The bottom line is there’s no realistic solution and nobody on either side, no matter how loud they shout, has one that’s practical within the confines of our financial establishment. If this timid Labour government is “spooking” the markets, then we are truly fucked. That means no party can actually enact the changes this country needs - not the Greens, not Reform, not Corbyn, not Labour, not the Tories… if anytime spending increases (or economic changes are made to break from the status quo) and as a result the financial markets get “spooked” and begin to crash, then it seems we are just forever doomed to austerity. And that’s not doomerism, that is just the reality of the fiscal rules we are apparently bound to in modern Britain. Even if Corbyn’s Labour or the Green Party won a majority and were able to enact just a fraction of their massive spending plans that this country needs, they’d “spook the markets” and crash the economy, on a similar level to Liz Truss, and then this would harm normal people as the rich “investors” lose “confidence” in the UK economy - obviously the toxic UK media would also pounce on this and essentially end the government in the end. Same for if Reform or the Tories get a chance, it’ll either be the exact same as what Liz Truss did and they’ll also “spook the markets” or, as mentioned above, more austerity which ultimately ends in a dead economy anyways. The fiscal rules need to be broken - but it takes a party with balls to do that, for the media to be on side, and for the British people to put up with higher mortgages etc for a bit to see it through (unfortunately because of rich “investors” losing “confidence” in the UK economy, the average joe would have to suffer first) - all of which are things that I don’t see happening anytime soon.
The trouble is the Wet Tories from Cameron to Sunak, enacted New Labour policies: high tax, high spend, high borrowing. For all the talk of "austerity" it didn't actually, really happen. They sanctioned a few on the brew but that was it. If the Tories had slashed spending and tax, i.e. Thatcherite, then Labour could have come in on a tax and spend basis claiming the Tories had starved the country. But they did the opposite. So there is no leeway for significant tax rise or significant borrowing rise. What neither of them will do, can do, is make the state more efficient. There is immense bureaucracy and waste, but nobody knows how to tackle it. When we had quills and 1/4 of the globe to manage we also had 1/10th of the current civil servants. As the country has shrunk, as information technology and paperless offices have made things more efficient, our civil service has gone up by a full factor. That is to say a full decimal point. It isn't sustainable, and looking at the current parties, not fixable either.
@@kierannewell6253 absolute bothsides-ism drivel. The country has been afloat for 700 years without going under like some banana republic or on the 7th of whatever republic of France we're up to now. Given the choice between parties at least wanting to try and follow the democratically decided principals of this country and not being great at it Vs a group of A) opportunistic toffs or B) Crazies there is definitely an **objective** choice to be made. When people call for the country to be saved they picture a utopia and for it to have been built yesterday. It actually takes decades, multiple successive governments and strong partizan policies. There are certain parties that aren't even offering that, yet you say they're all the same. 🫠
@@AvocadoAfficionado no I agree, I’m not saying there’s not a choice or a better of evils or anything like that - my point is, no party or ideology can enact any sort of meaningful ECONOMIC change within the confines of these fiscal rules we follow where a small % of rich investors want to maintain the status quo and will gladly crash the economy if anyone threatens there “happy days” with meaningful change. So no, it’s not bothsideism - it’s a realistic problem that any side will have to contend with. Change IS possible if we break the chain but it will be painful - that’s it.
COPE , Japan had factories and didn't have infinity migrants like UK does ! UK wish it's future be like Japan but going to be like Yugoslavia wink wink
@@theswagman1263 Because there's a country that can rise from the ashes, like germany did, twice. Not everything is about money. Furthermore, in the future there will be times that our economy will boom and other times it will bust. Selling everything we have to the current market is the height of foolishness.
The british economy is a shit show, and a couple months under Keir Starmer is not changing that fact because this has been created over decades, since Thatcher. What are people expecting of the new government, and how can labour expect to change anything without being able to fundamentally change the rules!
Thatcher left the economy in very good shape. Major, himself economically to the left of Blair, mismanaged it and Soros pounced on it. Blair was was bad but in different ways. The Tories continued the Barite revolution, NOT the Thatcherite one.
@@darthkek1953 Many of the current problems have their roots in the damaging legacy of the Blair years. The Tories' biggest failing was either not attempting to fix them or doing a remarkably poor job of it.
@@Nerdy4Life Bots, bots everywhere. Thatcher selling off every asset the country had and making you buy/rent it back to the benefit of some offshore owner is why you're poor. Thinking Soros had anything to do with it is hilarious conspiracy level crazy
@@darthkek1953thatcher destroyed the country, she sold everything off and began this stupid Americanisation of our society. We used to own all public services and utilities etc etc etc. now we own nothing, it’s embarrassing.
@@reheyesd8666 in order to do that we must first privatize everything: roads, school, health care, railroads, the army, everything, because our taxes are used to maintain those things. If companies own everything, the goverment doesn't need to collect taxes. The companies can maintain those things
@@Deathstrider We are in a wild ride because 14 years of right wing sabotaging the UK and you want another right wing to lead UK again… typical Reformer
I've heard a couple of economists say recently, that a lot of this is down to the bank of England going through a process of 'quantitative tightening'. They're basically selling more bonds into the market. They could simply slow down the rate they're flooding the market with bonds to alleviate the rise in costs.
Also Liz Truss criticising Rachel Reeves for her handling of the economy is a bit like Timothy McVeigh criticising the Unabomber for causing loss of life 😂
This is why the Conservative Party called a General Election in July despite knowing they would lose, rather than waiting until the last minute e.g. January this year in the hope that they would be able to improve their chances. This was always going to happen; the Conservatives knew they couldn't do anything about it and Labour wouldn't be able to at short notice either.
Absolutely this was very strategic. The Tories knew there was a huge slump coming that they couldn't or wouldn't be able to avoid, much better to lose and let Labour take the flack for it while they regroup and rebrand.
They called an early election because of the threat of Reform. Early election denied Reform the chance to organise any kind of election campaign. Fat lot of good it did the Tories.
Honestly I've watched several of her podcasts and my opinion on her completely changed. If you go beyond headlines and news coverage some politicians are very different to how they're represented. There's more to the story than "she fucked up". Really shady shit.
Truss' budget was the polar opposite of Reeves and would have led to growth. Alas, the media persuaded the public it was awful and now we have Labour again and more financial pain. The Bank of England admitted it was mostly to blame for the market problems in May 24.
Yes becuase releasing dangerous prisoners to arrest people for social media posts, curring winter fuel, increasing state spending, increasing tax and increasing immigration more is so appealing...
Why wont we talk about the elephant in the room? AGING POPULATION. there is no growth because the ratio of dependents to producers is getting higher and higher. We must take hard and drastic action to get the economy moving or young people are just going to leave. Half of my salary goes to tax. I get virtually nothing worthwhile from it, terrible public services etc
Sure, which is a great argument for making the public sector more efficient and productive and bringing in policies that allow & encourage young people to start families sooner.
The UK isn't a primary resource producer, not in any significant degree. Sure, there's the fisheries and North Sea oil, but agriculture, forestry, fishing, mining... They're all less than 2% of the UK's total economic output. The UK manufacturing sector, meanwhile, is close to 10% of the UK's economic output, with consumables (food, beverages, tobacco) at the top of the list, followed by motor vehicles, machinery, etc. The UK has a lot of skilled labour in that regard, and it's that skilled workforce that is basically the UK's one ticket to economic relevance. The Union is not a banana republic that can get by on basic commodity exports and resource extraction, it has to actually produce high quality workmanship products. If you want the UK economy to grow, the first thing to do would be reversing Brexit and getting the UK back into the common market, so that its products are more competitive. If you want the UK economy to grow, the second thing to do would be trying to identify economic sectors which the UK is well-equipped to service due to an history of expertise, like specialist aircraft part manufacture. Create targeted investment aimed at communities that have undergone historic decay due to the decline of manufacturing, especially in the North, and offer companies public-private partnerships that guarantee the government a share of the profits in exchange for covering a large section of the costs of opening a new manufacturing facility. Likewise, create training programs for jobs at those facilities at local universities and cover the tuition for them (maybe prioritize applicants from council estates). If you want the UK economy to grow, the third thing to do would be to build as much new council housing as possible. Get rid of the Thatcher era reforms and let councils (A) raise their own taxes and (B) build a larger council housing supply. This will bring down rents, which will bring down the cost of land, which will make it easier to build and develop, which will reduce UK infrastructure costs. It'll give people more money to spend in their local economy, make it easier for them to get on the property ladder, and reduce speculator investment in property, freeing up money for use in the actual economy. Alas, I doubt Keir Starmer is reading a comment section. But if you're in the UK, write to your local MP and tell them this is what you want to see and get your friends and family to do the same.
I think it would also help if the UK would put an end to their unique energy pricing system of "price of all energy is equal to price of the most expensive component / source" as opposed to simply pricing each source at their respective price, like most other countries do. This would improve purchasing power for everyday people AND help lower production costs.
The irony of Liz Truss accusing Labour of nearly crashing the economy is hard to miss lol If anyone isn’t qualified to talk about the economy, it’s Lettuce Liz
Truss' budget was the polar opposite of Reeves and would have led to growth. Alas, the media persuaded the public it was awful and now we have Labour again and more financial pain. The Bank of England admitted it was mostly to blame for the market problems in May 24.
@@floriandebontdelbarre2700 truss was right The economy under Labour is worse than under Truss The difference is that the establishment are not trying to undermine Labour
The worst thing labour could do is run about in panic, as stated in the video this is mostly a combination of international factors and investor confidence. With the chaos of Trump, instability of France and likely instability of Germany having a set and steady plan and not budging is the best move.
You missed the point where Reeves implemented massive tax rises, causing inflation forecasts to spike and reduce growth forecasts. That wasn't an international factor. Also you say investor confidence as if its a seperate thing from Labour. Investor confidence is low due to the stupidly dumb budget
@@TheJPHarvey How would tax rises cause inflation? I'm genuinely asking. Intuitively it seems like they would tend to have a cooling effect on the economy and lower inflation by lowering demand.
They're a disaster, I think this year is going to be a disaster, that massive tax rise on business is going to be catastrophic. They're shrinking the private sector that pays the bills.
From Liz Truss's interview, she claims that the government, civil service, and certain independent bodies play a big role in being resistant to change. She does have a point, when we elect a leader, the civil service remains the same group of people. If they’re the ones actively resisting change or pushing their own agenda, we need to be possible to remove them. These people hold enormous power to influence government policy, yet they’re not held accountable. Even when they’re wrong, they often avoid taking any of the blame.
If you think this is Blairism you are clueless. Blair actually ran a surplus in his first term and presided over the most prosperous economic period in UK history
@@joanne0 my understanding is that during quantitive easing the Bank of England bought gilts (or bonds) from the government. It now holds about £900 billion of these things. Now Europe and the US did the same but they're generally holding onto them and letting them expire. The Bank of England however decided 2 years ago to engage in quantitive tightening where it started selling these bonds off into the market. This is arguably tanking the price of UK Government bonds and raising the yields. That was my understanding. Someone may be able to correct me if I'm wrong.
It's completely normal for state liabilities to lower in value when the perceived financial situation of the state worsens. All of this was very easy to anticipate after the last budget. When you take measures that increase spending (short and long term) so dramatically over revenue increases. And you increase your revenue by damaging the growth prospects of your economy, then you get yourself in a vicious cycle of stagnation and resistant inflation (due to fiscal deficit -> injecting currency) plus you keep higher interest rates (less private investment). The more the state spends, the less the private sector can invest. It is honestly quite a simple thing, and really going for growth would be quite simple as well. But the more time passes, the less I think this government knows how to do anything properly....
Trouble is that when in opposition she talked the talk on growth, which the market liked. When in power they were unprepared and settled strikes with generous pay settlements, and her budget was disappointing for the very businesses which need to be onboard for growth!. Also the talk of the £22 billion black hole constantly, didn’t exactly make business want to invest. Optimism is hugely important. Boris Johnson, for all of his many faults, talked the country up!
I do agree with you regarding economics is essentially all about vibes, it's simply a matter of investment and keeping things liquid. This however doesn't reflect reality and ends up just ignoring system issues in government, which in turn ends up having negative concequences for the economy. Labour are cutting red tape with planning and empowering local authorities to help the social housing problem as well as empowering the uk's Green energy sector, this will result in growth but it'll take time to see the benefits.
Boris Johnson was also known to lie constantly, so whenever he said anything positive about the British economy, the markets rightly took it a a sign of impending disaster.
Our country has been stripped so much to the bone, that there is hardly any bone there as well. Greedy tories have robbed us for years. Its going to take years to fix. But Labour need to realise people need some actual change for them, something positive. Even David Blunkett said the same.
Governments can manage their fiscal policies through three primary methods: curtailing public expenditure, issuing debt, and engaging in monetary expansion . Press (C) for cuts; (B) for borrow; or (P) for print.
This assumes state has entirely passive role in economy. State can also: - redistribute taxed money with wages it pays - engage in public-private projects to enable growth on private sector - invest in public structures and utilities that facilitate the economy - subsidise industries, utilities, wages, or similar to maintain the economic state or to facilitate growth. Wages the state pays act similarly to wages private sector pays, by enabling consumption and injecting liquidity to the local economy those employees take part in. The production state engages in might not collect a profit, but it can still generate value: if for example the education of graduated students makes their labour more valuable, it can (and generally does) outweight the work it took to educate them. Those are just some ways the state takes active role in the national economy. State also is responsible for facilitating ALL exports and imports, by mutual agreements with other states or economic zones. Here is the kicker: we don’t actually measure government finances in absolute terms. We measure them against the economy they facilitate. Government debt and new liquidity are absolutely crucial parts of monetary circulation, so the goal isn’t to get rid of them completely. The economy needs government bonds as safe investment to balance risk, while printing no new money while the economy grows and produces more and more stuff would lead to absolutely brutal deflation.
No mention of quantitative tightening? The Bank of England is selling lots of UK bonds which is putting downward pressure on the price of UK bonds, hence the yield / interest rate is going up. The BoE could simply stop this process.
Hold on. That chart shown at 1:45 shows movement of around 0.4% since labour came to power, yet it rose about 10x that during the prior 4 years and the overaching trend has been upwards for years. Why is it now a crisis, have we gone over some kind of tipping point?
The UK was dead once they left the EU and didn't establish any real trade deals with other nations. Things just get more expensive when trade is more expensive. Plus the world as a whole is stagnant at the moment. I think we are close to a global recession.
Leaving the the EU was a wonderful opportunity wasted by the Tories. We cannot sort the illegal immigration because the Tories would not come out of ECHR. Reform will get us out.
@Tony-y1x completely deluded, keep telling yourself more and more lies and when the UK collpases from moronic decisions like this, you can wade in your filth
An important point raised in the video is about what is happening in other nations in regards to borrowing costs and so forth. It becomes necessary to assess how much is related to national level politics, and how much is a reflection of global economic issues.
There is a correlation between a TLDR having a clickbaity title question and the answer to said title question is a solid no. Also the new 2025 intro sucks. Other than that the content inside the video is solid as ever.
This analysis of the risk of UK paying its debts is nonsense, it's an bad oversimplification. There's zero chance the UK would default. It's the delta between inflation, BoE interest rates and the strength of the pound that is the cause of reduced bond demand. All investors want is safety and yield, and they will chase it wherever it is. The UK is still perceived as very safe, it's not "risk of not paying debt" that is the driving force here.
I have missed out on a lot of money not being decisive enough, but part of my new year resolution is to act different, perhaps utilize an advisor? my goal is achieving a 7-figure portfolio and I’ve set asides 250k for this.
Right, the issue is people have the “I want to do it myself” mentality but aren't equipped enough for a crash, hence they get burnt. No offense. Ideally, investment advisors are reps for investing, and at first-hand experience, my portfolio has yielded over 300% since Jan. 2020 amid the COVID-outbreak, amounting to nearly 7 figures as of today.
I've stuck with ''Katherine Nance Dietz'' for 5 years now, and her performance has been consistently impressive. To be honest, if it wasn't for the pandemic, I wouldn't have supplemented my stream of income, but so glad I did.
glad to have stumbled upon this, curiously inputted Katherine Nance Dietz on the web, easily spotted her consulting page and was able to book an appointment. Ive seen commentary about advisors but not one looks this phenomenal
Labour friend of mine works in the civil service told me as much as she hated the tories and desperately wanted them out, including everyone she works with, they at least had a plan. She said none of them know what theyre meant to be doing.
"cut to public services resulting in less growth" This isn't an accepted law in economics, a cut in public services does not necessarily mean lower growth.
Truss' budget was the polar opposite of Reeves and would have led to growth. Alas, the media persuaded the public it was awful and now we have Labour again and more financial pain. The Bank of England admitted it was mostly to blame for the market problems in May 24.
@@A190xx Cutting taxes a bit probably would have led to growth, but it was very predictable that £45 billion of unfunded tax cuts would cause investors to panic. I have heard about the fiscal rules being too strict though so maybe you're right. Where did the Bank of England say that by the way, can you link the report?
We need to find innovative tax mechanisms, such as micro-taxing every transaction going through the city of London. The £trillions per month that go through could be taxed at 0.5% and you'd find that tax revenues would jump. Even 0.05% would make a difference over time. Add on closing tax loopholes for corporations, and the government would find its fiscal position is quite different
Lizz truss had a 'moment'. Labour are having an entire episode. When gilts shot up with Truss, Labour called it a disaster. Now its just movement in the market. Reeves has taken her bucket of sand with her.
@@michaelball93 Slash regulations & run around the world begging countries for trade deals. It seems the officials enjoyed delegating their negotiations for trade deals to Brussels, & it's forgot how to do it. Especially if the EU wants to make sure nobody dare leave the EU again, & wants to punish the UK. Housing shortage seems manmade, more people = more need for housing. Solution is to make it super easy to build new, extend, renovate. Aside from another solution that seems off the table for Labour. Seems like FPP really messed over the UK.
Labour's entire shtick was growing the economy! They had the thinnest manifesto in history because they wanted to focus on the economy and now we're in recession with growth projected 1% a year for the next 10 years.
Rachel Reeves and Liz Truss may seem like political opposites, but in one important way, they are remarkably similar: neither was afraid to shake up the status quo in an effort to address the country's challenges. This is not intended as a criticism of either politician. Both demonstrated boldness in their respective approaches-Liz Truss pursued aggressive tax cuts to stimulate the economy, while Rachel Reeves proposed substantial tax increases to fund large-scale government spending. In both cases, their plans unsettled the markets, revealing a broader issue: the UK, accustomed to long-term economic stability, now struggles to implement radical solutions without triggering a market backlash. This isn't about praising or condemning either Truss or Reeves; it's about highlighting a systemic problem. The current model is no longer sufficient, yet any attempt to change it is met with significant resistance from markets that have become conditioned to stability. In this way, the two politicians are strikingly similar: both sought to disrupt a failing system, only to find themselves punished by forces resistant to change.
True, but they're scared to state that brexit was a terrible idea and that we'll not make money. If they had the ⚽️⚽️⚽️ then they would actively say brexit helped damage us and that the only way to get back to strength is by going back into the eu.
@@SDDT1 It hasn’t even been half a year yet check the date on those graphs and it’s pretty obvious it’s just the lingering effects of the previous and global instability.
Employ staff in the U.K. or Germany, supposedly 1st world countries, get no results and lose money. Germany is still deluded that it's competing in a turn of the century world, the U.K. is still deluded that it's competing in a mid twentieth century world.
It's not just that taxes are unfair. But that taxpayers money is basically wasted and given to pals in government. The people: " We need tax money to build council housing. " Government: " Okay, let us create an office full of beurocracts supposedly to sort out council housinh, to spend over half the money on wages to find ways to build the odd house while paying ourselves huge bonuses."
Something I find incredible is that people will forget *14 years* of economic mismanagement, austerity, honestly terrible foreign policy and public neglect. All to harass the government *the public voted for* that hasn't even had half a year of their five year term. What did people want from them? for Labour to wave a magic wand and everything be fixed in an instant?
I heard someone honestly say the public hasnt been this angry with government since the poll-tax which has to be the most insane thing I've ever heard. The right wing are amplifying this like crazy to try and convince people with little knowledge of economics that this is a extinction level event and we need another election after just 6 months after years of "NO REFERENDUMZ, NO-RE-DO, WILL OF THE PEEPOLE" Yes, markets move. No this isn't GFE 2.0 or even in the same league as the "minibudget". Having supposedly centerist outlets covering the story in this way is insane.
They got less than 30% of the vote. They are harrassing the countryside, that's about all they're doing. People are correct not to expect anything good come from this.
It's not news. People vote poorly for the best part of 20 years, then expect not to suffer from the long term consequences of their own choices and for someone to come down and fix it all overnight scoff free.
NO however many would like it to be that way. Liz Truss she should not be seen and never heard. Truss tanked the country and that made millions suffer but not her. The Tories 14 years worth of vile brutal policies brought the country to its knees. Not Labour.
Labour is not. Gilt yields are rising globally and is set to fall again. Liz Truss criticising labour for the economic crisis when Lettuce crashed the economy 😂
Truss' budget was the polar opposite of Reeves and would have led to growth. Alas, the media persuaded the public it was awful and now we have Labour again and more financial pain. The Bank of England admitted it was mostly to blame for the market problems in May 24.
maybe it's time to stop growing on government spending. growth should come organically from the private sector in forms of investment, production and from consumers through spending. the system is breaking down and we are spending more and more at ever higher rates to keep up the pretense of growth.
Austerity after 2010 failed to bring down the debt to gdp ratio because ...... It wasn't austere. We were spending more than raised in tax Public sector was greater share of gdp every single year post 2010 to today than was in any year from 97-07. So not austere.
Reeves need to phase in a land value tax to replace business rates to lower the dead weight loss and incentivise building. She was an early proponent of LVT in labour and by focusing on business rates would cover the majority of the benefits of LVT.
They are borrowing it from millionaires and billionaires. This is the giant con most haven't trigged onto. The ultra wealthy have transferred their tax liability into government loans whereby they now get paid interest on the money they give over, which is still classified as being theirs. All of this can be fixed very very easily by just taxing the wealthy at the level everybody else is being taxed at, something progressives have been telling people for years now. But no, most are happy to continue with this weird economic system of socialism for the ultra rich and rugged bootstraps vulture capitalism for everybody else.
Banks, investment firms, pension funds, and private investors, for the most part. You could buy gilts yourself, if you really wanted to (although that's not financial advice lol)
The Super Rich who own the institutions that lend to governments. Who are the same institutions who own and are buying up all the land and property with the idea to essentially rent everything out at far higher costs than they would cost before being bought by them. The money is basically being leeched out of the system. By the super rich.
It's worse if you think about it, Truss had really bad timeing with the global inflation spike around the same time of her budget partly caused by outside factors and the UK borrowing huge amounts to pay everyone to stay indoors and keep their jobs, Labour don't have an excuse if they crash the economy being as it was actually growing and inflation was steady when they inherited it.
In my opinion, there are a lot of things that are a major factor. 14 years of Tory negligence isn't going to fix itself, things need to get worse so they can get better. The economy was in so much sh!t that naturally it's not going to be an easy fix. Brexit has a lot to blame as well, not just the fact we left the EU but the whole issue with actually negotiating Brexit. The time, effort and people it took to get it "done", could've been spent on something else, something much more useful. Covid of course, that made the NHS issue even worse. With more sick people, there's less jobs. Covid had a massive impact on layoffs as well, a lot of companies restructured or laid off people, who now had to go unemployed or find another job quickly. Trump winning did not help either, all his tariff talks isn't making things easier and is scaring everyone because the future doesn't look bright. We've also got the Russia-Ukraine war and the sanctions, the gas issues, the money send to them for aid. We've got the Israel-Gaza war too. Not defending Labour but everything is going to sh!ts now and fixing all the Tory BS is going to take a long time.
@@kostyatszyu The financial crash wasn't really Labour's fault though; it was global and mainly bankers'/investors' fault. Althogh Labour could have managed it better to be fair.
Quantitative tightening is the most prevalent reason why UK gilt prices have risen so much recently. Other stuff related to labour policy have impacted it, but it's clear. The BoE has decided to shaft the entire UK Working Class in the name of "keeping inflation at 2%". The lack of reporting on this too is telling.
Labour’s policies are the same failed policies that have seen the EU stagnate. The Tories were not that much different either. The age of the pen-pushing bureaucrat is destroying the private sector which is the only route out of decline.
"Liz Truss style crisis". Please read the facts. The Bank of England admitted in May 24 that it was largely to blame and hence Truss's lawyers have now sent a letter to Starmer asking he desist for perpetuating what he knows to be false. This channel is doing the same. The Truss was the polar opposite of Reeves and, while the markets had a little shake, we would not be in the problems we are today if the media, including this channel, both understood the economics and told the truth.
If every western country is having a tough time right now, it's not that weird for the post-brexit UK to struggle more. This was one of the issues brexiters were warned about and they shrugged off as "project fear". It's bizarre and reality-reversing for those same brexiters to blame Labour for the same economic damage they were warned about and chose to inflict.
Who would have thought that endless borrowing and printing money to spend on unproductive public services is going to push up borrowing costs... "dEbT dOesNT mAtTeR" said the average working-class electorate that doesn't understand economics.
When youtubers try to understand economics, The markets aren't responding to recent Labour policies but they are responding to long term downward trends bought about by Tory austerity.
6 months into Starmer’s term, dogged at every turn by scandal and failure, yet still fortunately everything is still the Tories’ fault. Will his luck hold out or will some point in the next 4 and a half years see this excuse start to lose potency?
Obviously coming from a Marxist perspective, but the PLP is totally beholden to the strings of capital. They can't do anything to upset their donors, and half of them wouldn't do so even if they could (Kendall, Reeves, Streeting etc) so they are stuck blaming the Tories and simultaneously doing nothing direct to actually make things better for people on the ground, unless your income relies on freezing pensioners and processed asylum seekers. Hilariously this is leaving them in the position where they are making things worse for both traditional labour voters and the FT readers. Unless there's a leadership challenge you can almost guarantee Labour won't last another term.
So we have been in economic stagnation since 2008. So when the tories have been in charge for over a decade and it's difficult to save a sinking ship in a few months. Got it.
The Bank Of England is deliberately driving the UK economy into recession, quantitative tightening at this time is not necessary as we have a real net positive interest rate of around 3%, almost unprecedented in UK economic history, which is great for bankers. They are selling bonds back to the private sector that will be worth less than they bought them for, driving interest rates up. Bankers will be the beneficiaries, when the money is sucked back out of the private sector. The overall effect of this is enormous pressure on Rachel Reeves to impose austerity. Rachel Reeves has the power to stop this, but she is either unaware or just scared of banks and rich people. This is dire for the UK economy, we must stop the bankers.
@@melindagallegan5093 Bankers are rich and when you have a lot of money and want to make even more, you buy many things and expand your empire in a recession when nobody else has the money to do so. The interest will have been lowered and the prices low. When the economy rebounds as the BoE will make sure...caching! 8~)
@melindagallegan5093 Bankers are rich and when you have a lot of money and want to make even more, you buy many things and expand your empire in a recession when nobody else has the money to do so. The interest will have been lowered and the prices low. When the economy rebounds as the BoE will make sure...caching! 8~)
A lot of talk in this comment section about it being the fault of Bank of England Quantitative Tightening (QT). The argument seems to be that they are doing a huge amount of it suddenly and it is causing the price spikes. Here are some figures about QT. It started in October 2022. In the first year Oct 22 to Sep 23, the BoE reduced its holdings by £80 billion. £45 billion of this was active sales, £35 billion was simply allowing gilts to mature. In the second year Oct 23 to Sep 24, the BoE reduced its holdings by £100 billion. £13 billion of this was active sales, £87 billion was allowing gilts to mature. In the current year Oct 24 to Sep 25, the BoE plans to do exactly the same as the previous year £100bn reduction, £13bn active sales, £87bn maturing gilts. Therefore, the amount of selling has actually reduced since the first year it was done substantially.
Is it worth making a video on the Bank of England's role in this, with their use of quantitative tensioning placing deliberate upward pressure to increase interest rates? This seems to be the cause of borrowing costs being so high vs other markets. Labour could stop this, by banning the sale of bonds (by the BoE), but they either don't seem to know that they can, or are not willing to do so...
Highest borrowing costs since 1997 , the pound has declined , interest started to rise again , growth at 0.1% yet labour voters are still claiming this is going great , racheal from accounts is sinking the country as badly as the terrible tories
I voted Labour in the general election in the hope for change, however it seems nobody can change anything. I want to have faith that Labour can turn it around... But if we are beholden to external factors, I don't think that's realistic.
"Might be entering a period of economic stagnation"!!! GDP in Britain has been flat for 17 years!!!!
You'd have thought with 14 years to think about it labour might have had a plan.
@@dww6you'd thought that after giving the Tories 14 years, you would give Labour a bit longer than six months before blaming them for everything
You're getting confused with Germany
Quick, we need 10,000,000 more immigrants
Yeah exactly. The UK have basically not grown since 2008!
The bottom line is there’s no realistic solution and nobody on either side, no matter how loud they shout, has one that’s practical within the confines of our financial establishment.
If this timid Labour government is “spooking” the markets, then we are truly fucked.
That means no party can actually enact the changes this country needs - not the Greens, not Reform, not Corbyn, not Labour, not the Tories… if anytime spending increases (or economic changes are made to break from the status quo) and as a result the financial markets get “spooked” and begin to crash, then it seems we are just forever doomed to austerity.
And that’s not doomerism, that is just the reality of the fiscal rules we are apparently bound to in modern Britain. Even if Corbyn’s Labour or the Green Party won a majority and were able to enact just a fraction of their massive spending plans that this country needs, they’d “spook the markets” and crash the economy, on a similar level to Liz Truss, and then this would harm normal people as the rich “investors” lose “confidence” in the UK economy - obviously the toxic UK media would also pounce on this and essentially end the government in the end.
Same for if Reform or the Tories get a chance, it’ll either be the exact same as what Liz Truss did and they’ll also “spook the markets” or, as mentioned above, more austerity which ultimately ends in a dead economy anyways.
The fiscal rules need to be broken - but it takes a party with balls to do that, for the media to be on side, and for the British people to put up with higher mortgages etc for a bit to see it through (unfortunately because of rich “investors” losing “confidence” in the UK economy, the average joe would have to suffer first) - all of which are things that I don’t see happening anytime soon.
There wasn't anything timid about a massive tax hike... it was stupid but not definitely not timid.
The trouble is the Wet Tories from Cameron to Sunak, enacted New Labour policies: high tax, high spend, high borrowing. For all the talk of "austerity" it didn't actually, really happen. They sanctioned a few on the brew but that was it. If the Tories had slashed spending and tax, i.e. Thatcherite, then Labour could have come in on a tax and spend basis claiming the Tories had starved the country. But they did the opposite. So there is no leeway for significant tax rise or significant borrowing rise. What neither of them will do, can do, is make the state more efficient. There is immense bureaucracy and waste, but nobody knows how to tackle it. When we had quills and 1/4 of the globe to manage we also had 1/10th of the current civil servants. As the country has shrunk, as information technology and paperless offices have made things more efficient, our civil service has gone up by a full factor. That is to say a full decimal point. It isn't sustainable, and looking at the current parties, not fixable either.
@@kierannewell6253 absolute bothsides-ism drivel.
The country has been afloat for 700 years without going under like some banana republic or on the 7th of whatever republic of France we're up to now.
Given the choice between parties at least wanting to try and follow the democratically decided principals of this country and not being great at it Vs a group of A) opportunistic toffs or B) Crazies there is definitely an **objective** choice to be made.
When people call for the country to be saved they picture a utopia and for it to have been built yesterday. It actually takes decades, multiple successive governments and strong partizan policies.
There are certain parties that aren't even offering that, yet you say they're all the same.
🫠
Yeah this feels right to me. So what do we as voters do?
@@AvocadoAfficionado no I agree, I’m not saying there’s not a choice or a better of evils or anything like that - my point is, no party or ideology can enact any sort of meaningful ECONOMIC change within the confines of these fiscal rules we follow where a small % of rich investors want to maintain the status quo and will gladly crash the economy if anyone threatens there “happy days” with meaningful change.
So no, it’s not bothsideism - it’s a realistic problem that any side will have to contend with.
Change IS possible if we break the chain but it will be painful - that’s it.
How is Liz Truss even still a thing?
Money
Prime ministers pension
Economic boogeyman
People desperately clinging to anyone who isn't a uniparty bureaucrat.
Being the shortest-serving PM is quite an achievement and will remain so until someone beats her speedrun.
It feels like the UK is following Japan for the lost decades.
COPE , Japan had factories and didn't have infinity migrants like UK does !
UK wish it's future be like Japan but going to be like Yugoslavia wink wink
Well other than the fact Japan has retained their culture, we've destroyed ours by importing a million foreigners every year.
@@stickman6217what good is retaining your culture when your workforce is crumbling and your population pyramid looks like a mushroom cloud?
@@theswagman1263 Because there's a country that can rise from the ashes, like germany did, twice. Not everything is about money. Furthermore, in the future there will be times that our economy will boom and other times it will bust. Selling everything we have to the current market is the height of foolishness.
@@MrMasterCGO when exactly did Germany rise from the ashes? If you're meaning post ww1 not sure that's the best example of a culture worth retaining
The british economy is a shit show, and a couple months under Keir Starmer is not changing that fact because this has been created over decades, since Thatcher. What are people expecting of the new government, and how can labour expect to change anything without being able to fundamentally change the rules!
Thatcher left the economy in very good shape. Major, himself economically to the left of Blair, mismanaged it and Soros pounced on it. Blair was was bad but in different ways. The Tories continued the Barite revolution, NOT the Thatcherite one.
@@darthkek1953 Many of the current problems have their roots in the damaging legacy of the Blair years. The Tories' biggest failing was either not attempting to fix them or doing a remarkably poor job of it.
@@Nerdy4Life Bots, bots everywhere.
Thatcher selling off every asset the country had and making you buy/rent it back to the benefit of some offshore owner is why you're poor.
Thinking Soros had anything to do with it is hilarious conspiracy level crazy
@@darthkek1953thatcher destroyed the country, she sold everything off and began this stupid Americanisation of our society. We used to own all public services and utilities etc etc etc. now we own nothing, it’s embarrassing.
They think 6 months of labour will some how fix decades of tory chaos
You'd have to be hopelessly naive to think either the Tories or Labour have any answers. Our system is broken.
Thats why less government is better, the less politicians have a say, the better our lives will be less taxes and more jobs too
@@reheyesd8666 true
@@reheyesd8666 in order to do that we must first privatize everything: roads, school, health care, railroads, the army, everything, because our taxes are used to maintain those things. If companies own everything, the goverment doesn't need to collect taxes. The companies can maintain those things
and both had/have massive majorities. if a single party with a majority can't fix it then what hope is there
@@reheyesd8666 So privatize more? Conservatives have been doing that for decades, how is that going? This was kind of the whole point of Liz Truss.
At this point I just want off from this wild ride 💀
I think we're all tired of living in interesting time
Labour is trying to fix the country be patient
if the default response to literally anything happening is to "vote them out", we will never be off this wild ride
I want Nigel Farage to just lead this wild ride now.
@@Deathstrider We are in a wild ride because 14 years of right wing sabotaging the UK and you want another right wing to lead UK again… typical Reformer
0:19 it would appear 2020 was quite the dragged out year 🤣
That’s what the lockdowns did to people lmao
We got 3 years of 2020 😮💨 I don't think anyone disagrees
The Y axis is also weird so the graph also doesn’t show the difference between 4.6 and 5.4 enough
I've heard a couple of economists say recently, that a lot of this is down to the bank of England going through a process of 'quantitative tightening'. They're basically selling more bonds into the market. They could simply slow down the rate they're flooding the market with bonds to alleviate the rise in costs.
Also Liz Truss criticising Rachel Reeves for her handling of the economy is a bit like Timothy McVeigh criticising the Unabomber for causing loss of life 😂
It’s a battle to the bottom between them
@@SDDT1 'Do you want your incompetent overlords to wear red ties or blue?'
Yes but the other way round, Unabomber criticising McVeigh. Reeves has gone BEYOND Truss's peak failure, and there seems to be no stopping her.
@@joh2434green
the exact same being said about labour voters criticising liz truss
This is why the Conservative Party called a General Election in July despite knowing they would lose, rather than waiting until the last minute e.g. January this year in the hope that they would be able to improve their chances.
This was always going to happen; the Conservatives knew they couldn't do anything about it and Labour wouldn't be able to at short notice either.
The tories knew that Reeves would make massive tax rises on businesses, raising inflation forecasts and fucking the economy?
Absolutely this was very strategic. The Tories knew there was a huge slump coming that they couldn't or wouldn't be able to avoid, much better to lose and let Labour take the flack for it while they regroup and rebrand.
I wouldn’t give the tories that much credit.
@@grimgamerxd3817 they're crooks, but they aren't stupid.
They called an early election because of the threat of Reform. Early election denied Reform the chance to organise any kind of election campaign. Fat lot of good it did the Tories.
I hope not. She was a complete mess
Honestly I've watched several of her podcasts and my opinion on her completely changed. If you go beyond headlines and news coverage some politicians are very different to how they're represented. There's more to the story than "she fucked up". Really shady shit.
as are labour
Truss' budget was the polar opposite of Reeves and would have led to growth. Alas, the media persuaded the public it was awful and now we have Labour again and more financial pain. The Bank of England admitted it was mostly to blame for the market problems in May 24.
labour are worse
She wanted tax cuts for large businesses and the ultra wealthy to the cost of 110billion over five years.
That's not a growth plan.
So basically, to appeal to the conservative voters, Labour has put itself in between a rock and a hard place
Yes becuase releasing dangerous prisoners to arrest people for social media posts, curring winter fuel, increasing state spending, increasing tax and increasing immigration more is so appealing...
Why wont we talk about the elephant in the room?
AGING POPULATION. there is no growth because the ratio of dependents to producers is getting higher and higher.
We must take hard and drastic action to get the economy moving or young people are just going to leave.
Half of my salary goes to tax. I get virtually nothing worthwhile from it, terrible public services etc
Sure, which is a great argument for making the public sector more efficient and productive and bringing in policies that allow & encourage young people to start families sooner.
Just save and withdraw from the system to make you happy.
Reform!
That sounds very much like a call for terminating elders. So what is it really, or have I read you correctly?
I guess people would be more willing to pay these taxes if there were great services offered for it.
The UK isn't a primary resource producer, not in any significant degree. Sure, there's the fisheries and North Sea oil, but agriculture, forestry, fishing, mining... They're all less than 2% of the UK's total economic output. The UK manufacturing sector, meanwhile, is close to 10% of the UK's economic output, with consumables (food, beverages, tobacco) at the top of the list, followed by motor vehicles, machinery, etc. The UK has a lot of skilled labour in that regard, and it's that skilled workforce that is basically the UK's one ticket to economic relevance. The Union is not a banana republic that can get by on basic commodity exports and resource extraction, it has to actually produce high quality workmanship products.
If you want the UK economy to grow, the first thing to do would be reversing Brexit and getting the UK back into the common market, so that its products are more competitive.
If you want the UK economy to grow, the second thing to do would be trying to identify economic sectors which the UK is well-equipped to service due to an history of expertise, like specialist aircraft part manufacture. Create targeted investment aimed at communities that have undergone historic decay due to the decline of manufacturing, especially in the North, and offer companies public-private partnerships that guarantee the government a share of the profits in exchange for covering a large section of the costs of opening a new manufacturing facility. Likewise, create training programs for jobs at those facilities at local universities and cover the tuition for them (maybe prioritize applicants from council estates).
If you want the UK economy to grow, the third thing to do would be to build as much new council housing as possible. Get rid of the Thatcher era reforms and let councils (A) raise their own taxes and (B) build a larger council housing supply. This will bring down rents, which will bring down the cost of land, which will make it easier to build and develop, which will reduce UK infrastructure costs. It'll give people more money to spend in their local economy, make it easier for them to get on the property ladder, and reduce speculator investment in property, freeing up money for use in the actual economy.
Alas, I doubt Keir Starmer is reading a comment section. But if you're in the UK, write to your local MP and tell them this is what you want to see and get your friends and family to do the same.
If you want the UK to grow, stop importing millions of poor people who don't contribute to productivity. That's a start...
For example... moar Brompton bicycles, but you know the prices fully landed in the US are too high!
wasnt expecting this from a yt comment section
Do us all a favour and run for PM
I think it would also help if the UK would put an end to their unique energy pricing system of "price of all energy is equal to price of the most expensive component / source" as opposed to simply pricing each source at their respective price, like most other countries do. This would improve purchasing power for everyday people AND help lower production costs.
The irony of Liz Truss accusing Labour of nearly crashing the economy is hard to miss lol
If anyone isn’t qualified to talk about the economy, it’s Lettuce Liz
exactly the same irony of labour and their supporters attacking liz truss
Truss' budget was the polar opposite of Reeves and would have led to growth. Alas, the media persuaded the public it was awful and now we have Labour again and more financial pain. The Bank of England admitted it was mostly to blame for the market problems in May 24.
@@floriandebontdelbarre2700 truss was right
The economy under Labour is worse than under Truss
The difference is that the establishment are not trying to undermine Labour
@@A190xxif her budget could work then why she came out as shortest PM of UK ever
@@TaySplatoon You think the establishment is backing Labour 😂 this is the most unhinged opposition to a government I've ever seen!
The worst thing labour could do is run about in panic, as stated in the video this is mostly a combination of international factors and investor confidence.
With the chaos of Trump, instability of France and likely instability of Germany having a set and steady plan and not budging is the best move.
....said the Captain of the Titanic.
@A190xx you don't know how the titanic sank do you.
The titanic likely wouldn't have sank had it crashed head on, or so I've heard. Might be an apt description.
You missed the point where Reeves implemented massive tax rises, causing inflation forecasts to spike and reduce growth forecasts. That wasn't an international factor.
Also you say investor confidence as if its a seperate thing from Labour. Investor confidence is low due to the stupidly dumb budget
@@TheJPHarvey How would tax rises cause inflation? I'm genuinely asking. Intuitively it seems like they would tend to have a cooling effect on the economy and lower inflation by lowering demand.
They're a disaster, I think this year is going to be a disaster, that massive tax rise on business is going to be catastrophic.
They're shrinking the private sector that pays the bills.
No party has the balls to sort any of the issues out. They benefit from the current shit system.
From Liz Truss's interview, she claims that the government, civil service, and certain independent bodies play a big role in being resistant to change.
She does have a point, when we elect a leader, the civil service remains the same group of people.
If they’re the ones actively resisting change or pushing their own agenda, we need to be possible to remove them.
These people hold enormous power to influence government policy, yet they’re not held accountable. Even when they’re wrong, they often avoid taking any of the blame.
Reform
🎯 💯
@@jeffrey93849 100% agree! They actually understand how money works!
Who’d have thought that reheated Blairism wouldn’t have solved things? 🙃
This is more Toryism, cuts and austerity
@Phyt5 Exactly, if only there was someone who’d had a better idea with a name like Jez 🤔
@@joh2434 😂
@Phyt5 There isn't much practical difference between Blair and the Tories other than branding.
If you think this is Blairism you are clueless. Blair actually ran a surplus in his first term and presided over the most prosperous economic period in UK history
Yes and right now she is in a pork market in Beijing, probably
Trust me all she has to do is threaten to sack the governor of the Bank of England if they don’t halt selling uk government bonds!
Alot of this is the bank of england selling off gilts. The bank of Englands sell off has been quite significant.
Yeah this feels like a glaring omission from the video.
can you explain more ?
@@joanne0 my understanding is that during quantitive easing the Bank of England bought gilts (or bonds) from the government. It now holds about £900 billion of these things.
Now Europe and the US did the same but they're generally holding onto them and letting them expire.
The Bank of England however decided 2 years ago to engage in quantitive tightening where it started selling these bonds off into the market.
This is arguably tanking the price of UK Government bonds and raising the yields.
That was my understanding. Someone may be able to correct me if I'm wrong.
Thank you Labour voters. Slow clap.
You can only tax people so much. This is going to get bad.
It's completely normal for state liabilities to lower in value when the perceived financial situation of the state worsens. All of this was very easy to anticipate after the last budget. When you take measures that increase spending (short and long term) so dramatically over revenue increases. And you increase your revenue by damaging the growth prospects of your economy, then you get yourself in a vicious cycle of stagnation and resistant inflation (due to fiscal deficit -> injecting currency) plus you keep higher interest rates (less private investment). The more the state spends, the less the private sector can invest. It is honestly quite a simple thing, and really going for growth would be quite simple as well. But the more time passes, the less I think this government knows how to do anything properly....
For those who didn't get the joke, this is how Truss and Kwarteng justified their fiscal event.
Trouble is that when in opposition she talked the talk on growth, which the market liked. When in power they were unprepared and settled strikes with generous pay settlements, and her budget was disappointing for the very businesses which need to be onboard for growth!. Also the talk of the £22 billion black hole constantly, didn’t exactly make business want to invest. Optimism is hugely important. Boris Johnson, for all of his many faults, talked the country up!
I do agree with you regarding economics is essentially all about vibes, it's simply a matter of investment and keeping things liquid. This however doesn't reflect reality and ends up just ignoring system issues in government, which in turn ends up having negative concequences for the economy. Labour are cutting red tape with planning and empowering local authorities to help the social housing problem as well as empowering the uk's Green energy sector, this will result in growth but it'll take time to see the benefits.
Boris Johnson was also known to lie constantly, so whenever he said anything positive about the British economy, the markets rightly took it a a sign of impending disaster.
Our country has been stripped so much to the bone, that there is hardly any bone there as well. Greedy tories have robbed us for years. Its going to take years to fix. But Labour need to realise people need some actual change for them, something positive. Even David Blunkett said the same.
Governments can manage their fiscal policies through three primary methods: curtailing public expenditure, issuing debt, and engaging in monetary expansion . Press (C) for cuts; (B) for borrow; or (P) for print.
You forgot the zeroth option. Press (T) to tax.
@@matthewparker9276, and costs get passed consumers and companies stop hiring people? Great! This is exactly what we need!
This assumes state has entirely passive role in economy. State can also:
- redistribute taxed money with wages it pays
- engage in public-private projects to enable growth on private sector
- invest in public structures and utilities that facilitate the economy
- subsidise industries, utilities, wages, or similar to maintain the economic state or to facilitate growth.
Wages the state pays act similarly to wages private sector pays, by enabling consumption and injecting liquidity to the local economy those employees take part in. The production state engages in might not collect a profit, but it can still generate value: if for example the education of graduated students makes their labour more valuable, it can (and generally does) outweight the work it took to educate them.
Those are just some ways the state takes active role in the national economy. State also is responsible for facilitating ALL exports and imports, by mutual agreements with other states or economic zones.
Here is the kicker: we don’t actually measure government finances in absolute terms. We measure them against the economy they facilitate. Government debt and new liquidity are absolutely crucial parts of monetary circulation, so the goal isn’t to get rid of them completely.
The economy needs government bonds as safe investment to balance risk, while printing no new money while the economy grows and produces more and more stuff would lead to absolutely brutal deflation.
@@matthewparker9276 P is T with less immediate risk of revolt.
It's almost like people just need to get paid more and corporations need to be put in check.
Who would of thought sticking with austerity would suddenly start working after failing for 14 years.
No mention of quantitative tightening? The Bank of England is selling lots of UK bonds which is putting downward pressure on the price of UK bonds, hence the yield / interest rate is going up. The BoE could simply stop this process.
why are they doing that?
@@joanne0 I think to get the government to cut spending or something, but I don't know much about this so I might be wrong.
Literally exactly what they did to truss
Hold on. That chart shown at 1:45 shows movement of around 0.4% since labour came to power, yet it rose about 10x that during the prior 4 years and the overaching trend has been upwards for years. Why is it now a crisis, have we gone over some kind of tipping point?
The UK was dead once they left the EU and didn't establish any real trade deals with other nations. Things just get more expensive when trade is more expensive.
Plus the world as a whole is stagnant at the moment. I think we are close to a global recession.
Leaving the the EU was a wonderful opportunity wasted by the Tories. We cannot sort the illegal immigration because the Tories would not come out of ECHR. Reform will get us out.
@Tony-y1x No
@Tony-y1x completely deluded, keep telling yourself more and more lies and when the UK collpases from moronic decisions like this, you can wade in your filth
@Tony-y1x Next: Reform failed to stop illegal immigration, we need to vote for the ClowParty, they will let us have our cake and eat it.
The fallout of 2008 and the COVID fiasco are more dangerous than Brexit.
An important point raised in the video is about what is happening in other nations in regards to borrowing costs and so forth. It becomes necessary to assess how much is related to national level politics, and how much is a reflection of global economic issues.
There is a correlation between a TLDR having a clickbaity title question and the answer to said title question is a solid no. Also the new 2025 intro sucks. Other than that the content inside the video is solid as ever.
This analysis of the risk of UK paying its debts is nonsense, it's an bad oversimplification. There's zero chance the UK would default. It's the delta between inflation, BoE interest rates and the strength of the pound that is the cause of reduced bond demand. All investors want is safety and yield, and they will chase it wherever it is. The UK is still perceived as very safe, it's not "risk of not paying debt" that is the driving force here.
Just to briefly answer the video question, no.
I have missed out on a lot of money not being decisive enough, but part of my new year resolution is to act different, perhaps utilize an advisor? my goal is achieving a 7-figure portfolio and I’ve set asides 250k for this.
"Ignore the noise." That includes both hype and doom. I recommend utilizing a certified financial planner to help reinforce growth
Right, the issue is people have the “I want to do it myself” mentality but aren't equipped enough for a crash, hence they get burnt. No offense. Ideally, investment advisors are reps for investing, and at first-hand experience, my portfolio has yielded over 300% since Jan. 2020 amid the COVID-outbreak, amounting to nearly 7 figures as of today.
@@YhoosEntmoni wow! very encouraging for noobs like myself, who is the professional guiding you please? in dire need of guidance
I've stuck with ''Katherine Nance Dietz'' for 5 years now, and her performance has been consistently impressive. To be honest, if it wasn't for the pandemic, I wouldn't have supplemented my stream of income, but so glad I did.
glad to have stumbled upon this, curiously inputted Katherine Nance Dietz on the web, easily spotted her consulting page and was able to book an appointment. Ive seen commentary about advisors but not one looks this phenomenal
Of all the universes to live in, we live in the clown world one.
🤣🤣🤣
Labour friend of mine works in the civil service told me as much as she hated the tories and desperately wanted them out, including everyone she works with, they at least had a plan. She said none of them know what theyre meant to be doing.
always find that this presenter is quick to defend the labour party, would like to see less bias.
"cut to public services resulting in less growth" This isn't an accepted law in economics, a cut in public services does not necessarily mean lower growth.
Last thing anyone needs is to hear from Liz ''Iceberg lettuce'' Truss.
Truss' budget was the polar opposite of Reeves and would have led to growth. Alas, the media persuaded the public it was awful and now we have Labour again and more financial pain. The Bank of England admitted it was mostly to blame for the market problems in May 24.
@@A190xx Cutting taxes a bit probably would have led to growth, but it was very predictable that £45 billion of unfunded tax cuts would cause investors to panic. I have heard about the fiscal rules being too strict though so maybe you're right. Where did the Bank of England say that by the way, can you link the report?
We need to find innovative tax mechanisms, such as micro-taxing every transaction going through the city of London. The £trillions per month that go through could be taxed at 0.5% and you'd find that tax revenues would jump. Even 0.05% would make a difference over time.
Add on closing tax loopholes for corporations, and the government would find its fiscal position is quite different
Ah yes more tax, the highest taxes since ww2 aren't enough! We need 100% tax on everything!
No, what is happening in the bond market is in line with other bond markets. That was not the case with Truss.
German 10 year bond is at 2,5%, the UK's is at 4,8%. And the debt is much higher in the UK. The UK situation is catastrophic.
Lizz truss had a 'moment'. Labour are having an entire episode. When gilts shot up with Truss, Labour called it a disaster. Now its just movement in the market. Reeves has taken her bucket of sand with her.
If something is the "highest its been since X", it would imply that it was higher at time X than it is now.
You can literally see in the beginning of the video that borrowing costs are at 5.4% compared to 2008 at 4.6% completely proving your statement wrong
This is what happens when governments promise easy solutions to financial troubles
Problem is there don't seem to be any solutions at all at this point, never mind easy ones.
@@michaelball93
Slash regulations & run around the world begging countries for trade deals.
It seems the officials enjoyed delegating their negotiations for trade deals to Brussels, & it's forgot how to do it.
Especially if the EU wants to make sure nobody dare leave the EU again, & wants to punish the UK.
Housing shortage seems manmade, more people = more need for housing.
Solution is to make it super easy to build new, extend, renovate. Aside from another solution that seems off the table for Labour.
Seems like FPP really messed over the UK.
Nooo surely the anti-business budget wasn't bad for the country? Surely not!!!
Labour's entire shtick was growing the economy! They had the thinnest manifesto in history because they wanted to focus on the economy and now we're in recession with growth projected 1% a year for the next 10 years.
Rachel Reeves and Liz Truss may seem like political opposites, but in one important way, they are remarkably similar: neither was afraid to shake up the status quo in an effort to address the country's challenges. This is not intended as a criticism of either politician. Both demonstrated boldness in their respective approaches-Liz Truss pursued aggressive tax cuts to stimulate the economy, while Rachel Reeves proposed substantial tax increases to fund large-scale government spending. In both cases, their plans unsettled the markets, revealing a broader issue: the UK, accustomed to long-term economic stability, now struggles to implement radical solutions without triggering a market backlash.
This isn't about praising or condemning either Truss or Reeves; it's about highlighting a systemic problem. The current model is no longer sufficient, yet any attempt to change it is met with significant resistance from markets that have become conditioned to stability. In this way, the two politicians are strikingly similar: both sought to disrupt a failing system, only to find themselves punished by forces resistant to change.
Labour is dealing with the effects of economic sanctions that the Tories inflicted on us via Brexit.
True, but they're scared to state that brexit was a terrible idea and that we'll not make money.
If they had the ⚽️⚽️⚽️ then they would actively say brexit helped damage us and that the only way to get back to strength is by going back into the eu.
@@SDDT1 It hasn’t even been half a year yet check the date on those graphs and it’s pretty obvious it’s just the lingering effects of the previous and global instability.
@@SDDT1 I'm not defending the budget. But it doesn't change the fact of what I stated in my post.
labour isnt dealing with anything, red tory.
They're aren't dealing with it very well though, but I guess not terribly.
They should keep borrowing like the tories did. The general public don't understand that balancing the books is a good thing in the long run.
The issue with the tories is that they didn’t borrow enough.
They could have borrowed so much more over a long term when money was cheap!
The 1st to 3rd world any % speed run continues unabated
Employ 3rd world staff, get 3rd world results as output.
Fairly obvious that one!
Employ staff in the U.K. or Germany, supposedly 1st world countries, get no results and lose money. Germany is still deluded that it's competing in a turn of the century world, the U.K. is still deluded that it's competing in a mid twentieth century world.
We're even importing a million of them a year to give it a more authentic feel!
It's not just that taxes are unfair. But that taxpayers money is basically wasted and given to pals in government.
The people: " We need tax money to build council housing. "
Government: " Okay, let us create an office full of beurocracts supposedly to sort out council housinh, to spend over half the money on wages to find ways to build the odd house while paying ourselves huge bonuses."
Something I find incredible is that people will forget *14 years* of economic mismanagement, austerity, honestly terrible foreign policy and public neglect.
All to harass the government *the public voted for* that hasn't even had half a year of their five year term.
What did people want from them? for Labour to wave a magic wand and everything be fixed in an instant?
I heard someone honestly say the public hasnt been this angry with government since the poll-tax which has to be the most insane thing I've ever heard.
The right wing are amplifying this like crazy to try and convince people with little knowledge of economics that this is a extinction level event and we need another election after just 6 months after years of "NO REFERENDUMZ, NO-RE-DO, WILL OF THE PEEPOLE"
Yes, markets move. No this isn't GFE 2.0 or even in the same league as the "minibudget". Having supposedly centerist outlets covering the story in this way is insane.
They got less than 30% of the vote. They are harrassing the countryside, that's about all they're doing. People are correct not to expect anything good come from this.
Nigel Farage could have fixed it all in a week. Reform are so amazing I touch myself 😂
It's not news. People vote poorly for the best part of 20 years, then expect not to suffer from the long term consequences of their own choices and for someone to come down and fix it all overnight scoff free.
Terrible foreign policy?
This government is literally giving away the BIOT 🇮🇴
And Labour always manage the economy worse than tories
NO however many would like it to be that way.
Liz Truss she should not be seen and never heard.
Truss tanked the country and that made millions suffer but not her.
The Tories 14 years worth of vile brutal policies brought the country to its knees. Not Labour.
Labour is not. Gilt yields are rising globally and is set to fall again. Liz Truss criticising labour for the economic crisis when Lettuce crashed the economy 😂
Truss' budget was the polar opposite of Reeves and would have led to growth. Alas, the media persuaded the public it was awful and now we have Labour again and more financial pain. The Bank of England admitted it was mostly to blame for the market problems in May 24.
maybe it's time to stop growing on government spending. growth should come organically from the private sector in forms of investment, production and from consumers through spending. the system is breaking down and we are spending more and more at ever higher rates to keep up the pretense of growth.
worse! government borrowing costs are as high as they were during the last labour government more than 14 years ago!
During the financial crises
You mean when American poor financial regulation fucked the world?
Long story short, the current way we live was never sustainable in the long term. And it's finally becoming visible for all to see.
Austerity after 2010 failed to bring down the debt to gdp ratio because
......
It wasn't austere.
We were spending more than raised in tax
Public sector was greater share of gdp every single year post 2010 to today than was in any year from 97-07. So not austere.
Reeves need to phase in a land value tax to replace business rates to lower the dead weight loss and incentivise building. She was an early proponent of LVT in labour and by focusing on business rates would cover the majority of the benefits of LVT.
If governments all over the world are all borrowing more money than ever then where does all that money come from and who profits from all of this?
They are borrowing it from millionaires and billionaires. This is the giant con most haven't trigged onto. The ultra wealthy have transferred their tax liability into government loans whereby they now get paid interest on the money they give over, which is still classified as being theirs.
All of this can be fixed very very easily by just taxing the wealthy at the level everybody else is being taxed at, something progressives have been telling people for years now. But no, most are happy to continue with this weird economic system of socialism for the ultra rich and rugged bootstraps vulture capitalism for everybody else.
Banks, investment firms, pension funds, and private investors, for the most part. You could buy gilts yourself, if you really wanted to (although that's not financial advice lol)
The Super Rich who own the institutions that lend to governments. Who are the same institutions who own and are buying up all the land and property with the idea to essentially rent everything out at far higher costs than they would cost before being bought by them. The money is basically being leeched out of the system. By the super rich.
@@anticlockwisepropeller7379also international organisations too like the IMF.
The profit is in investment, if borrowing increases or fixes rather hole in the economy you can get greater profit in the future.
It's worse if you think about it, Truss had really bad timeing with the global inflation spike around the same time of her budget partly caused by outside factors and the UK borrowing huge amounts to pay everyone to stay indoors and keep their jobs, Labour don't have an excuse if they crash the economy being as it was actually growing and inflation was steady when they inherited it.
In my opinion, there are a lot of things that are a major factor. 14 years of Tory negligence isn't going to fix itself, things need to get worse so they can get better. The economy was in so much sh!t that naturally it's not going to be an easy fix. Brexit has a lot to blame as well, not just the fact we left the EU but the whole issue with actually negotiating Brexit. The time, effort and people it took to get it "done", could've been spent on something else, something much more useful. Covid of course, that made the NHS issue even worse. With more sick people, there's less jobs. Covid had a massive impact on layoffs as well, a lot of companies restructured or laid off people, who now had to go unemployed or find another job quickly. Trump winning did not help either, all his tariff talks isn't making things easier and is scaring everyone because the future doesn't look bright. We've also got the Russia-Ukraine war and the sanctions, the gas issues, the money send to them for aid. We've got the Israel-Gaza war too. Not defending Labour but everything is going to sh!ts now and fixing all the Tory BS is going to take a long time.
You just listed the past 30 news headlines, that's not very insightful.
and labour before the torys, but you dont want to acknowledge that.
@@kostyatszyu and tories before the labour, but you don't want to mention that
@@kostyatszyu The financial crash wasn't really Labour's fault though; it was global and mainly bankers'/investors' fault. Althogh Labour could have managed it better to be fair.
@@kostyatszyuthe global financial crash wasn’t labours fault don’t be ridiculous
Betteridge's law: Any headline that ends in a question mark can be answered by the word no.
Careful now, you might hurt Truss' feelings. At this point she's going to have to sue everybody. ;-)
Quantitative tightening is the most prevalent reason why UK gilt prices have risen so much recently. Other stuff related to labour policy have impacted it, but it's clear. The BoE has decided to shaft the entire UK Working Class in the name of "keeping inflation at 2%". The lack of reporting on this too is telling.
Labour’s policies are the same failed policies that have seen the EU stagnate. The Tories were not that much different either. The age of the pen-pushing bureaucrat is destroying the private sector which is the only route out of decline.
The private sector is part of the problem. The western capitalist world is in for a self-created shock show.
Let's just face it, the UK is broken beyond repair.
Labour's ratings crashing about 7 minutes after getting elected is hilarious 😂
“Timid” is such a good word for this government. I want to see big bold changes but we got continuity.
"Liz Truss style crisis". Please read the facts. The Bank of England admitted in May 24 that it was largely to blame and hence Truss's lawyers have now sent a letter to Starmer asking he desist for perpetuating what he knows to be false. This channel is doing the same. The Truss was the polar opposite of Reeves and, while the markets had a little shake, we would not be in the problems we are today if the media, including this channel, both understood the economics and told the truth.
Source?😊
If every western country is having a tough time right now, it's not that weird for the post-brexit UK to struggle more. This was one of the issues brexiters were warned about and they shrugged off as "project fear". It's bizarre and reality-reversing for those same brexiters to blame Labour for the same economic damage they were warned about and chose to inflict.
Is TLDR intro having a Liz Truss moment?
Why is it always a spending problem, and never a revenue problem?
Who would have thought that endless borrowing and printing money to spend on unproductive public services is going to push up borrowing costs...
"dEbT dOesNT mAtTeR" said the average working-class electorate that doesn't understand economics.
this is why socrates was right about democracy
So why is GBP falling if yields are rising. Surely GBP would rise if bond yields are rising.
When youtubers try to understand economics, The markets aren't responding to recent Labour policies but they are responding to long term downward trends bought about by Tory austerity.
6 months into Starmer’s term, dogged at every turn by scandal and failure, yet still fortunately everything is still the Tories’ fault. Will his luck hold out or will some point in the next 4 and a half years see this excuse start to lose potency?
And that's changing sometime soon is it?
Right, and Lizz Truss's economic crash was only responding to long term downward trends brought about by Blairism 🙄
@@TheRatOnFire_ Massive difference between a policy having a negative effect like Truss and many countries seeing bond % rise globally
@@Bushflare If our country hasn't gone bust then Labour will have done a great job, if the Tories had won we would have been screwed
Obviously coming from a Marxist perspective, but the PLP is totally beholden to the strings of capital. They can't do anything to upset their donors, and half of them wouldn't do so even if they could (Kendall, Reeves, Streeting etc) so they are stuck blaming the Tories and simultaneously doing nothing direct to actually make things better for people on the ground, unless your income relies on freezing pensioners and processed asylum seekers.
Hilariously this is leaving them in the position where they are making things worse for both traditional labour voters and the FT readers. Unless there's a leadership challenge you can almost guarantee Labour won't last another term.
Lovely 8 bits graphic at 6:00. Props to the design team.
So we have been in economic stagnation since 2008. So when the tories have been in charge for over a decade and it's difficult to save a sinking ship in a few months. Got it.
What's with the honeypot bots?
I think they are all deleted, lol
I see none.
they always swarm vids as soon as they are uploaded
Enough Rus bots trying to convince people to vote Farage so he can sell out the country.
The Bank Of England is deliberately driving the UK economy into recession, quantitative tightening at this time is not necessary as we have a real net positive interest rate of around 3%, almost unprecedented in UK economic history, which is great for bankers. They are selling bonds back to the private sector that will be worth less than they bought them for, driving interest rates up. Bankers will be the beneficiaries, when the money is sucked back out of the private sector. The overall effect of this is enormous pressure on Rachel Reeves to impose austerity. Rachel Reeves has the power to stop this, but she is either unaware or just scared of banks and rich people. This is dire for the UK economy, we must stop the bankers.
What reason could the BoE have to drive a recession?
@@melindagallegan5093 Bankers are rich and when you have a lot of money and want to make even more, you buy many things and expand your empire in a recession when nobody else has the money to do so. The interest will have been lowered and the prices low. When the economy rebounds as the BoE will make sure...caching! 8~)
@melindagallegan5093 Bankers are rich and when you have a lot of money and want to make even more, you buy many things and expand your empire in a recession when nobody else has the money to do so. The interest will have been lowered and the prices low. When the economy rebounds as the BoE will make sure...caching! 8~)
As Harry Enfield once said in his program, women, know your limits.
😂😂😂
A lot of talk in this comment section about it being the fault of Bank of England Quantitative Tightening (QT). The argument seems to be that they are doing a huge amount of it suddenly and it is causing the price spikes. Here are some figures about QT. It started in October 2022.
In the first year Oct 22 to Sep 23, the BoE reduced its holdings by £80 billion. £45 billion of this was active sales, £35 billion was simply allowing gilts to mature.
In the second year Oct 23 to Sep 24, the BoE reduced its holdings by £100 billion. £13 billion of this was active sales, £87 billion was allowing gilts to mature.
In the current year Oct 24 to Sep 25, the BoE plans to do exactly the same as the previous year £100bn reduction, £13bn active sales, £87bn maturing gilts.
Therefore, the amount of selling has actually reduced since the first year it was done substantially.
Is it worth making a video on the Bank of England's role in this, with their use of quantitative tensioning placing deliberate upward pressure to increase interest rates?
This seems to be the cause of borrowing costs being so high vs other markets.
Labour could stop this, by banning the sale of bonds (by the BoE), but they either don't seem to know that they can, or are not willing to do so...
The answer is no. Things were already going sour due to the BoE action before Truss made any changes. Labour are having a Labour moment.
Anyone who stands up to musk is good in my books
Everything else aside, can we not just ignore Truss? Please? I am pretty sure the vast majority never want to hear from her ever again.
UK needs to massive reduce the administrative state it imposed upon itself
Nope, Reeves just needs to stop BoE from selling bonds and stop obsessing over balancing the books, borrow and invest in infrastructure.
Highest borrowing costs since 1997 , the pound has declined , interest started to rise again , growth at 0.1% yet labour voters are still claiming this is going great , racheal from accounts is sinking the country as badly as the terrible tories
Bonds are in line globally, was not the case with liz. It’s been half a year to fix 14 years of mismanagement so please strap in.
I think you didn't search for the reason the yields have been raised. It's because the National Bank is selling its bonds.
I watch your videos with great pleasure. Your videos are a real treat for the eyes.
I voted Labour in the general election in the hope for change, however it seems nobody can change anything.
I want to have faith that Labour can turn it around... But if we are beholden to external factors, I don't think that's realistic.
💔🇬🇧 poor poor UK. We are riddle with absolutely incompetent politicians on all sides...