Posted on 10/23/2022 7:15:57 AM PDT by whyilovetexas111
The bond market just carried out a hit on Liz Truss, so watch out, Sleepy Joe, you could be next.
The implosion of the UK prime minister is certainly one for the ages. She came in with a burst of optimism that she would reverse the country’s economic malaise with Thatcherite tax cuts.
Unfortunately, Truss left out a few steps, including Thatcherite cuts to government spending. The bond market revolted. After less than two months in office, she’s now political roadkill.
(Excerpt) Read more at nypost.com ...
They were introducing tax cuts but they weren’t doing anything about the supply situation, they have to cut entitlements in order to get their Workforce to go back to work in order to increase Supply. Cutting taxes without doing something to generate additional Supply will not solve their problems with inflation. All it does is lead to a increased deficit for their country.
It’s not a supply situation. It is the green energy suicide that is driving the inflation in Britain and here at home. Oversupply is more a problem than not enough. Things have changed dramatically since the world wide recession/depression began.
Unfortunately, in the US, Biden, unlike Truss, is going to be protected by the globalist elites because they know Trump is waiting in the wings. Truss on the other hand, had a far more conservative and patriotic/nationalist agenda, and so they destroyed her.
The globalist, big financial elites know that being allowed to continue pursuing one-world government, mass immigration into the west and high regulations that benefit big business at the expense of small business benefits them far more than a pithy little tax cut that Truss and Kwarteng were offering.
Total fiction.
The Euro and Yen exchange rates against the US Dollar fell just as much as the UK Pound did. Also, the US Dollar soared to a 20 year high against a basket of all three of those currencies.
In addition, the interest rate on the UK 10 Year Sovereign did not go above 4% until one day ago. During the entire alleged bond crisis, interest on the US Treasury 10 Year was always higher than the interest on the UK 10 Year.
Finally, the minuscule Truss tax cut was roughly 5% of the total Bank of England money printing debt during the Covid shut down.
This alleged financial panic was manufactured by the radical Left financial media, specifically, Reuters, The Economist, Bloomberg, and CNBC. Then, every other Hard Left MSM news source picked up the story and ran with it.
Their motive is political - destroy the British Conservative Party.
Joe Biden, the greatest election influencer in history. Just not the kind the left sends out every second.
That lack of Supply on energy is driving a lack of product production that therefore increases inflation due to the scarcity of Supply in general. If you reduce tax rates that increases the amount of money people have to spend but not the number of products they can spend them on, that would then for crate more inflation not less but if you reduce taxes and at the same time increase Supply that will cause inflation to be reduced and eventually be eliminated
That’s all well and good but can’t be accomplished before the western energy suicide ends.
Yes, that’s part of the supply so that’s like sitting can’t have energy before we have energy
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