Farage’s policies would crash the pound — Former Bank of England official warns plans would create another “Liz Truss event”
https://www.bloomberg.com/news/articles/2024-06-21/farage-s-policies-would-crash-the-pound-ex-boe-official-warns
by marketrent
20 comments
Fake news! They said Brexit would be a mistake and that has been a complete success. We are truly the envy of the world!
*Martin Weale, who’s now professor of economics at King’s College London, said mortgage costs would soar if leader Nigel Farage wins the election on July 4 or succeeds in getting his plans adopted by the next government.*
*He likened the impact to the market turmoil after Truss’s unfunded tax cuts in September 2022.*
*“The market would demand a moron premium** *and mortgages would likely go up again,” Weale said in an interview. “This would be an event similar to the Liz Truss event.”*
*Weale’s warnings carry weight because he correctly predicted that Truss’s tax-cutting mini budget would “end in tears” with a “run on the pound” and higher interest rates.*
*He made that call a day before the “Growth Plan” was unveiled in September 2022.*
*In the aftermath of the government announcement, sterling crashed to a record low, borrowing costs spiked and the BOE had to intervene to prevent a financial crisis. Truss quit as prime minister a month later.*
*Farage’s plans include £90 billion of tax cuts and £50 billion more spending a year, paid for by slashing benefits, ending public sector “waste” and making vast savings on the Bank of England’s quantitative easing program.*
___
*Former Treasury economist Dario Perkins coined the [“Moron Risk Premium”](https://x.com/darioperkins/status/1573562451748069376) concept: “The problem isn’t that the UK budget was inflationary, its that it was moronic. And a small open economy that seems to be run by morons gets a wider risk premium on its assets – currency down, yields up”
Breaking News: Banks announce scare stories after politician promises to tackle their excessive profiteering and help ordinary people.
They would say that!
I would love it if the term “Liz Truss Event” enters the common lexicon ends up being her main legacy.
Farage isn’t winning this election talk less of having the power to crash or not crash the Pound, did he give this warning when Liz was leader of the Conservative? And he can’t say that of Starmer cause he doesn’t want to upset the incoming PM
You mean vast unfunded tax cut pledges when the infrastructure of the nation is already clinging on for dear life would be bad?
“Falls of chair”
Gov should be one of the first for the Grand Order of the BOOT,!
Your average reform voter won’t care. They’ve been voting on a single interest for at least a decade now.
As long as he and his mates can short it beforehand he couldn’t care less.
That’s the point…vulture capitalism at its best, combined with wilful ignorance…he’s a 21st century spiv…
Reminds me of a song on Spitting Image
🎶 With economic policies as mad as any hatter
But we’ll never get elected so it doesn’t really matter 🎶
The trick is what does the “former bank of england official” have to gain by saying this?
is he pumping/dumping stocks etc?
The Bank of England have famously never been wrong and have the British publics best interests at heart.
Anyone fancy starting a proper single issue protest party? Not just a populist destabiliser.
Single issue being voting system reform.
The whole campaign would not be focused on attacking any other parties or policy (unless for gerrymandering and vote manipulation related things).
Instead, it would focus on explaining issues with fptp, why it leaves us open to foreign meddling (with many examples of this from the past 14 years alone).
Explain other options well (not just a shitty home brand AV system that’s made in the same factory as fptp).
First week in, make the selected change and immediately after, hold another election.
Obviously a lot more complicated than that in practice but… There’s really no point to any of this while we’re stuck with fptp. It’s forever going to be a manipulated drama that comes across as a game of political pingpong.
Are you telling me that the man that shorted the pound and profited massively from it getting weaker might want to make the pound weaker?
Yea but he is just an expirt. What do expirts know? Nothing.
I just don’t get who is voting for these fucking idiots?
I mean the BoE had to take [emergency action to save the British pension system from her idiocy](https://www.theguardian.com/business/2022/sep/28/bank-of-england-in-65bn-scramble-to-avert-financial-crisis) and the pound fell to the [lowest level EVER against the dollar after her brilliant plan.](https://www.theguardian.com/business/2022/sep/27/the-jewel-has-lost-its-shine-how-the-world-reacted-to-the-uk-pound-crisis)
Are ~17% of the UK population currency traders betting against the UK? People so hyped up on migrant rage that they don’t care if they’ll be in a poorer country from the parties economic policies? The genuinely believe this will totally work on second try??!?
The same Farage that bet and profited from the pound crash after Brexit?
“You will vote for neoliberal party otherwise we’ll crash your pensions.”
Isn’t Reform only expected to get 7 seats according to the poll? Why is everyone talking about this twat?