Why the U.K is Collapsing: The Coming Economic Crisis

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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

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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 but before we continue i want to talk to you about our video sponsor masterworks what if this turmoil culminated with the news that terrified markets one of the most advanced

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A result masterworks has had to acquire and release more art in their platform to meet demand and there is a wait list but you can skip it by clicking the link in the description 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

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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

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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 if you enjoyed this video and want to see more controversial videos that i can’t release the public consider joining the channel for just 5.99 a month you’ll have access to monthly exclusive videos not released to the public where you can watch our

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Transcribed from video
Why the U.K is Collapsing: The Coming Economic Crisis By Moon