neil: nile gardiner, the former foreign policy adviser under maggie thatcher. like lloyd, i don't know if he is a royal watcher but a darn good market watcher. >> thanks, neil. good to be here. neil: same here. beyond what is going on in britain, if you think about it, you have protests going on day after day in france over rocketing prices for pretty much everything. started with energy but it extended to everything, ditto worker strikes popping up sporadically in places like italy, germany. like the whole european couldn't ment is on edge. i'm wondering if this is preview of coming attractions? >> it is. adds so much more uncertainty to everything else that is going on. our lives right now are very uncertain about the economic and market standpoints. i'm not an expert in uk politics but i don't think you need to be to have a lack of trust for politicians. i think people round the world are fed up with politicians pushing narratives and agendas and not looking out for the majority of their citizens. that narrative pushing, and that agenda pushing happens all a

. >> neil: they're not like the maggie thatchers or the maggie thatchers of that day.rkets revolted and they revolted, her plans weren't paid for. we have less than a minute here. do you think republicans should be cognizant of that? sometimes we treat tax cuts differently, for example, than we do spending. but whatever they come up with had better be paid for or the markets themselves revolt. >> yeah, exactly. and that's -- that was the problem that liz truss got into. i strongly believe in lower taxes and a smaller state, a way to generate more growth. and the country needs more growth. that's the right way to go. but you have to do it in the framework of a sensible prudent financial policy. you can't just do what liz did, big spending increases without an idea of how to balance the budget. the market will be much more sensitive about seeing the budgets balanced, the fiscal prudence dominates and that's going to be a challenge for republicans as well as it was for truss. >> neil: jerry baker on fox business. great show. great writing, great thinker and great day at t

the market reaction, it tanked, pound tanked to all-time lows and that kind of led this with maggie thatcher'sx cuts when she assumed office the country was interpret straits much worse than they are experiencing now and there was more of a hail mary pass desperation but not so here. what do you make of it? >> in a way it is a failure of messaging. i don't feel the prime minister came out and gave the major speech the country needed to hear. just back from europe over the weekend, everyone is jittery and it is energy prices and inflation and the war and the nuclear threat and people need clear leadership and if she could explain how this was going to work, it could have been effectively communicated but i didn't see an effort on that. we 21 thing -- neil: one thing that fascinates me is how common it is for the party to turn on you. she is benefiting from that because the party did that with boris johnson. could she face something like that? >> it is possible. it happened to churchill and happened to thatcher too. there is a strong precedent here. there will be a resistance to more upheaval go

favorite for the time being maybe because he's the most recognized name and where's your next maggie thatcher your ronald reagan? where? >> the count to fall and even if it was badly delivered and at least in principle, we were trying to turn around towards the right direction. there's an absolute dare for talent and boris has one thing going for him and has talent and amusing and people like a politician that's got a bit of personality in terms of policy he's closer of doing a liberal or a bream and he's a conservetist. new center right and political movement in britain and this week i've been bombarded with calls of people saying nigel, come back and save us. all well and good. i might have led the campaign to get us a referendum for brexit, but i'm going to need other senior figures to reach the same cross-exaconclusion -z as me toe proper conservative. neil: sounds like you have your doubts. >> i travel opportunistic mystically. i don't understand estimate the magnitude of the task or the power that now exists within the global financial and political community and they really have shown

you know, she was trying to be maggie thatcher. >> yep. >> butt v but it's 2022. it's not 1979.rying to actually implement even more aggressive version of thatcherism, more like reaganism. but, america in 1981 could absorb those sort of deficits. great britain today just can't, can they? >> it's hard to think they can, and when you think about sort of the things that you might do if you're a conservative and the supply side-ish way in terms of trying to lower the cost of things, in a moment of inflation, oddly enough it can do the opposite, which is why you saw the pound fall and why you saw costs in that country rise. became almost impossible for lots of people to have mortgages. so right now i think there's a moment of credibility for the uk that's at stake. whether she remains in that post or somebody else comes in, i think it's too early to tell, but from an economic perspective, the sort of supply-side thoughts that have worked in certain cases, and i know there's debates whether they've worked, but to the extent they have historically, might not work in this instance in th

thinking about liz truss, new prime minister of britain, baptism by fire, she fashions herself the maggie thatcherry here but once she shelved her big tax cut plans particularly at the highest rate, the markets seemed to rejoice, the pound picked up steam, picked up back to where it was. i'm wondering if that tells you something, that a conservative government had to retreat on conservative principles? >> well, the problem is the conservative party in britain hasn't been conservative since margaret thatcher. neil: right. she was going to try, right? it was repudiated by banks, right? >> you have to put it in context. the whole world was collapsing then, not just britain. most of what her tax cut proposals were was not increasing taxes, don't increase the payroll tax, don't increase the energy tax, other taxes that boris johnson put in to take in effect, the corporate tax. so the actual cuts were rather small on what they call the standard rate which is 20%, most people in the bracket would reduce it to 19. the top bracket 45 to 40, which would hit 160, $70,000 there. not a big deal. neil: that low

way to pay for it to increase taxes goes against what allot of people say was the policies of maggie thatcher when she was at 10 downing street. help me with distinguishing the difference between your parties. >> so i say it is pretty reminiscent actually, neil, of a period you remember very well, 1990, 91 in the united states when the u.s. was facing serious concerns about its deficits. the dollar was under pressure, interest rates were rising. the deficit looked like it was rising out of control. neil: right. >> george h.w. bush had been elected in 1988, saying read my lips, no new taxes but sat down with democrats in congress to agree a deficit reduction package which included tax increases that was extremely an popular in the republican party which helped him lose the election in 1992 to bill clinton. we're going through that to some extent. the uk is going through. a party, sunak will probably become prime minister tomorrow, america make a big speech bit tomorrow. cut taxes get the size of government down. believed in that supposedly all the political life. he will say the country is in

nile, i mention -- maggie thatcher. average folks are at wit's end. could that happen here?il, thanks very much. without doubt, an extraordinary series of developments in the united kingdom with liz truss resigning after just 44 days. i would argue though that, actually, liz truss had the right overall approach which was to cut taxes, to regenerate the economy through economic and advancing economic freedom. there was a backlash against that, of course, from all sorts of elements, the torrey wets inside the conservative party, you have the traditional liberal elites fighting against it, also the imf and joe biden actually condemning liz truss' moves. but this is the right approach, actually, in order to to grow the economy, to bring down inflation, actually. and i think that is unfortunate. liz truss really lost her nerve as prime minister. she caved in to the left. she surrendered to the left, and that's why out right now. but without a doubt what we're seeing here mt. united states is an economic disaster -- in the united states is an economic disaster under joe biden. his