If Putin is to blame for all the troubles of the UK, the West and the world, then I should not try to explain the resignation of Truss by her own stupidity or anything else. But I'll try...
I'm kidding, of course, except that Britain's troubles are just beginning. Liz Truss was lucky, she managed to escape, while the UK economy could collapse with the next premiere.
I'll try to briefly describe what happened and what will happen next.
Great Britain is a big copy of Lebanon, which is an official bankrupt already. The country's banking sector is hypertrophied, the UK plays the role of one of the largest financial centers in the world, and the British pound is one of the world's reserve currencies. At the same time, the national industry degraded and/or was transferred to other countries.
As a result, the UK as a country has had a negative current account balance for about 50 years, meaning it buys more goods and services from other countries than it sells to them.
The problem is exacerbated by the fact that since the early 1950s, the UK government budget has generally been in deficit. The government spends more than it earns.
Bankrupt Lebanon is an example of financial stability compared to Great Britain, it led such a lifestyle for much less time.
To cover all these deficits, it is necessary that foreign capital flows into the UK without interruption and in increasing volumes. Without this, the UK will instantly go bankrupt.
The problem is that this model is over as the UK became food for America.
Since the beginning of the summer, America has been slowing down its decline by sucking out capital from all over the world, and above all, from its allies. This is possible due to the fact that inflation in America is lower than in Europe, and interest rates in the banking system are higher. As a result, capital is fleeing from Europe, England, Japan, etc. to America, where investments are less unprofitable, capital evaporates twice as slowly.
To restore capital inflows, the UK needs to raise its interest rate (currently 2.25%) significantly higher than in America (3.25% and soon to be higher). And reduce its inflation (10.1%) to a level lower than in America (8.2%). And this must be done urgently.
To reduce inflation, it is necessary to stop printing fiat money.
Now, both (1) the budget deficit and (2) the country's current account deficit are financed by issuing unsecured pounds. That is, in order to reduce inflation, both deficits must be eliminated.
Liz Truss got burned on the first point. She proposed to cut taxes, which, naturally, should have increased the budget deficit, which would have to be financed by printing fiat money, and this would further increase inflation.
I do not know whether the reaction of the markets and banks to this measure was adequate, since this is not the only measure leading to an increase in the budget deficit. For example, the government subsidizes gas prices, but these budget expenditures did not cause such strong emotions. In any case, the country's budget is in deficit and the deficit cannot be eliminated or even greatly reduced without a social explosion that will sweep away this and all subsequent governments.
That is, in the current conditions there is no way to finance the budget deficit other than "quantitative easing", which means that inflation will inevitably grow regardless of Truss and her tax initiatives.
To be honest, I am not inclined to consider Liz Truss the cause of the crisis, she was simply "lucky" to be the prime minister at the time the collapse began.
However, the charm of the situation is in something else. There is no way out for the UK, the efforts are in vain. In addition to the first point, there is a second one - the current account deficit and it is enough to fail attempts to reduce inflation.
There are two ways to eliminate the current account deficit. The first is to greatly reduce the cost of labor (aka the standard of living) in the UK. I see no other way to increase the competitiveness of British goods. One way or another, this is a long and hardly voluntary path, no government will go for it.
The second way is to greatly depreciate the British pound. This will lead to two consequences. Imports will be greatly reduced, as well as the standard of living of the British people, riots will begin. In addition, inflation will rise due to the rise in price of imports!!!
That means, it is impossible to reduce inflation in the UK in the current situation!!!.
In addition, the devaluation of the pound in itself will accelerate the outflow of capital.
In addition, do not forget that the outflow of capital cannot be stopped without raising the interest rate above the US one. And this means the bankruptcy of debtors, all the same pension funds that the central bank of England had to save with the help of the resumption of "quantitative easing" after the publication of Liz Truss's tax initiatives.
The situation for the UK is hopeless. Any attempt to solve problems leads to more problems. The system has exhausted itself.
In a word, the problem will not be solved with the resignation of Truss. The problems are just beginning, and while America is sucking capital from all over the world, the problems in the UK will grow.
The successor to Liz Truss will face the same problems very soon. I'm not sure the next British Prime Minister will last longer than Liz Truss.
And yes, all debtors in the world are now experiencing the same problems.
America is sucking capital from everywhere and all major debtors will now face problems in refinancing their debt. We will soon see new bankruptcies among the countries of the world.
Keep this in mind when you read in the Western-controlled or your government-controlled press that the bankruptcy of this or that country was allegedly due to "Russia's war in Ukraine."