New thread on the #SecondGFC follows.
So Moody’s has downgraded the UK as a “warning sign” re the volatility of £ & UK politics. One of the rating agencies that awarded top grades to junk bonds etc in the #GFC. A 100 yrs ago Moody himself gave the UK our now lost top rating. How times change. C/f £⬇️ since then.
Clearly governments were in charge of the markets then. And now, shockingly, markets seem to be in charge of governments! The “markets” are warning the UK to appoint the right finance minister and maybe PM. [lunch beckons, more to follow]
Sunak is clearly the best candidate for PM, despite not winning an election as leader of the Tory party. As an ex banker/private-equity operator, he will understand how the City works. As an insider, he made his fortune at the height of the #GFC.
Sunak & Hunt, if appointed Chancellor, should be enough to calm the financial markets. One problem: Boris may come second, and the rules will have to change to stop the contest going to Tory members. Otherwise, the chaos will continue.
So, Sunak to become PM, & Boris withdraws gracefully, for him. A PM who appears to think that the country has “maxed out its credit card”. Another of the bankers, who do not seem to understand that nations do not have bank cards. Which institution would issue them?
It’s obvious that the @bankofengland is the only bank that could tell @hmtreasury that the nation had to limit its spending. But the govt is in charge of both institutions! And Sunak as PM is in control of the card. A banker. #NonsenseEconomics
A sovereign nation with its own currency can create as much money as it chooses. The financial markets should not be in charge of our finances. Neither should they be able to appoint PMs by threatening to remove credit ratings. Something has gone terribly wrong with the system.
Sunak has many choices, and I fear that he will opt for more austerity. #NonsenseEconomics because such a policy has failed in the UK after the #GFC & it will fail again, even more because the economy is much weaker & inequalities even higher.
It’s important to study Sunak’s background to understand his approach to economics and the #SecondGFC the second great financial crisis. abtc.ng/rishi-sunak-ed…
He rose to the top by diligent study & well-informed choices. The time was right for him. He chose to be a Conservative & to go to Stanford Business School. He was recruited by Goldman Sachs, the bankers’ banker, which trains & supplies many #CentralBanks with their Governors.
Astonishingly, somehow, a member of this financial elite, trained in a UK Public School and with an Oxford PPE, is now becoming the UK Prime Minister. And with a great backstory of struggling middle-class parents. Sunak, the Jedi knight; Johnson, the king of the world.
Note that at the height of the #GFC when Goldman Sachs, Morgan Stanley, & interrelated institutions were going bankrupt, the US Treasury & Fed intervened to save them by changing the banking rules in their favour.
Therefore, Sunak is extremely well connected to the global banking world of ex-Goldman Sachs partners/employees. He is well placed to take and give advice from other high flying leaders and bankers.
In other words, the UK now has a PM, who is a member (with a banking background) of a global elite, whose main job is to manage the #SecondGFC. Will they be able to save the system if bankruptcy threatens this time round?
• • •
Missing some Tweet in this thread? You can try to
force a refresh
