Comment

Give Truss time to take on the Anti-Growth Coalition

Liz Truss’s first Tory conference speech as Prime Minister contained most of the elements one might have expected and hoped for. She was focused on growth. She emphasized the importance of delivery and of “Getting Britain Moving”. She acknowledged the considerable challenges our economy faces at present but she declared herself undeterred in seeking to …

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How three decades of pensions vandalism led directly to today’s crisis in gilt markets

But there is a long tail, lasting in some cases more than 50 years. In the meantime, the established strategy as members approach retirement age is to “de-risk” portfolios by selling higher risk assets such as equities and swapping into so-called “risk free” bonds where you can be certain of the nominal rate of return …

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The alarm over Credit Suisse signals a financial system losing its grip

There are worrying echoes of the financial crisis when Lehman Brothers and Bear Stearns scrambled to assure their creditors that all was well, but succeeded only in fueling suspicions that everything wasn’t. At times it was hard to know whether fears about the stability of the financial system were real or had become a self-fulfilling …

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The markets are wrong about ‘Trussonomics’ just like they were about Brexit

Reducing the top rate from 45pc to 40pc is more controversial. But it is a sound supply-side policy. People on higher incomes, and the businesses that employ them, are especially likely to respond positively to tax cuts, for example by relocating to the UK. Of course, if this were just about providing a quick boost …

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Without the Budget, post-lockdown Britain was heading for terminal decline

For the first time in three decades, we have a government focused on prosperity. No more cheap money. No more ghost-growth. Britain will concentrate on real-world wealth, removing barriers to enterprise so that we can all see rises in our living standards – especially people who depend on their salaries and so have missed out …

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Bank of England failures have left Britain dangerously addicted to cheap money

Since the 2008 global financial crisis, we have become used to cheap money, with low interest rates and quantitative easing (QE). The latter has involved the Bank of England printing money in order to buy government bonds known as gilts. Last year QE had reached £ 895 billion and the Bank owned almost one-third of …

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Without drastic intervention, Macron will steal the City’s crown

The pound has ralliedthe panic in bond markets has recededand the FTSE has regained a modicum of ground. The reaction to Kwasi Kwarteng’s mini-budget may even have been somewhat overblown but the decision to bring the Office for Budget Responsibility back in from the cold was clearly the sensible thing to do. It has helped …

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