So gents, what do you make of it all? I'm just shocked at how third world the level of governance has gotten.
A bit of bacgkround for those unaware of the details.
Recent economic events -
- Inflation has been going through the roof - energy prices have doubled over the last year, food gone up 10%
- British government has allowed energy companies to profiteer extortionately, at one point threatening to triple energy bills within 6 months.
- This caused outrage and they decided to not lift the cap on price rises and instead borrow £150 billion to subsidise the energy costs.
- They then announced tax cuts for businesses and for workers and increased borrowing to fund it.
- this stoked further fears of inflation and the bank of England has suggested interest rates will rise to 6% (from 2%).
- the market has reacted by taking many mortgage products off the shelves and increasing interest rates.
- The IMF has commented on how bad the current plan is
https://www.bbc.co.uk/news/business-63056417
- The pound has been losing against the dollar massively, it was almost at parity earlier on this week.
- interest on govt bonds has gone up from 1% to 4%
Sterling fell to a record low after the UK government announced large tax cuts and borrowing.
www.bbc.co.uk