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Strategies & Market Trends : The Financial Collapse of 2001 Unwinding
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To: DinoNavarre who wrote (9374)9/29/2022 1:14:19 PM
From: Elroy Jetson1 Recommendation

Recommended By
Cogito Ergo Sum

   of 13801
 
Liz Truss, living up to her reputation of being a crazy as a box of snakes, is experiencing some serious Mudell-Fleming problems as she and her insane Tory Party make a mad attempt to emulate Ronald Reagan.

Passing out big tax cuts for the wealthy in the UK, funded by new debt is flat out crazy when inflation is 11% and interest rates have to rise.
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Initially this newly announced budget change drove interest rates rapidly sky high, hitting business loans and consumer home loans which are all variable rate in the UK.

Having removed "the abacus bankers", from Treasury, the guys who insisted on numbers adding up, Truss has been able to respond to this initial fire by demanding the Treasury buy UK debt to stabilize the falling price.

But this is going to come either at the expense of a rapidly falling Pound to profound new lows, or a flight of capital from the UK.
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UK Pension Funds, known as Liability Driven Investments, are trapped inside a small UK market where allowing companies to sell their holdings during a panic would crash the UK market. It tough to say that Black Rock would experience a greater "reputational risk" from seeing their Pension funds decline 90% in value or halting sales.

It's all down to the Tories and their PM Liz Truss as to how bad they want to make life in Britain. They say they're not changing course. — I suspect we'll soon see English citizens asking for asylum in the EU.
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