
“I want to deliver a low tax, high wage, high growth economy. It’s what I was elected by my party to do. That mission remains” – Prime Minister Liz Truss (14.10.2022)
Today the Prime Minister sacked her Chancellor Kwasi Kwarteng and replaced him with Jeremy Hunt. If you think things will be smoother from now on. Well, I hate to tell you, but things are not getting turned around that quickly.
This U-Turn doesn’t change the financial forecasts or the distress that the financial markets has had of late. We are hearing talks of low tax and “growth” from the Prime Minister. That means Truss isn’t over the biscotti “mini-budget” that broke the financial markets … which has destroyed the gilt and the mortgage market.
Now Chancellor Hunt has to change things, but just reading here statement from the Press Conference today. She seems fixed to continue where Kwarteng left off.
Just read here:
“We owe it to the next generation to improve our economic performance to deliver higher wages, new jobs and better public services, and to ease the burden of debt. I have acted decisively today because my priority is ensuring our country’s economic stability. As Prime Minister, I will always act in the national interest. This is always my first consideration. I want to be honest, this is difficult. But we will get through this storm. And we will deliver the strong and sustained growth that can transform the prosperity of our country for generations to come” (Truss, 14.10.2022).
Truss can say all the words she wants, but they are meaningless when there is no sincere action. The financial markets needs stability and well rounded choices of policy. The latest moves has created more hectic mess, which is adding costs on the citizens and their lives. It isn’t like the Prime Minister and her previous Chancellor has done due diligence.
Prime Minister Truss really needs to re-consider her ways. The sacking now of Kwarteng seems more like hackwork. Only done to appease, but her Press Conference only shows her true intentions. The “mini-budget” is in her mind and spirit. Why else speak of “lower taxes”?
When you are firing someone over the tax-cuts for the wealthy and big-businesses. That is the reason for the distress and issues in the first place. It is clear that Truss haven’t learned anything or seen the ramifications of the recent actions.
You would think the actions of Bank of England was the warning sign that got the duo to act sooner. However, they just thought it was within it’s right and not a red flag. That’s why Truss should have done more and been more concerned. Nevertheless, that wasn’t her vibe and this is why she has waited this long…
Hunt has a mountain to climb to fix the mortgages, gilts, pensions and the building confidence in the Pound Stirling. The cost of living crisis is just growing and Truss own government haven’t made this any better.
Crikey… I wouldn’t like to be in Hunt’s shoes right now. No matter where he steps there will be crocodiles or pirates to capture him. There is very few steps that can keep on land and in safety. However, if he continues to raise the sails and try to go fast. We will most likely see further damage to the economy. Peace.












