Government feared foreclosure could trigger bond market collapse, says Cummings
The UK government feared the bond markets would turn on them if they stalled on coronaviruses, former Prime Minister’s adviser Dominic Cummings told MPs.
The central bank was also worried about the impact such restrictions to contain the virus would have on public finances, Cummings said.
“It was the case that the Bank of England, senior Treasury officials, senior Cabinet Office officials were saying: ‘We have to think about the consequences of, if we do this foreclosure, we are going to have to borrow huge sums of money. money, ”Cummings told MPs on the Science and Technology Committee on May 26.
“What if the bond markets suddenly explode and go crazy and refuse to lend us? Then we’re going to have to find emergency powers to tell the Bank of England to buy the debt,” he said.
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Cummings, however, praised Chancellor Rishi Sunak’s response to the crisis and said the stories that Sunak opposed the enactment of the first lockdown in March in order to protect the economy were false.
Sunak was “extremely knowledgeable,” and “all of these stories are wrong,” Cummings said.
In contrast, Cummings brutalized Secretary of State for Health Matt Hancock, who he said lied and should have been removed from his post.
“The Secretary of State for Health should have been fired for at least 15-20 things, including lying to everyone repeatedly in a meeting after a meeting in the Cabinet room and publicly,” said Cummings.
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