Even more anarchy in the UK

Written By: - Date published: 9:19 am, October 15th, 2022 - 20 comments
Categories: economy, uk politics - Tags:

I never thought that I would write a post suggesting that Boris Johnson’s reign as UK Prime Minister was not so bad.

But that is the state that we have reached.

Compared to the current shit storm that is happening in the United Kingdom Boris Johnson’s reign will be remembered as a relatively stable period of its history where decisions made were not so bad.

Comparatively speaking only.  Although history will show that Brexit, and Boris Johnson’s role in it as the economically most destructive event in the country’s recent history at least Johnson did not cause the economy to implode in a spectacular fashion.

She took the step of throwing Chancellor of the Exchequer Kwasi Kwarteng under the proverbial bus for committing the sin of implementing her policy of trickle down.

From the Guardian:

Liz Truss is desperately clinging to her premiership after she sacked her chancellor and ripped up the mini-budget but failed to calm the financial markets or furious Conservative MPs.

In a humiliating reversal, the prime minister backed down on plans to scrap an £18bn rise in corporation tax and replaced Kwasi Kwarteng as chancellor with Jeremy Hunt.

She said staying in her position as prime minister would help to “reassure the markets of our financial discipline”, but the cost of government borrowing rose and the pound fell following her press conference announcing the changes.

Senior Conservative MPs are plotting how to remove her from office, with some mulling whether to publicly call for her to resign in the coming days. One former cabinet minister said they thought it was “50/50 whether she will make it till Christmas”, adding: “If I could wave a magic wand and get rid of her now then I would, but the problem is the mechanism.”

Here is the press interview where the resignation was announced.

She was asked a really tough question about if she had trashed the Conservative Party’s reputation for sound economic management.  She repeated her platitudes about having a high growth low tax economy then walked out.

Meanwhile the latest poll has the Tories on 19% and there is a prediction of a cataclysmic loss of seats with the possibility of only four Tory MPs left being raised.

It seems inevitable that Truss will be removed as leader one way or the other in the near future.  The only question is how.

20 comments on “Even more anarchy in the UK ”

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  1. Tiger Mountain 1
    15 October 2022 at 10:07 am

    The tragedy is that UK Labour may assume office at some stage on the basis that they are not Torys, rather than putting up a positive platform for the working class.

    Jeremy Corbyn had it down in his first campaign–“For the many not the few”, retain NHS and various re-nationalisations.

    Keir Starmer is a classic right opportunist, and British Labour class collaborationist to the core.

    • roy cartland 1.1
      15 October 2022 at 1:03 pm

      Totally agree there. I keep scouring for what JC is supposed to have done that was so terrible, and there is never anything but hearsay and implication. I don't know they guy, nor want to; it's his policies that seemed pretty fair and sensible. Could hardly be worse than this lot, right?

    • Visubversa 1.2
      16 October 2022 at 9:39 am

      And Eddie Izzard – now in "permanent girl mode" at 60 years of age will be the Labour MP for Sheffield. Every day will be a "bring your paraphilia to work day".

    • Craig H 1.3
      16 October 2022 at 2:03 pm

      "For the many, not the few" was a fantastic campaign slogan. That said, it's standard in Westminster systems for current governments to get voted out regardless of how good or otherwise the opposition seems.

  2. SPC 2
    15 October 2022 at 10:24 am

    The Tory Party caucus and membership are the problem. Their candidates for leadership were all advocating for tax cut trickledown and there was no call from within for any restraint/prudence.

  3. Barfly 3
    15 October 2022 at 11:01 am

    All I can say

  4. Tiger Mountain 4
    15 October 2022 at 11:13 am

    nice one Barfly, Rotten is still rotten, “Never Mind the Bollocks” stands though

  5. Nic the NZer 5
    15 October 2022 at 11:44 am

    Discussion of the BoE intervention in the UK and if that will be repeated.

    http://bilbo.economicoutlook.net/blog/?p=50596

  6. Incognito 6
    15 October 2022 at 1:06 pm

    The Iron Weathercock is flying solo in a shit storm of her own making. Bring Back Boris!

    The Coronation may come too late to provide a welcome distraction but it could turn into a powder keg of resentment against the establishment – let’s hope it won’t come to that.

    Just as well, official unemployment is at a record low in the UK.

    • Grey Area 6.1
      15 October 2022 at 6:58 pm

      "And that is why I've acted decisively today so that Britain has stability after the destabilizing shitshow I created."

      You couldn't make this farce up.

      Liz Truss is an incompetent, talentless nobody. And we thought Johnson was bad.

      Unbelievable.

    • observer 7.1
      15 October 2022 at 1:50 pm

      UK Tories are far more frank (and fun) about this than the robot NZ Nats, aren't they? Even when National was rock bottom in 2020, their MPs were parroting "Strong team! Nothing to see here!" as if nobody had eyes or ears.

  8. georgecom 8
    15 October 2022 at 5:57 pm

    A crudish way of framing it, Kwarteng gone, Twarteng still PM and another recently deposed Twarteng on the back benches

  9. Poission 9
    15 October 2022 at 6:26 pm

    The fundamental problem was the fiscal policy was unorthodox,it worked against monetary policy from the BOE (and all central banks) of reducing income (tax cuts) under increasing debt load with higher interest burden going forward.

    This was punished by the markets,as was Europe previously with a sell off of financial assets and depreciating currency as inflation worsened and europe moved from a trade and current account surplus to debtor status.

    There is a lot of problems amplified in Europe by its central bank and centralised policies,that are failing under reality.(and a very good reason for brexit)

    https://twitter.com/RobinBrooksIIF/status/1580894101029150720

    The Uk with its strength in institutions and the rule of law,was undermined by Truss on the circuit with statements on rewriting the BOE policy remits,sacking the permanent secretary for the treasury (who had a brief to disagree) and announcing un costed policy,which needed to be backed by costed cashflow.

  10. Stuart Munro 10
    15 October 2022 at 6:30 pm

    It's unfortunate for New Zealand of course, but England clearly needs Luxon's talents.

    CEOs do not loiter around unimportant little countries when their talents are desperately needed by Global powerhouses.

    Go Christopher, and may your God go with you.

  11. BAW 11
    15 October 2022 at 9:00 pm

    Nat voter here.

    I guess the message to the politicians is simple – "You are not your voter".

    Since Truss was elected by a group of right wing leaning people, this is why she is not working out with the voters.

    I guess the Labour party in the UK are just hoping that nobody in the party screws things up for them and deflects attention from the government.

  12. Obtrectator 12
    15 October 2022 at 10:30 pm

    Dudette, where's my (former) country?

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