Opinion: Kwarteng’s change of heart…

What I am looking at is the growth plan and delivering what is a radical plan to drive growth in this country, to reduce taxes, to put more money that people earn in their pockets” (…) “No, we talked together, I said this is what I was minded to do and we decided together, we were in agreement that we wouldn’t proceed with the abolition of the rate” (…) “We can always have a debate about when we could’ve made the decision, but the important thing is we’ve made the decision and we can now move forward with making the push for the growth plan” – Chancellor Kwasi Kwarteng on BBC Breakfast (03.10.2022).

The Biscotti Mini-Budget launch of tax-cuts for the wealthy and the richest of the Kingdom has backfired. This has been seen with how it has destroyed the confidence in the Pound Stirling and the trouble it caused on the gilt market or in the mortgages market.

It doesn’t help that after the effect it, the Chancellor says: “We get it”. Well, the self-destruction and the losses are already been seen over the last few days. The Bank of England had to come in and salvage the gilt market. Because, the Chancellor and Prime Minister Liz Truss clearly didn’t get what they were doing.

The BDO United Kingdom analyst even wrote this about the Chancellor: “Kwasi Kwarteng is a strong ally of Truss’, and is broadly aligned with her stated economic policies, including on windfall taxes, raising income tax thresholds and reductions in Capital Gains Tax. As Chancellor, Kwasi Kwarteng will be taking on a Treasury under immense pressure, with Truss’ proposed sweeping tax cuts leaving large holes in the public finances. Historically he has been a proponent of low taxation and free markets, but when confronted with the growing calls for direct government intervention to support businesses and households through the current energy crisis, these leanings will be put to the test” (John Hickman – ‘What to expect from the new Prime Minister – Liz Truss’ 01.10.2022).

These words are the most true as they can be today. The Chancellor and Prime Minister did test the market, but that already has a huge cost. The implications of holding on and trying to give tax-cuts to the riches. Could either end up in a quick rebellion in the Tories party itself. The Tories MP could easily have sent enough letters to the 1922 Committee and end Truss reign quickly. That’s why they are backtracking now…

The policies are what these two actually believe in. Truss and Kwarteng did really think it was legit and was reasonable to do all of it. That’s why they held on and pushed the “growth plan” which was a short-trip to recession and a faster downturn. There are already ramifications for several of home-owners and companies holding on to the pensions. This will linger on and will not be settled by the change today.

The Tories are really at a cross-roads, because they will push for austerity, but also more perks for the wealthy. While the Tories will take away benefits and ensure less deficit in the budgets ahead. The Tories can act like this was one off, but we know it easily could come more like this.

Kwarteng and Truss has just showed what they are willing to do and risk. They risked the financial market, the mortgage industry and people’s pensions, just so the wealthy could get more in their pockets.

No one can trust these two, neither have confidence in their decisions or choices. Because, they just trying to cover the richest people and give them leeway, while the poor have to struggle even more. Peace.

Opinion: Truss and Kwarteng’s self-inflicted crisis…

Government policy has nothing to do with common sense” – Sir Humphrey Appleby (Yes, Minister).

I wrote earlier in the year that Truss could be the albatross, which the Collins Dictionary describes like this: “If you describe something or someone as an albatross around your neck, you mean that they cause you great problems from which you cannot escape, or they prevent you from doing what you want to do” (Collins Dictionary – ‘Albatross’). In the months time I wouldn’t consider to be proven right, but especially not in this way.

Liz Truss and her appointed Chancellor Kwasi Kwarteng has just within a weeks time announcing their biscotti mini-budget been able to destroy the value of the Pound Stirling, making mortgages expensive, getting the Bank of England to save pensions and gilts. The whole financial market turned into distress and uncertainty, which haven’t been at these levels in forever. Not even the COVID-19 Pandemic or the downturn of Brexit was as dire. Not like the United Kingdom or City of London was running smooth now. However, the latest moves of the Tories and the tax-cuts are hurting the economy. In such a manner, that the Prime Minister and Chancellor are doing this to themselves.

These two could do better, but they are pursuing it. They seemed not very concerned with the fall of value of the Pound Stirling, neither the actions of the Bank of England. The distress and uncertainties creating are being put on the consumer and the citizens. Their mortgages and pensions are in jeopardy. The rising payments in addition to the more cost of living, rising inflation and now destruction of the financial market is a horrific cocktail created by the Tories. It is all culminating because of the biscotti mini-budget.

That’s why this little treat is self-destructive. The Tories and the ones in-charge is clearly not caring or acting in accordances to the harm they are creating. They are the albatross and they don’t mind being so. Truss and Kwarteng is doing it, but willing playing along. Thinking this will boil over and it will make sense in November. However, the public will pay the price on the mortgages and the Bank of England is bailing out the government.

Truss and Kwarteng can gamble everything on the biscotti. They are willing to go on the limb and die on the hill of the rich. These two are willing to risk the financial markets so the rich gets more wealthy. Those two are now willing to risk the companies carrying the pensions, creating a possible housing crisis and that in addition to the inflation or affects created by the Brexit itself. There is already a downturn with austerity for 12 years, but not forgetting the financial market reaction to the Brexit too. Therefore, these two knew things wasn’t perfect or running smoothly. Even knowing that… they still are pushing tax-cuts for the rich and cutting benefits for the poor. They are doing the opposite of Robin Hood and hopes for glory. It is just disgusting… and should be called out for.

London is falling, the City is falling and no one is in-charge is ensuring a safe landing. It is really disgraceful the attitude and the acts of the Prime Minister and Chancellor. They are just showing arrogance and ignorance of the plights of the people. When they are ensuring more wealth for the wealthy and planning to cut more for the poorest. That is just how despicable these leaders are. While the prices are souring, inflation is growing and the pound is losing value making all imports more expensive.

Truss and Kwarteng are two albatrosses now. They are a problem and they are allowing themselves to be it too. That’s the role they are playing and they are not letting go. Peace.

Opinion: Is London falling?

Chancellor Kwasi Kwarteng met with members of the financial services sector. He reiterated the government’s commitment to fiscal sustainability & how the Medium-Term Fiscal plan, to be published 23 Nov, will set out a fully costed plan to get debt falling in the medium-term” (HM Treasury, 28.09.2022). .

We know that Brexit would have effects and change the liquidity and ability to get the financial markets connected to the City of London. The Tories has had power for the last twelve years. If anyone would know how things works and what matters. It is the Tories and their Ministers should know as much. However, the newest Prime Minister Liz Truss and Chancellor Kwasi Kwarteng seems unaware of a key component for the financial markets, which is “trust” and “stability”.

The Biscotti Mini-Budget is apparently ruining everything. The Bank of England has to buy bonds and gilts, saving businesses and the owners of pensions. If the Bank of England hadn’t stepped in they could have gone bust and things would have been even worse.

The Bank of England is even stating it like this: “As the Governor said in his statement on Monday, the Bank is monitoring developments in financial markets very closely in light of the significant repricing of UK and global financial assets. This repricing has become more significant in the past day – and it is particularly affecting long-dated UK government debt. Were dysfunction in this market to continue or worsen, there would be a material risk to UK financial stability. This would lead to an unwarranted tightening of financing conditions and a reduction of the flow of credit to the real economy. In line with its financial stability objective, the Bank of England stands ready to restore market functioning and reduce any risks from contagion to credit conditions for UK households and businesses” (Bank of England – ‘Bank of England announces gilt market operation’ 28.09.2022).

These aren’t the words of stability or trust. This is bailing out the government and the actions of the new Truss cabinet. The PM and Chancellor has in 22 days been able to get parts of the financial markets to its knees. Just imagine how quickly the new government under Truss has been able to not only loose the value of the British Pound, but also make pension funds insolvent. That’s done in the short time of three weeks. This is actually impressive and depressing.

It is about this time the Tories should be worried. Truss and Kwarteng is only starting their reign and they are already wrecking the economy. Not like the economy or the financial markets was in a good place to begin with. The City of London and financial market has been hit by the Brexit, COVID-19 Pandemic and the austerity over the years. It isn’t like they had a strong market or inherited a rising economy. The Tories had already slowly destroyed it, but the recent acts is their “Hail Mary”.

It doesn’t help that International Monetary Fund (IMF) says this: “IMF Statement on the UK (September 27, 2022) “We are closely monitoring recent economic developments in the UK and are engaged with the authorities. We understand that the sizable fiscal package announced aims at helping families and businesses deal with the energy shock and at boosting growth via tax cuts and supply measures. However, given elevated inflation pressures in many countries, including the UK, we do not recommend large and untargeted fiscal packages at this juncture, as it is important that fiscal policy does not work at cross purposes to monetary policy. Furthermore, the nature of the UK measures will likely increase inequality. The November 23 budget will present an early opportunity for the UK government to consider ways to provide support that is more targeted and reevaluate the tax measures, especially those that benefit high income earners.”” (IMF, 27.09.2022).

When the IMF writes this and the Bank of England is bailing you out. The Chancellor and the Prime Minister should act. Not only pursuit the biscotti and thinks this is just a fluke. It is certainly a reaction to the tax-cuts, the additional decrease in domestic revenue and the possible “bulls-market” which it’s already creating.

The Tories should take this serious. This is a self-destructive and all to feed the rich. It is to give more incentives and add more personal wealth to the already wealthy. The Chancellor isn’t ensuring more capital drive or ensuring safety of the financial markets. No, his just giving the market more stress and concerns. You know your overboard and out of touch. When the Central Bank and the IMF has to take action. That’s compelling and say everything about the losses. This isn’t fun and games, but a dire reality, which seems over the heads of the current leadership.

Truss and Kwarteng has certainly a lot of work ahead of them. They have to initiate things fast and not wait to November. They cannot think the Bank of England will be their saviour or the IMF will be their buddy. No, this weight has to be carried by them and them alone. The Tories are the ones initiating the biscotti mini-budget and got to take the hit for it. Instead of creating more trust and stability. They are creating instability and insecurity in a fragile market, which wasn’t necessary, but that’s what they did. Peace.

United Kingdom: Eurostar CEO Jacques Damas letter to Chair of the Transport Select Committee Huw Merriman (26.09.2022)

Opinion: A biscotti is causing a lot damage

small, hard Italian biscuits containing almonds (= a type of nut)” (Cambridge Dictionary – ‘Biscotti’).

Just mere days in the stint of Prime Minister Liz Truss. Her appointed Chancellor Kwasi Kwarteng has proposed a “mini-budget” or a biscotti of sorts. That little treat for the 1% and the big-business is hurting the trust in the system. The manner of which the new cabinet and the newly appointed cabinet secretaries are revealing new financial policies are hurting it.

Truss and Kwarteng was supposed to bring confidence back. They was supposed to be there and steady the ship. Instead they are sinking it and doing it fast. It has possibly ensured a new rising inflation and lack of trust in the financial policies of the state. The Chancellor only needed about three weeks in office to wreck it.

The little treat of tax-cuts to the wealthy and a proposed “growth plan”. Only follows 12 years of austerity and other measures, which haven’t created a better economy. The United Kingdom is already hit hard by the global pandemic and the downturn of the Brexit.

It doesn’t help that the Bank of England is talking of Emergency Measures and acts in defiance of the Chancellor. Those things just shows how dire the financial policies are. Truss appointed Kwarteng and his surely not oozing confidence. There is already letters of “No Confidence” sent to the 1922 Committee. It didn’t take long before the knives was out.

This sort of commentary piece says it all about what they are doing: “The chancellor has put his tax changes at the heart of his plans to boost growth. As previous Institute work has highlighted, the tax system has many flaws which act as a block to growth. Kwarteng promised to deliver ‘tax reforms’ to improve the supply side of the economy, but what he announced so far was disappointing for those hoping he might look to grasp the nettle and tackle longstanding tax problems. His version of tax reform is a series of cuts to headline rates that leave the structure of the system – and therefore any existing flaws – in place. He announced cuts to income tax, national insurance and corporation tax, but apart from small changes to capital allowances there was little that would constitute ‘reform’. The evidence suggests that cuts to headline rates alone are unlikely to drive big increases in growth, especially in the current environment where the Bank of England is raising interest rates, and they will certainly not pay for themselves. Kwarteng would do better by addressing longstanding distortions in the tax system, for example the bias towards self-employment and against employees. Changes like this would not need to cost nearly as much as the tax cuts announced and yet could be more effective at delivering growth” (Thomas Pope – ‘Kwasi Kwarteng’s new era of economic policy is a major gamble’ 23.09.2022, Institute for Government).

The commentary puts the weight where it matters. Tax-cuts takes away revenue for the government. Yes, the ones getting the tax-cuts gets to pay less taxes, but nothing is saying that these funds get used for creating new businesses or develop society. Instead, these funds gets taken out of the budgets and out of public revenue. Meaning the government gets poorer and cannot carry the government expenditure. Especially, when the Chancellor only wants to give tax-cuts, but has no direct plan of finding new revenue, because there is possibly deficit with these sorts of tax-cuts.

This is giving the wealthy and the rich a hand. While the nation is furthering into an energy, financial and rising inflation. The United Kingdom isn’t a prosperous nation at this very moment. Instead, it is a nation hurting of the choices of the Tory government for 12 years.

The era of Liz Truss has just started, an a biscotti is destroying it. The Truss cabinet don’t even get an ease or an easy period. Usually, there would be relief and given time after a disastrous reign under Boris Johnson. They have done within no time to destroy the government bonds and the value of the Pound Sterling. These two didn’t even need a whole month or a year. No, they just needed about three weeks and that’s it.

Now people are not only expecting a recession, but a total implosion. The financial markets most valuable asset is trust. Trust and confidence is always needed… right now the Chancellor and Prime Minister is causing more harm. Apparently, the uncapped bankers’ bonuses wasn’t the silver bullet to change the economy, but instead drain it. The same is with the tax-cuts. All of these is only serving one purpose, enriching the rich and given them a handout. However, it isn’t helping the economy and the Chancellor should know this.

That’s why the Pound Stirling is diving. The cost of living will rise even more. The inflation and the recession is now upon the nation. That’s because of how the Tories has handled it all over the years. Not only the last appointees and under PM Truss. No, this is a long time coming with help of Cameron, May and Johnson too. All of them has given way to this, but only the latest comrades who has crashed it totally.

The Chancellor and Prime Minister should reflect on the biscotti. That little treat can be their downfall. The little biscuit can destroy them and be their grand finale. Just because they dared and did so.

Not the wisest move, but what they did anyway. Peace.

United Kingdom: Ian Blackford MP letter to Prime Minister Liz Truss (24.09.2022)

Opinion: The Truss cabinet is filled with the ERG

The European Research Group (ERG) is a group within the Parliamentary Conservative Party that provides research and co-ordinates activity – such as public letters on Brexit and informal organisation – for eurosceptic Conservative MPs. Mark Francois took over as chair in February 2020. Previous chairs include Jacob Rees-Mogg, Steve Baker and Suella Braverman” (UkandEU.ac.uk – ‘What is the European Research Group (ERG)?’, 21.09.2022).

The ERG who was vital part of the hard-Brexit and the ones pushing for a hardline Brexit in consideration to the Brexit. Now has a vital voice in the cabinet of Liz Truss. She has already appointed three former ERG Chairman, which happens to be Suella Braverman, Jacob Rees-Mogg and Chris Heaton-Harris. Truss has also appointed members of ERG like James Cleverly, Therese Coffey, Brandon Lewis, Kit Malthouse and Penny Mordaunt.

One of them is the Secretary of State to Northern Ireland, Chris Heaton-Harris. He will have a say and possible continue the defeating arch of revising the Northern Ireland Protocol. Truss is putting a lot of power into the ERG. If you thought this was bad. It is becoming more worse than this…

The other one is Jacod Rees-Mogg has become the Secretary for State for Business, Energy and Industrial Strategy. After seeing the display and contempt of everything this man have done over the years. Rees-Mogg is surely lucky to be entitled to have yet another ministerial post.

The third is Penny Mordaunt been appointed to the Lord President of the Council and the Leader of the Commons. She will surely have leverage and have power. Not like the Chief whip, but it’s saying something when an ERG get this position too.

The fourth is Brandon Lewis who was appointed to the Lord Chancellor and Secretary of State for Justice. That’s a powerful office and he could certainly sway legislation here. This is most certainly a win for the ERG.

The fifth appointment is Suella Braverman who is appointed to the Secretary of State of the Home Department. This will have a lot of say in regard to migration, refugees and the border control. She will take off where Priti Patel left off. In the mirror of ERG. We know it won’t be anything better.

The sixth appointment is James Cleverly will be the Secretary of State for Foreign, Commonwealth and Development Affairs. We are seeing the ERG is getting vital positions and this is another one.

The ERG has the Home Affairs, Foreign Affairs and Northern Ireland. That is ensuring their will in this Cabinet. Truss has secured and given lots of power to the ERG. In such a manner, that the way legislation and policies will be written. Will be in the hardline and anti-Europe spirit.

This is without looking at all the other re-appointments and other well-known figures, which has circulated over the years the Tories has been in power. That was to be expected, plus a few not accepting a new office. Since they will not serve under others than Boris Johnson. Because, Boris is the epitome of leadership…

Well, Truss are now proving that she will not fight for remain or return to membership in the European Union. That is very obvious with the appointments sine last night. Her cabinet is a bastion of ERG.

So, expect the Eurosceptics to have a huge say and will ensure their ideals will reign supreme. Not that’s it shocking, but it’s certainly saying a lot by doing this. We will know if she appoints more. However, when there is already so many of them as a part of the cabinet. We can just know what sort of days that is ahead. There will be continued red-herrings and further bureaucracy, which will harm industry, movement and whatever, which was some of the benefits of being part of the European Common Market or Shengen. Peace.

Northern Ireland: 52 MLAs signs off on a letter to Prime Minister Boris Johnson (13.06.2022)

Opinion: Boris will never take any responsibility for his own actions

Today is a day of reckoning, but don’t expect anything to come out of it. No, Prime Minister Boris Johnson and his government will never be hold accountable. They haven’t answered for the dead or unnecessary pains and suffering during the lockdowns. The PM haven’t answered for Partygate and haven’t paid his dues for that even. While students, citizens and others has lost their careers over the same plights.

That the industries are hurt by the “Third country” regulations isn’t the fault of the government. No, the people are just producing wrong products and not working hard enough. The ones producing whiskey and struggling to sell it through the new protocols to the European Common Market. Tough love and live with it. The same with the seafood and shell-fish industry, which has been severely hurt by Brexit. There been so many people who has lost their livelihoods or made it harder to trade.

Alas, it isn’t only the Northern Ireland Protocol that is the issue. It is just red-herrings upon red-herrings. The Bank of England dropping a report of a weekly loss of £440m, which only shows the costs of the Brexit. This is all across and the unemployment is growing, a strong stagnation and the years of austerity isn’t achieving anything. The poor is getting less and the rich has shell-companies with headquarters in Dublin. Therefore, they are not feeling the pinch, but the citizens are feeling it.

I don’t know how many times I have seen pictures of Tesco’s and Asda’s where there is lack of fruits and vegetables. Because, the lorries and the companies are not able to get enough produce through the protocols post-Brexit. The PM and his party promised less red-tape and throw forms in the bin. However, the industries, shipping-companies and everyone has been hit with more. There isn’t a soft movement and people are getting charged with the additional costs. If they can even afford or have the time to import it.

The citizens are even shocked of the prices of roaming data on their cellphones in Europe. The United Kingdom is a real third country and can banish asylum-seekers to Rwanda. However, the costs of trading and the financial implications are hitting home. Londongrad is hit and the financial institutions are damaged too. The businesses of UK aren’t the same as before and the downgrade is bound to happen.

The Tories has damaged the economy and internally it’s a reason why Labour is in control of Wales. Why the Scottish National Party (SNP) is the majority in Scotland and now the Sinn Fein has a majority in Northern Ireland. That’s because everyone else has reacted to the means and the ways the Tories have been governing of late. It is a reaction to the current affairs and belief that someone else actually knows what they are doing.

Boris Johnson promised a microwave ready deal and easier life. The only thing his delivering is higher costs, stagnation and worse financial forecasts. The state is losing and things are not looking better. The Tories has depleted and ensured measures that is hurting the economy. It is just like they got the freedom outside of the EU, but didn’t consider the implications of it and thought it would be without a price. Now the costs and the bills are coming to the public and the exporting industries.

While Boris doesn’t care… his just happy the pints and the wine-and-dine during the lockdown didn’t cost him anything. He only paid minor fines and didn’t have any real consequences to him. That’s why his not concerned that people having plights, that the working-class is struggling and the poor is left behind. They just have to pick up his slack and hope for magic to cover expenses. However, his party and associates don’t care. They just wants your votes and abandon you afterwards.

The proof of the remainers and the messages of possible damage of a Brexit has all come true. The results are now here and the people are feeling the pinch. The Tories doesn’t care and their arrogance is without no end. It is really unique… and they are proud of it too. The entitlement and they are not fearing the possible outrage of the people either. They just know and think they can dupe the public in the next snap-elections or whatnot. Since, the Labour, Liberal-Democrats or Greens aren’t that strong alone, but if they forge an alliance. They can become a threat to the Tories. As long as that doesn’t happen. These folks will believe they will have the majority again and think they can trick the public to vote for them again.

That the public votes for these sleazes are amazing. It is like they want the suffering and the plights. They want people who looks down upon them and demean them. That take away their benefits and gives tax-cuts to the rich. This is what the Tories does and people should be aware of this.

Boris Johnson isn’t just a liar, but he doesn’t want to be held accountable. If he is… he skips it and jump over the hurdles. Hoping that an international crisis can get people to forget about the current issues at home. He has created a lot of this. The Brexit problems and costs are self-inflicted by him and him only. Boris said everything was fine-and-dandy, but that wasn’t the truth.

Now, he got to take credit and be responsible. However, don’t expect it. It isn’t his kind. His not the sort of man that wants to be held to account. He rather be held in contempt and move-on to the next. Peace.

Northern Ireland: Social Democrats and Labour Party (SDLP) letter to Prime Minister Boris Johnson (03.02.2022)

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