[TOPIC]45 Days PM Truss Vaporated $500 Bln Assets

On Thursday, Liz Truss stood in front of 10 Downing Street and announced her resignation. From September 6 to October 20, Truss was in office for only 45 days, the shortest tenure of a British prime minister.

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Photo from graphic news

The netizens joked that, in just 4 months they have gone through 4 Chancellors of the Exchequer, 3 Home Secretaries, 2 Prime Ministers and 2 Monarchs.

What happened in 45 days?

1. On September 6, Truss came to power and met with the Queen
2. On September 8, Truss issued a £150 billion energy bailout plan, and on the same day, the Queen died.
3. On September 23, the "Mini Budget Bill" was introduced, which included a cut in personal income tax and the withdrawal of the previous plan to raise corporate tax, mainly around "tax cuts".

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4. On October 3, the UK government abolishes plan to cut tax on high earners in major U-turn.
5. October 14, Truss replaced the Chancellor.
6. On October 17, the tax cuts were "almost completely" cancelled by the new Chancellor
7. On October 19, Home Secretary Suella Braverman announced her resignation

The disastrous Tax Cuts vaporated $500 bln assets

The UK is facing inflation, energy crisis and the financial problems caused by pandemic control; the national debt has increased significantly. Inflation has added to the high cost of interest on government debt.

As the government is heavily in debt, taxes cut will make the economy worse and offset BOE's rate hike efforts.

The tax cuts immediately impacted the financial markets:

The pound plummeted, and the treasury yield skyrocketed, leading to crashes in British pension system.

Finally BOE launched of 65 billion pounds of debt purchase plan and rescued the market.

It's reported that mini-budget almost vaporated $500 billion in the British stock and bond market.

Bottom Line

According to reports, the election of a new prime minister will be held within the next week, and the result will be announced on October 28.

Polls show that former British Prime Minister Johnson has the highest support; and Rishi Sunak, who lost to Truss, has a good chance of winning.

Another big show is about to take place.

What do you think of the shortest Prime Minister, Liz Truss?

What will happen next in the UK?

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