no Sunak, you dont get to play Super Mario, he would never peddle 'the government is a household' ideology
'fix the finances'
here comes the fiscal fundamentalist:
'huge challenges for public finances'
'record borrowing, the highest since WWII'
'worse next year, only beat by this year'
WWII again, 'pay it back', 'irresponsible borrowing'
'fiscal freedom to act'- brought to you by the Bank of England, not Tory austerity
my bet, Sunak wont say 'Bank of England' in this speech when he discusses 'sustainable public finances'
so corporation tax hikes in April 2023, take that Labour.
haha, corporation tax will only be paid by larger, profitable companies. How does it feel to have written the Tory budget @johnmcdonnellMP ?
oh look, another @johnmcdonnellMP steal: the New Infrastructure Bank to finance Green Industrial Policy.
jaja, and Green Retail Bonds.
New New Labour and Old Labour, all for the taking.
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the craziest invention of financial capitalism is my pension fund investing in a closed private equity fund that runs private care-homes, in which I may end up one day, and die faster than if we collectively agreed to organise all this through the state
and this after days of reading about the rush for infrastructure assets in Europe, with billions of institutional investment money waiting for mortgage loans to fail...
Housing as an asset class is another gem: US investors gobbling up urban housing to rent it, then tap the EIB for some subsidised loans to 'green' them.
this is big, @RishiSunak announces @bankofengland mandate to now include explicitly climate crisis.
The first large central bank to do so, no excuse to preserve carbon bias in collateral rules, in quantitative easing!
In our 2019 Green Finance report for @UKLabour , we proposed a Green mandate for @bankofengland
The Conservative Party delivered that, two years later.
today is Budget day, but dont let fiscal fundamentalists convince you with:
'Sunak cannot sleep', too worried that higher interest rates and inflation will massively increase debt costs, look at this OBR projections, an additional 45bn a year!
first, remember, government is spending 20bn less on interest in 2021 than it had forecasted
Marr: 'since interest rates are bound to rise, shouldnt we reduce public debt now?'
Dodds: reduce waste (?), but dont raise corporation tax
Nothing on public investment, on green transition, just bad politics.
unfortunately for us the British public, Sunak is running rings around Labour on macroeconomic policy.
Labour needs to make case for fiscal stimulus, to educate public on fiscal fundamentalism of 'interest rates will rise, cut public debt now'
it's doing none of this.
Come @AndrewMarr9 - if you ask Sunak what happens with 1% increase in interest rates, you can also ask whether @bankofengland can do something about it.
Schnable makes strong case for monetary-fiscal coordination.
public sector 'insensitive to low policy rates', giving Euroarea a fiscally restrained stance that further weakened monetary policy
why? fear of market tensions and public debt sustainability.
she wont say coordination, but ' policy response to the pandemic is a remarkable showcase for the power of monetary and fiscal policy interaction to boost confidence'