Amid deepening debt and an onslaught by the president-elect, Labour must calm the markets, then think big economicallyIt’s certainly not 2008, nor even Truss 2022, but the men and women who move the financial markets are suddenly darkly pessimistic. Some of the private emails and WhatsApp messages circulating last week matched any efforts by Cassandra. The mood has turned against Britain.It is not one single thing, but a toxic mix. There is the prospect of a long period of stagflation, the consequence, as even the markets recognise, of 14 years of epic misgovernment. The problem now is partly that Labour does not have a plausible growth story, partly that the chancellor, Rachel Reeves, is painted as having an economic tin ear that douses capitalist animal spirits, and partly because Trump’s arrival has exposed just how dependent an indebted, economically wounded Britain is on the kindness of strangers. It’s not yet a crisis – the stock market has held up – but without some skilful e...
The article argues that Britain's economy is vulnerable under Donald Trump's new world order due to factors like long-term economic mismanagement, a lack of a compelling growth strategy, and negative perceptions of Chancellor Rachel Reeves' economic policies. This vulnerability, coupled with Britain's heavy reliance on foreign investment, makes it vulnerable to a potential financial crisis, especially considering Trump's disruptive actions in global markets. The article emphasizes the urgent need for skilled economic and political maneuvering by the British government to secure friends and allies, and avoid a financial meltdown.
Essentially, Britain needs to "find friends fast" because its economic weakness makes it susceptible to the turmoil Trump's policies could cause.
The article argues that Britain's economy is vulnerable under Donald Trump's new world order due to factors like long-term economic mismanagement, a lack of a compelling growth strategy, and negative perceptions of Chancellor Rachel Reeves' economic policies. This vulnerability, coupled with Britain's heavy reliance on foreign investment, makes it vulnerable to a potential financial crisis, especially considering Trump's disruptive actions in global markets. The article emphasizes the urgent need for skilled economic and political maneuvering by the British government to secure friends and allies, and avoid a financial meltdown. Essentially, Britain needs to "find friends fast" because its economic weakness makes it susceptible to the turmoil Trump's policies could cause.
