Has the UK Really Run Out of Money? (no)
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- čas přidán 22. 05. 2024
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Yesterday, Jeremy Hunt announced his much-anticipated annual budget, with a 2p cut to National Insurance. But despite this, both Labour and the Conservatives have U-turned on their various spending commitments, leading to many experts asking: has the UK run out of money?
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1 - www.ft.com/content/79f9575c-6...
2 - www.ft.com/content/79f9575c-6...
3 - www.ft.com/content/79f9575c-6...
4 - www.theguardian.com/uk-news/2...
5 - / 1764637946009776621
6 - www.economist.com/by-invitati...
7 - www.ft.com/content/7bad4783-e...
8 - www.ft.com/content/5209be99-3...
9 - obr.uk/forecasts-in-depth/bri...
00:00 - Introduction
02:08 - Disclaimer
03:17 - Fiscal Headroom
04:45 - Liz Truss Experience
05:56 - Monetary Policy
07:30 - Sponsored Content
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Sadly with each passing day we can see the impact this awful policy has had on the UK. Tied up in red tape and tariffs with lower GDP than before the pandemic whilst the others in the G7, including Italy, are above. The lower GDP means we do not have the headroom to pay our way in the world and must resort to borrowing.Whilst there are rich people in the UK; a great many of us are poor and now we are poorer still. What steps can we take to generate more income during quantitative adjustment?
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@@Pamela.jess.245wow this isnt shilling at all
Has the printer stopped working?
Correction: Run out of money, for us plebs.
They have plenty of money to give to themselves and all their mates.
Source: Trust me bro
And immigrants.
exactly, they have no trouble funding themselves with higher pay and more benefits and expenses but for any of us brits they don't care, maybe if we cross to france and arrive back in a dinghy we can be handed an iphone, a pre authorised bank account with 10k in it, a house, free food and a guaranteed job without having uk citizenship as is what is happening right now
@@dazt5831except that's all lies
@@dazt583110k in the bank? Where did you get this from. Give a source
I cannot believe the Tories are bragging about 0.2% growth in 2028 to 2029, how was this something to be proud of? Accounting for population growth this is most likely a fall in GDP per capita.
Not only that it is only achieved with billions of deficit spending
Of course it is. This was all predicted when we bailed out the banks. The super rich would keep their assets and everyone else would become worse off, those at the bottom especially
"population growth" "fertility crisis" these are coded excuses for rolling out eugenics breeding programs...
Considering brexit, Covid, and the fact the UK burned alot of bridges on its way out of the EU.
You were expecting better?
@@thewingedhussar4188 It's got nothing to do with that. It's the legacy of the financial crisis
When you spend more in paying interest on your national debt than you do on your education budget, you know that your debt is too high.
Or you are Argentina and are spending nothing on education
But why would any Tory govt tax the rich, when it could borrow money from them and repay it with interest?
@@neuralwarp The tories do 'tax the rich' - there is a 40% tax bracket on income more than £50k per year
@JoBo301 That's on income though and not assets.
The USA also spends more on debt interest than education.
Financial planning is like navigation. If you know where you are and where you want to go, navigation isn't such a great problem. It's when you don't know the two points that it's difficult
People dont understand that the prices of things are never going back down. This inflation is deeper than we think. Those buying groceries are well aware that the real inflation is much over 10%. The increments dont match our income, yet certain investors still earn over $365,000 in stocks and assets. Wish I could accomplish that.
Very possible! especially at this moment. Profits can be made in many different ways, but such intricate transactions should only be handled by seasoned market professionals.
Having an investment advisor is the best way to go about the stock market right now. I was going solo, but it wasn't working. I've been in touch with an advisor for a while now, and just last year, I made over 80% capital growth minus dividends.
Finding yourself a good broker is as same as finding a good wife, which you go less stress, you get just enough with so much little effort at things
I'm surprised that you just mentioned and recommend Mr Brian Nelson. I met him at a conference in 2018 and we have been working together ever since.
Once you realize that trickle-down economics does not work, you will see the excessive tax cuts for the rich as what they are -- a simple upward redistribution of income, rather than a way to make all of us richer, as we were told.
It's never worked, was never meant to work and they knew it at the time
You mean 'Up-Suck Economics?'
@@Vroomfondle1066 Gushing up? ; )
now that we have thousands of years of proof that a ruling class is not only unproductive for society but downright harmful to it, maybe we can finally cut the fat off and have a functional lean society where all the wealth continously goes outwards instead of into the gigantic gaping mouths and endless stomachs of the psychotic rich people.
They just move elsewhere 3,200 left last year and took the 7billion a year they paid in taxes and guess who is going to make up the shortfall....you
For a country with no money, you've got a lot of billionaires
thats where all the money went.
Unchained capitalism is a pyramid scheme.
There's only so many CEO (etc) positions, so if you can't get rich without being at the top, what is the benefit?
He just means the 99% have no money left...
😂
You do realise that there's not a fixed amount of money in the UK?
In fact half of all money ever created has been created since the start of the pandemic.
It's not the billionaires you should be angry at it's the government running the money printer.
1% tax on offshore accounts will raise 50 billion
Yea…but the people that have to approve that taxation are the ones that will be affected by it 😂
Wow.... That number sounds impossible but yet I fully believe you sadly. State of this country. It's the land of have nots and have yaughts
We owe £1.2 trillion.
@@theweirdsideofreddit3079 it's actually insane that these billionaires can't even take 0.1% of taxes to improve shit, let alone 1%
Like I earn less than the average citizen and if I had a 1% tax increase that I knew would be spent well for society, I wouldn't complain honestly. If I was a billionaire and had the ability to spend all that money by myself for the sake of my state, fuck man I wouldn't care about losing 50% or even 75% of my money, I would still stay rich
@@juannaym8488"Him, who praises austerity on others, shouldn´t forget to also talk about his own stinginess..." This idiom was invented for rich people, as you can imagine...
The uk has NOT run out of money. We are still a wealthy nation. The problem is the money is in the hands of the few who have spent the last decade having the times of their lives. It’s time to take that money back.
The problem is regulation + taxes without leadership. People forget history? Brexits isn't about the people or countrie ! About elite rich people not having law's to stopped them + uk people don't have working rights now .
The Establishment and their media say "there's no money left" and then oooop! they find 700 billion for COVID. Or for Ukraine and soon for "reparations"
The money has always been in the hands of the 1%. For hundreds of years.
Every time the treasury spends, the BoE creates new money. It is impossible for the UK to run out of money. You're right about the tax though.
@@CelticSaintYeah - but during certain periods the distribution approached a more equitable level. Why? Elites were under political pressure to ease visible urban suffering and later were worried at the prospect of a socialist revolution.
The UK has major economic structural problems as its wealth is mostly in the financial services, located in the London area. The remaining of the country has been neglected for many years ( remember leveling up?) . Infrastructure, education, and health systems have been neglected.
And much of that City of London wealth is tied up in the laundering of criminal money stolen by the world's corrupt dictatorships, hence the prevalence of Russian wealth in London, and hence the need for brexit - because the EU wanted the UK government to do something about all that rotten criminality. But of course the EU made the mistake of assuming the Tories have some semblence of integrity, when in fact as we know they don't.
It is our version of the dutch disease. The finance sector pushes up the value of the pound and makes british exports too expensive.
Thank you. Someone finally pointed it out. The U.K. needs to diversify its agglomerations if it wishes to compete globally. Needs to decentralise its economy too.
This concept of no money only seems to apply when it comes to public services and benefits. When it comes to MP salaries, MP claimed expenses and lucrative contracts for Tory donors (remember back to the PPE scandal) then the treasury is flowing freely. The government always wants the general public to take the restraint whilst paying more, whilst it feathers the nests of the rich.
When it comes to public good, there’s no money available at all. When it comes to financing wars, enriching cronies and politicians, there’s INFINITE money.
Nurses get no pay rise. But let's spend 1 million on a monument to Muslims 100 years ago instead
@@quillo2747 Well, if you want, the nurses can all have a £1 one-off payment instead... ¯\_(ツ)_/¯
You're not wrong when it comes to MP salaries and expenses, because Westminster is indeed full of self serving politicians. However, you've ignored the largest UK government expenditure this century, which was the money spent to support businesses and jobs during Covid-19, including the furlough scheme.
This came to more than the spending by the Labour government under Gordon Brown in 2008-10 (following the GFC) combined with the QE in the decade which followed it.
The Conservatives did indeed financially exploit this pandemic, via the PPE scandal, but they also paid out too much, via the furlough scheme, which was too generous and too vulnerable to fraud. It was this increase in govt spending, exacerbated by Brexit, which is the single biggest cause of the government's current financial situation.
@@GonzoTehGreat Pretty sure the biggest expense was the utterly obscene amount they paid for the experimental vaccine, which they then insisted on rolling out to everyone, including those who are almost entirely safe from cv.
"Back to square one with Labour".
But 'square one' was actually much better than what we have now. Difference between having 'no money left' under Labour is we had good public services compared with Tories which has seen everything go into decline except wealth inequality.
And a growing economy
Going back to square one is a good thing if you're currently in the negative
@@_____alyptic I can not believe that Blair & Gordon's premiership is seen as a lost Golden Age...
@@edoardoturco8780iam a pretty left wing guy and believe me when I say It . When I say Gordon and Blair were good i don't mean it because they were Leftists (they aren't) they actually did a pretty good job at handling the NHS
Scotland kept their own NHS system and their's seems to be doing better.
The UK government may not be out of money yet, but they have certainly run out of credibility. Labour waked back on giving out figures on how much they would spend, but I see that as being cautious because they can't see the national financial figures and as such don't know exactly how much they can afford to spend.
Can labour really be trusted??? British politics needs to change new ideas new leadership new party but that’s just me.
Also, the media bought into the nonsense line that leftists are always spendthrifts and will hold Labour to a much higher standard than they have the Tories.
It is not a question of trust it is a question of who can manage the sh** show the UK has become the best....the Tories have had 14 years of rule and it is they that allowed that particular show to develop so for now the only party with possible solutions is like it or not Labour. @@csvickers151
There is plenty of wealth, just not for us.
Understanding money, taxes, capital markets, interest rates, fiscal headroom, debt and bonds should be a bigger part of the educational system.
I’ll raise you £93 billion ( so far ) on a train line that goes from somewhere near London to somewhere near Birmingham. The other bits have been cancelled.
Well they do need a plausible excuse to divert all that money from poor taxpayers to rich investors.
93 billion pound on a train line? Is this correct? That is an insane amount, here in Portugal the Government expects to pay 10 billion euros on a 300km high speed rail line, and that includes 14 new bridges, a 6km tunnel and probably a new Bridge in Lisbon, which if made in the way it has been projected, will be the biggest rail and road Bridge in the world. Right now only the first strech has been approved, but is expected the second one will be early next year.
@@pedrorequio5515but the Brits don’t know how to build anything anymore. That’s why. Not even a joke. If they kept it up, the costs would decrease.
Sadly it is correct, we spent 93billion over 15 years on a few hundred miles of rail line. It’s a complete joke and an utter embarrassment
@@pedrorequio5515No, it's not correct.
The £93 billion figure might be refering to the total estimated cost of the High Speed 2 (HS2) project. However, only Phase 1 (London to Birmingham) was completed before it was cancelled, for a cost of ~£45 billion (in 2019 prices), which is still ridiculously expensive.
Nice to see that Zac wrote this episode hopefully his paternity leave went well
As long as the London laundromat keeps doin' fine, there will be no shortage of money: *The Times* « The City has allowed itself to become the money-laundering capital of the world. This has long been the largely unacknowledged dark underbelly of Britain’s economic success. »
No you don't understand that was before Brexit. Now that your out you've lost that.
@@Madame702What has UK tax havens / bespoke money laundering services got to do with Brexit?
@@Vroomfondle1066 But exiting the Eurozone now you bank system was on the outside looking in. You f**ked yourself again like Winston Churchill did you destroyed your offshore tax haven for the Europeans to use. Now with Brexit you seen as a hostile nation and power. American then step in and took your place as a off shore banking haven.
@@Vroomfondle1066 You need to understand you are small Island nation with poor resources. You need a strong government and forward and innovative thinking. You need to understand your supply chain and logistics. You cannot go around starting wars and doing things willy nilly. You must be smart and consider every move you make otherwise you people will suffer.
@@Madame702Madame - I'm not a small island nation with poor resources - I'm a human being and I never started a war in my life. But please, I kindly request that you don't make my people suffer...
Problem with tory policy, they eventually run out of other peoples money
The problem with Tory policy is they eventually run out of our money to hand to their friends
Agreed 💯 and they blame socialism, or anyone else really, for their failure
@@michaelblower7363That's the game of politics. The current power has always blamed the previous power. Good cop, bad cop. It's all a show for the masses whilst we are screwed over time and time again.
Yeah to hell with EU money who needs more money from the EU
@@thewingedhussar4188were we getting more money from the EU? Weren’t we explicitly a provider there.
Austerity did so much...
OH but isn't brexit grand, you can decide your own monetary policy and wow look at the cash flowing in.
Isn't shutting off the UK market to the EU so a great idea. Good solid growth. Sure its small but oooo its ours maybe?
@@thewingedhussar4188bro didn’t even mention brexit in the video.
@@thewingedhussar4188then why don't you move to the EU if they are so prosperous and you don't have any fealty to your homelands?
how bad was the austerity thing? not british and i was young when it happened but the consensus seems to be "worst thing ever"
@@sahrahras it wasn't even austerity, the government cut spending but not enough to stop taking on debt.
It's a club Labour supporters hit conservatives with without understanding the details.
For example, 53% of the UK are currently in some form of welfare, that's hardly austerity.
Uk -*posts a budget surplus*
Parties- "sorry we dont have any money to spend on you, we need to pocket that surplus money for ourselves"
Budget surplus..? We're £1.2 trillion in debt, there is no surplus...
@@fredmercury1314I don't know the figures, but it is possible to be in debt with a budget surplus. A surplus just means income for a given financial period is greater than expenses (e.g., loan interest payments).
@@fredmercury1314Surplus vs Deficit refer to annual budgets. The national debt is the cumulative (running) total of these over many years. A government can have a budget surplus for several years, but unless these are enough to cancel out previous deficits they can still have outstanding debt.
@@GonzoTehGreat Incorrect, the deficit refers to the difference between the amount borrowed and the amount paid back...
We borrow more than we pay back. That difference is the deficit.
That's why politicians always talk about "reducing the deficit" rather than "reducing the national debt"; because they're slippery little b*******.
There is no "budget surplus" when you owe money and can't pay it back. There is just debt.
You can't play word games with me, I know the truth.
No one with debt has a surplus of money, they just have debt they've not paid off. And that goes double for a government.
It's your type of hokey BS thinking that allows them to keep robbing us blind.
@@fredmercury1314 Your definition of deficit is correct, but it applies to a specific time period.
A budget deficit occurs when spending is more than the available budget. A budget surplus occurs when spending is below it.
Government budgets are typically set annually, so the surplus/deficit is determined over this period.
If governments run deficits they accumulate debt. National Debt is the running total for this amount.
However, a government can have a budget surplus for a year, or even several years, while still having (national) debt.
Nobody is playing games with you. People are just trying to explain the difference of these accounting terms.
I would increase duty on alcohol, sugar, fuel, cigs, ecigs, private schools. Removal of tax break, bik/chargepoint for electric cars. Nondom 2 years not 4. Penalty charge for missed GP appointments. No more money wasted in the silly Rwanda scheme. Removal of all contracts to Fujitsu until compensation is paid. Not long we were clapping for the NHS which was useless, lets pay them properly. I call it, The drive to survive. I hope Labour do some of that.
Booze, maybe, you're on thin ice. Sugar? That's nuts. Sugar tax just forces companies to put artificial sweeteners into their stuff and those things are likely worse for you than the sugar they replaced. I would like to buy a Coke that is made of food, rather than industrial chemicals. Maybe we should tax the rich instead of raising the prices of the stuff poor people buy?
Missed GP appointments give GPs a chance to get back on schedule so more appointments are on time.
Not from uk , but why target private school? Where the money is coming from for the nhs? Gp´s in my country barely know you and in some regions dont even have them available so i doubt a lot of people are missing appointments on purpose idk about over there
Private schools reduce the burden and expense on the public sector. If they disappeared tomorrow, what would happen? We should encourage them not seek to reduce them.
@@chilloutcentral2097 Quite the opposite. The more people with children in public schools, the more insensitive there will be to improve them. Half the reason they are in such a sorry state not is because no one in charge of this country is affected by it. If more common, private schools would take in all the best teachers and pupils which would have a horrible effect on state schools. By contrast, if they disappeared, Al of the rich people and politicians would have a huge vested interest in making state schools better.
Hats off for responsibly putting the TL;DR answer ("no") in the thumbnail.
We're £1.2 trillion in debt.
The only way we can cover that debt is buy borrowing more money, and that money is leant based on future projection of GDP, which is linked to population size, which can only be increased through mass immigration, which has already fundamentally changed the entire culture of the country, and will continue to do so until no one even knows what Britain is.
We've run out of money.
Borrowing is as safe as you can manage the debt. If you borrow the money to make investments that will generate more money and meanwhile, you can pay the interests, borrowing may be perfectly fine---and indeed much better than just trying to save money and postponing the investments. What plays against the UK in that now is 1/ high inflation and 2/ poor economical results and general lower trust in the UK economy, pushing interests up.
If you just spend the borrowed money---well, then you're on the way to Greece...
"Borrowing is as safe as you can manage the debt. If you borrow the money to make investments that will generate more money "
Sure, but the Tories borrow only so that they can avoid taxing the rich. They don't even use the money to fund our national infrastructure or public services, which are subject to severe austerity. Meanwhile, the rich just get richer, while there are record numbers of people using food banks and 14 queues in A&E (I know, I was there recently).
@@tonyb9735 The A&E queues are caused by mass immigration, not by NHS funding issues.
The money in my pocket , it’s just been wiped out by my water bill for £650 - next ?
so correct mine 550
Not at all. There is plenty of money in the UK. The problem is that its gathering in an ever larger and larger untaxed pool whcih is owned by a tiny proportion of the population. We need wealth taxes and We needed them years ago.
Communism doesn't fix things.
Paper making machine gos BRrrrrrrrr ( plus taxes)
TLDR need to explain where any extra money would come from. Typically there's 4 ways governments can make money.
1. Tax, record highs so not much room there
2. Debt, we are nearly at 100% debt to GDP which is historically when the IMF stops lending
3. Printing money, this doesn't generate wealth just dilutes existing money.
4. Selling something eg Gold reserves, public services, other assets. You can only sell something once, unless you buy it back.
You arent doing bad on debt yet; France and the US both have worse ratios.
1) The tax base is not fixed, it can be increased by improving productivity.
2) Although tax is high compared to historical UK norms, the UK still has one of the lowest tax burdens in Europe
3) Debt is fine, if it's used to fund investment to increase GDP that in turn increases the tax base. Using deficit spending to fund tax cuts is like burning furniture to keep warm
4) Government can purchase distressed assets for negligible cost (e.g. railways, water companies). This can improve overall national productivity by removing profit cost burdens.
The bigger issue with the UK tax system is that genuine wealth creators (enterprise and productive workers) are disproportionately taxed, while unproductive asset holders (who contribute nothing to generating additional value) pay very little tax. Hunt just made this even worse, with his changes to CGT on property. The neoliberal principals that have prevailed since the Thatcher days are essentially a form of feudalism, not genuine, productive capitalism.
@@colejosephalexanderkashay683 , saying france and us are worse doesn't make the UK situation good. We need something like 40-60%. Not 100%.
@@inbb510 What's the basis for this arbitrary figure? The sole important factor is ability to sustainably service debt, both now and in future. By all means reduce deficit spending (on revenue expenditure) to zero, but borrowing to invest is good. The UK is in prime position to make strong returns (i.e. productivity gains) due to decades of underinvestment
@@enemyofthestatewearein7945 while I agree it's an arbitrary figure, the reason is so in the event of an emergency, a terrorist attack, a foreign invasion, earthquake etc we have space in the debt to deal with it.
At the moment we are taking on debt just to keep the system running.
I urge every and anyone to look up the “deficit myth” it’s the idea that countries with a sovereign currency (fiat currency) have the ability to create as much money as needed to fund any program, so long as they take into account the inflation it could cause.
The UK, Canada and the US all have strong and sovereign currencies that can easily work to remedy all problems their people are facing. We truly need to wake up to this fact.
Remember the UK Gilt crisis August 2022 ? which caused a government shuffle. I would disagree these 3 fiat currencies and finance are "strong".
Add that Government has said "the country is like a household credit card" so often everyone bafflingly believes its true.
2008, austerity, Brexit, Covid, Putin, social drift, decline of City (was ~9% of UK tax take), debt servicing, leadership vacuum.... the list could go on. The question is not if UK still a big economy but is the trajectory of Income:Expenditure balanced? And is society ready for lower levels of public services?
The Liz Truss experience sounds like a pretty naff day out
truss the plan
and council tax , cost of living, will make any tax cuts meaningless
Excellent breakdown. Thanks!
Excellent video. Very informative!
There’s no money left.
Sh*t, the banks are in trouble.
Here have £100,000,000,000,000,000.
Amen
In these uncertain times, it's more important than ever to have a solid understanding of how to manage your finances, invest wisely and navigate economic downturns. But my primary concern is how to grow my reserve of $240k which has been sitting duck since forever with zero to no gains, sure I'm all in on the long term game, but with my savings are lying waste to inflation and my portfolio losing gains everyday, I need a remedy.
If you need advice, consider speaking with a financial advisor. Don't get me wrong, you can do it on your own, but financial advisors have a lot more knowledge and expertise in this area.
you are completely right, Advisors have information and paths that are not disclosed to the public.. I profited £560k in 2022 under the tutelage of my Fiduciary-counselor. Am I selling? Absolutely not.. I am going to sit back and observe how this all plays out.
That's impressive! I could really use the expertise of this manager for my dwindling portfolio. Who’s the professional guiding you?
My CFA ’Margaret Johnson Arndt’ , a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
I checked Margaret up out of curiosity and i must say i am impressed by her Credentials. i emailed her already, waiting on her response.
Brexit is the main reason why Britain is struggling so much right now, it's become very expensive to do business in Britain right now. Businessmen and investors have more better and cheaper options in the EU and rest of the world, so why should invest in Britain right now, what benefits does Britain offer to businessmen and investors that the rest of the world doesn't have? If Britain wants to survive in the future and rescue their economy, then rejoining the EU is a must. Period.😒😏😒
It nothing to do with Brexit Brexit was ignored through the back door it never happened with Tories only Reform UK delivers Brexit
Think from a businessmen and investors perspective and explain why they should invest in Britain right now when there is high inflation and all sorts of problems. Aren't they better off investing in a cheaper and less problematic country?
We shouldn´t let you guys in ever again, you should serve as a lesson for other wannabe countries that threathen to leave.
The wealth is too concentrated in london, russian oligarchy has more difficulty hiding money in london, some businesses went to the netherlands.
Brexit was more fuel to the fire, yes germany is in a recession but the eu is still better than the uk also you guys import more than export so you aren´t swimming in money
@@eskutts The EU is suffering the exact same problems, Germany is currently in deeper shit than the UK so you would need to explain why Brexit uniquely is impacting the UK. It's true that it has impacted trade in goods, but trade in services is booming.
@@weird-guy ihm no, Germany is not in recession. Maybe it will be announced in April, but so far only q4-2023 saw a negative number.
Don't fall for the English media reporting and comments.
No. Britain has not run out of money. What it has continuously failed to do, however, is use taxation correctly, to force balance on an unbalanced system, and that failure has been getting worse and worse since before I was born. Since my birth, the taxes that come out of the pockets of common people, in value added taxation on items commonly purchased by them, have done nothing but increase, along with the raw price of those things, and the taxes paid by those with the deepest pockets, have only ever fallen in real terms.
Put simply, this country has been set up to funnel money away from those who already have the least of it, toward those who already had the largest amount of it, and set up that way for decades. The rate at which this transfer of wealth away from the common people, toward the unusually wealthy, has increased at breakneck pace, until now, a time in which the rate of wealth transfer from the common people, toward the most wealthy in society, is at its fastest in modern history. At no time since the feudal era, has that rate been higher.
This imbalance MUST be corrected, lest the practically serfdom like conditions the majority find themselves in, become literal and codified by government. At present, it is more politically likely that the prevailing status quo will be upheld and the servant class reestablished, than it is that anything will be done to change the fundamentals of the flow of wealth, back toward the common person, and away from those who have already had their time at the trough.
This is unacceptable, and if something does not change, massive increases in poverty and all that comes with it, WILL cripple our country. If the government refuses to tax specifically the super wealthy, and write legislation choking off attempts to move money off shore to protect unearned the wealth of the super rich, the people will be forced to either meekly pass away of the many causes of death unique to the poor, or fight for their right to live in dignity and be secure in their person, possessions, and indeed their ability to secure housing without having to kill themselves in order to afford it. The cost of living must be controlled, if only because funerals are also unaffordable.
There are no legitimate alternatives now, to a redistribution of wealth, from the top to the bottom of the economic ladder, the trickle down MUST become a torrent, or else there will be no reason to expect or demand peace in this land.
Completely unrelated, I've been listening to a great podcast about the French revolution. Fascinating really.
Man if only the guardian published an article saying we gain so much money from taxing the wealthy
The super rich have had over a trillion pounds funnelled to them in the last 16 years. The Establishment and their media say "there's no money left" and then oooop! they find 700 billion for COVID
Why
@@sirrobinofloxley7156 I'm saying that Britain has a massive untouched source of income that the political parties won't generate money
@@louisjefferies2733 The Guardian is part of the Establishment...
We also have a massive capital flight problem comparable to China. Unfortunately we're already scaring the wealthy away even before extra taxes
No money for UK services but plenty of money for foreign wars.
It’s a Christian nation. Which means not walking by on the other side.
Hate to say it but good! I hate the tories with a passion (been Tory all my life until recently), but if we don’t invest in that, it doesn’t matter how good the rest of our investments are, we’ll end up speaking Russian
How can the UK ever run out of money? We pay unbelievable amounts of tax whiles public services are receiving less and less funding every year.
We are slowly becoming a small government nation like the US but with the tax rates of a big government European nation. It makes no sense.
Public spending doesn’t come from taxation. The government can essentially spend anything it wants, the only limit is how much its populous can produce
If I was £1.2 trillion in debt I'm pretty sure the bank would say I've run out of money.
Britain has run out of money.
There's plenty of money, but both major parties are in the pockets of the people that money would come from.
Any government with debt to gdp above 40% has by definition run out of money
the debts are too high. Remember the Gilt crisis August 2022 ? which caused a government shuffle.
Non-dom status has not been axed - just time limited.
The money is there, but it’s not for you. Remember, it’s for all the hardworking billionaires.
The recession is currently the "most likely outcome for the economy and I cannot imagine being a victim of circumstances," with inflation at a four-decade high. My portfolio took a serious hit, and it won't get any better. This red season, I've heard of folks netting hundreds of thousands. How can I make sure of that?
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Maybe if we didn't have funerals that cost £160M and coronations that cost £100+M and if we weren't housing predators in palaces and financially supporting a billionaire with taxes and £130BILLION on Brexit which was not legally binding vote, we'd be able to support the NHS and other crucial support programmes within the UK.
300 hundred million is pocket change and Brexit was a dumb idea but ultimately it was the will of the people.
Just because it was not legally binding doesn't mean we should have ignored the result.
The royal family is just a tourist trap. every £1 spent has an estimated £5 return thats kinda the only reason we keep them around
Long-term Brexit saves us an awful lot more than it cost. Don't forget there was no Golden Age of EU Membership, it was costing us £120bn/year all told, some say even more, not just the £18bn membership fee as some claim.
The Royal family should be scaled back, some palaces open to public for tourism, House of Lords should be removed and replaced with a much smaller fully elected second house and complete overall of the honours system. I don't think Brexit can be reversed easily. To get back in probably means losing the pound and having to be part of Schengen. We won't ever get the deal we had back.
Those funerals and coronation are ok. The country probably profits
The thing about Liz Truss' disasterous mini-budget was that she was planning to spend 50 billion pounds on tax cuts for the rich. Had she announced a 50 billion pound investment plan, say to revamp the UK's aging infrastructure or strengthen their position in the tech industry, it might have worked, but then it would have been an investment in the future. Tax cuts do not work in times of economic stagnation, and the UK's economy has been jogging in place since 2019.
Whether it's run out of money or not it doesn't matter. We all feel that it has because of the state of EVERYTHING...
For working people? Yes.
For the suits? No.
Correction: In the section on the Truss experience, you're not describing a negative feedback cycle. Negative feedback is self-stabilizing, like a thermostat. "Positive" feedback is self-reinforcing-it tends towards runway outcomes, be they helpful or harmful. You're better off describing self-reinforcing phenomena as vicious or virtuous cycles. That captures the intuition of it.
+++
Considering that there has been some creep towards not applying cost of living increases to senior/retired (especially if they travel outside of country) then i wonder how we are doing financially
Britain has ran out of money decades ago. Why do you think we have a huge national debt?!
I think since at least Liz Trust the general idea that right equals less borrowing should have been proven false demonstrably. What is perhaps different, is what that money is spend on, not what amount is used.
Really great analysis on a subject that needs to be highlighted.
I appreciate the honesty in the title
The system is working fine. Rich get richer, poor get poorer. Working exaclty as intended.
I think you should have explained that governments borrow money via the sale of Bonds, and that Bonds and Gilts are the same thing. The terminology all makes it seem more complicated than it is.
The argument about operationilising monetary policy is really interesting. I wonder if it'd be worth reforming it to be more in line with the fed and the ecb
A video on his much of school, hospital, prison and infrastructure budgets go on paying off loans they were forced to take to finance their own development, please.
By covering BoE losses with money from taxes, the Government takes pounds out of circulacion helping to decrease inflation. The other option would be that the BoE prints more money to cover those losses which would be inflationary.
the UK is 2.96 TRILLION pounds in debt increasing by 5,100 pounds per SECOND
But we iz rich mate innit?
government debt is not the same as owing a bank, it means nothing.
Whilst yes government dept is different to the debt of an everyday person it very much does matter when the uk is paying £60 billion a year to just service to interest. That’s not getting rid of debt that’s just the payment to pay the interest.
A countries debt and a persons debt are two different things
£350 million a day of extra debt since Conservatives took power in 2010.
Plaster that on a big red bus.
adding to that the cost of borrowing also goes up, you have to pay back WAY more than you borrowed, otherwise nobody is going to lend. that's called fiscal risk.
The moment has arrived for Britain to call in or sell the French loan. France hasn’t paid a penny on its Treasury debt since 1931, there’s almost a trillion owing, and the debt doubles every 14.5 years.
Source?
@@unknownfugitive225 Churchill-Caillaux Agreement, Hansard, London Conference 1953……
@@seanlander9321 Just the three dots for an ellipsis, but seriously, that was my sincere request - genuinely wanted to know more.
Hi, I hope you are well. I visit your channel and your video making is very good. Your content idea are very good and huge informatics. Thank you
You say that the UK's operationalising of monetary policy should be a bigger story in the media. To that end you could do an entire video on the topic including the pros and cons.
Yeah, I would love to see this, because there is no way that the government spends that much money on something with no positive impact, but equally, if the Fed and the ECB don't do it, there must be some reasons why it isn't necessary in all cases. I wonder if it has something to do with the size of the respective economies? Both USD denominated economies and Euro denominated economies dwarf the British Economy. I wonder if this has something to do with it all?
Greedy politicians need to stop pretending we're on the gold standard so they can line their pockets, and instead just accept MMT, while their needs to be more public awareness of what inflation actually is (inflation does not mean printing money).
Plenty of money for bombs and wars but not for infrastructure
Does Nebula have extra TLDR content pls?
Why does the uk feel like it’s going to shits
Only those who contribute should have the right to vote. Those who are drawing in public finances should have no say over it
The UK ha# run out of money when it comes to helping average people.
When it comes to helping the wealthy and businesses, there’s plenty of money to go around
You don't think helping start-up business innovate is a good thing then?
This mindset is why Europeans are falling behind US and China. We are just so allergic to taking risks and innovating. Instead we just punish them only for our young entrepreneurial minds to love to USA or Australia for better pay and lower taxes.
But what is the ostensible explanation for why UKG writes such enormous cheques to the BoE every year when nobody else does? Is it to protect against something? What do other central banks do to cover their losses? There must be at least some rationale to it.
The problem is, it's a false dichotomy.
I think most people are rarely fully right or fully left and anyone that is shouldn't carry any weight of opinion.
I'm tired of division being pushed everywhere.
The tobacco industry is at the worst it has been. From everyone smoking to being taxed, restricted, and sometimes even outright banned for some people, is a big downturn. "Banning" tobbaco will just create a black market for it, one which will sell much more unsafe and dubious tobacco.
Also about monetary policy. Central banks can't just keep accumulating losses. Sure they can operate with negative value temporarily but at the end of the day boe has obligations to pay interest on the reserves it holds. So if that money isn't coming from the Treasury (aka taxpayer) BOE would just have to create more money to meet it's financial obligations which as you might have guesses is inflationary. So you're back to the Truss situation.
Here's the tl;dr: As long as inflation remains high there's very limited options for the government to raise money apart from raising taxes or cutting spending. You simply can't borrow your way out of inflation and that's a *fact*.
Disclaimer: I haven't looked into BOE's balance sheets so I do not know how much liquidity they have but I'm just trying to make a more general point.
Hasn't all the wealth just transferred to the people who were more well off already?
It's quantitative, not quantitive.
A private central bank owned by guess who? The five arrows crew ofcourse.
Can you make another video further explaining the part about compensating the central bank for losses? Is this something we can just NOT do? (Like it sounds like from the video).
UK needs support. All of us need to support Commonwealth.
it's a crazy world
Being able to borrow more money doesn’t mean that you haven’t ran out. The interest that we already pay on the public debt is almost half of what the whole NHS gets.
It still makes sense to borrow more, but only if that money is invested into something that will actually grow the income.
it doesn’t help when they paying 15 million pounds a day housing asylum seekers thats nearly 6 billion a year Uk sends billions of pound to Ukraine last time i counted it was 14.5 billion . then people question why the UK has no money.
Asking stupid questions 😂
The UK will run out of money once there is no investor buying their debt consisting in guilts and pounds.
$45 Trillion was taken from India by Britain over 200 years of rule
Bullshit. The entire British empire combined didn't even make Britain $5 trillion. The person whom popularised this myth is a literal Marxist.
Looks like when the chancellor leaves office, he can write a note to his successor and say, "There's no money left."
Again….
@@warrenb243 Yep...
You really need to give more screen time to your graphs. The animation is nice but the labels only show up at the end for a second. Constantly having to pause.
If you are in trouble … just call me Dave 😂
Hell, the US is 35 plus trillion in debt and the government doesn't care how bad it will be when the debt bubble finally pops.
Plenty of magic monet trees when they need them. Orchards full of them.
We have money, the Tories and Red Tories just don’t want to spend it on working people.
I don’t think we should borrow more either, I think we should tax the rich properly
its called the goverment, wake up, what you gonna vote labour and it fixes the economy when their the same elites?.
......wrong tense, it has ran out.
So tax cut means government having to borrow more from the markets for public spending since the central bank is still engaged in a process of quantitative tightening ie selling off bonds which it accumulated during the pandemic from dishing out billions of pounds which primarily the financial oligarchs benefited from. More government borrowing from the markets means higher interest rates which means a reduction in the price of government bonds which means the government has to compensate the central bank for the losses to the tune of approximately £40 billion annually. Where would this money come from - Is it through abolishing the non domicile status so UK residents who have a home in UK are taxed on income earned overseas or through more borrowing from the markets which would also justify government spending on wars and other spending adding no real growth to the economy but would continue to increase interest rates and be inflationary and hence cause more pain to households, businesses and the real economy resulting in a stagflationary environment, whilst tax cuts, the recession and rising national debt would allow financial oligarchs to buy up more public and private assets, enrich politicians and profit at the expense and slavery of the masses..
Why are they giving so much money to the central bank? What exactly are they aiming to do?
What's funny is that those on right are supposed to be the ones worrying about taking on debt and yet it was a conservative prime minister who decided to go on a borrowing spree. I genuinely don't understand how Truss's plan was any different from Labour apart from the fact that they wanna spend that borrowed money in different ways.
The Law needs to change, the central bank cannot keep stealing off EVERY single person in Britain, no bank needs £35 billion a year in compensation. Take the loss! Literally saw our gov coming and laughed down to the pub with our money.