Liz Truss become prime minister of england last September 6th And in just 21 days in power, the country appears to have accumulated a series of catastrophic misfortunes. It was officially commissioned by Queen Elizabeth II at Balmoral Castle in Scotland, not at Buckingham Palace as usual.two days later the queen is dead.
Truss completed 21 days of work in Downing Street on Tuesday 27 September. It was then that the worst predictions were issued: GBP has gone through flash crash – As we all know, a short but sharp drop – and in just 20 minutes, until it came close to parity with the dollar.
As if it were a curse, in English ears, the last words Boris Johnson Speaking in Parliament: “Baby, see you later”. those things he used to explain the character of Arnold Schwarzenegger in sci-fi movies Terminator 2: Judgment Day (1991).
‘Hasta la vista, baby’: This is how Boris Johnson bid farewell to parliament.
He assured that he would leave satisfied, as he believed his mission was largely accomplished.
he told us from london @DiegoArizpeleta
— TVE Newscast (@telediario_tve) July 20, 2022
And Britain seems to have collapsed. The worst forecast predicts that GBP/USD will lose its value in November and that GBP/USD will continue to depreciate from then on.
It’s worth remembering that Britons voted for ‘Brexit’ and believed they would take control If they managed to break free from the yoke of Europe, they would become a stronger nation. Well, the exact opposite seems to be happening. Now that they are no longer under the protection of Brussels, they have no right or access to the aid of the twenty-seven countries. If they want to overcome the crisis they are in, they will have to do it themselves.
On Friday, the Truss government announced a major tax cut, the largest since 1972, shaking confidence in the country’s economic dynamism.Likelihood of tax cuts not yet done – as shown Quasi KwatenBritish Chancellor of the Exchequer, adding fuel to the fire.
“The market’s reaction to the news has been devastating”Analysts pointing to Activotrade warned that “the crash shows a lack of confidence in the UK market, with its financial strength significantly weakened”.
Yields on 10-year bonds have climbed more than 84 basis points since rumors of the Truss government’s response to the energy crisis began to circulate, according to manager Schroeder. “Additional large fiscal stimulus could push inflation rather than growth, which would be less helpful to the Treasury because it would lead to more debt,” the experts said.
for some investors They are concerned that the rating agencies may downgrade the UK’s credit rating.
That’s why the Bank of England unleashed a heavy hand on Wednesday to stem the escalation in Britain’s debt and the collapse of the pound.The goal is that investors don’t believe in the UK’s economic situation similar to emerging countriesaccording to Laura Piedehierro of EL ESPAÑOL-Invertia, analysts and market heavyweights have been compared.
In her first speech as Prime Minister, Liz Truss promises Making ‘Britain Work Again’. “We will turn the UK into a nation of aspirational, well-paying jobssafe streets, everyone has the opportunity they deserve,” Truss said on September 6.
He also thanked Boris Johnson, who he praised for carrying out “Brexit”, in his view “history will remember as a very important prime minister”.
From the outset, Truss proposed a bold plan based on boosting private investment through massive tax cuts and structural reforms to grow the economy. “I will make the country run, build and grow”he stressed.
However, his plans led to a record low for GBP/USD on Monday.Crash due to concerns about tax cuts, but also due to summer political uncertainty Johnson’s resignation And the economic difficulties brought about by “Brexit”.
The Situation of UK Debt and Sterling “It has become akin to the emerging market debt crisiswhen foreign investors lose confidence in the local government and sell bonds and currencies at the same time,” the expert noted.
Truss’ first 21 days in Downing Street were nothing short of disastrous.someone compared with Margaret Thatcher, but the new “Conservative” leader is a far cry from the “Iron Lady”. In fact, Some international analysts called her “Ms. Tin”It’s too early to say what Liz Truss is made of, but it’s in her best interest to be tough and show nerves of steel, because today, Britain is at a critical juncture.
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