Gary is parroting the mainstream media...don't get how you would think otherwise? This is exactly the kind of nonsense you will find in the financial times virtually every day.
That statement hits home, you need to protect your resources. The resources of this country are the people who keep this country going day in and day out. The cost if living for the average person has been stolen and we the resources are at the mercy of the super rich who have found ways to hit us in the pockets. The government need their resources back and that will only happen when they make UK liveable for the people at the expense of the rich. I believe only then will see truth growth in the UK.
You're wrong. We are the mercy of a political class and civil service. who are in it for themselves and will loot and pillage the country to indulge themselves.
We have to have some grasp of what’s led us to the reality we are in Now which is extremely fragile . Before Industrialisation we lived in a feudal society. In that feudal society people worked the land to farm food to eat and were taxed by the landowners who were latter day mafia,who killed anyone who did not toe the line. There were revolts but they were crushed by violence. Industrialisation bought people together. The owners of capital and industry exploited as before but these groups of people bought into towns where the work was lived in far worse conditions than peasants. These workers discovered collective power. The industrial bosses tried to and succeeded often in defeating the newly formed unions but eventually these people created through a combination of Socialism and Christian and humanistic ethics a progressive movement where the rights of humans to the freedoms we have all had in Western democracies was taken for granted. But individualism has caused us to be ripe for exploitation by modern day fuedal lords such as Musk. Governments are as representative now of the people as the Kings Knights and Barons were to the peasants.
@@CurtOntheRadiotell me the last time you saw this reported in the media. There’s not much money in the media for people who say the rich have gotten too rich, no idea why…
Hi Gary, I never comment on UA-cam videos but it's amazing to see you that you're back! Thanks for proper economic education that is desperately needed right now, wish you all the best on this journey.
Gary could you breakdown clearly firstly who is Government paying the interest to and secondly the source of the money that the Government borrows - this would really help fill in the whole picture for many of us. TIA
Good question! The government pays interests to government bondholders and also holders of british pounds. This includes people with pensions, but, proportionally, the underlying recipients are overwhelmingly wealthy individuals.
People of the UK are really lucky to have you Gary. I mean it. I hope you reach your goals and show others that we do not have to put up with broken system any longer
We have to pull away from the fiat money central bank debt system.We must choose a government that will print its own money which is backed by precious metals and has NO DEBT ATTATCHED TO IT.Privately owned central banks must be outlawed across the globe.
the gov both tory and labour did not create wealth . Weve subsidised green business using tax money ...ie no new money is created or put in , false economy . Super rich yes need tackling but not businesses
@@CurtOntheRadiothe UK is spending £4bn per year on asylum seeker housing, overall £11bn per year on all asylum seeker costs. All money that will never, ever be paid back and going into the pockets of Gary’s ‘super rich’. Any talk of raising my taxes should absolutely come with a package of welfare reform so we know our money is being spent properly. Simply increasing taxes will drive more people out of the door.
Remember when the cost of living crisis kicked off because fuel was at nearly £2 a litre? It is around £1.30 but everything is still going up. It's not a cost of living crisis we are in it's a robbery.
@@mattyr40 China's crude oil imports have declined in recent months, reflecting a combination of economic factors and shifts in energy consumption. In October 2024, imports fell to approximately 44.7 million tons, marking a 2% decrease from September and an almost 9% drop compared to the same period in 2023. This brought year-to-date shipments to over 3% below the previous year's pace.
It's a vicious cycle. As people feel the pain they still very sensibly cut back. If people cut back our consumer capitalist system will demand austerity. Austerity Will bring the pain to the people. People in pain will cut back. And on and on.
More like economic misinformation, but also reflects a commonly held, albeit completely wrong model of how the monetary systems works. Suggest Read Deficit Myth for some insight into how it actually operates.
This is the most informative and educational of your videos (to me) so far. It pulled a lot of individual strands that I thought I understood and showed how they relate to each other. I am a wiser man this morning. Thank you and God help UK.
Govts keep giving all the money to the rich and then expect the workers to make up the difference by paying more taxes for less services. This is the real enough is enough.
As a Dutchman I'd love to see your analysis of the Netherlands. Also, not that you haven't got enough to do, but if and when your platform grows, applying your analyses to other countries would make for an even more interesting platform. In the end I believe these problems touch us all.
Well, if I understand Gary's explanation correctly, inflation is high in NL interest rates low, and the central bank (DNB) predicts 1,5% economic growth in 2025, so no austerity measures yet and no "kabinetscrisis" on the budget (yet).
Thank you so much for these insights Gary. My parents are in the U.K. and I’m very concerned about if they will be able to survive retirement. I am saving all I can so they will have a safety net
You lot don't research only work to die and follow there trends. Masons rule you lot and you allow them proven p3dos. All politicians royals surgeons sergeants anything of a higher roll.is controlled wake up sheeple
After 14 years of Tory financial mismanagement I expected Labour to tax the rich far more. They chickened out in the budget with a middle path of slightly higher taxes and more borrowing. This is now coming back to haunt them. 60% of the population have no savings whilst 1% of the population has 95% of the wealth. Bringing back austerity by cutting spending only serves the rich. We didn't vote Labour into power to give working class people another severe dose of austerity. Reeves has only one choice ... Make those with the deepest pockets pay more !!!
But the public feel they are "highly taxed" and there isn't the political will for "tax the rich more". Look at the outrage even at the limited tax rises undertaken. The public are the problem, I'm afraid. They don't want borrowing, they don't want tax rises, they don't want austerity. Who in hell can satisfy that? It's impossible. Everyone in UK wants to blame someone else. But the problem is us, the public.
@@Freddie-Mosesdid you watch the video? It's not actually about the size of the debt in and of itself, it's about the interest rates! It's not essential to get the debt down, it's essential to do one of two things: decrease the interest rates, or increase GDP growth.
A country that can run out of it's own money wouldn't work, so it can't. The UK government only every spends new money, drawn from the Consolidated Fund. It cannot run out. They may have their own fiscal rules that mean they will borrow to match that spending, but those gilt sales become politically mandatory far sooner than they become economically mandatory. You can't fully utilise a fiat currency under gold standard constraints.
Post World War Britain has been struggling in general. The loss of her colonies has also made a lot of the UK's economy unsustainable over time. The welfare state has also become unsustainable. The future does not look bright.
@85ABC 1 party have been in office for the majority of that time. The other main party adopted the ideology of that 1 majority party. Now all options offer that one ideology.
@@thaumaturgeishere331 They do & but if you tax it too hard the wealthy will be off! They are the most mobile citizens of all & do you think they will just stay put & be mugged??
I just don’t get why any government should be allowed to steal anyones wealth, to fund their incompetent spending. I’m not allowed to come into your house to steal your laptop to fund my lavish lifestyle. Perhaps you think I should be?
I would say that the BoE has created this problem as they did when Truss launched her mini budget, they 'corrected' the market to give the perception it was a bad budget, but the Bo E actually created the over night 'collapse' with the bonds. This also sucks money from the private sector so there is little to invest in people and projects. The BoE is run by bankers for bankers and it is they that create all our woes. The current monetary system can only operate in a bankrupt state technically as promissory notes are their entire domain, nothing of value in fiat money.
It's a very good question - why are rates going up (even as BoE cuts base rate)? Arguably it's the British public's own fault by causing political uncertainty, by the consumer not spending, by the public's aversion to tax rises, by their lack of entrepreneurialism, by their NIMBYism, their short-termism, their lack of commitment, their impossible demands etc etc.
This is all about QT. The BOE is selling bonds and no one wants them so to sweeten the deal, the coupon has to rise to make the bonds desirable. The more QT the BOE does, the higher the coupon gets, the more debt interest we need to pay. So... this is really the BOE's fault. You could say that the BOE is forcing the government into Austerity. It doesn't have to sell these bonds at all. Yes, its paying IOER on the reserves but IT SETS the IOER rate. Once you sell 30yr bonds with a 4.375% coupon you're stuck paying 4.375% for 30 years. Coming into a recession, global interest rates will fall. So why lock in 4.375%? That makes no sense. Unless what you really want is Austerity and/or to collapse the government.
Sorry but how can they take 20% income tax, 12% NI, charge 20% on everything we buy, 40% on all the energy we consume and STILL not have enough money. Taxes are every working persons biggest expenditure… an entire country all giving around half of what they have to them (when you tally everything up) and yet they’re still broke
Most people pay low tax. You think 20% is high for income tax? You are joking, it isn't. The highest income deciles are paying a significantly larger share of tax revenues than they were thirty years ago. Regular folks are paying less (obviously). BTW, Government (aka Public) Spending goes on....the public. Did the public care about this when they voted for Brexit? Or when they voted for Austerity? Or when they voted for Thatcher to privatise everything and use oil revenues for tax cuts? The public asked for all these things.
@@CurtOntheRadio It’s not entirely fair to say the public "asked for" these things. The reality is that most people don’t have the full picture because the messaging they receive is carefully controlled by those who benefit from keeping them in the dark. The media, largely owned by the wealthy elite or the new generation of tech bros, pumps out narratives that play on fear and ignorance while distracting from the real issues. It’s less like turkeys voting for Christmas and more like wild turkeys being lured into a barn by a farmer. They’re given just enough food and shelter to stay compliant, but as the farmer gets greedier, the shelter falls apart, the food quality drops, and the turkeys are left fighting each other for scraps. They don’t see the true culprit: the fat farmer, who ensures his wealth stays within his family for generations. Populists exploit this ignorance, stirring up division without offering real solutions. By shaping the narrative, they also prevent well-meaning politicians from addressing deep systemic issues. Meanwhile, the trough gets emptier. Until the system changes, it’s hard for the turkeys to realise the barn was a trap all along.
Do the British people not have a vote? Did they not vote for Thatcher to privatise everything and close national industries? Did they not re-elect Blair after Iraq? Did they not elect Osborn and Cameron for Austerity? Did they not elect Johnson to "get Brexit done"? The British public did all those things to itself, wilfully and consciously. But also takes no responsibility for it.
You didn't state which taxes specifically were the best way. We are gas lit so hard, every news outlet out there will say "it won't do much" when specific ones are mentioned. Thanks Gary, for the brutal honesty. 🌹
Gary, I'm surprised you let the BoE off so lightly in this video. They've been a massive part of this rise in yields as they've been selling large quantities of bonds before they mature.
Great breakdown Gary. Fixing our deteriorating economy whilst reducing the wealth divide is an incredibly difficult problem to solve. Taxing the ultra rich is an interesting proposal but just how do you intend to do it? I'm not aware of any country that has done this and it not be a complete and utter disaster. Obvious short term solutions we can realistically do are: - End the crippling net zero madness. We have enough energy to be self sufficient. It's absurd to rely on expensive imports. Our spiralling energy costs are now multiples of other countries which is a huge drag on consumers and businesses. EV policy is a disaster and is the nail in the coffin for our automotive industries. - Over regulation is crippling virtually every sector in society with ridiculous unproductive policies like DEI. Just get rid of it all and start again. - Reduce the useless Whitehall blob by 50%. - Reduce net migration to 1 in 1 out.
Taxing the ultra rich should be a global initiative. But it'll never happen, as the ultra rich will lobby to prevent it. I suppose there's always pitchforks....
I don't understand why the government aren't more financially aggressive with big businesses. Companies like Tesco are paying their staff a wage where the government are having to prop up their salaries with universal credit, paying farmers nothing for their resources so the government needs to subside milk and grain and threatening to put up prices when the government try to redress the balance. Their profits are getting close to 3 billion a year, they can afford to contribute more.
because they dont care, its not their job to care, they have stocks in companies that benefit from the situation, their job is to progress the WEF agenda, read the teleprompter, and fill their pockets while they can
@theLowestPointInMyLife The aristocrats want their serfdom back even at the expense of the state. "They will burn their nation, just to rule over the ashes"
Also you negelct how much money Tesco has invested over the years they deserve their investment back with some profit right? Then the 3 billion they make do you not think they then expand with that money employing more people who all pay tax …. This is how an economy works 😮
Brilliant channel, genuine buzz when new video drops, thanks
2 години тому+8
should not have gone into lockdown , I had to work throughout visiting houses , overhyped financial fup was inevitable . Ppl have to work and have to be encouraged to be in business , as for the super rich thats a different issue
I'm not a economist but I try to follow and understand. Richard. J. Murphy on his YT channel said, 3 days ago, that " The BOE policies are driving the UK into recession ". Basically on the quiet they have been reversing QE by quantitive tightening and selling bonds back into the financial sector, for no good apparent reason? The BOE also has a policy of keeping interest rates higher than inflation. The problem is the BOE? We should never have granted them independence from government control because then when could have told them to stop and do something positive.
Yes, Richard J Murphy has some good content. I wish Gary showed more awareness of MMT (Modern Monetary Theory). I agree with Gary on taxation as a means to redress wealth inequality, but not when he says the government needs to tax in order to finance its spending. That's just not true.
Agreed, the interest rate lever didn’t work on this cost of living criss but the BOE kept pulling the lever, if they just dropped interest rates a lot would change quickly
The BOE is indeed doing QT and thats a good thing IMO. Reversing QE resulted in flat lined productivity since 2008 and inflation while giving the illusion of GDP growth. Mervyn King the BOE governor at the time introduced this policy along with ZIRP with the plan that governments and people would reduce their debts. This never happened and resulted in asset price bubbles and inflation. Savers like me got smashed at the time no point holding on to cash if its beng debased. If they dont do QT then will we forever do QE. Many governments of the past have tried to print their way out of crises and this has resulted in hyperinflation. Last one was Zimbabwe. This is called debt monetisation.
Interesting channel, if you bear in mind that Murphy is a salty corbynite with a huge anti labour bias. Also he failed to mention the QT is actually an integral part of QE so saying it's for no good reason is nonsense.
A fair summary of thr facts. Howwver, when Labour came to power they spoke about growing thr economy and indeed growing the economy is absolutely tbe right thing to do to bring debt to GDP down. However, Reeves targetting on tac rises for small and medium businesses alike has destroyed business confidence, delayed hiring decisions, ensured smaller payrises (and consequently spending power) for staff. So the economy will flatline as a result. She need should've targetted her tax rises at the ultra wealthy and large companies like Amazon etc to stop them offshoring their profits.
The more I understand about how the government look after public services, I’m not sure them taking ownership of the energy sector would be full of as many benefits as we might think. At a time where we’re at this level of economic instability it would take billions of pounds away from other sectors that are already on their knees. The NHS, the care sector, the Education sector. As this video shows, this government are having a hard enough time keeping the economy stable without adding even more moving parts to the situation.
Only found your channel in the last week or so Absolutely amazing - More people need to follow you - A massive and informative wealth of knowledge which opens your eyes to what’s really happening 👌
Does the order come from above or is this something done only locally in their school? I mean, do you think that someone in the high levels of government already has something in mind?
This is an important point. Whilst the UK is probably in one of the worst situations of rich nations, it is important to realise that there are big and growing economic and financial problems in almost ALL countries at the moment - growing inequality is a global problem.
its not all bad. I study austrian economics. the road to serfdom is a good book. I believe QE should never have happend and we inevitably have to do QT and there is never a good time to do it. Took out a mort at 3.05 percent on a 10 year fix while savings rates go up.
As someone who didn't stop working, didn't get furloughed, didn't see any form of relief (renter) regarding my housing, it pisses me off that no one has properly called out the Johnson/Sunak plans during covid in the media, at least to a point that the general population can get on board with clamouring it back. I know theres plenty of others out there that are in the same boat as me, but its just so damned depressing.
another channel was saying the BoE is forcing an increase in interest rates by selling back all the bonds they bought up during COVID (which they could just not do). Is there anything to that? I think he's a MMT guy and I don't know enough to tell if MMT is bunk or not
It made me laugh when on the BBC News app it stated “it’s normal for the UK government to spend more then they receive” as a justification for debt increases, that sound like living beyond its means to me.
This is all about QT. The BOE is selling bonds and no one wants them so to sweeten the deal, the coupon has to rise to make the bonds desirable. The more QT the BOE does, the higher the coupon gets, the more debt interest we need to pay. So... this is really the BOE's fault. You could say that the BOE is forcing the government into Austerity. It doesn't have to sell these bonds at all. Yes, its paying IOER on the reserves but IT SETS the IOER rate. Once you sell 30yr bonds with a 4.375% coupon you're stuck paying 4.375% for 30 years. Coming into a recession, global interest rates will fall. So why lock in 4.375%? That makes no sense. Unless what you really want is Austerity and/or to collapse the government.
I'm an economist and I've longed for an economics podcast to break down the economic theory behind the news story of the day for the general public. Excellent job Gary.
Appreciate the breakdown/explanation. Really helped me to understand what’s going on. Wanted to ask about the impact of Brexit because seems other European countries are in a better position
I seem to recall Kier Starmer saying last year "those with the broadest shoulders should bear the heaviest burdens". Apparently, he meant pensioners, struggling families and the disabled. 😞
In essence, we are governed by 'decline management' It's time for the devolution of central control to local government regions with strict scrutiny, performance assessments, and full transparency.
Sovereign currency issuers cannot go bankrupt. Bond sales are a policy choice - the U.K. government is pursuing QT in the false notion that balancing the books is important. I agree that this will lead to austerity because Reeves still wants to balance the books! Someone deficit is somebody else’s surplus.
Yes! Thank you. I am reassured to see others pointing this out. It is a deliberate policy choice. I wish Gary would explain that a bit more, and show a bit more awareness of MMT.
An explanation that I understood on a topic I always wondered about. Thank you very much. The first new UA-cam subscription I have made in a long time.
I was listening to a podcast saying the rise in interest rates in the UK is being caused by "quantitative tightening". The BoE selling bonds they bought during covid. Is this true?
It’s all very well banging on about taxation government debt, et cetera et cetera just look at the latest cost to the UK economy that Brexit has caused
Thanks Gary for your no non-sense, no bullcrap, straight forward assesment of the current state of the UK economic affairs. You've got my vote! Fairer fiscal taxes and wealth distribution across the board!!
You didn't cover the fact that the BoE is engaging in quantitative tightening. This is what forces interest rates up. It's perfectly possible for Reeves to insist that the BoE stops selling government bonds as it's not in the country's interest. She's wedded to the neoliberal dogma that markets will sort it out, which is complete folly. IMHO the government should take back control of the interest rate and not leave it to the dogmatic belief that the interest rate controls inflation, especially in the current financial climate. Leaving it up to the BoE is stupid, but the chancellor does have the right to prevent the BoE's stupid behaviour. The combination of stupid fiscal rules and a central bank behaving against the interest of the country is the problem. Reeves has the power to stop this but will she use it? If not, then I think your outline is almost inevitable. Unfortunately there is no alternative thinking in all of our politicians except for those in the Green party. I despair.
The rich have left - or moved their wealth off shore. If you tax the middle classes to death you have nothing for workers to aspire to and you get the brain drain where they move overseas for a better life and one day you wake up and you’re a failed South American state. Then comes the extremist politics and endless revolutions. It’s over buddy. No way back.
Will they not just move their assets away? If I am the super rich I will if I know u are going after me, I will just move them to middle east/ Asia/ US Just like what Dyson did...so what u gonna do… I agree everything Gary said, but how to balance that?
The problem is also government departments spending 100% of the budget on useless rubbish before the finical year ends so they can get an even bier budget next year to spend on useless stuff.
This is an absolutely brilliant breakdown of the situation. Videos like this cut through all spin and BS of the press!
I will have to share this with my Daily Mail reading father, some factual news...
Media is scripted. It's all.masons controlling you tax slaves 😂
Yep
It’s basically what every news media has said but in a voice you can associate with 😂
@@EthanZoidGary says it better tho. It's more digestible
If you want to know what’s going on with our economy, you don’t rely on the mainstream media, you go straight to Gary. Thanks Gary!
Gary is parroting the mainstream media...don't get how you would think otherwise? This is exactly the kind of nonsense you will find in the financial times virtually every day.
I wouldn't rely on mainstream media in anything.
After that you learn Bitcoin
Blown away, sincerity, honesty, humanity. Gary, please take care of yourself, this channel is so important.
anyone that thinks this needs to study austrian economics to understand how the worls ACTUALLY works
That statement hits home, you need to protect your resources. The resources of this country are the people who keep this country going day in and day out. The cost if living for the average person has been stolen and we the resources are at the mercy of the super rich who have found ways to hit us in the pockets. The government need their resources back and that will only happen when they make UK liveable for the people at the expense of the rich. I believe only then will see truth growth in the UK.
You're wrong. We are the mercy of a political class and civil service. who are in it for themselves and will loot and pillage the country to indulge themselves.
We have to have some grasp of what’s led us to the reality we are in
Now which is extremely fragile .
Before Industrialisation we lived in a feudal society. In that feudal society people worked the land to farm food to eat and were taxed by the landowners who were latter day mafia,who killed anyone who did not toe the line.
There were revolts but they were crushed by violence.
Industrialisation bought people together. The owners of capital and industry exploited as before but these groups of people bought into towns where the work was lived in far worse conditions than peasants. These workers discovered collective power. The industrial bosses tried to and succeeded often in defeating the newly formed unions but eventually these people created through a combination of Socialism and Christian and humanistic ethics a progressive movement where the rights of humans to the freedoms we have all had in Western democracies was taken for granted. But individualism has caused us to be ripe for exploitation by modern day fuedal lords such as Musk. Governments are as representative now of the people as the Kings Knights and Barons were to the peasants.
that will never happen. unfortunately.
But why don't people vote for that then?
@@CurtOntheRadiotell me the last time you saw this reported in the media. There’s not much money in the media for people who say the rich have gotten too rich, no idea why…
Hi Gary, I never comment on UA-cam videos but it's amazing to see you that you're back! Thanks for proper economic education that is desperately needed right now, wish you all the best on this journey.
Another great but sobering video, we are in total support, keep pushing the message. Thanks Gary
Gary could you breakdown clearly firstly who is Government paying the interest to and secondly the source of the money that the Government borrows - this would really help fill in the whole picture for many of us.
TIA
Good question! The government pays interests to government bondholders and also holders of british pounds. This includes people with pensions, but, proportionally, the underlying recipients are overwhelmingly wealthy individuals.
Govt pays interest to people who hold uk bolds/gilts. These are institutional investors eg pensions, hedge funds, sovereign wealth funds etc.
Thank you - very helpful explanations.
@@garyseconomicsspot on
@garyseconomics hi gary, thanks for the video brilliant. Why can't the UK get similar interes levels to other European countries?
People of the UK are really lucky to have you Gary. I mean it. I hope you reach your goals and show others that we do not have to put up with broken system any longer
He is just a guy on UA-cam. He won't help the UK
God bless this man
Austerity never ended. It continues to kill.
We have to pull away from the fiat money central bank debt system.We must choose a government that will print its own money which is backed by precious metals and has NO DEBT ATTATCHED TO IT.Privately owned central banks must be outlawed across the globe.
@@jamieround2784 true but everyone who’s tried it has been killed
I'm not sure if austerity ever got started. We had deficit spending throughout the Tory governments, if I'm not mistaken.
Austerity never started hence the national debt.
the gov both tory and labour did not create wealth . Weve subsidised green business using tax money ...ie no new money is created or put in , false economy . Super rich yes need tackling but not businesses
Overtaxing the hard working and giving it to lazy people is why record numbers of hard workers are leaving uk. Best thing I ever did
I blame folks that leave. Lazy people? Do you have any idea of the conditionality on benefits now?
Where did you go?
Couldn't agree more. Let's stop taxing workers and start taxing the rich.
@@CurtOntheRadiothe UK is spending £4bn per year on asylum seeker housing, overall £11bn per year on all asylum seeker costs. All money that will never, ever be paid back and going into the pockets of Gary’s ‘super rich’. Any talk of raising my taxes should absolutely come with a package of welfare reform so we know our money is being spent properly. Simply increasing taxes will drive more people out of the door.
By lazy people I think he means the super rich
Remember when the cost of living crisis kicked off because fuel was at nearly £2 a litre? It is around £1.30 but everything is still going up. It's not a cost of living crisis we are in it's a robbery.
But the cost of everything else has gone up since 2021
@RFXZ67966 everything went up, but nothing came back down.
Welcome to the Third World. Its in the Third World Nations like that always. Dont worry you are gonna get used being poor.😊
@@mattyr40 China's crude oil imports have declined in recent months, reflecting a combination of economic factors and shifts in energy consumption. In October 2024, imports fell to approximately 44.7 million tons, marking a 2% decrease from September and an almost 9% drop compared to the same period in 2023. This brought year-to-date shipments to over 3% below the previous year's pace.
@@saellenx3528 I've got assets. I'll be OK 😊
Love the channel Gary, support from Ireland.
It's a vicious cycle. As people feel the pain they still very sensibly cut back. If people cut back our consumer capitalist system will demand austerity. Austerity Will bring the pain to the people. People in pain will cut back. And on and on.
Thank you for the economic education!
More like economic misinformation, but also reflects a commonly held, albeit completely wrong model of how the monetary systems works. Suggest Read Deficit Myth for some insight into how it actually operates.
This is the most informative and educational of your videos (to me) so far. It pulled a lot of individual strands that I thought I understood and showed how they relate to each other. I am a wiser man this morning. Thank you and God help UK.
Very well explained, Gary; thank you.
Govts keep giving all the money to the rich and then expect the workers to make up the difference by paying more taxes for less services. This is the real enough is enough.
Thank you so much for helping at least a whole Generation. Youre that, what schools should be.
Glad I stumbled on this channel, fantastic no BS breakdown of the issue, minus the hype. Looking forward to seeing more of your content. 👍
Doing gods work. Please run for Prime Minister at some point!
@boblemmonz I'd vote for him in a heart beat!
@@DarthMichael69 he's one of the only people I've heard talking about the real causes of the UKs problems
Don’t make him run for pm. He’s done enough. Read his book, the trading game.
I don't think Gary would really want to take this problem on. He'd have the same flack the gov are getting.
@billB101 the greatest leaders often do not want to lead. They do it because they realise no one else is willing to step up
As a Dutchman I'd love to see your analysis of the Netherlands. Also, not that you haven't got enough to do, but if and when your platform grows, applying your analyses to other countries would make for an even more interesting platform. In the end I believe these problems touch us all.
Of course. Global banking Cabal. The reserve banks. The only one who gain from inflation and devalued currencies.
And Germany and France, please
Joe blogs does that already
Well, if I understand Gary's explanation correctly, inflation is high in NL interest rates low, and the central bank (DNB) predicts 1,5% economic growth in 2025, so no austerity measures yet and no "kabinetscrisis" on the budget (yet).
And Italy, although like my home in Ireland it's a bit of a basket case.
Thank you so much for these insights Gary. My parents are in the U.K. and I’m very concerned about if they will be able to survive retirement. I am saving all I can so they will have a safety net
Pound will become worthless within 6 years
Thanks Gary, another great video
Not nice to hear but absolutely essential viewing
I appreciate what you do
Wow, my eyes have been opened! I never knew about any of this stuff! Thank you ❤️
You lot don't research only work to die and follow there trends. Masons rule you lot and you allow them proven p3dos. All politicians royals surgeons sergeants anything of a higher roll.is controlled wake up sheeple
After 14 years of Tory financial mismanagement I expected Labour to tax the rich far more. They chickened out in the budget with a middle path of slightly higher taxes and more borrowing. This is now coming back to haunt them. 60% of the population have no savings whilst 1% of the population has 95% of the wealth. Bringing back austerity by cutting spending only serves the rich. We didn't vote Labour into power to give working class people another severe dose of austerity. Reeves has only one choice ... Make those with the deepest pockets pay more !!!
1% own 95% of the wealth of our country my brother was an ecomomic student at Exeter Uni back in the 70s
He was saying this back in the 70s
But the public feel they are "highly taxed" and there isn't the political will for "tax the rich more". Look at the outrage even at the limited tax rises undertaken.
The public are the problem, I'm afraid. They don't want borrowing, they don't want tax rises, they don't want austerity. Who in hell can satisfy that? It's impossible.
Everyone in UK wants to blame someone else. But the problem is us, the public.
You can't tax the rich; their accountants will see to that. What you mean is tax the high earners; workers.
If you wanted actual change that would be been Corbin
Brill stuff, Gary!
Thanks for explaining it to us.
Thanks Gary for explaining the situation so clearly.
Great video 👏🏼 breaking down the accumulation of all these different issues that have been building and displaying it in a way no one is talking about
The reality of our subservience is undeniable, one way or another the billionaires and corporations are going to have it all.
They already have it all.
More like trillionaires. Think BlackRock. Starmer's mates. He wasn't lying when he said he was a Davos man.
You are doing a phenomenal job mate, I just hope your voice reaches everyone that needs to hear this.
‘No austerity’ is the headline today. The gaslighting is off the charts.
The markets will enforce austerity. The government don't want this, it's political suicide.
The markets will enforce austerity. The government don't actually want this, it's political suicide.
It's essential to getting the debt down i'm afraid
Austerity never ended.
@@Freddie-Mosesdid you watch the video? It's not actually about the size of the debt in and of itself, it's about the interest rates! It's not essential to get the debt down, it's essential to do one of two things: decrease the interest rates, or increase GDP growth.
A country that can run out of it's own money wouldn't work, so it can't. The UK government only every spends new money, drawn from the Consolidated Fund. It cannot run out. They may have their own fiscal rules that mean they will borrow to match that spending, but those gilt sales become politically mandatory far sooner than they become economically mandatory. You can't fully utilise a fiat currency under gold standard constraints.
The theory behind MMT .. ?
History doesn't back up MMT ...
Poor management of the economy over the last 30 years has caused the situation we find ourselves in.
It was very poor before, in the 80s paint was peeling of the hospital walls (SIr Alex Ferguson bio) 70s we had to go gap in hand to the IMF
Post World War Britain has been struggling in general. The loss of her colonies has also made a lot of the UK's economy unsustainable over time. The welfare state has also become unsustainable. The future does not look bright.
Exactly - the two major parties have been terrible for this country
More like poor management since early 1970's with Thatcher then doing the most damage which still resonates to this day.
@85ABC 1 party have been in office for the majority of that time. The other main party adopted the ideology of that 1 majority party. Now all options offer that one ideology.
Thanks Gary, I've shared and urged everyone to watch this
Love your channel Gary! 🫶
A nice and simple explanation. Shame that the UK Government does not want to tax wealth fairly instead of caning income.
Tax money not people.
@@thaumaturgeishere331 They do & but if you tax it too hard the wealthy will be off! They are the most mobile citizens of all & do you think they will just stay put & be mugged??
Uk government is masons who control the poor as slaves who work till they die for the rich 😂 rise or demise but na you are all shills
@@davidjowett4690 wealth needs redistributing somehow or we are on track for neo-feudalism.
I just don’t get why any government should be allowed to steal anyones wealth, to fund their incompetent spending. I’m not allowed to come into your house to steal your laptop to fund my lavish lifestyle. Perhaps you think I should be?
Glad you're back mate.
I would say that the BoE has created this problem as they did when Truss launched her mini budget, they 'corrected' the market to give the perception it was a bad budget, but the Bo E actually created the over night 'collapse' with the bonds. This also sucks money from the private sector so there is little to invest in people and projects. The BoE is run by bankers for bankers and it is they that create all our woes. The current monetary system can only operate in a bankrupt state technically as promissory notes are their entire domain, nothing of value in fiat money.
Maybe a silly question, who or what is increasing borrowing costs? UK gov is being squeezed, but who by - do we have a principal source of lending?
It's a very good question - why are rates going up (even as BoE cuts base rate)?
Arguably it's the British public's own fault by causing political uncertainty, by the consumer not spending, by the public's aversion to tax rises, by their lack of entrepreneurialism, by their NIMBYism, their short-termism, their lack of commitment, their impossible demands etc etc.
This is all about QT.
The BOE is selling bonds and no one wants them so to sweeten the deal, the coupon has to rise to make the bonds desirable.
The more QT the BOE does, the higher the coupon gets, the more debt interest we need to pay.
So... this is really the BOE's fault.
You could say that the BOE is forcing the government into Austerity.
It doesn't have to sell these bonds at all.
Yes, its paying IOER on the reserves but IT SETS the IOER rate.
Once you sell 30yr bonds with a 4.375% coupon you're stuck paying 4.375% for 30 years.
Coming into a recession, global interest rates will fall. So why lock in 4.375%?
That makes no sense. Unless what you really want is Austerity and/or to collapse the government.
Sorry but how can they take 20% income tax, 12% NI, charge 20% on everything we buy, 40% on all the energy we consume and STILL not have enough money. Taxes are every working persons biggest expenditure… an entire country all giving around half of what they have to them (when you tally everything up) and yet they’re still broke
Most people pay low tax. You think 20% is high for income tax? You are joking, it isn't. The highest income deciles are paying a significantly larger share of tax revenues than they were thirty years ago. Regular folks are paying less (obviously).
BTW, Government (aka Public) Spending goes on....the public. Did the public care about this when they voted for Brexit? Or when they voted for Austerity? Or when they voted for Thatcher to privatise everything and use oil revenues for tax cuts? The public asked for all these things.
@@CurtOntheRadio It’s not entirely fair to say the public "asked for" these things. The reality is that most people don’t have the full picture because the messaging they receive is carefully controlled by those who benefit from keeping them in the dark. The media, largely owned by the wealthy elite or the new generation of tech bros, pumps out narratives that play on fear and ignorance while distracting from the real issues.
It’s less like turkeys voting for Christmas and more like wild turkeys being lured into a barn by a farmer. They’re given just enough food and shelter to stay compliant, but as the farmer gets greedier, the shelter falls apart, the food quality drops, and the turkeys are left fighting each other for scraps. They don’t see the true culprit: the fat farmer, who ensures his wealth stays within his family for generations.
Populists exploit this ignorance, stirring up division without offering real solutions. By shaping the narrative, they also prevent well-meaning politicians from addressing deep systemic issues. Meanwhile, the trough gets emptier. Until the system changes, it’s hard for the turkeys to realise the barn was a trap all along.
Uk being on the decline over last century. Still behaves like an empire, fighting pointless expensive wars and abandoning the British people.
Do the British people not have a vote? Did they not vote for Thatcher to privatise everything and close national industries? Did they not re-elect Blair after Iraq? Did they not elect Osborn and Cameron for Austerity? Did they not elect Johnson to "get Brexit done"?
The British public did all those things to itself, wilfully and consciously. But also takes no responsibility for it.
You didn't state which taxes specifically were the best way.
We are gas lit so hard, every news outlet out there will say "it won't do much" when specific ones are mentioned.
Thanks Gary, for the brutal honesty.
🌹
Love you bro!! Looking forward to watching this longer vid now 🙌
Another great video Gary. Thanks for taking the time to make it.
Excellent explanation, thank you!
Well said Gary! You should be in government I vote Gary for MP.
Gary, I'm surprised you let the BoE off so lightly in this video. They've been a massive part of this rise in yields as they've been selling large quantities of bonds before they mature.
I saw another video that set it squarely that the reasob is that BoE has set on a course of quantitative tightening.
Great explanation, thanks Gary
Loved your book gary!
So glad you're back, great breakdown and relevant to so many countries economies right now 👍
Always in a language I understand. You’re a diamond Gary ty.
Great breakdown Gary. Fixing our deteriorating economy whilst reducing the wealth divide is an incredibly difficult problem to solve. Taxing the ultra rich is an interesting proposal but just how do you intend to do it? I'm not aware of any country that has done this and it not be a complete and utter disaster.
Obvious short term solutions we can realistically do are:
- End the crippling net zero madness. We have enough energy to be self sufficient. It's absurd to rely on expensive imports. Our spiralling energy costs are now multiples of other countries which is a huge drag on consumers and businesses. EV policy is a disaster and is the nail in the coffin for our automotive industries.
- Over regulation is crippling virtually every sector in society with ridiculous unproductive policies like DEI. Just get rid of it all and start again.
- Reduce the useless Whitehall blob by 50%.
- Reduce net migration to 1 in 1 out.
Taxing the ultra rich should be a global initiative. But it'll never happen, as the ultra rich will lobby to prevent it. I suppose there's always pitchforks....
I don't understand why the government aren't more financially aggressive with big businesses. Companies like Tesco are paying their staff a wage where the government are having to prop up their salaries with universal credit, paying farmers nothing for their resources so the government needs to subside milk and grain and threatening to put up prices when the government try to redress the balance.
Their profits are getting close to 3 billion a year, they can afford to contribute more.
because they dont care, its not their job to care, they have stocks in companies that benefit from the situation, their job is to progress the WEF agenda, read the teleprompter, and fill their pockets while they can
@theLowestPointInMyLife
The aristocrats want their serfdom back even at the expense of the state.
"They will burn their nation, just to rule over the ashes"
This is also another good point of why government spending spirals
You do all that by taxing Tesco price of food goes up we’re back on sq1 my friend
Also you negelct how much money Tesco has invested over the years they deserve their investment back with some profit right? Then the 3 billion they make do you not think they then expand with that money employing more people who all pay tax …. This is how an economy works 😮
Brilliant channel, genuine buzz when new video drops, thanks
should not have gone into lockdown , I had to work throughout visiting houses , overhyped financial fup was inevitable . Ppl have to work and have to be encouraged to be in business , as for the super rich thats a different issue
I heard a building taking to neighbour saying he had work he could safely be doing but Government was paying him not to !
Thank you Gary, well explained as ever.
I'm not a economist but I try to follow and understand. Richard. J. Murphy on his YT channel said, 3 days ago, that " The BOE policies are driving the UK into recession ". Basically on the quiet they have been reversing QE by quantitive tightening and selling bonds back into the financial sector, for no good apparent reason? The BOE also has a policy of keeping interest rates higher than inflation. The problem is the BOE? We should never have granted them independence from government control because then when could have told them to stop and do something positive.
Yes, Richard J Murphy has some good content. I wish Gary showed more awareness of MMT (Modern Monetary Theory). I agree with Gary on taxation as a means to redress wealth inequality, but not when he says the government needs to tax in order to finance its spending. That's just not true.
Agreed, the interest rate lever didn’t work on this cost of living criss but the BOE kept pulling the lever, if they just dropped interest rates a lot would change quickly
The BOE is indeed doing QT and thats a good thing IMO. Reversing QE resulted in flat lined productivity since 2008 and inflation while giving the illusion of GDP growth. Mervyn King the BOE governor at the time introduced this policy along with ZIRP with the plan that governments and people would reduce their debts. This never happened and resulted in asset price bubbles and inflation. Savers like me got smashed at the time no point holding on to cash if its beng debased. If they dont do QT then will we forever do QE. Many governments of the past have tried to print their way out of crises and this has resulted in hyperinflation. Last one was Zimbabwe. This is called debt monetisation.
Interesting channel, if you bear in mind that Murphy is a salty corbynite with a huge anti labour bias.
Also he failed to mention the QT is actually an integral part of QE so saying it's for no good reason is nonsense.
QT is an integral part of QE. So no, it's not just for no good reason.
Not everything Murphy says is true.
Simple clear and relatable. This is how financial education should be presented.
A fair summary of thr facts. Howwver, when Labour came to power they spoke about growing thr economy and indeed growing the economy is absolutely tbe right thing to do to bring debt to GDP down. However, Reeves targetting on tac rises for small and medium businesses alike has destroyed business confidence, delayed hiring decisions, ensured smaller payrises (and consequently spending power) for staff. So the economy will flatline as a result. She need should've targetted her tax rises at the ultra wealthy and large companies like Amazon etc to stop them offshoring their profits.
This just makes complete sense, what a great summary Gary. Really obvious when you think about it 👍
Why don’t we take ownership of energy back into public hands?
Because their rich pals ain't done with it yet.
@@420fpv8 it's too profitable. Privatise the gains and socialise the losses.
The more I understand about how the government look after public services, I’m not sure them taking ownership of the energy sector would be full of as many benefits as we might think. At a time where we’re at this level of economic instability it would take billions of pounds away from other sectors that are already on their knees. The NHS, the care sector, the Education sector. As this video shows, this government are having a hard enough time keeping the economy stable without adding even more moving parts to the situation.
@@TheInternetIsDeadToMe how did Norway do it so well? Can’t we copy them?
Brilliant. This explained things so well. Financial stuff has always gone over my head but you breaking it down has helped me so much.
Fantastic talk. A savior.
This is a brilliant video, lots of knowledge, make people understand what happening. No bias. You do better than most of the so call news like BBC.
The only problem with further cuts is you just can't cut your way to growth. Functioning infrastructure is a fundamental prerequisite for growth.
You can't tax your way to growth. Which is the random way labour seem to think it'll happen
Only found your channel in the last week or so
Absolutely amazing - More people need to follow you - A massive and informative wealth of knowledge which opens your eyes to what’s really happening 👌
My question is; Is inflation 'actually' in reality c3%? Are we still basing inflation on a typical basket of food?
@@Rivka1610 Exactly. If I based inflation on my energy bills, then inflation is approximately 100% compared to 2022.
Inflation is a different percentage for each person depending where there money is spent mine was more 30% over the last two years
What a great breakdown of situation(s) and how it could he handled. Great video as always Gary
My wife is a teacher and the head teacher has already announced an emergency financial meeting for all staff. Guess cuts are coming
Does the order come from above or is this something done only locally in their school? I mean, do you think that someone in the high levels of government already has something in mind?
@@tkzsfen if it's an academy then it'll be with the trust, if not then it's from the local authority.
Good vid Gary. Thanks for posting.
Keep it up Gary!
Epic breakdown mate, thanks so much. Appreciating you from New Zealand
the whole world seems to be financially collapsing ATM
This is an important point. Whilst the UK is probably in one of the worst situations of rich nations, it is important to realise that there are big and growing economic and financial problems in almost ALL countries at the moment - growing inequality is a global problem.
You will own nothing...
"WEF" 👺
its not all bad. I study austrian economics. the road to serfdom is a good book. I believe QE should never have happend and we inevitably have to do QT and there is never a good time to do it. Took out a mort at 3.05 percent on a 10 year fix while savings rates go up.
What about Argentina??@@garyseconomics
As someone who didn't stop working, didn't get furloughed, didn't see any form of relief (renter) regarding my housing, it pisses me off that no one has properly called out the Johnson/Sunak plans during covid in the media, at least to a point that the general population can get on board with clamouring it back. I know theres plenty of others out there that are in the same boat as me, but its just so damned depressing.
another channel was saying the BoE is forcing an increase in interest rates by selling back all the bonds they bought up during COVID (which they could just not do). Is there anything to that? I think he's a MMT guy and I don't know enough to tell if MMT is bunk or not
It made me laugh when on the BBC News app it stated “it’s normal for the UK government to spend more then they receive” as a justification for debt increases, that sound like living beyond its means to me.
Concise, simple and easy to understand. Very well explained @garyseconomics 👏
What role does the Bank Of England have to play in this?
This is all about QT.
The BOE is selling bonds and no one wants them so to sweeten the deal, the coupon has to rise to make the bonds desirable.
The more QT the BOE does, the higher the coupon gets, the more debt interest we need to pay.
So... this is really the BOE's fault.
You could say that the BOE is forcing the government into Austerity.
It doesn't have to sell these bonds at all.
Yes, its paying IOER on the reserves but IT SETS the IOER rate.
Once you sell 30yr bonds with a 4.375% coupon you're stuck paying 4.375% for 30 years.
Coming into a recession, global interest rates will fall. So why lock in 4.375%?
That makes no sense. Unless what you really want is Austerity and/or to collapse the government.
I'm an economist and I've longed for an economics podcast to break down the economic theory behind the news story of the day for the general public. Excellent job Gary.
I’m curious to hear what are you solution. I know it’s a complex issue but would be interesting to see your perspective on how to fix the uk
Tax the ultra wealthy on unrealised gains made over a specified period, reduce taxation on low income households, run a minor surplus.
Tax the rich; take back water, energy, transportation and food production to serve the people. Build up an educated population.
Appreciate the breakdown/explanation. Really helped me to understand what’s going on. Wanted to ask about the impact of Brexit because seems other European countries are in a better position
I seem to recall Kier Starmer saying last year "those with the broadest shoulders should bear the heaviest burdens". Apparently, he meant pensioners, struggling families and the disabled. 😞
So why are farmers, the Chambers of Commerce and the Daily Mail all up in arms?
In essence, we are governed by 'decline management' It's time for the devolution of central control to local government regions with strict scrutiny, performance assessments, and full transparency.
Sovereign currency issuers cannot go bankrupt. Bond sales are a policy choice - the U.K. government is pursuing QT in the false notion that balancing the books is important.
I agree that this will lead to austerity because Reeves still wants to balance the books!
Someone deficit is somebody else’s surplus.
Yes! Thank you. I am reassured to see others pointing this out. It is a deliberate policy choice. I wish Gary would explain that a bit more, and show a bit more awareness of MMT.
Thanks Murphy.
Thanks for another great video, Gary. It was really helpful to have the graphs and your notes as visual aids alongside your explanation.
Thankyou Gary - im really pleased to have found your channel, and sincerely hope it grows in strength - I will most certainly be along for the ride.
Thanks for your efforts explaining this. Brilliant
Morally, ethically and ideas wise bankrupt for sure.
Most definitely ideas that will actually grow the country. Remember Labour would have spent more during Covid as well
An explanation that I understood on a topic I always wondered about. Thank you very much. The first new UA-cam subscription I have made in a long time.
Agreed. Something every British chancellor has failed at explaining to ordinary people without sounding like a 🤡
Hes back 😎😎
I was listening to a podcast saying the rise in interest rates in the UK is being caused by "quantitative tightening". The BoE selling bonds they bought during covid. Is this true?
It’s all very well banging on about taxation government debt, et cetera et cetera just look at the latest cost to the UK economy that Brexit has caused
You could still have brexit done well but that would require investment in vocational skills in schools and cut back on illegal immigration...
Yes and silly people still want to vote for farage!
Polish young people have more vocational skills than British young people.
Thanks Gary for your no non-sense, no bullcrap, straight forward assesment of the current state of the UK economic affairs. You've got my vote! Fairer fiscal taxes and wealth distribution across the board!!
You didn't cover the fact that the BoE is engaging in quantitative tightening. This is what forces interest rates up. It's perfectly possible for Reeves to insist that the BoE stops selling government bonds as it's not in the country's interest. She's wedded to the neoliberal dogma that markets will sort it out, which is complete folly.
IMHO the government should take back control of the interest rate and not leave it to the dogmatic belief that the interest rate controls inflation, especially in the current financial climate. Leaving it up to the BoE is stupid, but the chancellor does have the right to prevent the BoE's stupid behaviour.
The combination of stupid fiscal rules and a central bank behaving against the interest of the country is the problem. Reeves has the power to stop this but will she use it? If not, then I think your outline is almost inevitable. Unfortunately there is no alternative thinking in all of our politicians except for those in the Green party. I despair.
Yes, it's pretty grim across the world. We are all being plunged into austerity by craven and clueless politicians.
As always, brilliant. Thanks Gary
Tax the bloody rich !!!!
And proper rich! Not the middle classes
Won't work sadly..... Have a look at the Laffer curve!!!
The rich have left - or moved their wealth off shore. If you tax the middle classes to death you have nothing for workers to aspire to and you get the brain drain where they move overseas for a better life and one day you wake up and you’re a failed South American state. Then comes the extremist politics and endless revolutions. It’s over buddy. No way back.
Will they not just move their assets away? If I am the super rich I will if I know u are going after me, I will just move them to middle east/ Asia/ US
Just like what Dyson did...so what u gonna do…
I agree everything Gary said, but how to balance that?
@karmankm2156 impose a exit tax. Sorted
The problem is also government departments spending 100% of the budget on useless rubbish before the finical year ends so they can get an even bier budget next year to spend on useless stuff.
We are screwed then !
I giggled when you said that when there's inflation "people's wages go up"...
That bit always seems to lag somewhat behind.