The articles, the opinions, the stories, the poems and the cartoons Ovi magazine covers for Tuesday November 8th, 2022
The Bond Vigilantes Get Busy by Dr. Binoy Kampmark
While the levels of schadenfreude will be going through the roof given the unfolding farce in British politics, the resignation of Liz Truss as UK Prime Minister was troubling in one vital respect. True, her juvenile salad understanding of economics, which involved spending billions on tax cuts and energy subsidies, was lamentable. To cope with the beast of aggressive inflation, she was advocating a policy that would feed it.
Then came the not-very-invisible hand of the market, which decided to throttle her government and its policies with petulance. While the vigilantes of the market have, depending on the occasion, burst into song at the announcement of tax cuts, thereby stimulating growth, the reaction was far different this time. Trussonomics had the effect of sending a spike in bond yields so serious it threatened the British pension system. The pound also received a mighty battering.
In one vital respect, this was yet another savaging blow for democratic, or at least representative control vis-à-vis the market. Never mind what those silly politicians do, the buccaneers in London City and Wall Street and other such engine rooms of finance know better.They, not the world’s treasuries, can dictate policy for the commonweal by driving up borrowing costs. Central banks the world over are also complying, implementing monetary policy aligned with the bond market.
Continue reading HERE!
Viscosity #poem by Jan Sand
“The drip and drop of honey, of oil,
Has a velocity determined by
Viscosity.
A kind of stickiness to control the flow
Of how quickly something should go.”
Continue reading HERE!
A fistful of cactus #40 #cartoon by Thanos Kalamidas
For more A fistful of cactus, HERE!
For more Ovi Cartoons, HERE!
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