Martin Wolf chief economics editor of the FT doesn't hold back - the pound is in a death spiral now predicted to fall to parity and beyond with a knocked-on effect to prices with commodities such as oil priced in dollars. If interest rates don't rise and that will severely impact in the cost of government borrowing then the pound will continue to fall. The so-called Red Wall will find out and quickly they count for the square root of fuck all. I wouldn't be surprised if at the end of this road the IMF is called in as it did in 1976 or we do more QE to the max which causes further inflation and sends the pound lower again.
en.wikipedia.org/wiki/1976_sterling_crisis
We are being talked about in some circles as a developing economy now with Brexit, as it has been implemented as the greatest act of economic self-harm in modern history.
It's no coincidence that Kwarteng worked for JP Morgan Chase and the hedge fund Odey which is shorting the fuck out of the UK - disaster capitalism at its best and a budget they are celebrating probably by burning money and dancing around the bonfire.
Kwarteng is risking serious economic instability
www.ft.com/content/52abf1de-10c2-4c15-a0d7-6f3f8f297fbd
Especially at a time of rising interest rates, such largesse is sure to raise questions about debt sustainability. Indeed, the market is already asking them. How might the government respond? Presumably by slashing spending. We have no indication of where and how.
Furthermore, this huge increase in the fiscal deficit occurs in a country that ran a current account deficit of 8.3 per cent of GDP in the second quarter of 2022 and has a tumbling exchange rate, low unemployment and already high inflation. Who could seriously regard this huge fiscal loosening as responsible? The Bank of England will be forced to tighten sharply. The government might then pour blame upon it for the results of its own decisions.
In sum, this mini-Budget will do nigh on nothing to raise medium-term growth, but risks serious macroeconomic instability. The failure to ask the Office for Budget Responsibility to assess its impact is simply scandalous. This government may be indifferent to painful reality. But reality usually wins in the end.