So the Bank is splurging £65bn on buying government debt. And government debt is being raised to give money away to rich people... How's this going to end? Badly... 🧵1/ newstatesman.com/comment/2022/0…
2/ Yes, there is a global dynamic here: but in all global crises, the markets attack the weakest link first - and 12 years of austerity, Brexit and legalised corruption mean that's us... we're the Northern Rock of the G20... newstatesman.com/comment/2022/0…
3/ Read the Times scoop today: ministers casting around for "supply side reforms" - because they borrowed money to give away to rich people without thinking about balancing the books... but... newstatesman.com/comment/2022/0…
4/ "Supply side reforms" are just another word for class struggle. They will devastate wages, town centres, the countryside, services... and here's the inescapable truth... newstatesman.com/comment/2022/0…
5/ The Conservatives have run out of options: hard/soft Brexit; big/small state. They've tried three of the four variants and all that's left is to realign with Europe, redistribute wealth and a state-led investment drive... but... newstatesman.com/comment/2022/0…
6/ ... that's Keironomics. Starmer spelled out the only logical route to growth, productivity, investment and increased trade density... a state-led green transition... newstatesman.com/comment/2022/0…
7/ Conservatism seems incapable of generating its own version of big state/soft Brexit. It's captured by libertarian racist nut jobs - and worse: every 20-something Tory seems cloned from the same ideology... newstatesman.com/comment/2022/0…
8/ So where this is going: (i) Let's hope £65bn is enough to save the pension funds, but there's no way yields are going back to their pre-Kwarteng level. Massive financial stress until something breaks...
9/ What has to break is Kwarteng's budget bill. Nothing on earth will stop the OBR nixing its basic assumptions once they're allowed to speak - and MPs have to act fast... newstatesman.com/comment/2022/0…
10/ Rest assured - no Tory MP seriously believes this 💩 about "it's all fine, carry on". They have a duty of care to their constituents: they should combine with Labour to block the budget bill newstatesman.com/comment/2022/0…
11/ There's no way Sunak and any serious follower could walk thru the Aye lobby for an unfunded tax giveaway that has already tanked the bond market. newstatesman.com/comment/2022/0…
12/ Truss/Kwarteng cooked up this mess in private without any professional oversight. They dumped it on a leaderless Treasury and then screamed at each other when it went wrong... newstatesman.com/comment/2022/0…
13/ There is, and can be, no majority for this suicidal course of action: 132 Tory MPs backed Sunak, presumably understanding that books have to be balanced and market sentiment managed? Vote the budget down! newstatesman.com/comment/2022/0…
14/ And I am serious: if the govt falls because the budget falls, the Tories will have to split. They can't go into an election on a manifesto that says let's bankrupt the pension funds! newstatesman.com/comment/2022/0…
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