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Tax cuts for the unfunded wealthy, in an already tense environment, have unleashed a storm on the financial markets.
By Marc Vignaud
VS’It is an understatement to say that the economic and budgetary policy of the new British Conservative Prime Minister, Liz Truss, arouses mistrust. Since the presentation of the “mini-budget” by its Finance Minister, Kwasi Kwarteng, on Friday 23 September, the United Kingdom has been facing a storm on the financial markets. The pound sterling collapsed. On Monday, the British currency hit its historic low against the greenback, at 1.03 dollars, it is true in constant appreciation against many currencies. In a context of great uncertainty about the economic situation, the American currency is indeed playing the role of a safe haven, especially since the Fed is rapidly raising its key rates. At the same time, UK government borrowing rates soared, expecting…
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