Everyone is praising Rishi, (and I like him btw. He’s definitely being cultivated to being a future Prime Minister) but this new stim-pack won’t touch the sides. It’s not going to increase currency velocity one bit. This is a toddler’s plaster on a gun shot wound. Expect a LOT more aggressive “helicopter money” to come. (Can’t wait)!
On a side note, I wonder how the media will spin it when he inevitably has to hike up most taxes to pay for all of this which will only hurt the middle and working class.
And the mathematical nature of a debt is that you pay MORE than what you received. So how else do you think Rishi will pay back the £300-600B he’s been dishing out? It will have to be in the form of tax hikes.
That’s the irony of modern day crony-capitalism. Crony-capitalism works for about 10 years at a time and then everyone relies on socialism to bail everyone out. But only the rich get bailed out and the masses are left holding the debt/tax hikes.
Will people be calling him a ‘hero’ then? He’s not. He’s just doing his job. An impossible job.
Also this stock market suckers’ rally is only there so the big boys can exit properly to eventually leave the public holding more worthless stocks. It will rollover.
P.S. The SDLT threshold raise doesn’t stimulate the economy. It only helps mortgage lenders/banks. I mentioned in an article months ago that the shit hits the fan in the resi world when mortgage issuance dries up. And it has been. This SDLT thing is just a tiny plaster to arrest that issuance dry up. But it won’t work…