The scary result.
Sunak and Blojo make it to the final two.
The mp's vote splits roughly:
Sunk 200
Blojo 100
The members vote for Blojo.
Then you will see the mother of all fcukin meltdowns of the Tory party.
Oh and the UK economy will tank.
Anymore than it already has?
As far as public finances or economy go, perhaps an economist can enlighten me a bit on the below:
- To control inflation, Bank of England raises interest rates > that subsequently increases mortgage payments and cost of financing > that reduces consumer's/business's residual income > less consumer spending reduces GDP > Continous reduced GDP results in recession
- Bank of England does not increase interest rates > resulting in higher residual income > higher spending and high inflation and more people fall into poverty brack as wages do not rise in line with inflation, causing the strikes (as they are)
- Bank of England base rate aside, commodites like gas, electricity and fuel prices rising due to Russia/Ukraine ware so inflation will increase no matter what as energy is directly impacting production and transport.
- Ukraine unable to produce/export Grain in line with prior years also causing food prices to go up everywhere in the world (less supply than previous years across the world)
- Add in brexit, rise of extreme politics etc
With everything being so interlinked, how would anyone control this spiral of everything going wrong at the same time? What is a genuine way out?
I have thought of Labour's plan of windfall taxes but that's a short term solution and in the medium term it'll drive business away from UK Shores.
I have also thought if Russia/Ukrain war somehow comes to an end, would that sort some of these problems out? I think not as Europe will not go back to Russia for energy and it wont become self sufficient for many years to come.
Going back to other energy alternatives like coal will affect the climate change and Net Zero commitments.
Would appreciate anyone with economic hat on to suggest viable solutions on a macro level?