SHE CAN’T BE TRUSSTED!
PM HAS SCREWED EVERYONE SAY ECONOMISTS
PRIME Minister Liz Truss and her Chancellor Kwasi Kwarteng are accused of destroying the UK economy – leaving us all screwed.
A mini budget full of tax cuts and increased borrowing has spooked the markets leading to politicians and economists all around the world slagging them off.
Former US Treasury Secretary Lawrence Summers branded the mini-budget on Twitter “utterly irresponsible” and blasted both the Government and Bank of England for their lack of credibility.
“The magnitude of Britain’s trade current account deficit underscores the seriousness of its challenges,” he said.
“My guess is that the pound will find its way below parity with both the dollar and euro.”
A final warning from Mr Summers is that the pound crisis will affect London’s viability as a global financial centre.
German finance minister Christian Lindner has raised doubts over the Government’s plans to ramp up spending while the central bank tightens policy to control inflation.
Speaking at an event this week he said: “In the UK, a major experiment is starting as the state simultaneously puts its foot on the gas while the central bank steps on the brakes.
“I would say we wait for the results of this attempt and then draw from the lessons.”
Mr Lindner, the hawkish head of the pro-business Free Democrats, has been pushing Germany to return to constitutional debt limits after breaches during the pandemic.
He said further government support packages would undermine measures taken by central banks to fight inflation, adding: “We must not counteract the central bank’s policy of rising interest rates by sending fiscal stimulus for demand or for growth.
“Expansionary fiscal policy has contributed to us seeing such inflationary developments.”