September the 26th the UK's economy the
sixth largest in the world completely
collapsed and right now the country is
sitting on the verge of a very Sinister
crisis how could this happen just 15
years ago and the UK was one of the
world's strongest economies but right
now the country is in a severe economic
crisis the country has doubled its debt
winter blackouts are looming the
currency is crashing and now three
quarters of British pubs face permanent
closure which is why the government is
now preparing police for a breakdown in
public order caused by this economic
crisis the Catalyst for all of this came
after an announcement from the new UK
government to borrow even more billions
which sent the market spiraling out of
control this has come amidstalks of the
global economy falling into a historic
recession with major Banks like Deutsche
Bank and Morgan Stanley rumors are now
also be on the brink of collapse and the
UK is certainly feeling the brand of
this recession you see the country's
inflation rates has gone up over 10
percent this year the highest in over 40
years and on top of this the UK is the
only G7 country to never recover
economically from covert and so with the
government borrowing yet even more money
people finally lost all confidence that
the UK could ever pay us back causing
the British pound to be valued at one
dollar and three cents its lowest ever
value against the dollar this was such a
big drop that it resulted in UK citizens
losing five percent of their total
Savings in a single day and with the
cost of living in energy crisis the war
with Russia brexit constant leadership
changes Rising crime rates skyrocketing
house prices and huge debts from the
virus and a crash couldn't come at any
worse a time so then the question is how
could such disaster happen and what's
coming next for the UK well to
understand what's going to come next we
first need to look at what's been
happening in the UK over the last decade
you see back in 2007 if you were to look
at economic reports on the UK's future
everything seemed perfect with an LNG
investment strategist James Carrick
predicting the UK's GDP would steadily
grow by three percent a year and in the
same year the pound was worth two
dollars from 1996 7 to 2010 the UK's
economic growth was stronger than any
other G7 country however whilst
everything was perfect in this period
this would all come to change during the
2008 financial crash and since the crash
the UK's economy was always on a
slippery slope because in the following
years after the crash it took the UK's
economy five years to return to its
previous size back in 2007 and to give
some context of how damaging this
recession truly was to the UK the dead
before the recession was 41.5 percent of
the country's GDP and just five years
later this debt would double to 83.2
percent and in 2022 this figure now
stands at 98.6 percent as a result of
this high taxes were introduced as well
as big cuts to Public Services as the UK
fell into austerity which in simpler
terms means that Public Funding for
police Healthcare Etc would be
drastically cut while taxes were
increased on the surface these austerity
measures did seem to improve the UK's
economy however the debt levels were
still out of control and with this came
Rising inflation which caused living
costs to dramatically rise although
National wages stagnated across the
country this means that there has
gradually been less and less disposable
income for the average bread and with a
huge influx of migrants and oligarchs
buying up homes it wouldn't take long
for home ownership to be a right only
reserved for the rich causing economic
phenomena with things like poor doors
becoming more and more common in London
and people even renting out their own
cupboards under the stairs for 500 quid
a month it was these sorts of things
that caused the UK to be very resentful
of the government the government that
seemed to be doing nothing to stop the
average Brits becoming poorer that
people have absolutely no faith and they
don't believe they will grow the economy
they don't believe they are sustainable
and the consequences of this if you've
got a mortgage a job you buy food any
goods and services this country is
poorer and life is harder for everyone
however whilst this economic situation
was bad it was nothing compared to what
the UK is experiencing today because the
2008 crash actually had similar effects
than all other G7 countries however what
made the UK special with the actions
following on from this procession that
would lead to the situation we're in
today because it was this growing
resentment in the UK that led to brexit
and massive political changes within the
UK governments now as we all know in
2016 Britain decided to depart from the
EU trade Bloc with the hopes of finding
better trade deals abroad the only catch
here was that to get these cheaper trade
deals in place would take a lot of time
meaning that if anything were to change
the current economic environment the
whole UK economy would suddenly become a
lot more volatile but at the same time
it seemed that the initial loss from
leaving the EU would eventually be
corrected by the UK's continued strength
in the global economy however by 2018
economists were already determining that
under the free trade brexit deal that
ended up passing the UK's growth would
shrink by over 5 percent in the next 15
years it was clear that the economic
risk of brexit was big however even with
this in mind if nothing got in the way
of the UK's economy for the next couple
of decades it seemed like the risk could
actually pay off but little did anyone
realize what was coming just around the
corner the coronavirus is the biggest
threat this country has faced for
decades all over the world we're seeing
the devastating impact of this Invisible
Killer in 2020 the entire Market
collapsed seemingly overnight countries
were now focusing on keeping themselves
afloat as much as possible now no one
was taking part of our heavily
globalized economy and for a nation like
the UK that has built itself from being
one of the most highly developed social
markets in the world a financial shift
like this spelled disaster for the
country This Disaster came in the form
of an unprecedented drop in the formerly
sky-high GDP of the UK over the course
of the first few months of the pandemic
the country's GDP crashed by nearly 20
percent which is a new record that the
UK now unfortunately holds along with
the limitations imposed internationally
the UK also implemented many domestic
covert precautions all of which
negatively compounded to the country's
already stagnated economy measures like
social distancing and travel
restrictions meant all businesses were
shutting down and the UK government was
having to bail out the whole country's
economy but even with this most people
still went shopping or visiting
restaurants for fear of coronavirus
which only caused more economic
Devastation for the country with the
government paying for businesses to stay
open all while no one was spending any
of their money whilst also being locked
up in the houses for Fears of the virus
and this led to one of the most
significant recessions that the nation
has ever seen however once again these
effects were similar to other countries
in G7 all of the West Was facing the
same issues but what other countries
weren't facing with the endless
political scandals that would tend the
UK's reputation internationally you see
with Boris Johnson implementing all
these restrictions it was no surprise
that the UK was taking on enormous
economic damage however whilst these
measures were in place Johnson had
attended multiple parties during the
height of the coronavirus scare all
while he was preaching to his own
citizens the social Gatherings weren't
safe the time has now come for us all to
do more
from this evening I must give the
British people a very simple instruction
you must stay at home around a year
after the initial phase of the pandemic
and dozens of photos were leaked showing
Johnson drinking and monsters friends
and other politicians once the instant
went public it would be one of the main
causes for Johnson's abrupt resignation
and replacement and of course there were
many other factors behind this but the
public would never forgive Johnson and
his Antics however sadly for the UK the
pandemic has a blow that we still
haven't recovered from the country is
still the only one in G7 that has yet to
fully recover from the impact of the
coronavirus and the UK economy's
weakness has led to foreign investors
packing their bags and moving elsewhere
with France Now set to overtake the UK
on foreign investments in coming years
something that was Unthinkable just five
years ago but trust me when I say that
this is nothing compared to what's been
happening in the last year because
almost straight after the country opened
up again it would be served with a new
Fresh crisis
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below you see pressure from covert had
lowered energy supplies and this was
combined with already sky-high prices
and as if this wasn't enough Putin's
invasion of Ukraine meant that all of
the oil and gas that Russia used to sell
to the EU vanished almost instantly so
as the supply drops sharply the demand
Rose to compensate causing Energy prices
to get out of control with most people
paying on average
1570 pounds more a year on their energy
bills and this increase along with the
cost of living crisis is just far too
much for the vast portion of the
population especially considering that
the average wage in the country is 25
Grand and as the winter draws near it's
unclear how the course they're going to
afford to hit the homes this has been a
global crisis but has hit the UK
particularly hard the UK relies on gas
for half of its electricity and with
Putin turning off the gas pipes it's
only gotten more and more expensive all
whilst the five biggest all companies
store combined 50 billion in profits
during the crisis the UK firm BP's
profits tripled just under 7 billion and
that was only from April to June alone
on the other hand the UK economy and its
people have suffered greatly and will
especially continue to suffer this
winter which is why 75 percent of Pub
owners are now predicting that they'll
be out of business with the current
Energy prices which to puts in
perspective is roughly 35 000 pubs
across the country and tens of thousands
of jobs lost the hearts of English towns
and Villages decimators but with Boris
Johnson on his way out in this trust in
there was a slight glimmer of hope maybe
prime minister trust could turn things
around maybe she had a new strategy
however it wouldn't take long after Liz
trust came to power that the whole house
of cards came tumbling down you see
during the Tory elections trust had
promised to continue with Johnson's
policies but very quickly she would
enact the most drastic change the
country has seen in decades and one of
the first things the list did was
announce a limit for the amount of money
an average family could spend on energy
by setting this financial cap it's
supposed to save families around 1 000
pounds per year completely numbing this
energy crisis but unfortunately for the
taxpayer this plan only really works on
paper for all the savings that this will
supposedly generate for the UK it
actually ended up costing the country
over 100 billion pounds and since the
government doesn't have this kind of
spending money on hand the whole system
is going bust with Parliament having to
finance this policy through their own
government debt so in other words they
are driving the country's inflation
rates even higher meaning that savings
supposedly generated from the policy are
now non-existent all while things like
food rise at the fastest Pace within 40
years I mean it's got so bad now that
there's even shortages of staple
vegetables and then no longer after this
the UK government announced another
seemingly reasonable economic strategy
the largest tax cut the country has ever
seen since 1972. the so-called mini
budget was anything but small it
promised to cut the basic rate for
income tax averaging out to 170 pound
reduction per person per year and on top
of this the plan was to abolish the 45
additional rate of tax for people
earning over 150 000 pounds this would
mean saving nearly 3 000 pounds annually
for someone who earns 200 000 pounds a
year overall these tax cuts were deeply
unpopular as the rich would benefit two
times more than the poor and these were
the only changes that seem to benefit
the ultra wealthy the cap on Banker
bonuses were also scrapped as well as
the planned rise in corporation tax but
where was all this money coming from how
could the UK afford to not increase tax
when it was going through a cost of
living crisis an energy crisis mountains
of debt mounting inflation and being the
only G7 country to still not recover
from covert I mean all of these proposed
Cuts would cost over 45 billion pounds
and at the same same time the UK's
public services are already at a
Breaking Point these Cuts were designed
for people to spend more of their
disposable income however economists
showed that this would be nowhere near
enough to compensate for the billions of
taxes the government wouldn't be
collecting instead the money for the
government again came from borrowing and
this is what people had issues with it
wasn't just that it was another gamble
at trickle-down economics it was that
the mini budget wasn't taking into
account the effect that so much debt
would have on the UK or what it would
have on the already sky-high inflation
so when the new Chancellor quasi karteng
announced these measures the markets
didn't react so kindly immediately
investors across the world were
skeptical it wasn't a tool proven that
this would work and went against Decades
of economic planning and one of the
biggest problems of vesters around the
world had with this was due to the
investment strategy that Pension funds
in the UK would use it now this is going
to get complicated so bear with me here
Pension funds in the UK invest heavily
in guilts now guilds are a type of
government bond that lends the
government money with interest and to
protect themselves against the rates on
these types of Investments falling these
Pension funds put up collateral to
protect themselves this means that
Pension funds have to pay liquid assets
usually cash to offset their losses now
usually this isn't a problem guilds are
generally safe Investments and their
prices aren't usually volatile so
Pension funds rarely have to put up
large amounts of collateral ones but
when the mini budget was announced the
price of these skills sank sharply and
this meant that Pension funds had to put
up a lot of collateral very quickly the
bank of England has said that it will
buy as many long-dated government bonds
as required between now and October 14
so this is a window as it looks to
stabilize financial markets they didn't
have enough liquid cash so they had to
sell their own guilds to make it up
causing the price to drop further and
further this was the beginning of what
is termed a doom cycle as the more
guilds were sold and even more
collateral needed to be put up and on
and on until collapse now I know this
sounds complicated but to show how
serious this was top economists
predicted these Pension funds would have
had to have paid as much as 550 billion
pounds in collateral if Guild prices
continue to fall and to make clear if
this happened it would have meant that
50 percent of private savings would have
disappeared like that so to stop this
disastrous cycle the bank of England had
to immediately step in and they bought
up 65 billion dollars of guilds to
stabilize the price and stop this Doom's
cycle and luckily for the entire United
Kingdom this actually worked but if it
hadn't the UK economy would have crashed
in the same way as many third world
economies do the IMF even told the UK
government that they needed to keep
inflation in check if they wanted to
avoid complete economic collapse and the
markets weren't idle on their fares
either assuming that it was about to
inflate in value everyone started
selling the pound and as more and more
people sold their pounds its value
dropped farther and farther and by the
end of the day the pound had hit a
record low against the dollar only being
worth one dollar and three cents and
this didn't just mean that people's
savings were being decimated before
their eyes with the pound dropping like
Stone in the water the UK had to borrow
billions more and investors then started
to worry that the UK would never be able
to pay back its debts it's now becoming
very clear that the UK is in an economic
disaster and the Public's reactions to
these measures were just as explosive as
the markets people were so outraged that
the government had to actually u-turn on
their proposed tax cuts for the ultra
Rich this happening just within weeks of
listruss becoming prime minister
Muhammad al-arian who once ran the
world's biggest bond fund and a current
adviser to Allianz said quotes the
bank's Band-Aid may stop the bleeding
but the infection and bleeding will get
worse if they do not do more and because
of this deepening economic crisis Andrew
Bailey the governor of the Central Bank
claimed they will quote nor hesitate in
increasing rates by as much as needed
now what this means is that boring will
be harder and harder for businesses and
regular people this has caused mortgage
lenders to withdraw 40 of their
available mortgages from the market
which makes buying a home for Millennia
was virtually impossible an analysis now
expects that the bank of England is
going to increase the cost of borrowing
to six percent next year right now this
number is 2.2 percent so the bank of
England is going to increase the cost of
borrowing by four percent water show
currency and convince the markets that
has committed to getting inflation under
control the consequences of this means
that next year Brits will have to spend
three to four times more to get a
mortgage making home ownership virtually
impossible and as the nation enters this
economic collapse the UK's public
services are now under tremendous strain
all while the workforce has demonstrated
that they're prepared to strike in large
numbers overpay a major London Tube
strike is underway it'll go on until
Tuesday Morning local time the London
Underground is advising people not to
travel if they can one of the only
options left to balance the books would
be for the government to reduce spending
however this would also prove to be
equally politically challenging as the
country has been in austerity for almost
the entire decade but if the government
doesn't do something fast this problem
is only going to get worse according to
Eurasia analysis quotes truss and
quarantine are now facing a severe
economic crisis as the world's financial
markets wait for them to make policy
changes that they and the conservative
party would find unpalatable but you see
whilst the UK is stuck in the mud this
whole crisis is just part of a much
wider recession that's going on in both
the UK and across the world the
disruptions from covert the Ukraine war
big Banks collapsing internationally and
China's economy crumbling into the
ground makes it seem like we're all in
for a great reset perhaps now is the
time that we will owe nothing and be
happy by now it should be clear to all
that our neoliberal political trajectory
just won't cut it anymore to fortify
Western Civilization it's going to take
so much more than our increasingly
unequal economic system to maintain what
made Britain so successful the cultural
social political richness that made the
UK a beacon of Excellence is now just a
distant memory and the world is finally
seeing the Ugly Truth The Veil is being
pulled back which is why the world
economic Forum billionaires hostile
governments and multi-billion trillion
dollar investment firms are waiting to
take over because a ruined economy means
cheaper Investments and more easily
exploitable populace and a breeding
ground for economic dominance which is
why the elites are now busy licking
their lips the UK is just an example of
what's coming to everyone everyone who
is laboring under an economic and
political system has given up on them
the complexity of the economic collapse
hides the seriousness of the situation
but only when push comes to shove when
the whole house of cards comes tumbling
down will people finally realize just
how screwed we truly are
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