10 Downing Street blues: Liz Truss Resigns

21 October 2022 Amega

In a shocking turn of events, British Prime Minister Liz Truss, who was appointed to the position by the late Queen Elizabeth II only 6 days before her passing, resigned from her position yesterday amidst a brave gamble to overturn the economic crisis in the UK, gone wrong.

Mrs. Truss now holds the title of shortest-serving Prime Minister in the history of the United Kingdom, having held the position for only 6 weeks, or 44 days.

In an effort to breathe new life into the failing GBP, Mrs. Truss had announced a series of emergency budget measures. Still, her vision of a “low tax, high growth economy that would take advantage of the freedoms of Brexit” unfortunately failed as the UK currency plunged even further.

Upon her resignation on Thursday, the British pound seemed to rally for as much as hours after the announcement, providing a unique opportunity for traders who were lucky enough or fundamentally prepared to catch the movement. The direction of the GBP has since reverted with slight fluctuations. Stocks and bonds had also seen a spike in their price following the announcement.

Depending on the general confidence in the candidate chosen to replace Mrs. Truss, it is possible to see another spike in the markets. Early information suggests this could happen as early as next week.

So far, there are three likely candidates to assume the title of the next Prime Minister.

Surprisingly enough, there have been calls for former Prime Minister Boris Johnson to resume his role merely months after his own resignation in the wake of a series of scandals.

Another possible candidate is Penny Mordaunt, an experienced individual who even stood in for Mrs.Truss in Parliament earlier this week.

However, the most likely candidate is former Finance Minister Rishi Sunak, who had publicly predicted that Liz Truss’ economic plans would fail.

Regardless of whether Liz Truss was indeed as incompetent as she is portrayed by many British media or simply set up to fail in the face of insurmountable odds, It remains to be seen whether her replacement will be able to overcome the devaluation of the British currency and prevent a looming recession.

By Mario M. Plousiou

Amega

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