(Disclaimer, I know very little about economic theory, but plenty about being broke, read up on this topic to learn more and educate yourself!)
Thousands of people have joined an orderly queue in the heart of London to pay their final respects to the British economy, which is dying at a rapid rate. Last week, Prime Minister Liz Truss (who took office weeks ago and is already receiving votes of ‘no confidence’) announced the largest tax cuts in over 50 years. Truss argued that lower taxes on the wealthy will ultimately drive economic growth, which I find questionable at best.
Skeptical investors rushed to offload British currency and government debt this week, which in turn tanked British bonds, putting pressure on pension funds and other debt holders and ultimately threatening a systemic collapse. As someone with admittedly limited knowledge of the inner workings of financial institutions, I was pretty quickly overwhelmed with unfamiliar terms and jargon (gilts, collateral calls, under-water derivatives, etc.) but the heart of the matter was summed up nicely by experts below:
"Were dysfunction in this market to continue or worsen, there would be a material risk to UK financial stability."
-the literal Bank of England
Of course it would be shortsighted to assume that damage would be limited to the financial stability of the UK. The market here in the states has seen volatility for weeks, in the worst September performance since the market nearly broke in 2008. Information and economic stability flow from the top down, so while those closer to the top are simply uncertain, those at the bottom have been struggling for months or years. The trickle-down economic model really leaves most of us to get trickled on.
Side Items
Ian’s Aftermath: This flood map provides a solid side-by-side view of the damage Hurricane Ian brought to southwest Florida. While viewing these photos, it’s important to remember that Fort Myers, a town severely impacted by the flooding, houses a 457-bed jail that was NOT evacuated, despite falling in the state’s recommended evacuation zone. As late as yesterday morning, with the rain pounding and the storm surging, the jail’s warden released a statement claiming that inmates are safe, saying, "In an abundance of caution, inmates were relocated within the main jail to a higher floor."
Forget Student Loan Forgiveness: Just weeks before the midterm elections, several republican-led states have sued to block Biden’s student loan forgiveness plan. The crux of the disagreement is the question of Biden’s authority to cancel debt, which republicans claim is overstepping his jurisdiction. The administration narrowed the initial proposal yesterday to put it on firmer legal ground, meaning they cut about 700,000 borrowers from the program in an attempt to avoid lawsuits. I figured this initiative was too good to be true when it was announced, much like Biden’s “no more cancer” or “no more hunger” promises, we’ll see just how many people are actually able to benefit in the end
NFL Bad: Criticizing the National Football League could be a professional sport in its own right. There are just SO MANY issues with the sport, to pick one can be difficult. Yesterday two professional football teams played in Ohio, and it brings me no joy to report that those viewing from the stands or at home may have witnessed a traumatic brain injury in real time. Quarterback Tua Tagovailoa of the Miami Dolphins was thrown to the ground in the game’s first half, four days after suffering what appeared to be a concussion in the Dolphins previous game. No word on how the league might adapt to try and avoid future death or permanent injury taking place in front of a national audience
Wealthy White Man Lies Openly & Repeatedly: Elon Musk says his shiny new car can also be a shiny new boat, as long as the water isn’t too choppy. At some point we may have to dive into how this emerald-drunk trust fund man child was able to deceive large swaths of insecure men into believing his own hype
Take 10 seconds to help out the homies! Two of The Mourning’s loyal army made a short film about North Carolina and are in the race of the century to secure first place in a contest. Do the right thing