Krashy Kwarteng & MizTrusst are Destroying the UK Economy

It used to be that Labour were on the side of the people and the Tories were on the side of Money.

But Money seems to be fickle and it’s dumping the new regime of Krashi Karteng and MizTusst faster than you can say pork products.

My view is that of a few days ago. The government has misjudged the room and is on a path of economic suicide.

We Should All Be Very Afraid

Much of the apparent wealth in the UK is built upon the assumption that interest rates are low, government borrowing, and debt is cheap and we can all afford our mortgages at less than 2.00% APR.

Trust me, I’m not an expert

Well, that’s coming to an end now. Interest rates are leaping, the pound is collapsing, and stock prices are in free fall – especially in ones that act like a bond-proxy. I know this because my own boring investments in things like Greencoat Wind have been massively hit this week with a 10% fall (and probably more between when I write this and when you read it).

The reason that they are falling is because you can get a better return now on UK gilts meaning the risk premium for these assets over the “risk free” gilts demands a higher yield and therefore a lower price.

The yield of 10 year government gilts is now at 4.5%, a week ago it was 3.2%. Where will it end? These rates are a sign that the people who matter (money) don’t trust the current government and once markets get scared, a rush can become a stampede and we’ll all get crushed by it.

The pace of change is startling and the blame lies at the doors of number 10 & 11 Downing Street.

The Invisible Hand Job

Economic education teaches of the Invisible Hand which can explain a lot but if your government doesn’t believe that the government should do much, the invisible hand is left to go magic tricks to keep the wheels on the economy.

In a world of dropping interest rates, it was easy. In a world of tightening rates, the smoke and mirrors are seen for what they are.

The over-educated morons that now run the government had thought that with a massive tax cut (for the rich) that the invisible hand of the markets would give them a happy ending. It’s not turned out that way and instead Krashy is getting bitch slapped.

It’s really, really bad and it might just keep getting worse. We are facing a situation where the massive government deficit will only be made worse by the ballooning interest payments on government debt. And it’ll be everyone else who suffers because international capital (which this budget was trying to attract) can easily bugger off but you can’t so easily move your £200,000 mortgage (or equity|) on a house that’ll cost you £3,000 a year to heat.

With the pound collapsing, it makes us poorer and with interest rates rising, it’ll do the same.

I’d say that a doubling of borrowing rates from say 2% to 4% will do more damage than the fuel price hike. Because you can’t switch off your debt – and if you do pay it off, it’ll destroy the debt fuelled economy we all rely on.

What a Week to Remortgage!

I was hoping to remortgage next week for a new mortgage in the new year. It now looks like I’ll be desperate to get a good rate. I expect that they’ll either hike rates (3.69% fixed for 5 years is what I had my eye on and the UK government can’t borrow at anywhere near that rate).

We’re All Doomed!

That’s how I feel. We need to get rid of this government of crazies or else we are facing up to a UK economy and society that is brought to its knees.

I’m not a Labour supporter but we can’t have the Tories in power for much longer or we’ll end up in a very bad way.

Good luck, GFF.


  1. Anyone who voted for Johnson in 2019 and said “But, but, but Corbyn!” is responsible for where we are now. Looks like we have 2 years of burning the economy and salting the earth to look forward to.

    Liked by 1 person

  2. “It used to be that Labour were on the side of the people”: some were on the side of the Trade Unions and others on the side of the USSR. No doubt a few had a retainer from the CIA too. Never, at least in my lifetime, were they on the side of the people.

    The people seem to have agreed with me; Labour never won 50% of the vote in a General Election.


    1. On any finely balanced issue there will be a 50/50 split.
      The fact that FPTP and the LibDems sharing some of the voters that could be Labour explains in some part the lack of a Labour plurality.
      Opinion polls (which will change) give Labour a lead with around 55% of votes


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