Oooohhh - are we facing yet another PM ballot ???

Oh dear, Kwasi Kwateng's mini mbudget has been trashed not only by the 'City' and overseas investors, but even the IMF has now seriously criticised this economic policy.


Economist blasts the 'raging incompetence' of Truss and Kwarteng

Graeme Demianyk
27 September 2022, 8:07 pm
An economist and former interest rate-setter has hit out at the government’s “raging incompetence” as he questioned whether Liz Truss and Kwasi Kwarteng would survive the economic turmoil created by their mini-budget.

David “Danny” Blanchflower, who sat on the Bank of England’s monetary policy committee for three years, said the prime minister and chancellor’s “credibility is completely trashed” within days of taking office.

His outspoken comments followed the Tories unveiling a massive £45 billion tax cut funded by government borrowing on Friday – a move that saw the pound slump to a record low against the dollar by Monday.

The sell-off of sterling, as well as jitters across the financial markets, has led to fears the Bank is certain to raise interest rates dramatically to save the currency, which in turn is likely to spell bad news for homeowners.

Appearing on the Sarah-Jane Mee Show on Sky News, Blanchflower referenced Kwarteng’s plan to explain how he will get debt falling in a medium term fiscal plan to be published on November 23, as he said the uncosted government plans mean Truss and the chancellor “just don’t look credible”.


This from @D_Blanchflower - on the Chancellor of the Exchequer - appointed by Liz Truss to ‘fix’ the economy https://t.co/VuekzaoJDG

— Gavin Esler (@gavinesler) September 27, 2022

He added: “So the question is, if you if you’re the chancellor of the exchequer and what you’ve done is you’ve stood up and you crashed the markets – you’ve crashed the bond market, you’ve crashed the foreign exchange market, the stock market dropped, the housing market’s in trouble – and you created a giant recession as the Bank of England has to raise rates ... your credibility is completely trashed.

“And what’s the prime minister going to say – well, at the moment she appears to be hiding – but the questions journalists like you and (Sky News journalists) Ian King and Ed Conway and others are going ask is, what are you going to do, it’s all completely failed, hasn’t it? They told you it was going to fail, and it has now, what are you going to do?

“And obviously the question then is, politically, is she going to survive the month? Does she get to – and does he get to – this statement in two months time, because presumably politically they’ve created a disaster. And there’s even an issue: could you get to get this through the House of Commons? Unclear.

“I have never seen anything like this. I’ve been an economist for 50 years. I went through the great recession, and I have never seen such a raging incompetence ever.”


Well said @D_Blanchflower https://t.co/KkFmTgjpx0

— Henry Pryor (@HenryPryor) September 27, 2022

After two days of big changes, the pound settled down on Tuesday, trading at around 1.08 dollars for most of the day, deviating only briefly with a two cent drop.

London’s top stock index, the FTSE 100, was also subdued for most of the day.

The FTSE closed the day down 0.5% on Tuesday afternoon while gilt yields, reflecting the cost of government borrowing, rose 1.6%, more than a quarter higher than just a week ago.

But with some analysts predicting the base rate – currently standing at 2.25% – will have to rise to as high as 6% next year, some lenders began withdrawing some mortgages amid uncertainty over how far they will rise.

 

Whilst my original question was rhetorical, it seems it may now be reality !!!




Half of Brits think Liz Truss should resign after just 25 days in office

Ned Simons
30 September 2022, 4:07 pm
Half of Britons think Liz Truss should resign as prime minister, a new poll has revealed. She has been in office for 25 days.

Truss is facing a growing backlash - including for Tory MPs - after her mini-Budget spooked the markets.

The YouGov survey published on Friday showed 51% of the public think the prime minster should step down.

Just a quarter of the public (25%) say that she should remain in Downing Street.

Over a third of people (36%) who voted Conservative in 2019 think Truss should throw in the towel already.

The poll also showed that just 3% of the public think that the mini-Budget had the “right ideas”.

A separate YouGov poll for The Times on Thursday showed Labour has an astonishing 33-point lead over the Tories.

The findings come amid widespread criticism of the government’s economic strategy.

The value of the pound plunged following chancellor Kwasi Kwarteng’s mini-budget last week, which cut taxes for the rich.

Not least among the concerns facing households is the looming possibility of thousands of pounds being added to mortgage bills as the Bank of England will be forced to increase interest rates to shore up the pound.

Some Conservative MPs have gone public with their disquiet ahead of the party’s annual conference in Birmingham which begins this weekend.

Former cabinet minister Julian Smith urged the government to reverse course on the cut to the top rate of tax, saying it must “take responsibility”.

Veteran MP Sir Charles Walker told Times Radio: “It’s hard to construct an argument now that the Conservatives can win that general election, I suspect the conversation is, you know, how much do we lose it by?”

 

I think she should go now . Total incompetence when it comes to basic Economics .

That shows there is a flaw in the system . When a PM goes for whatever reason there should be a General Election. This should apply across the floor as well . Other wise we could get the situation we have now whereby give aways where given in order for her to gain the P M's position at the expense of what is right for the country . None of her ideas would have been in the manifesto for the Johnson Government which won the last election. Therefore I dont buy or accept any argument stating that the Tories have a right to vote a New PM in . A leader of course but not a PM .

 

Vlad is more of an expert on the powers of the monarchy .

I think they still have the ultimate power but rarely want to get involvled in politics. . I know they can dissolve Parliament .

 

Technically, Charles the turd does have the power to dissolve Parliament (a throwback to to the ancient rights of a monarch), but the last Monarch that exercised this right and triggered a constitutional crisis resulting in a civil war was Charles 1 and we all know what happened to him.