DECRYPTION – The British Prime Minister, who resigned on Thursday, is the latest victim of a series of decisions by the Conservative Party that go against economic principles.
In six weeks in Downing Street, Liz Truss will have led the United Kingdom to the precipice of a financial crisis, caused the mistrust of investors, raised the concern of the IMF and the American Treasury. It caused the pound sterling to plunge and interest rates to jump almost to the level of those in Italy and household borrowing rates to jump to record levels.
Economists compare the country to an emerging market. The Moody’s agency is alarmed by a “unsustainable debt trajectory» ; Standard & Poor’s placed it under a “negative». «It’s the right plan“, insisted the Prime Minister, when she justified the massive unfunded tax cuts of her Chancellor of the Exchequer, Kwasi Kwarteng, which set fire to the powder. Before having to thank him for replacing him with Jeremy Hunt last Friday, then throwing in the towel in turn, Thursday, after the shortest term in history for a British prime minister.
» AND DIRECTLY – Resignation of Liz Truss: the new…
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