This is an interesting article on Reuters for those that are interested in the reasons why the UK is fcuked.
1. To deal with high inflation the UK only has one tool at its dispposale to use. Raising interest rates.
2. Britain's high rate of energy inflation reflects its heavy reliance on natural gas for power generation and home heating as well as the poor energy efficiency of its housing stock.
3. While Britain typically has higher services inflation than the euro zone, that wedge has grown wider in recent months - with economists pointing to the labour market as a culprit.
4. A rise in early retirement, long-term illness and migration trends have depleted the pool of workers, meaning the recovery of Britain's labour market from the pandemic is trailing that of international peers.
5. Supply is weak because of Brexit and workforce sickness. We do not expect those chronic supply problems to ease in the near-term.
6. Spending over £400 billion during the Covid-19 pandemic, at the time considered a good thing, has/is causing eye watering interest repayments. We do not expect this to ease in the near-term.
7. The UK spent £9.8 billion in April 2023 on debt interest alone. Thats without paying down any of the capital. It cant continue with that level of montly debt interest repayments. But there are no quick fixes.
8. Any new government from 2024 will have some very difficult decisions to make. Borrowing, even to invest, will add to the national debt and increase interest repayments further, which some economists are suggesting would not be serviceable and more than likely lead to defaults which in turn could lower the UK's credit rating. Its worth noting that lower credit ratings lead to much higher borrowing costs due to risk.
UK General Election 2024 (or 25)
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Michael5482
- Posts: 1693
- Joined: Fri Jan 14, 2022 8:11 pm
Just the 8 
The full political system no longer functions to operate the country efficiently or for the good of its people in the modern day. Most of it is archaic nonsense with politicians to busy arguing amongst themselves to be even bothered about the things that matter.
Inflation on the rise, cost of living crisis, energy crisis, NHS in crisis, people unable to pay mortgages the list is endless but no politicians spend weeks wasting time arguing over a fat lying f*ckin bafoon all in the name of "democracy"
The full political system no longer functions to operate the country efficiently or for the good of its people in the modern day. Most of it is archaic nonsense with politicians to busy arguing amongst themselves to be even bothered about the things that matter.
Inflation on the rise, cost of living crisis, energy crisis, NHS in crisis, people unable to pay mortgages the list is endless but no politicians spend weeks wasting time arguing over a fat lying f*ckin bafoon all in the name of "democracy"
With due respect to Atho55, Derek27 made a good point.
The Tory stance that Labour would make things worse is an old and feeble argument. A 13year administration should have plenty of successes to crow about. The Tory's have got zilch apart from vaccine rollout. 13 years! Absorb that figure and ask are things better.
If someone can tell me how things are better I'm all ears. Go look at our gdp compared to our competitors since 2016 or the FTSE compared to other global stock exchanges. We've stagnated. We've lost frictionless access to a market of 450 million. It isn't rocket science that we would suffer.
Brexit is a fact. I was a Remainer but I want my leaders to deliver the advantages it was supposed to bring. They haven't.
It's time to let someone else have a go, surely?
And for Liam Fox to stand up in the Commons and say it's time for "more good news, talking Britain up". That's just complete twaddle.
The Tory stance that Labour would make things worse is an old and feeble argument. A 13year administration should have plenty of successes to crow about. The Tory's have got zilch apart from vaccine rollout. 13 years! Absorb that figure and ask are things better.
If someone can tell me how things are better I'm all ears. Go look at our gdp compared to our competitors since 2016 or the FTSE compared to other global stock exchanges. We've stagnated. We've lost frictionless access to a market of 450 million. It isn't rocket science that we would suffer.
Brexit is a fact. I was a Remainer but I want my leaders to deliver the advantages it was supposed to bring. They haven't.
It's time to let someone else have a go, surely?
And for Liam Fox to stand up in the Commons and say it's time for "more good news, talking Britain up". That's just complete twaddle.
6% mortgage rate. In the 80's most would have snatched your hand off for that, but mortgage rates are on the wrong tractory and for a lot o people there's nothing they can do about it, because they're beyond their abiity to absorb these shocks.
The sad truth is interest rates will be used as a sledgehammer to squash inflation. Repossessions and unemployment used to be the main effect but I 'm not sure that will happen this time round.
The sad truth is interest rates will be used as a sledgehammer to squash inflation. Repossessions and unemployment used to be the main effect but I 'm not sure that will happen this time round.
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Michael5482
- Posts: 1693
- Joined: Fri Jan 14, 2022 8:11 pm
The banks need to pay the tax payers back after they bailed them out for hundreds of billions of pounds.greenmark wrote: ↑Mon Jun 26, 2023 7:05 pm6% mortgage rate. In the 80's most would have snatched your hand off for that, but mortgage rates are on the wrong tractory and for a lot o people there's nothing they can do about it, because they're beyond their abiity to absorb these shocks.
The sad truth is interest rates will be used as a sledgehammer to squash inflation. Repossessions and unemployment used to be the main effect but I 'm not sure that will happen this time round.
The Government need to grow a backbone and tell there mates in the city that the recent mortgage rate increases aren't acceptable, they need to find another way to bring inflation down. Hard working people have nothing left to give.
What f*ucking mess this Government have made of this country.
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Archery1969
- Posts: 4478
- Joined: Thu Oct 24, 2019 8:25 am
There are only 5 pratical ways to bring inflation down:Michael5482 wrote: ↑Mon Jun 26, 2023 8:28 pmThe banks need to pay the tax payers back after they bailed them out for hundreds of billions of pounds.greenmark wrote: ↑Mon Jun 26, 2023 7:05 pm6% mortgage rate. In the 80's most would have snatched your hand off for that, but mortgage rates are on the wrong tractory and for a lot o people there's nothing they can do about it, because they're beyond their abiity to absorb these shocks.
The sad truth is interest rates will be used as a sledgehammer to squash inflation. Repossessions and unemployment used to be the main effect but I 'm not sure that will happen this time round.
The Government need to grow a backbone and tell there mates in the city that the recent mortgage rate increases aren't acceptable, they need to find another way to bring inflation down. Hard working people have nothing left to give.
What f*ucking mess this Government have made of this country.
1. Monetary policy – Higher interest rates reduce demand in the economy, leading to lower economic growth and lower inflation.
2. Control of money supply – Monetarists argue there is a close link between the money supply and inflation, therefore controlling money supply can control inflation.
3. Supply-side policies – policies to increase the competitiveness and efficiency of the economy, putting downward pressure on long-term costs.
4. Fiscal policy – a higher rate of income tax could reduce spending, demand and inflationary pressures.
5. Wage/price controls – trying to control wages and prices could, in theory, help to reduce inflationary pressures. However, they are rarely used because they are not usually effective.
Take your pick, there are no easy ways to deal with it. The damage is done.
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Archery1969
- Posts: 4478
- Joined: Thu Oct 24, 2019 8:25 am
Be more like Scandinavian countries whereby buying a home is not the norm. Renting is much more popular and rent controls mean landlords cannot charge what they like. Its set by the Government down to a square meter etc.