Remember recent Liz Truss Saga - this news is now ‘Buried’! Why do you think?

It's clear that Liz Truss and her colleagues, including Sunak, continue to live in a fantasy world. Her recent failure- article highlights many issues with "British governance", including the grip of London finance capital and the impact of short-term profits on policies. Democratic election is a farce - no election had any significant impact on economic policies for decades.

Liz Truss admits that she “seriously underestimated the strength of the economic orthodoxy and the influence of the market”! This she claims despite her knowledge about how “the blob of vested interests” exists within many Whitehall departments! According to her article, the main vigorous challenge came from the cabinet table for the policy proposal to raise the corporate tax to the same level as France. Her article today is part of the organised battle that is emerging inside the Tory party according to the guardian.

(“Her allies, including the former cabinet minister Simon Clarke, have recently formed the Conservative Growth Group to push for her tax-cutting agenda. Following a number of scheduled media appearances over the next week, Truss is due to deliver a “hawkish” speech on China that could add to the pressure already mounting on Rishi Sunak”.)

Leave aside the tax policies -The establishment is unlikely to change its direction for now.

The Bank of England is likely to raise interest rates again, causing a rise in the cost of living and potential mortgage defaults. Despite a tax rate of 4%, just 0.75% lower than the US, the Bank of England has not been able to effectively reduce inflation. The governor of the Bank of England, Bailey, is spreading lies about having "cornered" inflation, yet nobody is questioning this falsehood. With inflation standing at over 10%, it is not hiding in any corner. 

The establishment, including the media, are keeping quiet about this issue to avoid further interest rate hikes and protect the market. They do not care about the rising cost of living and the suffering it causes. However, if inflation drops by 3 points, the Bank of England will still have to raise interest rates, even if the US lowers its own inflation rate (following coordinated policy is increasingly unviable- this in itself will further cause problems). This will eventually lead to an astronomical increase in inflation in both countries, and further interest rate hikes. The EU is no different.China is on its way to join the high inflation club leading to one of the mega inflation problems globally - one that has not been seen in history before.

In effect, what they are dealing with is the potential for "great inflation" similar to the period from 1965 to 1981. Given the depth of the crisis, this new great inflation could be worse than that of the late 1970s. The Nixon shock and the chaotic monetary policies that followed, along with the neo-liberal policies from that period, should be linked to the cause of the current crisis. Capitalists have not solved the problem, but have merely postponed it by allowing the debt bubble to inflate. 

All countries investigating potential digital currencies now is another means of breaking away from traditional monetary policies and making huge sums of money available to big banks and corporations to exploit, at the expense of the rest of the population who will have to bear the burden of debt. However, this period is different. Capitalism is facing multiple crises and every solution proposed will fail. No quick fixes or short-term solutions exist within the capitalist system, and attempts to fix the problem will only make it worse. Every temporary increase in economic activity or decrease in inflation will be used by big capitalists for propaganda purposes and will hide the fact that capital is moving up and down. The loss of wages and decline in living conditions will be unbearable, and capitalism will not make any changes to address this. The impact of these changes on different classes will be very visible and will lead to more clashes.

Take this points into consideration before you we make big decisions this year.