The Bank of England is driving the UK economy into recession
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- เผยแพร่เมื่อ 9 ก.พ. 2025
- The Bank of England is crashing the UK economy. And apparently, our politicians want to do nothing about that. We really are living in an economy that is out of control.
#uk #money #economy #politics #government #tax #labour #starmer #keirstarmer #old #health #life #banking #bankofengland
ABOUT RICHARD MURPHY
Richard Murphy is Professor of Accounting Practice at Sheffield University Management School. He is director of Tax Research LLP and the author of the Funding the Future blog. His best known book is ‘The Joy of Tax’.
This video was edited by Thomas Murphy.
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People try to predict the economy not realizing it is not a capitalistic market, its a command economy, central planning! my concern is, instead of having much cash in bank that could lose value to inflation, do I save in gold to reserve and grow wealth for now, or just hang on?
truth is that gold serves as an inflation hedge in the long run, but not profitable in the short run. only thing you can predict is a strong effort of wealth transfer from the people to the powerful. luckily some folks find solution in financial advisors
That makes sense. I’ve been using a financial market expert for two years now and I own a six-figure diversified portfolio from investing in stocks. I want to diversify more this year, though.
Could you kindly elaborate on the advisor's background and qualifications?
My CF Annette Christine Conte, 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..
Thanks! After reviewing her credentials, I'm impressed too. I've scheduled a call with her for advice.
The recession scare is surreal and the market is really panicking at this moment and I'm worried what effect this frenzy could have on my portfolio of about 80k. Could you make any recommendations on how I could preserve my portfolio during this period and also make profit from the market situation?
Well, this could be a very good time to make profit from the market. But because it's a frantic period, it's often best you employ the service of a financial advisor. I was up almost 90% during the COVID crash because I was working with one.
Government policy has thrown the future under the bus for decades. The day of judgment is near. I predict an 80% drop in the stock market. Investors will abandon stocks in favor of real estate. There will be no money in banks... You must devise a strategy for survival
Due to my demanding job, I lack the time to thoroughly assess my investments and analyze individual stocks. Consequently, for the past seven years, I have enlisted the services of a fiduciary who actively manages my portfolio to adapt to the current market conditions. This strategy has allowed me to navigate the financial landscape successfully, making informed decisions on when to buy and sell. Perhaps you should consider a similar approach.
Could you recommend this particular coach you using their service? Seems
My CFA ’’ Sharon Ann Meny, 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..
A perfect storm is brewing in the United States. Inflation, bank collapse, severe drought in the agricultural belt, recession, food shortages, diesel fuel and heating oil shortages, baby formula shortages, available automobile shortages and prices, the price of living place. It's all coming together and it could lead to a real disaster towards the end of this year (or sooner). With inflation currently at about 6%, my primary concern is how to maximize my savings/retirement fund of about $300k which has been sitting duck since forever with zero to no gains
Government policy has thrown the future under the bus for decades. The day of judgment is near. I predict an 80% drop in the stock market. Investors will abandon stocks in favor of real estate. There will be no money in banks... You must devise a strategy for survival
Many people minimise the importance of advisors until their own feelings become intense. A few summers ago, following a protracted divorce, I needed a boost to keep my firm viable. I looked for licensed advisors and found someone with the highest qualifications. Despite inflation, she has helped me increase my reserve from $275k to $850K.
Mind if I ask you to recommend this particular coach you using their service? Seems you've figured it all out.
Her name is Annette Christine Conte can't divulge much. Most likely, the internet should have her basic info, you can research if you like
I just googled her and I'm really impressed with her credentials; I reached out to her since l need all the assistance l can get. I just scheduled a caII.
This quote from Lord Acton keeps coming up for me “Sooner or later the battle will need to be fought between the people and the banks” thank you for your great explanation
All that's missing is the word 'Jewish'. Lovely. Haven't we been here before ?
@@stephenelkington4971 is that missing word in front of "banks"?
Yet the tax slaves keep consenting to masons like bankers to p3do stammer
@@stephenelkington4971people are noticing, they can’t hide behind the anti septicism card anymore.
@@stephenelkington4971 yeah we went to war with the person who tried to stop them, now look
Tired of the "recession is coming!" threat. Recessive periods come along with equivalent market opportunities if you are well informed and equipped, I've seen folks amass wealth in the midst of economic turmoil and even pull it off easily in favorable conditions. Invariably, the collapse is getting somebody somewhere rich
the strategies are quite rigorous for the regular-Joe. As a matter of fact, they are mostly successfully carried out by pros who have had a great deal of skillset/knowledge to pull such trades off.
Risk mitigation is indeed something to consider well before setting out on inveestments. Most often than not, CFAs take care of this perfectly. People downplay the role of CFAs until being burnt by their own instincts. I was in a similar situation a few years ago; Took my chances but stocks went crashing. Realizing I wasn't good at timing the market, I started working with an Adviser, which helped me build a $1.6m portfolio.
Mind if I ask you to recommend this particular coach you using their service? Seems you've figured it all out.
My CFA ’Annette Marie Holt’ , 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.
Just ran an online search on her name and came across her websiite; pretty well educated. thank you for sharing
I'm Irish and I feel our government is also committed to crashing our economy and country, also I see many countries around the world doing the same
All part of the agenda
CBDC.
the Irish gov has been 'at war' with the Irish people for 100 years. They are now so bold that they are totally open about it.
You asleep?? The great reset is what is happening they are all working under the orders of the WEF
This has been going on way before your government entered the scene.
Listen, you have lost purchasing power by about 50% in your country over the last few years. Continue QE and it'll even get far worse. Is economy that hard of a subject that none of you is able to think two steps ahead of consequences?
What is really important for people to realise and hardly ever mentioned, is that austeriy means reduced investment in the public sector. It is nearly always dressed up as an exercise in reducing waste and preventing cash going to scroungers. In reality schools, hospitals, roads etc do not get maintained and at some point in the future they need to be fixed at much greater costs. It is also quite a dangerous policy in the long term.
It is a measure that the banks developed or thought up 🤣
It all looks suspiciously like a long term plan to erode democracy and sabotage the national infrastructure, through calculated Tory incompetence, Brexit, the simultaneous purges of the Conservative and Labour parties, the transformation of Labour into a far right Tory beast,and the media's perpetual adoration of the likes of Reform.
We have been transformed into a one party state at war with its own people.
Yeah austerity means spending cuts - the government isn't precise enough to identify enough wasteful spending to purely cut waste, they have to paint in broad strokes. So they inevitably cut services.
@@twitafftwitaff7029 No it isn't. It was a response to the financial crisis, when the government deficit reached £160 bn, or 9% of GDP. About 30% of all government spending in 2009-10 was met by borrowing rather than tax. That was not sustainable.
It would of course have been possible to deal with the deficit by raising taxes by more, and reducing real spending by less, than was done.
In the U.S., money spent on public K-12 IS money wasted. It goes to more and more administrative bloat and more money spent on purchases from the private sector: mind-numbing standardized curricula and more “professional development” that teachers hate, for good reason. It doesn’t go to teachers’ salaries, to raising teacher qualifications or standards, to school libraries, or to improve school lunches. Fix the system to allow students more autonomy over their own education and the system will become naturally less expensive and more effective. As it is we’re throwing good money after bad.
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?
It is critical for everyone to prioritise investing in a variety of income streams that are independent of the government in light of the ongoing global economic crisis. Investigating stock, gold, silver, and digital currency opportunities is part of this. Despite the difficult economic climate, now is still a good time to think about making these investments.
Gold and Silver are often seen as a safe-haven asset that can protect against inflation and economic uncertainty. But like any investment, it carries risks. To determine if gold is the right investment option for you, an investment advisor can help you weigh the potential benefits and risks of investing in gold. They can also help you create a well-diversified portfolio that includes gold as part of a broader investment strategy. An investment advisor can help you decide how much of your portfolio should be allocated to gold and select other investments that can complement your gold holdings.
Investing in gold is a reliable choice, and I plan to keep buying more to make up for my losses. While silver is also a good investment, my collectibles are not as similar. It's important to have clear investment goals and educate yourself on the type of investment that interests you. I work with a financial consultant regulated by the SEC, and started small, but eventually accumulated over $800,000.
Great gains there! mind sharing details of your advisor please? i've started gaining more cash flow with my employment and looking at putting money into stocks and alternative assets that can help build wealth over time.
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Marisa Michelle Litwinsky’’ for about two years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
A Man should not work for something another man can print. - Jack Mallers🧡
A lot of Brits understand that and stopped working altogether ... Best form of protest against usury and tax coercion.
@ trouble is, the understanding comes from being all but forced. It means dancing to another tune. Just as the same powers want the old, current, system torn down. To replace it.
I like that one, great quote
Exactly 💯
Exactly 100% a man should not work for something another man can print
They don’t want us to know how the ‘magic money tree’ works. That is the game.
exactly magic money for the rich nothing for us.
Well during QE, the Bank of England posted a technical note on their website explaining how "high powered money" worked - I guess few people can be bothered to read these things.
They will never explain how ‘it’ works. Check out Henry Fords old quote.
th-cam.com/video/YtFOxNbmD38/w-d-xo.htmlsi=-7Cl6_kv0cYjdAnI
I still don't understand after having it explained by this video
The Merchant class rule you, they hate you and they will do everything to slowly put you into chains
This is not the time to sit back and watch how wealthy others are or how much money others makes, this is a fresh start for everyone and it’s time we start making advances to our own advantage
Most people get caught with the act of wishing on other peoples lives, how wealthy they are and all without thinking of building their own wealth, investing in yourself should be your major priority and not looking to be someone else
Building your financial strength is what people should focus more on, I’ve always been a fan of investing and earning more money than watching someone else’s life
Absolutely!! There’s no better wish than building yourself into becoming wealthy for other to wish to become who you are, I quickly understood that and I’ve been working in that pace, I work and at the same time invest in both stocks and foreign exchange markets, different communities and all, this has really helped me earn enough money than I could ever earn working for the next 20 years
I’ve always been the kind of person that admires those who are wealthy, please since there’s advice going on what can I do to be wealthy? I work different jobs just to meet up with bills and my day to day living
I was once like you all I did was work and save, just to use all those money to settle more bills without having a penny to show for.
If you want to gain financial freedom I’ll advise you invest more than you save, presently I’m into stocks and crypto trades
For too many politicians the health of the banking system is more important than the health and happiness of people. Healthy banks tend not to equate to healthy people.
Healthy banks are needed so we don’t have to bail them out.
gov dont care about you
@@danielpye7738 you are very argumentative with everyone in the comment section aren't you. Stop being obnoxious.
@@danielpye7738 If the government can bail out the banks and they did, they can also bail out the nation, but they won't.
@@danielpye7738 Actually the could have bailed out the citizens with savings and let the rest pay their debt's. The 2008/9 bailout was the biggest transfer of PRIVATE DEBT to PUBLIC DEBT in history. WE the people are paying for the failure of the banks a private business. We are getting screwed over on a daily basis, UNDERSTAND?????
once people realize that money is the biggest scam to ever exist then maybe things will change. Quantitative easing is money printing with a fancy name. If the public decided to "quantitatively ease" their own personal economy they would go straight to prison.
I don't remember credit card defaulters being charged with any crime. The rest of us just pick up the tab.
@@SWRural-fk2ub they didnt print that credit tho, did they. the banks did. knowing full well we'd pickup that tab
Not sure I agree that money in general is a scam. Its main purpose is as medium of exchange after all, which is vital. But government issued money? Yes, now that’s a scam.
Money is always printed, because it is an IOU.
You can do QE as a private person: borrow money and buy a house. This way you inject new money into the economy by buying an asset.
And you can do the reverse: sell the house and pay back your debt, which removes the money from the economy.
No one will send you to jail because of it.
You've missed the point@@SWRural-fk2ub
It's either incompetence or all part of a plan. Either way we British are being taken for a ride
This is working out just the way they planned
thats always been the case matey . RR and labour should not be left to run the economy.
@@Dogtagnan
WEF??
It has got to be by design, surely??
Incompetence is never a reason. it's a convenient excuse
They want us to beg for their solution: CBDC's
& who is going with Rachel Reeves on her trip to China? The governor of the Bank of England, Andrew Bailey. You really couldn't make it up!!!
Maybe China can give the two of them some lessons on how to actually achieve a growing economy that benefits the workers and not just the billionaires. Though I doubt they'd listen 😂
Let's hope Rachel's got a nice colouring-in book to keep her tiny brain occupied on such a long flight. She's probably back in economy while Bailey's up front with his banker buddies!
They're going on holiday to see what a real working economy looks like
You may want to do your research the Chinese financial situation is in a much worse crisis currently, world economy damage too you could say@@alexjeffrey3981
You mean the Chancellor and the Governor of the Bank of England talk to each other? Is that legal?
It feels very deliberate
That is the first time I have ever heard this topic discussed in such a succinct and thoroughly understandable way. Thank you.
Most people don't know that the bank of England and most central banks are private!!
You'll be overjoyed to hear that Mark Carney, the Goldman Sachs man-on-the-inside who first made housing unaffordable for Canadians post GFC & then shared his 'expertise' with us in reinflating the 2000s housing bubble is being suggested as a potential Prime Minister in Canada.
At this point i'm pretty sure Canada exists purely so the British can say 'At least things are no better in Canada!'
Thinking the BOE is private is an easy mistake to make 😂
Let me guess, owned by the Rothchilds?😂
Its not private. The BOE is run by the government. Historically it was under the control of Parliament however Labour decided to make it independent under the Blair Government. Now its run by Blairites from all over the world.
The BoE is not private it is part of the machinery of state and underpinned by the Treasury, not to be confused by the Fed. When a Government borrows vast sums from in effect it's self, otherwise known as printing, we are on a sure road to collapse.
Banks have been doing this forever. This is one of the reasons Banking used to be illegal. They lend cheap money for a while (circa 15 years) then pump the cost of those lines up via interest rates, cost of living increases via economic manipulation so that they can repossess the property they loaned the money for private individuals to buy and spend more money on improving for them.
Then they improve the living standards so that the next generation can run out and repeat the cycle. It is a great way of owning vast housing stock and keeping it maintained for free.
The problem was that the 2008 crash disrupted that cycle when governments stopped them from repossessing those homes. They are now able to repossess homes again and would you belive it we are in an economic crisis again.
A cynical person might think it is all being orchestrated to profit the banks and the wealthy investors. But we all know they would not stoop that low, Would they?
Good summary. A side note: banks don't actually lend money. They securitise your signed (promissory) note which creates the debt instrument which is then used by the bank to pretend that THEY'RE lending you 'money' 😮 You then 'pay' or 'REpay' that promissory note, with 'interest'! You actually discharge the debt instrument you created 😮😮 leaving the bank in control of your 'cash'..they sell it in the 'money' markets, at a discount, whilst waiting for you to discharge your own debt instrument which created the fiat cash which then enables you to buy that house etc. One hell of a trick..
The fact that we've become so accustomed to calling DEBT - MONEY, is because we've failed to stand up for ourselves individually and collectively for a very long time.
There isn't a bank on earth that lends money. That's WAY too risky! There are banks everywhere who's job it is to act as agents and managers of debt instruments issuance and use clever sounding ideas and misnomers to direct and misdirect everyone.
We live in a (fake & highly manipulated) tightly controlled debt based issuance system posing as "money". There is no money in circulation anywhere on earth right now. If there was, the current system would be totally defunct and useless.
It is totally useless, but we don't see it and therefore don't act accordingly.
I can't wait for us to catch the elite 'bankers'..
correct! unfortunately i fear this crash will be different and it will make all other crashes combined look like nothing, there going to wipe out all debt and give us some lovely digital credits, at which point the word freedom can be removed from the dictionary because it will no longer exist
You are paying attention. Very good summing up the swindle, and that it is centuries old.
Ps. I call it the periodic "harvesting" of the lower classes assets.
You're saying there used to be money but now there's just debt? In what years did we have money?
Latest video from Gary Stevenson (Is the UK government bankrupt?) puts this in a different way. The upward wealth which you put to the side is actually more significant. He is brilliant
Exactly. People surely cannot be this dim jesus christ
I dont like his hats.
@@DirkMcBucket 😂
Watched a number of his videos. Good interesting content but seems very blinkered and wonder whether he's in some kind of eco-chamber. Unfortunately seems likely its a self imposed position and he's comfortable being there. Someone in his position with such a large following should be more responsible and be willing to view things from all perspectives. Surprising as he says he came up dirt poor. Comes across well though. Dead cool like bro.
The real problem was the prolonged and excessive quantitative easing over the last 15 years with the blessing of successive governments which kept interest rates artificially low and boosted asset prices.
What the host doesnt mention is every western CB is engaged in QT at the moment, not just the BoE, but it is the UK that is being worst hit. The BoE is unwinding somewhat faster than the ECB/Fed, but not materially so. There is a lesson in there. Its not like we're sailing against the flow with headwinds in our face...we are in fact only doing what rival economies are doing.
Everything in economics is relative. People have to park their wealth somewhere, and they will tend to do so in the shiniest turd out there, even if that turd is a shadow of its former self.
@Nick-io9uk very true. The thing that always gets me about comments regarding QT as a bad thing is that it's actually just a natural consequence of QE and very few commenators complained about the effect of massive QE over a long period because if you had money it felt good. The reality is that it was destructive.
@@Nick-io9uk This is a bit naive. The mini-budget that crashed the UK economy was actually because of the BoE selling £40 billion in bonds (QT) the day BEFORE the mini-budget. It was deliberate economic sabotage. Then they rebought nearly all the bonds pretending to be the hero's of the hour! You couldn't make it up.
And the logical outcome of quantative tightening is falling asset prices which makes wealthy people feel poorer, and therefore complain about tax rises more than they would do otherwise.
@@tlangdon12 absolutely
Finance IS politics. Actively undermining labour is the playbook, it's blackmail for tax breaks.
The budget had no incentive for growth. The problem with socialism and taxing everything to death is that you eventually run out of other people's money
@@Turbogaggers123 we spend our money, and we then have assets. I see no problem with this plan
@@Turbogaggers123- And the problem with capitalism as run by the Tories was the highest personal tax burden in history.....
The tories blew through our money in fantastic fashion... stop trying to sound clever by quoting the architect of this entire mess
@@Turbogaggers123
@@Turbogaggers123Perhaps you should listen closer to these videos. The real problem stopping growth is inequality: the lie of neoliberalism. Persuading the poor to vote for the rich to have more. We now have an extractive economy where the wealthy extract rents and banks inflate interest rates to preserve the value of the assets that are being rented back to us.
Running modest deficits when one is the global superpower with a vast empire and the Reserve Currency is one one thing. Running a £3 trn debt mountain = to 100% od GDP when you have none of the above, indeed a stagnant economy, is quite another. Are you suggesting we continue on this road to complete destruction ?
Yes he is. His pension is probably index linked.
Apparently yes, what he is suggesting is ridiculous. He's an accountant not an economist as we can see.
Murphy is dangerously clueless.
@@rodpetrie1088 it seems you don't understand what the "debt mountain" you refer to actually is.
It's the aggregate difference between the £s govt has injected into the economy via buying things/spending and the £s govt has drained from the economy via taxation etc.
In other words, it's the net financial assets in the private sector. It's more important to ask who has it and why rather than lose sleep over its size.
Yes this guy thinks printing money grows the economy lol
This should be all over the news
QT started in February 2022 it's not some new thing.
It is. TH-cam is the new news.
It won't be because we have a hand full of people who control the media in the UK. People like Murdoch.
Like the monopoly game and the bank making the money and everyone lost the game but the bankers. And they didn't even roll the dice.
Banks have won because they were allowed to exists. Those who own hard assets, gold, silver, property also won. the rest has lost.
Thanks for the perfect update. Your videos have been great!! I am one of your viewers and have been watching your videos lately. I would like to invest but I still can't seem to find the right investment to commit to. How do I properly invest in the market and what strategies do I employ to make significant gains and stable cashflow?
Productivity is never accidental; it is always the result of careful planning, dedication, and consistency. I am grateful to God for my advisor, MRS Clara Burn
Building a good investment portfolio is more complex so I would recommend you seek Clara Burn support.
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I started this journey with 8000 us-dollars. I invested immediately and on the right terms. Now I have time for my family and business
we all know the rate of inflation is way higher than 2.6%..........and we the tax payer will cover the banksters losses on those bonds
totally, no way is it 2.6%
The inflation rate may or may not be 2.6% but what it does not tell us is what happened in the past, which I think is what you are eluding to.
For example let us say our weekly shop was £100 and the price of inflation was 50% for that month. That would take our weekly shop up to £150.
Now let us say that they reduced inflation to 2% the following month, our weekly shop would now be £153. So even though they have reduced inflation, the price of our weekly shop has still sky rocketed.
My point is, that when they say they have reduced inflation, it does not mean that cost has went down. It just means the rate at which cost is rising has slowed.
If it was measured on CPIH it will at least 2% higher.
I nearly used bad language, still on the border, but about keeping it in check, 2.6%😅 economists near to get out more
6 8 10 it could be more.
The BoE cannot stop QT when the Fed, ECB and BoJ are also in QT mode. To do so would crash the £. Inflation would be on the rise in the UK and we've had enough of that. Britain might geographically be an island but in financial terms it isn't. And for RR to make demands of the BoE would be politically sensitive. It was Gordon Brooon who made it's decisions independent of the government of the day.
We have started ending QT in NZ.
We beat everyone on the race to raise interest rates.
And indeed our dollar has dropped in value recently.
Valid point. I would like to hear Richard’s response to this.
@@glykolyse8076 You won't get one.
@@glykolyse8076 Go to his blog and ask him. He usually responds within an hour!
But the £ is crashing on fears of a very poor economic outlook - which will feed through into higher import prices - in particular for food and energy, which adds another twist to the downward spiral - which will add pressure to the BoE to deal with inflation over the 2.5% target in the face of inflation combined with declining real GDP.
This has to be the most lucid and crisp explanation of the current economic situation. Great work @Richardjmurphy
lets call it what it is,,,,,, Money Laundering !
I don't know who needs to hear this, you've got to stop saving money. Invest some part of it, if you really want financial freedom.
Yes true, I have been in touch with a brokerage Advisor. With an initial starting reserve of $75k, my advisor chooses the entry and exit commands for my portfolio, which has grown to approximately $550k.
Tracy Britt Cool Consulting... has always been at the top of my list.. She is regarded as a genius in her area and well knowledgeable about financial markets. I highly recommend you look her up if you want excellent collaboration
Oh yeah, I've known Ms Tracy Britt Cool Consulting for awhile now. My husband and I invest on her platform too.
The very first time we tried, we invested £1000 and after a week, we received £6500. That really helped us a lot to pay up our bills.
Wow! I know Tracy Britt Cool Consulting. I met her at a conference in Birmingham last year where she introduced us to her platform. She helped me recover all my student loans, her platform is like a company where you invest and they help you trade,then pay you profit either weekly or monthly. It's very benefi
We daren't argue because that would be extremism, and we all know were that leads.
When they introduce the CBDC we won't be able to argue anymore.
We can do what we want.
Well it didn’t do too bad for Germany prior to ww2…..That country country was booming after the Weimar republics downfall….All we need do is not invade Poland
Excellent understanding and presentation- sadly nobody will change the process, I’ve always seen financial institutions and markets as parasitic forces.
So what is your alternative comrade ?
@@coldporridge4145 Imprison central bankers, expel jews, bitcoin-backed currency. Essentially the same thing Germany did in the 30s to rehabilitate their economy after it was similarly trashed by central bankers. Bitcoin is a superior version of the Proof of Work Reichsmark implemented by the national socialists.
@@coldporridge4145full on commi isn’t what he said. But a welfare of the people govt and institutions to back that up, would be a start.
@@coldporridge4145 Class struggle, blah blah blah, means of production, blah blah blah.
@@coldporridge4145 Seemingly Murphy here has all the answers.
TAKE OUR MONEY OUT OF BANKS AND WATCH WHAT HAPPENS
A liquidaty crunch, then the BoE will step in.
is there a petition to get this debated in parliament?
The BoE is concerned about the value of the pound and inflation taking off again. If a Chancellor overrule the BoE then we will get a complete loss of confidence, a fall in Sterling and probably hyoerinflation
@@piccadillyvision3761you have been reading too many neocon books, the recent inflation has been Putin war led, the British economy is on its knees, the greedy bankers should lay off.
Any "debate" in parliament is a joke. I'm reminded of Angela Rayner when challenged on what the govt will do to address inflation. Her response to Torys? "Well what about 11.1% inflation?"
Sorry, what sort of fucking answer is that??
@@iian050it’s a reminder that the tories resided over that level of inflation when they ‘managed’ the economy
😂😂😂😂 good luck with that.
All these issues stem from an economy grappling with uncertainties, including housing problems, foreclosures, global fluctuations, and the aftermath of the pandemic, leading to instability. Rising inflation, sluggish growth, and trade disruptions demand urgent attention from all sectors to restore stability and stimulate growth.
In retirement, safeguarding your wealth against inflation is essential. Consider options like TIPS (Treasury Inflation-Protected Securities), commodities, or foreign currencies to hedge against a weakening dollar. Diversifying your portfolio with global real estate, international bonds, or high-quality foreign stocks can provide additional protection and growth opportunities in an inflationary environment.
With my demanding job, I lack time for investment analysis. For seven years, a fiduciary has managed my portfolio, adapting to market conditions, enabling successful navigation and informed decisions.
Consider a similar approach.
This sounds promising! Do you have any professionals or advisors you could recommend? I really need help with proper portfolio allocation.
Certainly, there are a handful of experts in the field.
I've experimented with a few over the past years, but I've stuck with Jennafer Beaver Turner for about five years now, and her performance has been consistently impressive. She's quite known in her field, look-her up.
I just copied and pasted Jennafer’s whole name into my browser, and her website appeared right away. You've saved me several hours of arduous research, therefore I appreciate it.
Very informative video, thank you. Sadly most will never see or grasp this, as false headlines are much easier to digest than 10 minutes of economic education.
Central Banks call the shots, just ask Liz Truss. Useless Bailey needs to go to prison.
Anyone who listens to Truss is as mad as she is.
Parliament actually calls the shots, they are just too dumb to realise.
There are clauses in the BofE act of 1998 that would allow them to override the bank.
Of course politically this would be suicide due to brainwashed MPs & media. That likely would get them “liz trussed”
Yeah but it was funny that she was called a lettuce by the controlled media and then took down in a coup eh?
Exactly. Bailey is worse than incompetent, he is a malign, unaccountable entity.
Central banks on there last legs corrupt unfair system
The amount we spend on the NHS never goes down.
Because we have more and more recipients using the NHS.
@barrydwyer2039 yup, in my opinion it's a criminal enterprise as well.
@@brutusoftroy2810 The british version of the mafia.
Because of the extortionate rent the NHS is forced to pay to the private investors who financed part of the rebuilding of hospitals under the PPI scheme under Blairs government.
Be gone healthcare CEOs. Your kind is not welcome here.
How the hell is the government getting away with all of this?
WHY is this not front page news?
Is life ever going to get better for us mere mortals?
Thank you Richard.
We are quite simply living in a kleptocracy.
plutocracy
Not really it's technically a shit show run by people with little or no understanding of their role.
@@paulbatson7881 That's what you're supposed to think
@mrstephenpariah no we're not supposed think.
@@paulbatson7881 Sure, so you're bombarded with nonsense and contradictions to cause confusion, mental static. Nothing makes sense on purpose. Meanwhile bad things are happening in the shadows.
Gordon Brown should never have handed control of Monetary Policy to the unelected BoE.
It must be taken back under the control of Central Government, who we can directly hold to account.
Here in NZ Grant Robertson handed Adrian Orr a 5 year contract before Labour were booted out.
Maybe when an election is held the new government should be able to terminate a contract with no cost to the taxpayers if it choose so.
Gordon Brown created decades of problems with his idiocy, mainly fiddling the way inflation is created.
The trouble with that is politicians will directly get the heat for market variation. Remember how much Nigel Lawson got lambasted.
The BOE is not owned by England...it is a private entity..owned by private individuals... like the FED.
What about the Govt debt ? If the UK cannot save the economy - which they cannot - and it crashes...guess what ?
Same principles private homeowners, cannot pay back loans...we will re-posses. Hey we now own the UK/USA/EU...THE WORLD !
It's hard to keep your cool when we know what Bank of England (or Reserve Bank of NZ) insist with this ludicrous economic system - but Richard DOES keep his cool and delivers an honest and clear explanation!
Unfortunately as he says politicians are too scared to rock the Banks' boat!!!
That is the clearest explanation I have ever heard on this type of topic. You have yourself a new subscriber.
You cant just print money forever. Increasing the money supply on its own does not increase the total goods and services in the economy, it just bids up the prices of existing stuff.
unless you live in a country where corporations swiftly collect nearly all the money, pay no taxes on it, and take it off shore.
All private bank loans are classified as new money.
The only bank that can enable that is the central bank.
Where do you think this accounting sits on the books.
@@maria8809ttt Maybe all that mortgage credit instead of spurring an increase in supply of houses just bid up the price of the existing housing stock?
Yep, he very conveniently omitted the relationship between QE/QT and the value of the pound
It’s worth questioning that if central banks are supposed to be “independent” of the government, then who are they really working for?
The BOE has been crashing the UK economy from the day the government of the day handed them the responsibility for setting interest rates. The reason for doing so, was that run away house prices kept causing inflation as people released equity from the aforementioned properties. However, the cosy sounding BOE left out one item from the list of things used to calculate inflation. And that was the very thing that caused the inflation. HOUSES.
It was too profitable to let property prices inflate if already owning property. Once the prices went too high for standard lending ratios, the BOE lowered the interest rates to maintain lending. Once first time buyers had dwindled in number so that up-sizing chains couldn't get going, the banks brought in Buy to Let. You know, the investment you have where someone else pay for it all and you keep all of the profit.
From there, the number of people who could buy a property at all reduced even further. The BOE then raised the rates for no reason worth the mention, secure in the knowledge that any re-possessed properties will be snapped up by massive investment companies.
The future is that those who don't own a property outright will be renting from the banks. Which was the plan all along.
Well, why did the economy outperform most others until the Brexit referendum and Truss, then?
The BOE did not itself choose the measure of inflation it was required to target - that was done each year by the Chancellor, Brown at that time. Even so, the BOE set higher interest rates than the Fed and ECB in the 00s before the crash.
Buy to let houses are owned by landlords, not the banks. Who do you think "planned" that banks should do all the letting? You do understand, don't you, that the BoE is nationalised.
The rise in interest rates starting in 2022 was not "for no reason worth the mention." Indeed, like other central banks, it was far too slow to respond to the rise in inflation and inflation pressure as the world economy recovered from covid in 2021. That meant the further surge after the invasion of Ukraine raised energy and food costs was even more damaging, because the credibility of central banks in pursuing the target had been lost, and Truss's adventure meant the UK had it worse than others.
@@faramir Didn't covid and the war in Ukraine happen straight after Brexit?
They do not know what it is like to PAYE your whole life.
I'd like to know why. What are the goals and objectives of the BOE?
@@cossav2560 Monetary and financial stability, on both of which they have a mandate from government.
We will own nothing and be happy
Says who?
The WEF.
We are slaves and we are miserable
I own quite a lot actually.
That’s fine by me
We can fix the problem by stopping sending money to other countries!
Perfectly explained in simple terms......If this doesn't tell you it's time to get out nothing will!!!!!
Very complicated and difficult for most of us to understand. The conclusion is the general public is been exploited by those who are supposed to serve it yet again.
speak for yourself ;)
Bailey, the same genius that floundered at the FCA.
If they don't balance the books, then they can just finance unlimited spending by the government by buying more gov bonds....which will lead to hyperinflation. Printing money has been done before with predictable consequences. Your prescription would lead to disaster.
It would lead to hyperinflation if what they printed stayed in the country, but id does not. Most stuff is provided by American corporations in the UK and profits are taken offshore quickly with little tax paid. Then you have the BoE that gets its 45 billion pounds a year too. These are two of many reason why the man on the street has no money to buy or invest. Printing more will make corporations richer, not printing will starve and freeze people of this country to death. Neither is ideal, but choose one that's worse of the two.
He very conveniently omitted the relationship between QE/QT and the value of the pound
Probably a cash grab, greed knows no bounds
This is not just the Bank of England its many things at once I was waiting for this as this is what happens when you do not treat the country like a business to make money from industries and only tax to spend with borrowing, domino effect chain reaction is going to kick off we have been on borrowed time for years as our GDP was base on shops selling goods that come from China it was insane, so this is only the start as many things like energy and the pound being pegged to dollar are all going to hit hard soon with no GDP growth and so much being imported you could see food double in price everything Labour and Conservatives have done over the last 40 odd years is going to kick in now as they did the opposite to make a country wealthy in each thing they did for wealth of the nation.
Gordon Brown is the 'gift' that keeps on giving.
What did he do
🤣🤣🤣😭😭😭
@@godwinegbeyi2264he made the bank of england an independent entity from the government. Basically the UK gave away it's control over the pound.
But not as big a gift as muppet Thatcher 🤣
There is more downside coming because current economic conditions can not and will not sustain any meaningful long term bull run for the near future. It's not me being bearish for the sake of being bearish. It's looking at the overall picture and there's really nothing overly
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One problem with that, doesn’t the government own the Bank of England
Nope. It’s a private company with its own Board and shareholders. They provide banking services to HMG
Write this into a search.
When did the BoE become socialised and an arm of government macroeconomics.
It should bring up The Bank of England history page.
The BoE is not a private bank, it is the UK Central bank an arm of the UK government.
@@maria8809ttt It's private like the FedRes - Richard Werner really dug into this and, it's owned in trustee shares - ownership completely opaque. Ever wonder why they bailed out all of those banks in 08 though?
We are not "living in an economy out of control": we are living in a society out of control.
Yep I agree
Your a clown
Surely it’s more than that, it’s also creating wealth for the wealthy…. Again…
Thats how money works.
A system like that is called "economic fascism"...
The only issue is not controlling inflation properly. People that claim ‘rates too high’ are either idiots or just don’t like the fact that we shouldn’t be propping up one particular asset class.
The thing is the idiocy won’t wash with investors so we will get a gilts strike, 70s style crisis may be a way off.
The idea that inflation is just above 2% is nonsense … it’s too high.
Inflation is a tax on the poor in the Uk - all to keep one asset class propped up.
Thing is they have no choice, they can’t listen to idiots they have to act.
Oh, and then you have the NI hike which is inflationary…
@@michaellewis7758 any reason is good for corporations to jack up prices, never waste a good crisis, aye?
@@swojnowski453 The costs for every single business will be going up because of the NI hike. And people are already taxed excessively as it is, at the highest rates in history. It’s private businesses paying for everything.
This is a fantastic explanation of very complex process - thank you
A couple of years ago he said national debt doesn't matter!...
... I'm amazed he's a qualified professional...
@@andrewwalsh2755 He’s saying this now. Perhaps it’s a left wing ideology?
@@andrewwalsh2755and yet you've been following him for 2 years !!😂
He very conveniently omitted the fact that QT should make the pound go up, but in reality the pound is going down. There needs to be an explanation to it and he's hiding it from you
This is a great video post Richard! Thank you for the insight! while in other places people talk about impact due to US yield, increase in UK gov borrowing, low confidence in business climate, nobody has highlighted that under the hood, BOE is tightening at a faster rate than US and EU.
Comparing spend on health and social care against previous years is crazy. We have known for 70 years that the baby “boom” would cause an increase in demand. That should have been prepared for.
I don’t think it’s the baby boom that’s caused the demand
The real problem is people are living longer with more and more chronic diseases that would have killed them off previously, requiring more and more care and care homes because their relatives if they have any either don't or can't look after them.
@@barrydwyer2039
Well it's the post WW2 generation that occupies that bracket.
Throw in the Thatcherite obsession with selling off the state and its assets and the debt goes up while income goes down.
People then demand better services, which either means more borrowing and more taxes.
It's a conversation and a decision we've been avoiding for decades.
There's more people in my local church's grave yard born in 1780 and living 80-90 years than born after 1930 living 80-90 years.
Modern population is weaker mentally and physically, parents today will bury there daughters and sons before they pass, through poor diet lack of exercise and over excessive consumption of processed carbohydrates, meats and the use of super processed plant based food
weak times weak men, victim mentality over victous mentally.
And what's the cause of this? Because you right wingers always stop the analysis there.
Could it be rampant consumerism pushed by private companies for profit? Ineffective parenting methods by boomers and gen X? A collapsing economy giving rise to learned helplessness?
The whole "good times create weak men" model is just feels-based and not backed by any kind of analysis.
Isn't it the reason jews were kicked out of England many times by the kings in the past.... Same reason
All over the world many many many times until people forget and they get back in again and do the same thing over and over.
They always conveniently blame it on jews
I am from india. I found your book in my city library. The joy of tax. Good to see you here.
Same as what the RBA is doing to Australia. And a Labor Treasurer also, not only refusing to use his power to tell them to lower the ridiculous interest rate rises, but tried to change legislation so that the governing parties no longer have the power to intervene! Citizen Arrest the Bankers!
Agreed. But, who sets the rules for the BOE? The Government. Why don’t they ask the BOE to reduce inflation and stimulate growth?
They set they rules themselves, and the government has little to no control over them. It's called the Bank of England. However, that's an independent Bank, that's how it works
They might not agree with some economists. It's more likely they trust the decisions of the bank of England and is fear of the bank as they have power. It's not because the government are "evil" or incompetent exactly, it's that they think they can't go against the bank. Liz truss was extremely incompetent, but in a sense she was right, the banks make decisions that are not in the governments interest and it's hard for government to over rule them, the bank will find a way of forcing you out if you go against them (as happened to truss)
@@Daniloki2000it's only independent as a result of government policy. The govt can take that back at any point.
@@Daniloki2000 Thank you for helping to quash this incredibly common public perception of the BOE being a Government body.
@@AthynVixen The BoE has one single shareholder, the Solicitor to the Treasury, and he/she holds the shares, and I quote, "on behalf of the government". We own the fucking thing. Tons of information about it online if you could be bothered to get off your arse and look before posting rubbish.
WE PRINTED A TRILLION DURING A PANDEMIC AND NOW WE ARE PAYING THE PRICE
They printed and gave the rich a £Trillion to put the country in debt...
What about the Govt debt ?
Same principles private homeowners, cannot pay back loans...we will re-posses. Hey we now own the UK/USA/EU...THE WORLD !
The pandemic was created so they could inflate more
What pandemic? guess what! "NEW WORLD ORDER" conspiracy or not?
I’ve sold ALL my UK stocks and put it into a global index fund (ex UK ). I’ve lost all confidence in the UK economy since Labour came in with their down talking the economy and the 22BN black hole.
Well, I’ve got $123K sitting pretty in my emergency fund and it’s itching to be put to work. But with the Bank of England seemingly hell-bent on pushing the UK into a recession, I’m stuck here wondering where to even start investing. Any tips on how not to lose it all?
I get the frustration, but honestly, the markets can be tricky right now. I was in the same boat, but I got some help from a financial advisor who really helped me navigate things. It's all about making informed moves, especially now. You should definitely consider speaking to one!
I feel you on needing an advisor, but I'm honestly not sure how to even find the right one. I’ve been researching, but it’s a maze. Any ideas on where to start looking for someone who knows their stuff?
There are a handful of CFAs. I've experimented with a few over the past years, but I've stuck with Linda Aretha Reeves for some years now, and her performance has been consistently impressive. She’s known in her field, look her up.
Looked up Linda Aretha Reeves like you suggested, and wow, she seems like exactly what I need to get my investment journey going. Appreciate the tip!
I watched Linda Aretha at the Bloomberg Finance Summit years ago and she absolutely nailed it! Her insights were top-notch. Definitely someone to follow!
When you control $, you control governments.
The economy isn’t out of control, very much the opposite. The electorate are out of control.
There is another possibility here. She agrees with the monetary objectives of the Bank of England while pretending to be concerned about the general welfare of the British people, as she too (like the Bank of England) wants to pursue an austerity agenda. (A sleight of hand, perhaps...?) In her recently published book, "The Capital Order" (2022), Clara E. Mattei argues that the central political objective of austerity is to rehabilitate the capital order itself, which is based on the twin pillars of the capital/wage-labour relation and the capitalist process of accumulation. In other words, austerity is a class-based project. Food for thought.
In a nutshell. Reeves isn't making a mistake, she's progressing a project. Just look back to how Mandelson and McSweeney worked hard to kill off the Corbyn project which would have changed all this. Labour are now part of the class war against the majority. Just watch and see.
What about the Govt debt ?
Same principles private homeowners, cannot pay back loans...we will re-posses. Hey we now own the UK/USA/EU...THE WORLD !
There's yet another possibility. That she thought about printing shedloads of money, realised it would cause inflation [bearing in mind we have little spare capacity and low unemployment]. That the markets would panic, the pound fall ['pushing up inflation more as import prices rose. Then of course higher interest rates and public service cuts would be required to arrest the situation - shredding her and the government's political credibility completely.
She may well have thought of these things and thought to herself 'F%ck that for game of soldiers - instead of wasting my time on the fanciful musings of obscure economists I think I'll get on with the job of dealing with reality as find it.'
I don't know how we can even say she is pursuing an austerity agenda tbh. For that, government spending would have to go down, not up. Its hard to say cutting such and such a programme is about austerity (reducing government debt), when you just spunk the money on something else instead. Its just being used as an excuse to take money from programmes and people they don't want to support, and give it away elsewhere instead.
What the hell are you talking about? How can you say this is austerity when the budget is going to increase public spending by £70 billion a year. "The rise in current spending announced in the budget represented the biggest real terms increase since the 2000 spending review." Also: "The rise in capital spending announced in the budget will keep public investment broadly flat at around 2.5% of GDP over the next five years, rather than dropping to the 1.7% assumed in the previous government’s plans." So it quite literally is the opposite of austerity.
If you think the bank of England is the sole reason the UK is stagnant, you are either woefully ignorant, or have an agenda.
There are 3 reasons the UK is stagnant and has been for over 15 years:
1. UK's ridiculous cost of energy.
The UK has one of the most expensive and inefficient energy grids and generation in the world, only behind Germany in Europe. This puts the cost of absolutely everything up, from transportation, to manufacturing, to heating and datacentres. Business and households take that hit at every level of economic activity, and businesses do not want to be based in the UK in large part for this reason. This has depressed economic activity since at least 2012.
2. UK's over-indulgence in property values and underdevelopment.
The UK, along with Canada and Australia, have some of the highest average home prices in the world (especially in London) while also having one of the lowest quality and stock of homes in the West. The uk also refuses to build dense, efficient homes (like apartment blocks seen in Europe). This has several impacts.
A) most wealth is pooled in the elderly who bought homes in the 60s and 70s. This cohort are also economically conservative and inactive, locking away a large percentage of the UK's wealth in un-productive real estate.
B) young people cannot afford to buy homes, therefore start families later and cant live where is economically ideal.
C) Business and the stock market lack investment due to the over-indulgence in property as "investment."
Countries without this problem (Poland is a big example) are seeing huge economic benefits and development, with a mych wealthier PPP youth and healthier economy.
3. The UK's lack of technological and infrastructure innovation.
Our country is a broken, ageing mess, with poor modern transport, IT sustems, tech integration and city density. Business struggles as there is no efficiency of density in cities or operations, leading to many redundant positions and stores fighting for the same workload and customers. The uk is also terrible at implementing modern IT systems, and is about 10 years behind most other western countries. This leads to many low-paying jobs for basic tasks that should be automated.
Overall, the high interest rates are an issue, but only a compounding one. The uks problems run deep and is the reason the wealthy are fleeing the uk as fast as they can.
You missed number 1. Austerity. In times of record low interest rates the last government elected to idiotically pursue a strategy of reducing the national debt rather than taking advantage of the really low interest rates to borrow and invest in the economy. All 3 points you mention could then have been addressed.
It's a lot deeper than that, mass migration, opening up Australia, New Zealand Canada, UK to the Chinese investors that have driven prices to ridiculus levels. Net Zero suicide which is an agenda. The UK is being deliberately dismantled.
Perhaps this explains why Reform and the wealthy rich who sponsor them are fighting the PR war against 15 minute cities? I'd love to live in an area where I wasn't car-dependent (for some things - it's a 2 hour bus ride via 2 different buses and 15 minutes walk to get to the nearest Retail Park). Though some of them came in for much stick (e.g. Milton Keynes), we need some new Garden Cities, planned out with all the infrastructure like schools, workplaces, hospitals etc built at the same time.
The superiority of Chancellors over the BoE, is more honoured in the breach, rather than the observance; the independence of the UK's Central Bank has been imperative, since the first days of Gordon Brown...
Hmmm Do you really think that the upwards transfer in wealth of recent years was inadvertent? At some point we all need to ask the question Cicero did when he heard of Caesar's assassination "Qui bono?" Who benefits from all of these changes? It's certainly not been the working class, or the small business owner. These politicians, of whatever party, are simply doing as they're told.
In hindsight I was stupid not to take furlough in 2020, since I'm paying for it anyway.
Rachael from accounts is clearly out of her depth.
It appears they are stuck out of their depth . Wedded to this growth solution yet unable to navigate the nuances if the financial system
Or maybe she has read Mises and Hayek and is applying the medicine the economy desperately needs!
It's worse. She actually worked in the complaints dept.
She looks like she is having a nervous breakdown these days.
What’s worse is Reeves from accounts, has been sent to China to negotiate deals. How is someone that is financially illiterate going to negotiate financial deals?
Bailing the banks out without repayment began this process, plus 15 years of QE to paper over the cracks.
BoE needs to have its independence stripped.
It's not independent, thats just a con trick, the Government appoints the directors and they appoint people who will do what they are told to do.
Who would you rather have making the decisions? Research over many years up to the 90s in many countries found that where politicians made those decisions they understandably had a bias towards setting interest rates too low, leading to stronger growth in the short term [good for elections] but higher inflation on average. Giving central banks independence is not proof against mistakes, but it does mean that the mistakes are not biased, so inflation averages around the target that may be set.
Apart from the fact that there is no independent BoE, let's be completely honest. It's owned by the government; its governor is appointed by the Chancellor and reports to him.
@@billB101 It is indeed subject to democratic control. The govt sets its objective, ie 2% inflation, each year - the govt can change that if it wishes, and did so in 2004 when it changed the inflation measure. The Bank has independence on the technical matter of how it achieves that, ie what interest rates it sets. UK and international experience suggests that on average politicians set interest rates too low if they have control, resulting in higher inflation. You are right that the Bank does not have financial independence, which is why the govt needed to underwrite Quantitative Easing when the Bank first proposed it.
The Governor is appointed by the Chancellor, but for a long term, and a single one so that he or she is not tempted to muck about with policy for fear of not being reappointed. That is a defect in the US, when the Fed chair is reappointed [or not] every 4 years.
Very well put Richard.
During the general election, one political party recognised this problem. Their plan was to instruct the Bank of England to create a £900Bn bond, with a 75 year maturity and 2% coupon. They were to use this money to buy the QE bonds from the private banks, thereby saving £40Bn p.a. in interest payments. The name of the party? Reform UK.
That is not possible becasue creating bonds is not done by BOE but by UK Treasury. Also, BOE can ONLY control short term Gilts 1 month to 6 months, they have NO CONTROL over long term 1 year to 30 years so cannot manage 75 years. The Gilt over 1 year is set by the market by buyers and sellers, the 75 years bond you suggest has to be floated on the marketplace and the price will be set by traders.
This guy and Gary Stevenson need to join forces
The UK cost of borrowing simply reflects the global cost of borrowing (e.g. its on the same trend as the US). This is a global issue and the BofE is simply dealing with it. Just as the BofE pursued Quantitative Easing it cycles and now its heading towards Quantiative Tightening. The BofE is a little ship on a huge global sea and its using any tools it has to deal with those global tides.
Yes, the BOE is just a kind of vehicle really...except the money-lending families that lend TO the BOE - they are real people with a real money-making agenda, and it's THEM that set the policies - steering the vehicle if you like. They SET the global cost of borrowing, which in turn dictates all other monetary policies that the puppet BOE Governor then takes the credit/blame for. So if our delightful govt appear to be on a course to destruction...they were forced into it by the BOE...which is the tool of choice of the real global puppet masters.
Who are the people in the bank of england doing this. Why are they doing it. Who, in the background is making these decisions.
Listen to Whitney Webb
🇮🇱
It's just bankers doing what their economic training has prepared them to do. Mainstream economics is a mess.
I thnk you know
@@crediblevidsJesus!
Who give to the Bank of England the order to increase the borrowing? Certainly
Not the British people who are the taxpayers!
I remember watching your TH-cam video from October 15th, 2024, which was titled, "The national debt is something to be celebrated". You glossed over the fact that part the taxes UK citizens pay to the government are used to pay the interest on the national debt. The amount of taxes being paid just to service the national debt will only grow higher. Now, is that REALLY something to be celebrated?
This guy is a hypocrite.
You must have missed the point where the Bank of England is purposefully keeping interest significantly higher than the rate of inflation! The reason Richard celebrates national debt is when it is used to invest in assets be they human beings or bricks and mortar. Assets increase in value so you have to look at debt relative to the underlying assets. Seems like you are quoting something without any context here.
@@aries6776 Watch the other video yourself and make your own opinion.
There are dozens of incorrect and ridiculous statement made by Richard Murphy in this video, your point is a good one
@@christopherdaffron8115 I did and my opinion is based on that. Do you have an actual rebuttal? Or do you think 'tax' is a dirty word because like Professor Murphy I think the rich are not paying their fair share. I also am a big fan of Gary Stevenson. There is nothing wrong with more tax, as long as it addresses wealth inequality.
This is not the only thing going on... national insurance increases has slammed the door shut on recruitment in my company, people are leaving.... everything is on fire at the moment
The timing is right for extreme sports enthusiasts. Especially those who thrill with Downhill.
You have massive vacancies everywhere in the UK. How that compute with your assertion that your company doesn't recruit anymore? Immigration is sky high. People don't immigrate into a country if there are no jobs available. It's a demand and supply economics. The UK have massive demands in the job market, the local British people can't satisfy the demand, hence you have lots of immigration. PS: maybe your company is just an exception.
@@holz_name
It's more the type of vacancies and what many companies are trying to get for their money.
I hold multiple MHE licences, yet most advertised jobs are either temp agencies (who lie about positions and pay) or are only offering minimum wage.
It was a similar story with HGV not so long ago, where drivers were quitting to go work on warehousing because the pay didn't match the responsibilities.
@@holz_nameEmployers keep wages down by employing people they know will work for less because they have to. This is how immigrants are scape goated (divide and rule).
a 1.2% increase on employers national insurance that does not even kick in till april?
Truss said something similar, she was called a conspiracy theorist.
Looking back now I think she was used as a scapegoat of sorts. The UK was in downturn for over a decade before her.
Truss wanted to lower bank profits in the immediacy to increase them in the long run. They were having none of it.
@@johnlow810 conservative membership voted truss leader over sunak. Elites not happy, Axe job on truss, sunak becomes leader. Sounds about right.
Truss was a useful idiot.
Liberal Democracy is just rule by international finance and the Merchant class.
You just described the Credit Cycle. It is a fact of life. You cannot blame the BoE for doing banking. The buck stops at No10.
That's literally his point. He's blaming the Chancellor of the Exchequer, Rachel Reeves, for not standing up to the BoE, and states that she's simply afraid of it. That's explicitly what he says.
He actually blames the Chancellor of the Exchequer for her inaction.
Banks will be banks regardless and will bank until otherwise.
The Government have no power, they do not run anything.
@@asterisk911 Reeves is an ex-employee of the Bank of England and was probably groomed and put in the post to do their bidding.
@@asterisk911 QT started in February 2022 it's not some new thing.
Wealth is wealth. Paper is paper. They are not the same thing.
*I'm favoured only God knows how much I praise Him,* $230k every 4weeks! | now have a big mansion and can now afford anything and also support God's work and the church.
Only God knows how much grateful i am. After so much struggles I now own a new house and my family is happy once again everything is finally falling into place!!
Wow that's huge, how do you make that much monthly?.. I have been looking for ways to be successful, please how??
It's Ms. Evelyn Vera doing, she's changed my life.
I started pretty low, though, $5000 thereabouts. The return came massive. Joey is in school doing well, telling me of new friends he's meeting in school. Thank you Evelyn Vera, you're a miracle.
Wow...I know her too she is a licensed broker and a FINRA agent she is popular in
US and Canada she is really amazing woman with good skills and experience.
So basically half the country will be unemployed by 2030
Yep, Universal Basic Income on the way.
No, it will just be paid by sucking value out of savings and print money into eternity.
So in 2030 the to go coffee will cost you £ 50 and a mid size car will be £ 500,000
@@prebenpetersen5982 not without wage stability to match it. Wages won't increase and coffee won't become a daily 'have' like today. People's habits will change and the circular economy will drive it. Cars won't be bought anymore, everything will be leased over long periods, nothing will be owned. Our purchasing habits and money management are about to change dramatically.
@@prebenpetersen5982 Thats how its done.
@ and what should push that? It isnt like productivity is about to be crushed, so it has nothing to do with poverty.
What would drive poverty would be if you couldnt make as many products per hour as before. And that would be a political choice, and why make such choice?
So I dont share your pessimisme. This crisis is about government is a drag on the economy due to High debt. Once that debt is inflated away, within 3-5 years, there is nothing but political stupidity holding us back
Only Energy insuficiency or government can hold you back. And if you are in the UK, a good piece of advice would be to FOR ONCE NOT TO ELECT IDIOTS INTO POWER.
Great analysis. I totally agree and it’s so refreshing to hear cogent criticism of the Bank of England
Raising interest rates had zero effect on the Putin-induced inflation on food and energy.
The inflation reduced naturally.
With this in mind it's complete folly to give the BoE the a remit of keeping inflation at 2% - it demonstrates a fundamental misunderstanding of economics.
The BoE is unelected and, as such, should not have control of Monetary Policy.
These are big, big issues that must be addressed!!
Putin induced inflation?
Yeah, right.
Putin does not have the power you ascribe to him. We are projecting our failures onto tinpot nobodies many miles away.
I suppose you were jumping for joy when all the sanctions were placed on Russia.
Well, everybody who understood economics knew this would have a devastating effect on the economy of the West.
But it was great at the time, 'I'm Mr big guy'.
Thickos.
@@tobyrugby Hello it is me John England from Warwickshire oblast. We should not be of putting sanction on Mr Putin in special operation, think of economic!
To some extent it did the very opposite. Housing costs, whether mortgaged or renting, went sharply UP. You are quite correct, raising the base rate had a limited impact on the reduction in inflation, which was not demand induced, but supply induced.
Bank of England has spent £4 trillion on Quantitative Easing from 2009 - 2022 with £200 billion spent on Quantitative Easing in 2009 and most of this money gone to institutional investors.
Successive British governments from 2009 could have used Quantitative Easing to prevent, alleviate and eradicate poverty, could have been used to stop austerity, stop benefit cuts, fully fund public services and renationalise privatised companies, replace infrastructure and build a national high quality national council house building programme.
Austerity, privatisation and infrastructure transfer from the public sector to the private sector is wealth transfer from the people to the wealthiest on the planet.
This is a bit muddled.
The BOE had several periods of buying assets [nearly all government bonds] , paid for by creating reserves at the banks [but on the other side of that the banks had extra deposits from the institutions that sold the govt bonds to the BOE. The maximum level of assets held by the Bank was around £900 bn, nothing like £4 trillion. It has since sold back some £200 bn of the gilts in the market, which is what Mr Murphy seems to be moaning about. Of course the money went to institutional investors - they were the ones who had the government bonds and sold them. Unless they wanted to hold bank deposits earning diddly squat, they needed to buy something else, eg UK company shares [which helped keep many companies in business in 2009] or more government bonds [because the govt has been running large deficits for most of the years since the crash, although austerity brought the deficit down to low levels for a short time in around 2017-19. It is for the govt to decide what to do with the money it borrows by issuing bonds, and indeed funding services and paying pensions and benefits has absorbed a lot of the money.
What about the Govt debt ?
Same principles, cannot pay back loans...we will re-posses. Hey we now own the UK/USA/EU...THE WORLD !
@faramir The £4 trillion spent by the Bank of England is from their official data for the years from 2009 - 2022 published on the Bank of England website.
@a.lerner8468 Richard J Murphy has explained that the government can borrow money from the government owned Bank of England to settle debts as the debts are in Sterling and accepted as payment for foreign countries.
@a.lerner8468 The New Statesman reported the late Queen was then the world's biggest landowner now the King with 6.6 billion acres of land.
Absolutely brilliant. Borrowing money from an entity that has none, but creates it out of nothing, and then paying interest on that money to them--- wow, if only I could do a something like that. But that would be counterfiting and I'd go to jail 😊
The issue is not QT, just how the UK does it. In the US, they do QT through letting the bonds expire and not buying new ones. While reducing liquidity in the market, it is a lot less impactful on the bond markets vs selling as the UK central bank does. This is the same thing that led to the bond blowout during Liz Truss' mini-budget. Are the BoE the king-makers in the UK?
Yes, they will oust a PM if they make policy they don't like. Hence why Reeves is forced to tread carefully. Truss was incompetent, no denying that, but the banks clearly had the power to get her out and get in someone who would do what they want.
So, without government spenfing there's no gtowth?
Where did the productive companies go?
They were destroyed in the 80s.
Manufacturing went overseas, green taxes have killed the oil and gas sectors, national insurance rise and increased living wage is about to kill off the rest