22.1 C
Tuesday, November 29, 2022

Trump Dinner with Extremists Raises Questions About 2024 Run

https://ift.tt/7dfFlnm U.S. President Donald Trump made headlines...

High Court Opening Its Doors to Public on Non-Argument Days

https://ift.tt/hrLjdQG Supreme Court is making a fuller...

Leading Media Outlets Urge US to End Prosecution of Julian Assange

https://ift.tt/hrLjdQG United States should end its prosecution...

Billionaire investor lambasts UK government

Its policies could exacerbate inflation in the country and result in ballooning public debt, prominent investor Ray Dalio warns

The UK’s new cabinet is operating like the government of an emerging country, billionaire investor and the founder of Bridgewater Associates Ray Dalio wrote on Twitter on Tuesday.

He criticized Britain’s new spending plan for its aggressive tax cuts that could raise the nation’s debts to an unsustainable level and cripple the pound.

“Investors and policymakers: Heed the lesson of the UK’s fiscal blunder,” Dalio wrote in a tweet. “The panic selling you are now seeing that is leading to the plunge of UK bonds, currency, and financial assets is due to the recognition that the big supply of debt that will have to be sold by the government is much too much for the demand.”


According to Dalio, the rapid increase in debt, coupled with the lack of demand for the British pound on the global stage, is a recipe for disaster.

“That makes people want to get out of the debt and currency. I can’t understand how those who were behind this move didn’t understand that. It suggests incompetence,” Dalio wrote. “Mechanistically, the UK government is operating like the government of an emerging country, it is producing too much debt in a currency that there is not a big world demand for,” he added.

Last week, British Prime Minister Liz Truss and Chancellor of the Exchequer Kwasi Kwarteng unveiled a new spending plan, designed to spur the nation’s economic growth and help alleviate the effects of soaring energy prices in the short term. Following the announcement, sterling sank to a record low against the US dollar on Monday, while the UK’s bond market experienced the largest one-day sell-off in its history.

READ MORE: Pound crashes to all-time low


According to Deutsche Bank, the new spending plan will push the UK’s debt-to-GDP ratio to around 101%, which is the highest level of debt the country has held since 1962.

For more stories on economy & finance visit RT’s business section

https://ift.tt/0BNuCHw 28, 2022 at 08:51PM
from RT – Daily news


Support Us

Secured by Paypal

Related Stories

Check out other tags:

Most Popular Articles