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It’ll All Be Fine. Truss Me.
A renewed sense of angst was evident across markets Thursday, as the respite provided by the Bank of England's emergency intervention in UK debt markets faded.
Although they'd later recover, gilts and sterling were under pressure following Liz Truss's first public remarks since the onset of a market meltdown that saw the pound trade at a record low. In what the BBC described as "a series of testy interviews" with local radio stations, Truss reiterated her willingness to take "controversial and
She is in way over her head. The mp’s wanted sunak who suggested her plans were based on fairy tales. Looks like he was right. GB is learning the hard way.
We live in a world of fairy tales now – Brexit, Election Denying, Ukraine liberation and a whole lot more. The question is why are humans apparently predisposed to believing them.
People believe the fairy tales because reality doesn’t satisfy their selfish world view. My wise daughter reminded me a while back that everyone tells themselves stories. Hard not to in today’s world. Besides, we no longer teach the philosophy of the scientific method or the techniques of critical reasoning. Proper inductive reasoning is rarely either taught or acquired by the population at large, so one piece of data (rather than information) easily becomes the kernel of an elaborate story with no real basis in fact. Truss is a politician with a cacophony of mindless twaddle coming at her from all sides. Her main reality is the latest poll number and she really didn’t have time in the crucible of the real world to learn what she didn’t know. Brits have been hearing nothing but bad stories since the start of the big Brexit lie and now they are well and truly screwed.
Is this moment a reprise of “voodoo economics” with a helping of Nixon issued Executive Order 11615 (pursuant to the Economic Stabilization Act of 1970), imposing a 90-day freeze on wages and prices
or is it,
“I have nothing to offer but blood, toil, tears and sweat”?
As Sir Elton would say,
“So keep your auditions for somebody
Who hasn’t got so much to lose
‘Cause you can tell by the lines I’m reciting
That I’ve seen that movie too”
No PMQs until Oct 12, shame . . . Truss needs to go, STAT. It is a third La Nina winter, the risk of cold spells is elevated, UK has almost no gas storage, Truss’ price cap scheme doesn’t include conservation, the markets will be projecting the deficit cost of her open-ended unfunded commitment in real-time, when gas prices spike and that cost reaches 10%, 15%, 20% of GDP, the BoE may not be able to rescue the situation.