This has gone too far now. Gilt yields took off again today, pound fell accordingly. BoE spending billions to try and arrest it.
I think the market has seen the hopelessness of the government position. If Truss won't ditch the tax cuts there is little hope. Not for her, I mean us.
The IFS says £45bn of cuts are needed. The big expenses are the NHS, state pensions, benefits, education, defence. They have already committed to increase defence spending by 50%. The back benchers won't accept benefit cuts. The NHS is at breaking point and it's still October. Half their voters are pensioners. Education should be an area of investment for growth.
If she can't find the cuts the only way out fiscally is a u-turn, but the market fears that won't happen. And if it does, it weakens the government and prolongs uncertainty.
It's great that she has wrecked the Tory party but the country can't take any more collateral damage.
The bank has actually warned about a tipover over financial stability.
They need to bin her now. No time for a leadership contest, bring May back as a caretaker, or give it straight to Sunak.
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