Current Events > Any Englanders here? What do you guys think of Truss and the fact that the UK is

(+) Yeah! (+)

fucked?

[LFAQs-redacted-quote]


They can probably explain better than me but long story short....Truss is their new PM, the Uk equivalent of Reagan. Theres already high inflation in europe from covid, same reason as us.

Ukraine war => Sanctions on russian oil which was a huge supplier => have to spend ALOT more on energy imports from elsewhere, specifically liquified natural gas which is very expensive to transport across seas => super high energy costs. So what the UK did was set a price cap on what energy will cost the consumer and the government will absorb that cost. They will pay for it with bonds...more on that later.

Now on top of that they decided lets create massive tax cuts to stimulate growth. So how does the government pay for things when they bring in less tax money? More bonds. Also growth is inflationary. At a time when theres supply side issues and already pent up demand, tax cuts is moving in the wrong direction and will worsen inflation.

Now they are issuing so many bonds to pay for everything, bond prices are plummeting (increased supply of bonds => decreased price of bonds). That also means bond yields go up.

Now peoples pensions are in bonds right? Its supposed to be safe growth. This part gets alittle confusing for me too but long story short, their bonds are worth alot less because the government just dumped a shit ton more into the market.

The bank of england was planning to sell a bunch of bonds, which effectively takes money out of the economy, to help inflation. Now it to reverse that and buy bonds as a safety net for everyones pension funds. If the central bank buys bonds => dumps more money into their economy.

And they cut taxes to stimulate growth when literally the bank of england is trying to do the opposite to control inflation. Increased bond yields also increases interest rates for borrowing => people borrowing for spending, businesses borrowing for growth. And on top of that the bank of england will likely increase their base interest rate soon....which again means higher interest rates => less borrowing => less growth => good to control inflation but counterproductive to what the government is doing.

TLDR: They have high inflation, and now they are in this bad cycle where they have to do things that worsen inflation rather than fight it. And alot of these problems are caused by this new regime. The central bank and the government are completely on different pages.

The whole world is heading into an autocratic crash. WW3 going to be reality soon with all these "(country) First" leaders.

We made our bed. We vote tory year in year out. We deserve every minute of it.

Front page of the economist:
https://www.economist.com/

TLDR:
How not to run a country
Liz Trusss new government may already be dead in the water

The UK equivalent of Reagan was Marget Fucking Thatcher. And she went even further than Reagan could ever dream of.

ToadallyAwesome posted...

The UK equivalent of Reagan was Marget Fucking Thatcher. And she went even further than Reagan could ever dream of.

She's said to be the new Thatcher.

i am a scotlander not an englander

but I'll answer anyway, she's farcical. It's incredible how we've had four PMs in a row now who have all managed to make the previous one look good. "It can't get any worse" - me for over a decade now.

pinky0926 posted...

We made our bed. We vote tory year in year out. We deserve every minute of it.

This. We deserve this. We've had every chance to not vote for the party saying "if you vote for me, I will make your life as miserable as possible and do my best to make your poorer" and yet we didn't.

Presumably it's what they voted for.

Funkydog posted...

This. We deserve this. We've had every chance to not vote for the party saying "if you vote for me, I will make your life as miserable as possible and do my best to make your poorer" and yet we didn't.

Yeah bro, but muh taxes!

Seems like since Brexit they have kind of been on a crashing pattern.

Er TC you do know that the UK isnt just England right? Its also Scotland, Wales and Northern Ireland.

Its like someone told her you cant be worse than Boris and she went here hold my champagne.

Im so glad that I got out when I did.

Can't Truss It

Deutschenlied posted...

Can't Truss This

Ftfy