“I used to think that if there was reincarnation, I wanted to come back as the President or the Pope. But now I would want to come back as the bond market. You can intimidate everybody.”
So said one former advisor to ex-US president Bill Clinton, commenting on the seeming omnipotence of the markets, with their ability to depose world leaders.
Having chased the unhinged Liz Truss and her hapless sidekick Kwasi Kwarteng out of office in October 2022, investors are now turning on their latest target: Labour Chancellor Rachel Reeves.
Market ‘confidence’ in the UK economy is once again plummeting. Starmer and Reeves have spent years trying to woo big business and placate City bankers. But now, only six months after coming to power, the new Labour government is haemorrhaging the support of those who hold the purse strings.
Despite all her reassurances and soothing words, the capitalists were not convinced by Reeves’ Autumn Budget. In fact, they were spooked by talk of increased taxes and regulations on employers in the Treasury’s Halloween fiscal announcement.
More recently, a confluence of developments has exacerbated concerns about the long-term health of British capitalism, leading investors to dump UK debt bonds – known as gilts – and sell off their holdings in the pound.
In summary: the British economy is stagnating, with prospects of promised growth waning; and, with global inflationary pressures (from protectionism, to deficit financing, to military spending) refusing to fade, interest rates are looking likely to remain elevated – pushing up borrowing costs and heightening the unsustainability of government debts.
With bond vigilantes and financial speculators moving against the UK government, the Labour leaders are coming under pressure to outline detailed plans for how they expect to boost growth and balance the books.
Concretely, this means another tsunami of austerity is coming our way. Welfare spending, public sector jobs and pay, and state pensions are all likely to face the butcher’s knife. And councils and services, already cut to the bone, are set to be slashed even further.
Instead of providing the capitalists with another pound of flesh, it is time we expropriated these parasites.
Only by nationalising the big banks, finance houses, and monopolies – without compensation – can we put an end to the intimidation of the markets and take back control.
Starmer and Reeves have no intention of taking such steps, however. Workers must therefore prepare for battle.
Deceivin’ Reeves lies on her CV
Will Gedling, Manchester
The job search can be quite difficult out there at the moment. With hundreds of other applicants applying for every position, the pressure to write a CV that sets you apart is quite high – so high that you may be inclined to lie.
But don’t look to us for permission – follow the example of our Chancellor of the Exchequer, Rachel Reeves.
Reeves’ conversation with her career advisor must have gone a bit like this:
“Does retail banking for Halifax not really fit the importance of your position? It’s okay, say you were an economist for the Royal Bank of Scotland.
“Do you need experience for the role? Super! Go with a solid ten years for the Bank of England. Oh, you only worked there for six years, one of which you were on a student placement? That’s fine – it’s quality not quantity!”
Fibbing her way into a top job, although nothing new in Westminster, has rightfully brought Reeves’ credibility into question.
But fear not: the good, progressive folk at the Guardian have swooped to the defence of the Chancellor, suggesting that – compared to her predecessors – Reeves is “nerdily overqualified”.
But whether it’s Reeves, Osborne, or Brown, there’s one aspect of every chancellor’s CV that stands out: their subservience to the ruling class.
The primary skill required to get a leading cabinet role is a willingness to renege on promises, impose austerity, and attack the working class. If you have these qualities, you’ll make a fine capitalist politician.
Unfortunately for Reeves, LinkedIn doesn’t display these as options to choose from. Not to worry though – Sir Keir will no doubt give her a good reference, should she need it…
