Opinion: Kwateng was forced to fall on the sword…

On the 6th September 2022, Kwasi Kwarteng MP was appointed to the Chancellor of the Exchequer and he only lasted until the 14th October 2022. He only lasted 1 month and 8 days or 38 days. While his predecessor Nadhim Zahawi MP lasted only 63 days from July to September 2022. So, in the recent time it’s not an office to hold onto.

What is striking is how horrific the policies, the tax-management and the whole fiscal policy has been in this short of time. Kwarteng has been able to destroy all confidence in certain markets. His sort of financial instruments and planned efforts to create “growth” only have caused more harm. There is a certain uncertainty and instability of his efforts. In such a manner that the International Monetary Fund (IMF) had to come out with a stern warning, which haven’t been common in regard to the Chancellor or His Majesties Government in London.

Kwarteng MP has been able to destroy the confidence in the gilt market, mortgage market and devalue the pound. He only needed a month to do all of this. That’s because of the fancy biscotti’s served to hedge-fund managers and the richest elite. The promises of lenient taxes… and other favours for the ones who has vast pockets. While he had to scrap, dismantle and create more austerity measures for the poorest in the nation. That was the plan of creating “growth” and was the solution, which he had signalled out.

The Prime Minister Truss has sacked him after only 38 days in the office. Nevertheless, she is not without a fault here. She stood by him and trusted his judgment. They both have defended and been vocal for it. It isn’t like Kwarteng was alone doing this. Yes, maybe he held some factors and didn’t have huge conference on every matter. However, Kwarteng was supported and ignited by Truss. If not.. she wouldn’t have spoken like she did at the Conservative Party Conference on the 5th October 2022.

It is only a mere week ago and not ancient news. Though the Bank of England has come in to save the financial markets. That is only necessary, because of the faulty and lack of trust in the process. The lack of confidence and the general of feeling won’t be anything better soon. It isn’t like the Prime Minister will create a better atmosphere or change the narrative in a significant way. Her ways isn’t like that and the inept cronyism of the Tories are self-deprecating right now.

Kwarteng is a victim of his own actions. No one should feel sorry for the man. Neither should anybody feel sorrow for the headache and issues internally for the Tories either. It is all self created and the citizens are paying the price. The Tories are accepting the higher prices, the costs of living is spiralling out and the “mini-budget” is the latest biscotti that caused havoc.

Truss will not give way or change in away possible. That’s not happening… Kwarteng MP was forced to jump on the sword, but he did it all to himself. It’s not like he couldn’t have changed sooner and only seen after the first weekend after the revelation. He could have smelled the fire and know there was trouble. However, Kwarteng decided to be bold and he lost everything doing so. Peace.

United Kingdom: Kwasi Kwarteng MP resignation letter to Prime Minister Liz Truss (14.10.2022)

Opinion: PM Truss isn’t oozing confidence

What our Budget has delivered is security for families for the next two winters. It has made sure we will see higher economic growth, lower inflation and more opportunities. The way we are going to get our country growing is through more jobs, more growth and more opportunities, not through higher taxes, higher spending and his friends in the unions stopping hard-working people getting to work” – Prime Minister Liz Truss (12.10.2022).

Today’s Prime Minister Questions in the House of Commons has truly exposed Prime Minister Liz Truss. If your reading the Hansard alone… you know things aren’t going smooth. Prime Minister Truss wasn’t answering questions with credibility. The short amount of time her reign has been and this PMQ only proves how inept she is.

This is really striking as she was taking over for the corrupt and incompetent Boris Johnson. It should be easy to be better and start to deliver campaign promises of 2019. However, Liz Truss cannot do that and only can go rogue.

It is clear that Keir Stramer and Ian Blackford is exposing her lack of responsibility. They must be giddy that she’s the current PM. Truss is answering Blackford about lack of building nuclear power plants, when Blackford was raising the bar about rising prices on mortgages. That just shows how inept she is and thinks she can bamboozle everyone.

The Prime Minister should reconsider the “mini-budget” or the biscotti, but she doesn’t seem concerned about the consequences in the gilt market. Neither the rising mortgages or the costs of living in general. People are getting saved by a thread by the energy prices, but destroyed by inflation and rising mortgages prices. If not they companies or funds securing their pensions are crashing. So, the PM should have had some cleverness and ability to answer for her choices.

The PM is still instead saying stuff like this: “We in the Conservative party understand who pays our wages—it is the people who get up every day to go to work and the businesses that are set up. Those are the people driving our economy and we will be unashamedly pro-growth, pro-business and pro-opportunity” (Truss, 12.10.2022).

She isn’t helping herself or her cause. If she is afraid of internal squabble or dagger in the 1922 Committee. The PM hasn’t been her long and she’s not creating any sort of stability. Neither is there any promise in her words. This is burning down the shop and hoping nobody is noticing the dumpster-fire. That’s how she’s acting and it’s not a good look…

This PMQ was brutal. I have seen plenty and read lots of Hansards over the years. This was just a waste and Truss seems out of order.

It doesn’t help with this final quote either: “I think the last thing we need is a general election” (Truss, 12.10.2022).

Nothing gives her an edge and neither is there any promise. It is just utterly disgraceful. As the PM she should stand up and be responsible. Instead, she is trying to overshadow her own actions and what her chancellor has done. It has all backfired… and Truss cannot even stand tall and face the music.

Truss just wants the dance, but don’t know what to do when the music stops. Peace.

Opinion: Truss isn’t appealing to the masses…

I’m ready to take the hard choices, you can trust me to do what it takes. The status quo is not an option” – Prime Minister Liz Truss (05.10.2022).

Today’s speech was a massive rant. The new Prime Minister Liz Truss clearly have a lot of weight on her shoulders and cannot contain her frustration. Nevertheless, this wasn’t a confidence boost or a speech for the ages. Instead, this will go down as an abysmal attack on the opposition and the ones who don’t see the world as she does.

Prime Minister Truss is in a peculiar position. She is inheriting 12 years of Tory government reign. The PM should be solid and granted to steam ahead with her majority. However, the recent “mini-budget” and “growth plan” has differed and practically destroyed that. It isn’t anything in sight of hope or better conditions. Instead, people should be worried what else she can do or reckless behaviour her cabinet can do in the future. Because, it is obvious that nothing is set or isn’t an option for further destruction.

Her speech wasn’t made with intension of unification or solidarity. No, it was boosting her own ego and position. That’s what it was all about. This was to galvanize the few that believes in her and her cause. She is changing everything, but has no hold in the 2019 manifesto or within the realms of her own party. That’s the gist of it all…

Prime Minister Truss is out of bound and withering away. She isn’t building up confidence or trust. The living wage crisis, energy crisis, the failing of the NHS and the prolonged agony of austerity measures aren’t making things better. In coordination with the damage of the “mini-budget” which is still felt by the way. It isn’t like it all went away and the financial markets are up and running. No, this has already hurt and will continue to be painful for many.

Her end is just fatiguing really: “We must stay the course. We are the only party with a clear plan to get Britain moving. We are the only party with the determination to deliver. Together we can unleash the full potential of our great country. That is how we will build a new Britain for a new era” (Truss, 05.10.2022).

It is just pointless sloganeering and not doing anything. Just like her promise to cut all “EU Red Tape” which is really amazing if it was true. Since her party is bound the Withdrawal Agreement and the stipulations in it. The Tories has signed off an agreement and has to honour that one. Therefore, there is certain aspects the Tories has to uphold and businesses, if they want to trade with the EU they just have to comply with. It can be different rules in the UK, but if they want to enter the Single Market of the EU. The UK businesses has to comply and follow the rules to get in. Therefore, I have hard time believing this. Just like UK citizens has to apply for VISA and be non-EU member at customs now. There is more hurdles and this wishy-washy words will not do anyone any good…

PM Truss continues where Boris left off. She is doing no good. She is really showing her incompetence. Her team isn’t helping her either. She speaks of taking Britain forward, forward to where exactly?

She has already taken one hard choice and that broke the camels back. That made the Bank of England reignite the markets and using funds to buy gilts. The pensions has been in jeopardy and the mortgage industry as well. While the people still has costly energy to pay for. It isn’t like Truss is coming with any sort of commendable solutions.

Alas, she will just be there and promise a better tomorrow. While not having anything to offer. Peace.

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)