who was on the BoE's Monetary Policy Committee and an economist for 50 years.

 

 

[honeybee13]

More from Danny Blanchflower.

 

 

[honeybee13]

And here's the Washington Post.

 

"Britain has replaced Italy as Europe’s problem economy. Having left the EU, the new Conservative government led by Prime Minister Liz Truss faces almost no constraints. She was expected to be bold. She is turning out to be bonkers."

 

https://www.washingtonpost.com/opinions/2022/09/26/britain-europe-weak-economy/

[honeybee13]

And Robert Peston.

 

 

[honeybee13]

Better late than never. Even the Beeb has caught up with where Truss and Kwarteng are getting their economic and other advice.

 

55 Tufton Street: The other black door shaping British politics

WWW.BBC.COM

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55 Tufton Street has hosted organisations that have had a big political impact over the last decade.

 

[honeybee13]

And now Moody's comment.

 

Moody’s warns against the UK’s “credit negative” fiscal policies

WWW.CREDITSTRATEGY.CO.UK

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Moody’s has warned that the UK’s recent mini-budget risked “permanently weakening the UK’s debt affordability”, describing the country’s new fiscal...

 

[honeybee13]

Probably a first, TOR. Lol

 

[honeybee13]

Quite so, KS. From Jon Craig on Twitter.

 

'Tory “big beasts” appear to be boycotting next week’s party conference. Rishi Sunak, David Davis, Sajid Javid & Mel Stride all confirm they’re not going.'

 

Another pundit wondered if anyone other than the cabinet would be there.

[honeybee13]

I can't see the markets waiting two months to find out what their strategy is.

 

Apparently Mad Mary and Kamikaze thought traders, rich people and the markets would love their budget. I wonder if they asked anyone before they went ahead with Britannia Unchained economics.

 

Still nobody has seen Truss and Kwarteng was only spotted because he used the front door coming out of the Treasury. He soon vanished back into the building.

[honeybee13]

Finally, a major paper mentions the 'B' word. Robert Shrimsley in the FT.

 

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