Wednesday, 28 September 2022

Liz Truss in the middle of an economic whirlwind

Only three weeks into her new job as prime minister, Liz Truss gambled everything and is currently losing big time, or I should say we are all losing big time, with mortgage rates shooting up, inflation looking recessionary, investments tumbling in value and imported goods significantly more costly. How much longer can she wait before she changes track and reverses the huge cuts in taxes, especially for the rich? Is she a "this lady is not for turning" Maggie Thatcher or will she crumble and admit she and her chancellor, Kwasi Kwateng, got it all wrong? I guess she will hold on for as long as possible, desperately hoping that the value of the pound will start to rise against the dollar and all will become shipshape as, I presume, she had envisaged. But with the unprecedented criticism from the International Monetary Fund (IMF), there are growing accusations that she has acted irresponsibly and recklessly. She must be under huge pressure behind the curtains in Number 10. If she did reverse everything that would be the end of her politically. She would never be able to live it down, and the Labour party would be triumphant. So she will stick it out but meanwhile the economy will go down the tubes and if it doesn't improve she is going to be finished anyway. I don't feel sorry for her, but I do feel anguish for the millions of people who are now suffering financial hardship across the country. What a mess and at a time when Putin is doing his best to ruin the whole world.

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