I am not sure it is quite that simple. The media likes causation....this did that....I am constantly amazed how a 50pt fall or rise on the Ftse 100 is confidently explained to the masses as being caused by one variable by the media. Anyone who has ever traded shares professionally knows it just ain't that simple. Long before this Govt, the UK relied on foreign capital to finance its balance of payments deficit (the overdraft) and this has been simple as there was loads of cash swilling around, much of it freshly printed or forced lenders such as the Central Banks and pension funds who have been ready to buy our Bonds (Gilts). Much of what is happening, was already in play before the mini-budget. Whilst the mini-budget provided a great catalyst for traders and headlines for the media, as you note, it's been reversed. Unfortunately, the structure of the UK economy and its balance of payments deficit has not and therefore the trend of higher interest rates to attract capital to finance the overdraft will persist. As for the black hole, it will continue to grow as we spend more than we produce.
