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Cake day: June 10th, 2023

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  • Much of the economy only works because people believe in it. The UK had an economic crisis in 2022 when Liz Truss, Prime Minister for 50 days, passed a budget so terrible it tanked their stock market.

    The budget included enormous tax cuts for the highest tax brackets, resulting in a £60 billion budget deficit, all while there was a cost of living crisis for the UK’s poorest. UK stocks plummeted so much over the thought that the Prime Minster had no idea how to manage the economy that it caused “safe” investments, like retirement funds, to start failing. The UK central bank stepped in and said they’d print money in order to keep safe investments liquid which likely stopped the UK from experiencing a great depression. Liz Truss resigned because of the fallout.

    It’s not an exaggeration to say that Trump hinting that the government might not honour their debts could collapse the economy.