The funds floating around the bond market dwarf any one countries GDP. Countries/governments need to borrow from the bond market to fund both their outgoing expenses and capital investments. If over a period of time, taxes in < govt spending ( as Mr Micawber might have it misery).
If a government is perceived is, using a technical term, 'fcuking up the economy' the thousands of separate fund managers are not keen to 'buy' bonds unless the government interest rates become prohibitive. One measure often used as a yardstick is govt borrowing > GDP.
Liz Truss wanted to cut taxes, good to help growth, but didn't cut spending. So it was hardly surprising, that is was, effectively the bond markets, that did for her. The phrase you 'cannot buck the markets' is usually a fact.
The huts keep coming, the stupidly of 'austerity' when borrowing was cheap, the tories should have invested in infrastructure to promote growth, ie the opposite to what they did. Brexit is a growth hit, as with the pandemic ( huge borrowing)
The Russian invasion of Ukraine, Liz Truss made investors nervous. Markets are also nervous about the AI bubble and Trumps idiotic tariffs.
With this background and the resultant 'guard rails' labour are struggling, to get building houses, nuclear energy plants, new national grid etc, all growth stimulants. Whilst of course, seeming unable or unwilling to 'stop the boats', enabling ***ash and Deform to appear the winners of the next GE.
Good job I am old...and this won't bother me.
