Is the UK heading for economic disaster? | DW Business
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- Опубліковано 30 вер 2022
- Rising mortgage costs, pensions eroded, despairing businesses. It's only been a week since Prime Minister Liz Truss and her Chancellor, or Finance Minister, Kwasi Kwarteng announced a new economic plan to slash taxes and boost borrowing in the United Kingdom. But what a week it's been.
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#UK #LizTruss #TaxCuts
Now with the recent economy, To get financial FREEDOM you have to be Making Money while you're asleep
People prefer to spend money on liabilities,Rather than investing in assets and be very profitable.
You're so correct! Save, invest and spend for necessities and a few luxuries relatives to on's total assets ratio.
In this perilous time of recession, protecting your capital is much more important than making money. Basically because if you lose your capital, making money is much harder. ''Missing the train'' vs. ''losing your money''. There are a lot of trains, but if your money is gone, it's over. This is for stock holders.
@@PhilipMurray251 You can't really know the full risk rate except you are a professional. Reason I settled for advisory and guide from a stocks guru, CORINNE CECILIA HEANEY. Never been the same again with my holdings.`
@@marianparker7502 it’s important to keep your guard up for economic risks. However, smart planning, time management and seeking advice from a financial adviser can help keep you and your money safe.
If Liz is as good in Economics as she is in Geography, God help the UK.
🙂 UK wants to continue funding a proxy war while its economy fails, I can already see the flies on many white walker corpses this winter, hopefully Russia delivers on the promise & freezes EU's balls
What’s all the purpose of being good in economics if they are ideologically deluded in their neoliberalism anyway.
Lol.
Truss performance on Ukraine was nauseating, but topnotch. they selected Truss because she can be trusted to follow orders.
@@willengel2458 press the red button, for example
DW thanks for having these long form discussions with individual experts and allowing them the time to speak. Too many other media outlets force short time frames on these important discussions.
Agreed .... excellent presentation by DW, DW has become one of the very best news and information organizations in the world today. Kudos to them for all the great work they are doing.
Most Europeans will be homeless frozen white Walkers this winter, they have their very wise governments to thank for that, it isn't just UK that's about to be stormed by its own citizens 🤡
Yeahhh
The expert sounded confused and was not answering the questions properly and waffling.
@@Andrew-rc3vh Indeed she was not really reply properly to any of the questions which were quiet easy by the way. To me it sound like bank of England got stucked, like many others central banks in the world.
They can't increase interest rate any longer otherwise the entire economy will collapse so the only alternative left is to printing more money by hoping something will happen... But I think this is now too late expect the pound to collapse to ZERO
Reducing taxes for the top rich is widening the gap, lowering real estate prices, giving the very rich the edge to aquire more real wealth. The very rich can ride such economic downturns unscathed, at the end they come out even wealthier.
Quantitative easing did that for the rich in the USA
We just don’t know yet. Remember they did offer direct energy subsidy payments.
Do you know the details of the tax bracket changes? (I don’t)
Exactly. This was completely missed in this entire discussion. The largest tax cuts were for those earning > 150k.
UK taxes are quite high, but tax reduction will not generate immediate growth and investment, the results will take time and they may not be sufficient, now there will be just economic pain and more inflation. Maybe after economic pain people will realize that the Brexit wasn't a good idea after all.
@@DavoInMelbourne you do need to pay taxes to cut them. In the US for example like 30% of the lowest income people pay no federal taxes. Often such things are misleading, politics aside.
The motto is " Do not let a good crisis go to waste " they will really take full advantage of it.
Usually it will be your opponents who would say that 😅
@@pikabe100 she is the opponent of the common people.
@@toslinked well said 👍
They have been salivating since shortly after the Covid came up thinking how they could asset strip the country even more and once again like the Argentine Junta in the 80s a toon in the Kremlin has given them cover to act.
If you’re holding usd you could benefit from all this, but if you’re holding pounds your in trouble even if your rich
*"Why is that if you take advantage of a tax break, and you're a corporation, you're a smart businessman... But if you take advantage of something that you need to not be hungry, you're a moocher." - Jon Stewart*
Because the poor are, by definition, undeserving losers, in the capitalist system.
So the middle-class will blame the poor, exactly as the rich intended with their gaslighting.
Americans looking at the UK’s tax policy: *first time?*
That’s a macroeconomics course in 20 minutes. Well done explaining what is going on.
Excellent summary and analysis. I'm no happier but I am less bewildered.
Short answer, yes.
Liz Truss must be held directly responsible when hyperinflation hits the United Kingdom. The degree of incompetence is beyond negligent… it is reckless.
The fascist, undemocratic and unelected EU and its European Monetary Fund EMF would have never allowed for a mini-budget without the prior consent of ALL the other member states...its like having 27/28 brains instead of just 1! so blame it on Brexit!
You'd be lucky just to have inflation.
Problem is it's going to be a long and protracted stagflation period ahead.
Something like 42% of your exports are to the EU. The EU will be far too busy paying for energy/food to purchase your stuff
you should be hold responsible . Genral
@@xcitemex6353 Good. The less reliant we are on trade with countries still hog-tied down under the rule of the repugnant EU, the better.
@@squirepraggerstope3591
I cannot disagree with that.
Man the queen dies and 7 days later the UK is on fire.
Certainly Lis has lost her marbles. Putting the whole nation at risk to the benefit of a few companies.
🙂 UK was at risk when it advocated for Ukraine to continue the war when Boris yellow flashed to Kyiv earlier this year.
It can choke, the rest of Europe soon will anyways, this winter will turn many into white Walker 🙂
She has no background in business or finance. Predictable!
@@meilinchan7314 That has nothing to do with it. She was forced by the Tories who backed her to cut taxes so that they could profit themselves...
@@meilinchan7314 She has a group of people around her who do have the relevant background, spare us your ignorance, the government isn't some toilet everybody dumps in🤡.
Even with those people with financial backgrounds, the British economy will fail, do you actually think you can stop something that is irreversible? 🙂 All they can do is minimise the damages
2030 WEF agenda for the great reset
I'm in Britain. Never ever been outside the border and I'm totally wanting out now. This country is COOKED. If the NHS doesn't collapse this winter I'd be surprised.
You have to get out asap for the sake of your family. I’m really worried about what’s happening in the former great power
It will. It's been collapsing for the last few years, but I think this winter will deliver covid and flu crises simultaneously with senior nurses leaving due to conditions and pay (there are now food banks in some hospitals - for STAFF use). I'm also thinking about leaving. The Tories have absolutely wrecked this country 😢
And who exactly is going to want us?
Truss is hoping that her plan will create a short term flash of improvement that will last just long enough to win an early election, but realistically end with economic collapse. I think this is all done on purpose. They're destroying our country for their own gains.
@@stevebartley8902 bring a little lorry full of 30-liter gas bottles and I guarantee someone in Germany will take you in with open arms (probably including a job offer). winter is coming.
My concern is what will happen when QE is supposed to end on 14th October. While this is a temporary reprieve, it’s not a long term plan. The government are hiding the OBR report and will not publish until 23rd November. This is an untenable situation with no viable solution.
And we have different closely related nations entering into QT at different times.
They are either going to need a massive war economy or to issue a new currency I guess.
QE won’t end on that date now.
/me sighs....Malaysia hid the 1MDB report, Australia hid its environmental report, and now it's Britain's turn?
QE will never end....there is no risk in the market Central bank covers you.
what happens is the system collapses but not for long as a new banking system rises from the ashes just make sure you have enough cash for a week to ten days
Pound getting pounded.
"The beatings will continue until morale improves."
I think Truss discussed her economic plans with the Queen and that killed her.
😭😂😂😂😂😂
What warning was given by Sunak, former treasury Secretary of UK has proved correct. Economic crisis have to be answered by right and tough handling like a bitter pil.
Yes, Mr.Sunak even predicted the date correctly. "By the end of September", he said.
lol sunak advocated the same policies
anyone who suggests the inflation has anything to do with anything other than supply does not remotely work in reality. Money can not fix supply issues
The whole Tory party is the problem. Sunak is as incompetent as the rest of them.
Sunak did NOT crash the economy,its Kwateng and he must go to save the UK.
This budget is the financial equivalent of putting your foot down on the brake AND the accelerator, with the handbrake on...
"I smell something burning"
It's more like they aren't willing to subsidise the investors anymore with tax payers money, which is just essentially taking the tax payers money and then handing to others for their mistakes which is setting fire to the money, i.e what inflation is. Tbh, it all started back when the Fed raised interest rates back in January, since then all other currencies including the Euro has been falling against the USD. The difference between the UK and EU, is one is stimulating it's economy and the other is stagnating it, I'll let you guess which is which
And your head in a leather sack
Hope your vehicle be parked with handbrake on for a long time to come. The only alternative is to apologise to Sunak and call him back.
@@jayakumarkaarikuzhy4713 Sounds like a great idea. Replace her now before the UK economy begins to resemble Russia’s
Great discussion, very educational. I learned a lot.
Great analysis. Careful. comprehensive and instructive. Much better than anything on UK media channels recently. Excellent questions with time for focussed answers. DW journalism is of a high quality. Thank you always DW for your work keeping us informed.
Except Sterling has gone up in value. No mention of China getting ready to dump US Dollars. No mention of Germany facing blackouts. Germany props up the Euro.
@@gc6391 Exactly germany just borrowed 200 Billions
YEIKES! THATS GOOD REPORTING?! OH LORD
@@gc6391 🤣 That's right!
@@nofiltersenzafiltro9596 she’s very pro EU and anti Brexit.
With the "unprecedented" wealth produced by Brexit in the UK, the country should be able to reduce taxes to zero and still run a surplus. Or isn´t that what Brexiters promised?
The real collapse hasn't started yet
that was before Covid and the Russian-caused energy crisis which would still have adversely affected the remainers.
Thank you. It is good to hear some analysis from outside the country. What poor timing for the UK government to make such sweeping announcements, like trying to turn an oil tanker hard left mid-course. While you may turn the wheel, it's more likely to rip the rudder off than steer where you intended.
Excellent coverage.. Your guest Vicky Pryce - incredible knowledge of the issue - her ability to explain these concerns so thoroughly is remarkable. Well done, indeed.
This is exactly why Scotland, Ireland, and Wales wish to leave this English government!
Can the Isle Of Wight join too ..?
certainly not Wales
wonder if Scottish will abandon sinking ship this time
Save tax money kick out the royals
Like they have a choice !!?
Britistani "Democracy" dictates that unless you have nukes yer going nowhere.
@@jaouad_h France has much more to offer tourists though and I say that as an Englishman
Good- EU can take over Scotlands bankruptcy payments
@@jaouad_h Bad analogy. Spanish royals weren't as interesting as British royals.
Brilliant! Thanking you both for you clarity...!
Thanks to Liz Truss. She is doing a good job running UK to the ground.
Depends who she is working for. Goldman Sachs, Blackrock.
There is a lot of money to be made destroying and liquidating a country.
Asset management firms and banks love looting ruins.
It's a good news
Economic disaster thanks to Liz Truss indeed. Good job on the ground for sure
This is way bigger and has been going on way longer than Liz Truss who is just another puppet.
She just started . This situation has been building for years. It’s due to energy policy that’s the cause of it , among many other factors . You can’t blame someone who has been there a few weeks .
Karma bites back for the colonizers
One day Kashmir will free itself from Indian colonialism
@@catmonarchist8920 Unlike UK, India uses kashmir's resources for Kashmiri people and not causing famines like brits🤢 did everywhere they went.
@@catmonarchist8920 I hope UK experiences worst of the worst famines in my lifetime. Would love to see that
@@nice6524 one day the Kashmiri will become free and slaughter the invader and the Chinese will capture all the northern states of India they claim and then block all of India's major rivers and there will be only desert. China won't allow a rival to exist
@@nice6524 now all the dead empires (NATO) have trashed parts of Africa, the Middle East and now Russia with their endless wars and profiteering from weapons of mass destruction. US empire in death throes - which currency will be taking over from the $? Poor old Joe is going to be blamed for US downfall.
short awnser: Yes
Look at that shambles of an office !
1970 financial crisis is repeating again.. but i believe this is the same in the whole world..in the Philippinesz Php is also devaluating
Same problem in USA. Mail in ballots elected Joe Biden, the second term of Jimmy Carter. You know, because Orange Man Bad!
Can't they wait with their disaster until the others are cleared up? Remeber: One crisis at a time!
This week NASA crashed a rocket into an asteroid while Liz was crashing the British economy into the ground.
They crashed northstream too
No
Trevor Noah?
Don´t you give her to much credit?
It´s like Boris is giggling after planting a cracker and blaming Liz for destroying the toilet
@@larzkruber822 I have said from the outset that Britain should keep Boris. And I'm not his fan. Imagine him going through this - after handling Brexit, COVID, and Ukraine.
I can trust Vicky by the state of her room, look at all those stacks of papers
Yes! I'm guessing Liz Truss doesn't read much, or ask advice from people who do.
She's been giving a lot of interviews.That background is oddly comforting.
@@CC-hx5fz No she doesn't...
The bottom line is the rich people will eat the poor people.
The rich be watching a lot of Hannibal these days.
When you want Brexit so badly despite all of the warnings. Then when the warnings actually turned out to be accurate you try never to remind people that it was your Brexit fantasy that is causing the catastrophe.
Nothing to do with Brexit - if you think EU is in better position - hold on to your saddle - the really bad time is coming in a stagnated EU.
@@robharris8844U it has everything to do with Brexit captain denial.
The economic slide has been happening since Brexit. It had been made worse by the pandemic.
The empty shelves in the shops, the fuel shortages, the army being needed to help deliver fuel are an effect of Brexit. The UK relied in EU grains and flour for decades and the fact that only a limited amount of UK lorries are allowed on EU roads, down from unlimited, has compounded the issues of food shortages. Food costs went up because to by food and the mechanisms of good are more expensive. The UK isn't getting the free trade agreements with the US anytime soon.
You'd be surprised that I am very caught up on this topic. I don't see anywhere in the EU suffering economically like the UK is.
UK farmers and fishermen made more money from EU subsidies that their own product. Whitehall is not replacing those subsidies either. Brexit was a Tory project and perhaps the public will realise it some day
@@francisgilbert6982 The EU stupidity and collaboration put all of europe in the weak position it now is to Russia.Germany was cutting its military spending from a pathetic 1.35 to 1.32 GDP when Russia invaded Ukraine!
@@francisgilbert6982 I would say that its you, who is captain denial here. You focus too much on the UK (because of personal grudge or hatred?). The brexit played a rather minor role here. It surely had an impact for sure, but the crisis is much more complex than you would think to only blame brexit for this! The overall crisis has its roots everywhere and no matter where you look, other countries are in a similar situation as the UK prior to this new crisis and because of globalisation, any crisis anywhere in the world is also impacting the economy of other countries.
Also this sudden new crisis was a reaction of the market to their approach to fight inflation and prevent a recession. Prior to this the UK only raised their interest rates by 50 basis points, while the US raised theirs by 75 basis points. Even compared to other countries the UK was still stimulating a bit. This made other bonds more attractive compared to UK bonds. If you could get a higher yield in the US, why would you still hold UK bonds or even their currency? Even if the yield was the same, other bonds and currency was much more safe and secure than UK's and have a better future outlook, because UK recently announced they would cut taxes for the rich and promote spending in order to encourage job growth, because they have so many job openings and not enough workers (like everywhere in the world right now - this problem is not an UK-only problem that you can blame brexit for). This has nothing to do with brexit. They just had a different approach to solve a problem that all countries are currently also facing.
They faced the same problems as EU und US, but went a complete opposite direction when it comes to solving these problems. They thought they were unique and smart and could go through a recession period without having a recession. They tried to maintain growth and increase GDP numbers by printing more money. The market obviously reacted to this, because more money printing on top of already high inflation at 9.9% in the UK is a big red flag and leads to a lack of trust in the government. This is why you see bond prices collapse in the UK and their currency losing value. The sudden collapse of bond prices endangered everyone involved in the bond market. Even pensions were at risk of going bankrupt. The government needed to prevent forced selling (margin call) and had to bail the market out by announcing unlimited money printing to stabilise the bond market.
Prior to this they had the same problems and issues as any other country. This is why it has nothing to do with brexit exclusively. It was the direction that they took to solve these problems that are now causing this new issue.
@@serafall7326 thank you for your opinion.
However the Alphabet always starts with the letter A not the letter G.
You see the real issue here is that you assumed that I am just some random person online spewing hatred about a topic that I know nothing about. You do this despite never meeting me. You never once considered that I am an actual journalist working for an independent news organisation that tracks news and information from around the world.
Never once did you consider that I am completely aware of the economic situation and market trends of the UK for the past 20 years or the how and why David Cameron started his charge towards Brexit after winning the general election after the Tory / Lib Dem coalition government. In fact that successful charge to Brexit was fuelled by the hate of EU foreigners, what Cameron called 'Benefit Tourists', and how those people from the EU was targeted. Especially people from Poland. That renewed Brexit charge lead to Polish people being attacked in the street and being victimised on a daily basis by people filled with hate.
During this time the UK was extremely healthy economically.
We all know that Brexit started the economic slide that was made more 'complicated' by the pandemic. Because of Brexit huge foreign investment and access to the EU banking system moved away from London to Paris and Frankfurt. ( i never said all of it).
In fact now that I remember London had been getting away with its lack of interest in its own infrastructure because EU money was keeping the economy going. Then the EU money was withdrawn because of Brexit.
oil and gas prices and Norwegians get rich
Scotland, despite having the same energy form the same sea, gets poorer.
🏴❤🇪🇺
That's coz u got a nationalist loon in charge who steels most money and does nothing to help the drunks n junkies.
Get real and understand long term gas and oil will be worthless. The fact is Scotland has oil not gas which comes from the English East Coast. Blame the choices of the SNP spending on independence and overpriced ferries still not built by nationalised boatyard.
😂yea sure
@@geoffreycodnett6570 Love your reply it is an archetype of English argumentum. First, rubbish his claim of value by claiming it worthless over an unknowable long term.
Second, divide his argument between oil and gas.
Third, blame him for his choices!
Brilliant, no wonder you convinced the world to enslave themselves to you!
It,is not Scotland oil. For the most part it is in Shetland waters.
In a word, yes
It's hilariously British how Truss says that many businesses might fail, "including pubs". Brit's could put up with many businesses failing, but god forbid some pubs have to close. That's too far.
I laughed hard at that too. Anything but the pubs! Lol
The bond buying was a result of 'Money Managers' speculating with pension funds, tied to the long term bond yield. As usual they use derivatives that should only be used with a tight set of rules when used, instead it is total abandon when it comes to greed. The pension funds were fearful of margin calls and needed the BOE to step in and bail them out or prevent a crash of the Pension Funds that should be managed with conservative and minimal risk.
That was a conclusion I had come to after doing a bit of research, this set of circumstances seemed to highlight an 'error' in trading processes with pensions....so rather it being a fault of the government, it was more likely a fault of market speculators and rules?
lol what a joke why even have pension funds taken from tax budget when it is as bad as risk seeking investment banks needing constant bailouts every 5 years
@@officialmysteriousrider130 maybe she works hard and dont have energy or time to do those things
Thanks David, this helps explain it a lot. Looks like this needs more regulating. Don’t know if that’s just a UK thing or needs a global response.
@@officialmysteriousrider130 yes.. The good ol' "bookshelf intelligence prop"- sit infront of a bookshelf, and you too gain 30pts I.Q. and become a revered expert.
Increasing government spending while cutting taxes guarantees an increase in the money supply... The very definition of inflation.
If the pound is now equal to the dollar you've already lost 33% of your buying power.
So you can get that buying power back by stealing 33% of what you need?
It makes UK goods cheaper abroad. Increasing export demand, increasing production/ investments/ jobs
Supply isn't actually changed, the government finances this by taking on debt.
Plus, the whole "increase supply = lower value" is only true for Asset backed currencies.
The pound is a FIAT currency, these are impacted by the perception of the government and subsequently market of the regions that use these currencies. Now the reason why it is going down is that international investors don't think that the UK government plan is going to work out, after having left the EU they lost the market position of being "The gateway to Europe" and without building anything other than a financial service economy that now doesn't have anything to service has left them with nothing to support the economy anymore.
Secondly, things aren't being sold on British shelves in USD, they are sold in pounds, for locally produced things like natural gas, and most staple foods the PPP won't actually change, only on imported things like electronics will there be an actual noticeable difference.
TLDR welcome to post 19th century economics
@@pesekaajajamatorM-yc7yl And also makes buying foreign goods more expensive....we import more than we export.....
@@pesekaajajamatorM-yc7yl all these great UK goods... like all the financial products produced in London for example.
The isnt going to look good on Truss' resume just 3 weeks in. Reminds me of when I accidentally deleted a client's database on day 3 of a job, some 20 years ago.
Lol how did it go?
@@tubby6007 It was 4:45pm when I realized I had accidentally nuked the database. Many people were already gone, so I headed home. I told my new wife that I expected to be fired the next day. The next morning I get in before pretty much everyone. My supervisor's boss comes in, walks past my cube en route to his office, drops his briefcase off and immediately returns- I think to myself "Here it comes..." He says (paraphrasing): "Hey, funny thing happened last night. The main client database got wiped out somehow." I decide to go with 'bluff'; "Really?" I say. So he continues: "Yeah, oddest thing. Know anything about that?" Me: "Uh, Nope." He asks: "Do you know how to read a SQL log?" I do and this would tell the reader who did it and when. I am 'all in' at this point so naturally I reply "Sorry, don't know." He goes "Ok. Luckily the backup system was running from years ago, Everyone had stopped checking on it, but it was still going. We restored that and its ok now." He left but I was terrified for like 2 weeks that someone else might sift through the logs, but everyone got distracted by regular work. Not my finest hour for sure. That was the biggest disaster of my entire career.
The UK has been in perpetual economic disaster since Thatcher.
Darkhorseman82 thanks to the nobel prize winning social-economic theory turned ideology called, neoliberalism, capitalism on steroids, the privatisation of all public services and assets, deregulation, self-regulation, casualisation of labour, war against the so-called welfare state, ever lower taxes for big corporate and billionaires for the trickle di trickle da trickery done effects, creating unprecedented inequality and homelessness. Brexit wasn't a good economic strategy neither, based on lies and xenophobic fearmongering, thanks to farage and foxy sky murdoch.
And yet one of the strongest economies on earth.
@@catmonarchist8920 tell that to people in the supermarket or the unemployed, the homeless, when the top 10% of wealthiest own 50% of wealth.
@@jaaksavat7916 there's too many people employed in the UK
@@catmonarchist8920 yet on of the biggest growing differences between the wealthy and the poor.
Brent Crude Oil is the same exact price as a year ago at $85.
...whereas fuel prices are about 60p/l higher
Why is nothing about Hedge Funds making billions off of shorting the GBP???
Don't talk about them. Instead talk about the pension fund getting destroyed by their shorting.
As Farage said in the European Parliament after Brexit "You're not laughing now".
Half of that country wanted out and still thought Britain rules the waves. But hey they saved money that could go to the NHS...
Yeah because the EU is better off...looool
@@corneliussulla9963 Yes we are... looooolll How old are you? 12? 'loooollllll' seriously?
@@myselfandeye3884 "Yes we are" when everybody knows you are not. When everybody sees the protests of people who cant afford a normal life anymore. When everyone sees the crime rates.
@@corneliussulla9963 We're still far better off than the UK. You can deny it all you want but that's just you wishfulthinking.
Dont forget about the quota free Mackerel, The Sovereign quota free Mackerel that proves they have "Taken Back Control"
But you have to fix the problems before reducing taxes
And the problem with companies leaving GB for Ireland because of tax rates?
@@stapleman007 nope. Due to Brexit.
Horse and sparrow economics. Feed the horse enough oats and some of them will pass through the horse ending up in the street for the sparrows to fight over.
they put a 'diversity' guy in charge, now the pound is on par with the zimbabwe dollar🤣🤣🤣
Who knew that "UK" meant "Unmitigated Kakistocracy?"
The Pound plummeted so hard that my wallet ripped a hole through my pocket
Playing pocket billiards we’re you?
Let the Brits enjoy the Brexit on their own OUT OF EU. Thank you Farage , thank you Boris... you are my heroes.
@ Daniel FT - coming from Romania the second poorest country in the EU - LOL - carry on leaching from the eu (€62bn of benefits since you joined)
@@Gudha_Ismintis As I say together with all EU states * Enjoy the Brexit :)
Enjoy winter.
Out of the frying pan, into the fire. Enjoy your Brexit.
😂🤣🤣🤡
Volatility benefits the city, and insider-trading greases the pockets of decision-makers!
Uncle Sam is happy. Now UK and EU have to suck up to him.
Wait ... wot ? We be doing that since 1945...
I think this woman needs a few more books. I don't think she reads enough.
vicky needs a couple more books :) good report DW ty.
isn't trying to grow oneself out of inflation the strategy of turkey? (without success, but then..it's lowering interest rates)
Sure it is. Maybe she should try to implement some policies that would actually do that.
Taxes aren't the issue in the uk. One main issue is a severe shortage of labour across the board, it cut a chunk out of the labour pool and put up all sorts of barriers that make replenishing it a lot more difficult then it has been.
The fundamental part of economic activity is still labour. You simply can not grow if companies are operating understaffed and competing among eachother for to few people.
Imports are still hampered by no longer being part of the eu and therefor prices are still inflated.
Exports are still declining as well as eu companies keep moving away from the uk for their supply chain for the same customs issues.
Energy prices are extremely high as well, economic activity requires human labour input, energy input and resource input to create output. All 3 are hard to come by, expensive or both.
Inflation is cutting disposable income hard, another requirement for economic growth is a population able to spend more money then they did before. If there is no increase in consumption who in their right mind would produce more? No increased production, no economic growth.
Those are just some of the more major issues. If there is that much pressure on the economy from multiple sides it becomes impossible to grow.
Nothing she announced adresses any of these things.
@@baronvonlimbourgh1716 Liz’s proposals to cut taxes and regulations will result in growth.
@@garykaplan7728 sure it will.sure it will.
She will bend physics to make it happen for sure.
@@baronvonlimbourgh1716 Prime Minister Margaret Thatcher cut taxes and regulations in the late 1970s and early 1980s leading to robust growth and prosperity for everyone. Liz and the Conservative government are implementing sound and proven economic policies.
My new favorite term- "Tax giveaway" instead of "Tax cut". Excellent framing device that rings true because taxes are an OBLIGATION. Any attempt to curtail the collection of taxes isn't a "cut", it's a giveaway.
So many rich people don’t fulfill this obligation
@@MrAhsiong so what, if theres a crack in the system that allows it why not use it
In government, spending “cuts” are really a decrease in the rate of increase in government spending.
Income belongs to the people who have earned it, not to the government.
@@garykaplan7728 That's not how organized civilization works. That's not ever how it's worked
The UK never should have pulled out of the EU. Their currency would be stronger if they were using the euro.
The pound is stronger than the Euro
What a dumb comment
UK debt is denominated in sterling for god sake.
Wait til the ECB matches the Boe and fed ok interest rates and see their bond yields
Problem is supply shock. How tax cut helps?
@Bell Olli Trickle down economics dont work now 🤣🤣
Not just the UK. No country will be spared in this recession. Some will suffer more, others less. Any politician who tells you otherwise is conning you big time.
That is the case for every global economic factor. Politicians are quick to take responsibility for the global effects on their country, but shy away from taking responsibility when they mess things up. Which the UK has done, way out of proportion.
"No country will be spared in this recession".
India:
Brexit shitshow.
@@death_parade we are already poor on average, can't really go much poorer than that.
But yes, our current leadership is good in keeping this stable.
No J L, in the 21th Century there are three countries that will dominate there areas. 1. Is America, now with the new NAFTA deal America, Canada, and Mexico now make up 1/3 of world economy. 2. Japan, will be the power in Asia they position themselves as new power in Asia, China population will be cut in half by 2050. 3. France, yes that right with Britain totally screwed up and Germany and most of central Europe with no Millennials (no young people), France is not set take over all of Europe.
"In France, in Germany, yeah, but in the UK?!"
Oh what a pedestal he holds his homeland on!
He's not British.
@@jayjayn007 What makes you say that? If a Brit moves to the US, he doesn't suddenly stop being a Brit, you know. :D
@@Scapestoat Born in:
Athens, Georgia (USA)
LIVES IN BERLIN.
@@jayjayn007 Where are you getting your information? He was born in Brighton.
Doesn't get much more English than that! XD
edit: Oh wait, you're talking about the wrong person. The presenter didn't say what I quoted. The British Blanchflower did.
Most Brits I meet online I are like that. They still can't get over the fact that Indian destroyers are stronger than their Type 45 class.
Why can’t we have someone like this knowledgeable person as the Chancellor..
In fact,why can’t we have ministers that can actually do the jobs they’re paid to do, I don’t think any of them really know what they’re doing, it’s just a game to these guys…🤷♂️
The EU just sanctioned RU toilet paper which dominates the EU Market with a whopping share of 70% !!!!!!!!!!!!!!!!
Exactly bro you are right they are paid for criticising other parties and not to help normal middle class people 😂😂
Pryce was Deputy Head of the UK Government Economic Service from 2004 to 2007, and Joint Head from 2007 to 2010. She was appointed a Companion of the Order of the Bath (CB) in the 2009 Birthday Honours but this was cancelled and annulled on 30 July 2013 following her release from prison. Wiki for ya
No place for them there........
The UK’s economy has always been governed better than most economies in the world, which is one of the main reasons for its long standing success. That’s because it has always had high calibre politicians in the Cabinet. Now, it’s being run on a par with a lot of banana republics.
When the money saving from colonization time run out. The economy go collapsed.
You’ll be fine, we here, the UK’s over-privileged and spoiled spawn (the U.S.A) are still standing by your side. The UK is a rich country with good citizens, they’ll climb back up and learn from this.
The colonial loot is exhausting
@@hoang1730 I once saw an excellent talk suggesting the wealth of colonization was squandered on the world wars. The fighting did end due to resources being in short supply.
@@hoang1730 generating not saving, something the British have excelled at to the present day, despite the huge amount of aid our country has donated yearly to needy countries like Pakistan and India.
Truss this morning said she admits her budget caused 'market disruption' but continued to say she will press on with the budget that's not going to install the markets so its pretty certain to cause a crash as foreign investors will hear that and call their brokers. This QE worth £65bn that has to be paid back
energy price caps just means keeping demand higher than supply, so power cuts and rationing must happen.
They are up to hundreds of types of energy sources.
petroleum is just a scam.
Maybe they could join the European Union?
The people of the UK saw this as a slap in the face to the struggling average worker and a handout to millionaires, giving away over £50k a year to the top 1% of earners, who can easily afford their gas bills. We all know 'trickle down economics' is a joke.
Britain is a small country but thinks it is a superpower!
And a german tv spoke their language
Size of country is irrelevant… we see that now with Russia .
@@davidnoelfranks1124 what does that have to do with anything ? They clearly are not using it to their full ability . Size of country is irrelevant and so is your comment .
@@davidnoelfranks1124 over 90% of russian territory is geographically uninhabited and uninhabitable . The main population lives in the south . You’re a tool . I will say again , Geographical size is irrelevant when talking about political power .
@@davidnoelfranks1124 Yet California by itself has a GDP twice as big as all of Russia lol
The UK 'stands taller' after Brexit.
Nigel Farage, June 22, 2022 😂😂
I am sitting here, a proud citizen of a member of the European Union, and I can hardly believe, that the British could screw up even worse than they already did. I. Just. Can't. Believe. This. “Incompetence” doesn't even remotely describe this!
British are experts at sabotaging themselves. People warned them BEFORE Brexit! You're surprised at what???
@@dragoscutian5585 - we are used to it. But be honest, when did the UK last have PM who wrecked the country literally in the first week in office?
@@mediocreman6323 These are tough, unprecedented times. Anyone will succumb to the circumstances.
@@srinisbir8781 - No, _this_ I do not believe. I believe rather that “Lizz Who?” is greedy, spoiled and incompetent. I take it you could put a janitor in charge of government and get better results.
@@mediocreman6323 probably you are right. These are tough times, i would wait for some time to judge her competency. The Russia war is creating a headache to a lot of European nations.
Looks like the European press isn't allowed to talk about UK pension funds been at risk of liquidation... Imagine the civil unrest if the retirement income of an entire nation is wiped out.
Civil unrest in the UK? Not much likely whatever will happen..
They don’t seem to say much about the protests in Germany either. They are constantly accusing /blaming the Russians for what they themselves are doing. America has a problem with fentanyl- what are the Europeans on.
Really? You still have pension funds over there? Most of ours bit the bullet decades ago, around 1980, so workers mostly depend on their 401K and a rising stock market to fund their retirements. It's not good for most people. Few workers have the investing savvy or interest to make it work well for them. If that's happening to you, you need to get investing courses in your schools so the next generation has some knowedge.
It’s funny that no one is talking about Brexit and how badly it has affected the economy.
I have affected the economy very gently.
Diversions, diversions, diversions
Scottish independence just got that little bit closer.
I like that the news anchors in DW have speech patterns that sound normal. In the US I hate to watch the news. The news anchors all sound like circus ring leaders.
This made me laugh a bit too hard...
Yes they do, or they sound like annoyed adults talking down to children. I hate it.
That solves the problem 👨🏼💻
*No surprise there, they're USED by 45 THE BIGGEST LIAR*
Us is an idiocracy
Cutting taxes is good, but if you only cut it for the wealthy and for corporations, you will make a lot of people mad.
Did Liz go to the Erdogan School of Economics?
Brits should have elected Sunak as PM. He had an idea what he was talking about
Brits didn't have the power to choose their PM this time as all of this was upon only 80,000 Tory members vote...
Y’all making the USD look good😂😂
I like this lady's room, overflowing with books and papers.
She is inexperienced, stubborn and doesn't grasp anything financial. We're doomed
Think she grasps she's there to look after millionaires/billionaires.
@@carolinstevenson2254 agreed
The UK's debt to GDP is lower than many others, so I would expect these challenges to pop up in other places such as the Eurozone. I suspect QT will be put on ice in many countries until this EU-Russia energy crises is over.
That debt-to-GDP ratio is not the miracle indicator it pretends to be anyway.
In the past the balance of trade deficit was considered to be a more valid indicator of an economy's health. But that got to be too alarming and negative for the dollar so they stopped using it. The GDP goes up automatically with inflation, and the debt follow a little later, so the Debt/GDP ratio is always a bit more rosy than reality. And as things accelerate, that difference due to lag time will increase. Falsifying the situation more and more.
€65bn in energy subsidies this year plus €45 bn tax cuts, and this burden is going to repeat for few years. Bond holders will definitely sell their current bond holdings which are with very less yields and buy upcoming bonds with higher yields. BoE and Govt would be knowing about these impacts as they are going to raise so much debt from an already heated market. QE of €65 bn by BoE to buy existing bonds from secondary markets has saved pension funds for now, but what about the future when Govt starts raising these debts to cover tax cuts and energy subsidies.
The productivity and share in GDP of Agriculture, manufacturing has to be significantly increased. All energy deficient economies have to export more and import less. If Energy cuts can't be done then take measures to cut food and goods imports.
Lets ignore your other points for a moment...how do you intend to increase the productivity of the agricultural sector when the reason it collapsed was Brexit...and will continue to be Brexit untill the UK rejoins at least the EU single market (its biggest customer) and the EU freedom of movement treaties (british main source of the badly needed cheap labor to create that growth)?
Reporter talks about the UK's 'New Government'.
We don't have a new government - we'd have had to have an election for that to be true. The government elected in 2019 is still in place, under the same manifesto commitments.
They had a change of leader, that's all.
"They had a change of leader, that's all" - we have had a full change of cabinet, it's a big change.
@@ep1929
I know!
I'm just hoping that people from outside the UK can see how undemocratic things have become here.
(I should have been more direct saying that - I can see my original comment wasn't clear at all).
Whatever they do I can't see pension pots, which have been hit for many thousands of pounds, recovering any time soon. When people realise this, Truss and Kwarteng had better keep their heads below the parapet, and Tory MP's will have more chance of winning second prize in a beauty contest than the next election.
Putin and the Murdoch press fooled the Brits big time in 2016 😂
US/NATO has fooled the world and themselves - US going to drag Europe down into the abyss with it
Long-term UK needs their own power sources...even the new SMR nuclear...but that will cost a lot to install and many years forward.
The u.s. also prints money but it seems that their exports reduce the effects by adding value on behalf of the importer currency. They sell to the world all CPU and GPUs. The euro already dipped below 1usd.
The US are printing money 24/7 - contributes to the devaluation of all currencies. The sooner they are replaced the better.
In 1924, the seminal macro -economist, John Maynard Keynes, called the gold standard (and by proxy gold) “a barbarous relic”. In other news: the UK economy is collapsing rapidly.
Weird how it accelerated from Brexit, not a gold standard. Maybe isolation was as bad as economists told you it was?
@@jackl4laughsLook at the Russian ruble. Not only they have "isolation" but hostile sanctions against them. Oh and that small scale conflict to pay for.
@@jackl4laughsSo the "experts" told you that Brexit caused the GBP economy to tank? Playing-Along-Italy led by Mario Draghi (even served as ECB President!) has 135% Debt to GDP! France is at 100%. Very-Naughty-Russia is at 18% (eighteen percent) Debt to GDP.
@@jackl4laughs Good one (being serious here) anyone with a brain would have said and have Brexit was a bad idea. This economic lesson was brought to you by the firm Noe, Schitt, and Sherlock (Okay that was me being a smart @$$,and directed at Brexiters)
@@evelynwalker1998 you do realize they made their own mistakes as well? We could go through them, but it's obviously well above your limited education when you act like you just did...
I'm an actual economist, and you're just crying and claiming because it's the continent of Europe that they all have to be failing for the same reason...
UK moving from an emerging economy to a submerging economy.
That was obvious the morning after the referendum
Nah we'll be fine.
The average house earns more than the average job...
Can I please steal this lmao.
17.07, in the UK
THAT is a book shelf! Piles and stacks of paper all over the place. Wonderful!
I think so too!
Thanks DW !!!
Great interview… I love her office/ den ‼️
Cheers everyone from Vancouver Canada 🇨🇦
In the end, it's a matter of weighing whether more disposable income can beat the inflation amount. I would take more disposable income. Don't understand what UK is complaining about. Pound can be protected by the UK central Bank.
You know nothing, have a nice winter 🙂
Of course it can ..... at the price of tanking our pensions. 30% each time seems to be the going rate...
@@tobymaltby6036 What did you expect with your woke governments? Choke on it🙂
@@tshifhiwaramatswana6862 OK. Then continue paying 60 percent tax rates.
@@stephenprice5882 I don't have to pay that rate, I'm not a British citizen who suddenly has the realisation that their government has to fund Ukraine because they are a USA stooge like all NATO members while the poor only get poorer.🙂
Nor do I have to confront the grim reality of a winter without gas all the while muling at the prospect of homelessness, hypocritical moral bs can only get you so far, Europe is blissfully committing suicide.🙂
Am I the only one who can't stop thinking of Tom Cruise whenever someone says "IMF"?
Energy Price caps, excellent idea. We should do that with Lamborghinis.
Price caps = rationing. Ya'll have fun with that!
This fellow is a good interviewer. Keep him.
agreed. such a relief seeing an interviewer waiting until the answer is finished instead of interrupting all the time like most others.
@@vornamenachname5589 I agree one hundred percent. The fellow was inspiring.
"i want you to know that i have a clear plan"
Liz truss twitted
🤣🤣
Indeed, the lunatic does not understand that it's the 'clear plan' that is the cause of the meltdown.
Because the rest of stoogies Kwarteng, Sunak, and company are any better.
The left and the right in UK work for same folks, investment banks of London. You ever heard of derivatives?
A clear plan to fail.
Vicky needs to clean her room before commenting on the UK MESS.
Why is nobody talking about the thing that can be heard at 17.06 min?