UK PLC going bankrupt under Starmer/Reeves!
It is commonly understood that all Labour Governments end in financial disaster but this one seems to have reached that stage in around a year!
You may have seen that UK gilt yields have just surged driven by high government borrowing, persistent inflation concerns, and a lack of confidence in Labour’s economic policies. Rachel from Accounts does not inspire confidence with the money men.
The 10-year gilt yield has reached 4.81% the highest since 2008. The 30-year yield hit 5.69%, marking a 27-year high and echoing 1998 levels.
This is financial Armageddon if things do not improve.
Even shorter-end yields like the 2-year rose to 4.01%!
Analysts at Goldman Sachs warn of risks from currency weakness or sticky inflation adding £10bn+ annually to debt interest.
The pound has weakened sharply against the dollar, dropping 1.50% to 1.33—the lowest since early April and on track for its worst day in months.
You may have seen that the Budget has now been delayed to late November, just in time for Christmas. This disguises all kinds of internal panic within Labour.
This "collapse" narrative stems from fiscal worries (e.g., Reeves' budget tax hikes and borrowing), stagnant growth (zero Q3 GDP), and a deteriorating labour market, and this is amplifying gilt turmoil.
Liz Truss's budget caused the gilts to raise from 3.03% to 4.42% in just over a month.
They are now way above this level and rising.
Our economy is in peril.
Well said. Though this financial insolvency problem with D-UK Plc, has been going on for decades now. It's significantly escalated since the early Noughties when Blair, Brown and Co. sold of the majority of our gold reseves to save the euro and moved the GBP into a purely Fiat currency backed by absolute nothing. Growth/inflation in the UK has long been due largely to goverment spending, borrowing, and debt, and not due to actual consumer spending on luxury items and necessity, nor wealth creation due to entrepreneurs, economic productivity, and business acumen. Successive goverments policies since the late 1980s and early 1990s has created this crippling and every expanding economic and financial "event horizon" that we are unable to escape. Government Contracts has become the mainstay of most D-UK and western businesses, selling to the civilian domestic and commercial markets has taken a back seat to this. Basically most if not all of western governments and economies are not really capitalism, but crony/state capitalism of varying degrees, which is fundamentally parasitic in nature and unsustainable in the long term, leading to the inevitable bankruptcy and all that entails, since the first one in China about 4,500 years ago and ever since.
Sorry, WEF