The crisis in the U.K. offers a preview of dangers other economies could face in an era of high inflation and rising interest ratesA toxic mix of politics, inflation and higher interest rates is threatening the financial system in the U.K., sending a shock wave through global markets and providing a warning to governments everywhere of the dangers of the new economic era we are entering.
A surprise tax cut by the new British government just over a week ago sparked investor concern about the country’s fiscal credibility and crashed both the pound and the market for U.K. government bonds, known as gilts.
It's not. The UK is in a spiral of self harm, very sad to be witnessing.
Someone knows their UK history. Good to see.
In uncertain times, it’s always better to take conservative steps whereas the UK’s dispensation is busy experimenting with policies that can mess up UK’s economy.
We’re no canary old chap. We’re a majestic eagle soaring aloft in the sunlit uplands. trussliz and I both got new calculators with the promotions. We did some very hard sums, even some long divisions, before announcing our policy on making currency speculators richer.
“As often happens, problems in an area regarded as safe caused difficulties” Current risk weighted bank capital requirements cause especially large exposures at low rates to what is especially perceived as safe. The stuff big bank crises are built-up with
Surely we are, globally, at the brink of an economic crisis that will lead us, very likely, to stageflation but, what the UK Government is doing is being the gas that killed the canary. This is populism at the service of politics and economics.
Liz Truss is a disaster, Rishi Sunak would have been a better choice for PM, but racists in Tory party won't.
Wonder when the shit is going to hit the fan in the good ole USA with all the billions upon billions upon billions in dollars we have just given away. It’s not going to be pretty.
😎😎😎 That is Stagflation !!! HHH
And in the meantime you laugh at El Salvador trying to find another way.
Rubbish.
More QE? Say, what is happening with the US bonds Japan has been dumping to shore up the Yen? Is the US Fed engaging in stealth QE, and adding them to the books? It seems the bonds are just disappearing.
Stop electing corrupt conservatives.