BoJo banished - Liz Truss down. Is Rishi next for the toaster? **threadbans in OP**

This is turning into a canary in the coalmine type moment ...whats happening to the pound can initiate market forces to turn against any weakness in any asset or economy and could signal the mystery catalyst which torpedoes many economies .

Worrying times for the UK now. The full damage that Brexit has wrought is still to be seen, and now a cabinet of imbeciles (only in power because they could be relied upon to wave Brexit through to keep hold of power) is making decision like this that absolutely destroy the economy.

But it's OK, old Eskie thinks Truss is a winner.

She's having a fairly bad morning alright.

If Truss really believed this action was based on the best interests of the economy she would publish the forecasts that she has relied upon.

Instead, it is all just 'growth plan' and no actual details. "It will work, trust us!" seems to be the only thing they have. They have crossed their fingers and placed a bet, using everyone else's money.

Have they accounted for the possible (now actual) increase in interest rates and thus debt interest payments? Where does that money come from given that, in the short term even under their plan, tax receipts will decrease?

How is giving cost of living pay increases only going to lead to inflation yet massive investment is not? Of course, one has to believe that the rich will actually invest their money gained through lower taxes rather than just saving it. What policy has the government enacted to ensure that earning over 150k cannot simply hold the extra savings?

Imports, particularly those prices in US$ like Gas and oil, will have gotten markedly more expensive. How will that be paid for, given they recently announced an effective tax price so the tax payer must fund the difference. Where is this extra money coming from?

Exports should rise, but given that the GBP had already lost value since Brexit and exports were not seeing the full impact due to now the issues caused by Brexit, will a further falling pound really make a difference?

So many questions, and absolutely no answers. This is Truss big idea, her belief that this is the right course. Yet she cannot articulate why, apart from 'Growth'. And that is really what is spooking the markets. Not the drop in the higher tax rate, not the borrowing. Its the apparent lack of any actual plan, any actual economic policy apart from hope in growth. The markets don't care that the poor aren't being treated fairly. They don't care how crazy it is to allow bankers bonuses yet remove 120k social welfare recipients unless they work harder. They only care that none of this is based on anything other than hope and some crazy notion that tricky down will work this time when it never has before.

As said above, letters going in on Truss already

They are absolutely shagged over there now, billions squandered during Covid, whole country divided on 'tribal ' lines over Brexit which means that both sides will not move on inch on the issues as Brexit sinks their economy, a charlatan in Johnson given power to strip their Government party of any form of dissension or alternatives..... meaning now it's Truss or ?

She made stupid over the top promises in her leadership campaign, when she already had Sunak beaten; and then failed to use the last 2 weeks of Queen's mourning to settle into an alternate or coherent plan. Instead it's 100% free money for all, especially her mates, as the UK debt explodes and inflation runs rife meaning their currency is worthless.

What an absolute mess they are in

From the Guardian Live Blog:

Friday was a stunningly bad day for the pound, points out Deutsche Bank strategist Jim Reid.

Reid’s team have calculated that it was the third-worst day for sterling (-3.57%) since Black Wednesday in 1992, only beaten by the day after the Brexit vote (-8.1%) and after the initial Covid shock in 2020 (-3.71%) in a global flight to dollars.

They also looked at daily Sterling moves back to 1862 and on that it was the 41st worst day in history spanning 47,000 trading days.