Comment on Liz Truss leaves stage in Beccles as 'lettuce' banner unfurls

• cRazi_man@lemm.ee ⁨2⁩ ⁨months⁩ ago

  www.youtube.com/watch?v=0CswZ8Fbl80

  Here’s a short video summary if you’re interested in some hilariously fucked up UK politics.

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  • Saledovil@sh.itjust.works ⁨2⁩ ⁨months⁩ ago

    So, this minibudget included tax cuts, coupled with a massive increase in government spending, which then caused the currency to devalue. Still don’t fully understand how it got this bad, though.

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    • cRazi_man@lemm.ee ⁨2⁩ ⁨months⁩ ago

      The tax cuts were huge (billions). She didn’t increase spending, but didn’t decrease it either; so it would leave a huge hole in government finance that would require massive government loans. The “market” freaked out. The pound and UKs credit rating plunged. The main crisis became the gilt market crisis. This itself is well explained here:

      www.youtube.com/watch?v=5-FdX0djxAE

      (In case you haven’t noticed, I think TLDR news make absolutely fantastic videos and would recommend checking out their videos if you are interested in high quality news).

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      • Saledovil@sh.itjust.works ⁨2⁩ ⁨months⁩ ago

        Thanks, but how did the pension funds hedge against interest rates in a way that they had to pay up when the interest rate went up?

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      • Saledovil@sh.itjust.works ⁨2⁩ ⁨months⁩ ago

        Thanks. I’ll check it out in the evening.

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• CheeseNoodle@lemmy.world ⁨2⁩ ⁨months⁩ ago

  Tried to force through a budget that brought the UK within hours of a greek style total economic collapse until the bank of England stepped in to unfuck things because it was just going to be that bad if they didn’t.

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