Has the UK Really Run Out of Money? (no) 

You work for 40yrs to have $1m in your retirement, Meanwhile some people are putting just $10k in a meme coin for just few months and now they are multi millionaires. I pray that anyone who reads this will be successful in life

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?

I cannot believe the Tories are bragging about 0.2% growth in 2028 to 2029, how was this something to be proud of? Accounting for population growth this is most likely a fall in GDP per capita.

Correction: Run out of money, for us plebs. They have plenty of money to give to themselves and all their mates.

Financial planning is like navigation. If you know where you are and where you want to go, navigation isn't such a great problem. It's when you don't know the two points that it's difficult

When you spend more in paying interest on your national debt than you do on your education budget, you know that your debt is too high.

Once you realize that trickle-down economics does not work, you will see the excessive tax cuts for the rich as what they are -- a simple upward redistribution of income, rather than a way to make all of us richer, as we were told.

For a country with no money, you've got a lot of billionaires

1% tax on offshore accounts will raise 50 billion

The uk has NOT run out of money. We are still a wealthy nation. The problem is the money is in the hands of the few who have spent the last decade having the times of their lives. It’s time to take that money back.

This concept of no money only seems to apply when it comes to public services and benefits. When it comes to MP salaries, MP claimed expenses and lucrative contracts for Tory donors (remember back to the PPE scandal) then the treasury is flowing freely. The government always wants the general public to take the restraint whilst paying more, whilst it feathers the nests of the rich.

"Back to square one with Labour". But 'square one' was actually much better than what we have now. Difference between having 'no money left' under Labour is we had good public services compared with Tories which has seen everything go into decline except wealth inequality.

The UK has major economic structural problems as its wealth is mostly in the financial services, located in the London area. The remaining of the country has been neglected for many years ( remember leveling up?) . Infrastructure, education, and health systems have been neglected.

The UK government may not be out of money yet, but they have certainly run out of credibility. Labour waked back on giving out figures on how much they would spend, but I see that as being cautious because they can't see the national financial figures and as such don't know exactly how much they can afford to spend.

There is plenty of wealth, just not for us.

Understanding money, taxes, capital markets, interest rates, fiscal headroom, debt and bonds should be a bigger part of the educational system.

Problem with tory policy, they eventually run out of other peoples money

Nice to see that Zac wrote this episode hopefully his paternity leave went well

Hats off for responsibly putting the TL;DR answer ("no") in the thumbnail.

I’ll raise you £93 billion ( so far ) on a train line that goes from somewhere near London to somewhere near Birmingham. The other bits have been cancelled.

As long as the London laundromat keeps doin' fine, there will be no shortage of money: *The Times* « The City has allowed itself to become the money-laundering capital of the world. This has long been the largely unacknowledged dark underbelly of Britain’s economic success. »

Austerity did so much...

Borrowing is as safe as you can manage the debt. If you borrow the money to make investments that will generate more money and meanwhile, you can pay the interests, borrowing may be perfectly fine---and indeed much better than just trying to save money and postponing the investments. What plays against the UK in that now is 1/ high inflation and 2/ poor economical results and general lower trust in the UK economy, pushing interests up. If you just spend the borrowed money---well, then you're on the way to Greece...

Uk -*posts a budget surplus* Parties- "sorry we dont have any money to spend on you, we need to pocket that surplus money for ourselves"

Paper making machine gos BRrrrrrrrr ( plus taxes)

I would increase duty on alcohol, sugar, fuel, cigs, ecigs, private schools. Removal of tax break, bik/chargepoint for electric cars. Nondom 2 years not 4. Penalty charge for missed GP appointments. No more money wasted in the silly Rwanda scheme. Removal of all contracts to Fujitsu until compensation is paid. Not long we were clapping for the NHS which was useless, lets pay them properly. I call it, The drive to survive. I hope Labour do some of that.

2008, austerity, Brexit, Covid, Putin, social drift, decline of City (was ~9% of UK tax take), debt servicing, leadership vacuum.... the list could go on. The question is not if UK still a big economy but is the trajectory of Income:Expenditure balanced? And is society ready for lower levels of public services?

Not at all. There is plenty of money in the UK. The problem is that its gathering in an ever larger and larger untaxed pool whcih is owned by a tiny proportion of the population. We need wealth taxes and We needed them years ago.

TLDR need to explain where any extra money would come from. Typically there's 4 ways governments can make money. 1. Tax, record highs so not much room there 2. Debt, we are nearly at 100% debt to GDP which is historically when the IMF stops lending 3. Printing money, this doesn't generate wealth just dilutes existing money. 4. Selling something eg Gold reserves, public services, other assets. You can only sell something once, unless you buy it back.

The money in my pocket , it’s just been wiped out by my water bill for £650 - next ?

Add that Government has said "the country is like a household credit card" so often everyone bafflingly believes its true.

I urge every and anyone to look up the “deficit myth” it’s the idea that countries with a sovereign currency (fiat currency) have the ability to create as much money as needed to fund any program, so long as they take into account the inflation it could cause. The UK, Canada and the US all have strong and sovereign currencies that can easily work to remedy all problems their people are facing. We truly need to wake up to this fact.

and council tax , cost of living, will make any tax cuts meaningless

In these uncertain times, it's more important than ever to have a solid understanding of how to manage your finances, invest wisely and navigate economic downturns. But my primary concern is how to grow my reserve of $240k which has been sitting duck since forever with zero to no gains, sure I'm all in on the long term game, but with my savings are lying waste to inflation and my portfolio losing gains everyday, I need a remedy.

Non-dom status has not been axed - just time limited.

If I was £1.2 trillion in debt I'm pretty sure the bank would say I've run out of money. Britain has run out of money.

The Liz Truss experience sounds like a pretty naff day out

There’s no money left. Sh*t, the banks are in trouble. Here have £100,000,000,000,000,000.

How can the UK ever run out of money? We pay unbelievable amounts of tax whiles public services are receiving less and less funding every year. We are slowly becoming a small government nation like the US but with the tax rates of a big government European nation. It makes no sense.

Brexit is the main reason why Britain is struggling so much right now, it's become very expensive to do business in Britain right now. Businessmen and investors have more better and cheaper options in the EU and rest of the world, so why should invest in Britain right now, what benefits does Britain offer to businessmen and investors that the rest of the world doesn't have? If Britain wants to survive in the future and rescue their economy, then rejoining the EU is a must. Period.😒😏😒

Man if only the guardian published an article saying we gain so much money from taxing the wealthy

No money for UK services but plenty of money for foreign wars.

No. Britain has not run out of money. What it has continuously failed to do, however, is use taxation correctly, to force balance on an unbalanced system, and that failure has been getting worse and worse since before I was born. Since my birth, the taxes that come out of the pockets of common people, in value added taxation on items commonly purchased by them, have done nothing but increase, along with the raw price of those things, and the taxes paid by those with the deepest pockets, have only ever fallen in real terms. Put simply, this country has been set up to funnel money away from those who already have the least of it, toward those who already had the largest amount of it, and set up that way for decades. The rate at which this transfer of wealth away from the common people, toward the unusually wealthy, has increased at breakneck pace, until now, a time in which the rate of wealth transfer from the common people, toward the most wealthy in society, is at its fastest in modern history. At no time since the feudal era, has that rate been higher. This imbalance MUST be corrected, lest the practically serfdom like conditions the majority find themselves in, become literal and codified by government. At present, it is more politically likely that the prevailing status quo will be upheld and the servant class reestablished, than it is that anything will be done to change the fundamentals of the flow of wealth, back toward the common person, and away from those who have already had their time at the trough. This is unacceptable, and if something does not change, massive increases in poverty and all that comes with it, WILL cripple our country. If the government refuses to tax specifically the super wealthy, and write legislation choking off attempts to move money off shore to protect unearned the wealth of the super rich, the people will be forced to either meekly pass away of the many causes of death unique to the poor, or fight for their right to live in dignity and be secure in their person, possessions, and indeed their ability to secure housing without having to kill themselves in order to afford it. The cost of living must be controlled, if only because funerals are also unaffordable. There are no legitimate alternatives now, to a redistribution of wealth, from the top to the bottom of the economic ladder, the trickle down MUST become a torrent, or else there will be no reason to expect or demand peace in this land.

Excellent breakdown. Thanks!

There's plenty of money, but both major parties are in the pockets of the people that money would come from.

The recession is currently the "most likely outcome for the economy and I cannot imagine being a victim of circumstances," with inflation at a four-decade high. My portfolio took a serious hit, and it won't get any better. This red season, I've heard of folks netting hundreds of thousands. How can I make sure of that?

Excellent video. Very informative!

Whether it's run out of money or not it doesn't matter. We all feel that it has because of the state of EVERYTHING...

Any government with debt to gdp above 40% has by definition run out of money

Maybe if we didn't have funerals that cost £160M and coronations that cost £100+M and if we weren't housing predators in palaces and financially supporting a billionaire with taxes and £130BILLION on Brexit which was not legally binding vote, we'd be able to support the NHS and other crucial support programmes within the UK.

I think since at least Liz Trust the general idea that right equals less borrowing should have been proven false demonstrably. What is perhaps different, is what that money is spend on, not what amount is used.

I think you should have explained that governments borrow money via the sale of Bonds, and that Bonds and Gilts are the same thing. The terminology all makes it seem more complicated than it is.

For working people? Yes. For the suits? No.

adding to that the cost of borrowing also goes up, you have to pay back WAY more than you borrowed, otherwise nobody is going to lend. that's called fiscal risk.

Correction: In the section on the Truss experience, you're not describing a negative feedback cycle. Negative feedback is self-stabilizing, like a thermostat. "Positive" feedback is self-reinforcing-it tends towards runway outcomes, be they helpful or harmful. You're better off describing self-reinforcing phenomena as vicious or virtuous cycles. That captures the intuition of it.

Considering that there has been some creep towards not applying cost of living increases to senior/retired (especially if they travel outside of country) then i wonder how we are doing financially

The argument about operationilising monetary policy is really interesting. I wonder if it'd be worth reforming it to be more in line with the fed and the ecb

You say that the UK's operationalising of monetary policy should be a bigger story in the media. To that end you could do an entire video on the topic including the pros and cons.

The thing about Liz Truss' disasterous mini-budget was that she was planning to spend 50 billion pounds on tax cuts for the rich. Had she announced a 50 billion pound investment plan, say to revamp the UK's aging infrastructure or strengthen their position in the tech industry, it might have worked, but then it would have been an investment in the future. Tax cuts do not work in times of economic stagnation, and the UK's economy has been jogging in place since 2019.

Only those who contribute should have the right to vote. Those who are drawing in public finances should have no say over it

Really great analysis on a subject that needs to be highlighted.

Also about monetary policy. Central banks can't just keep accumulating losses. Sure they can operate with negative value temporarily but at the end of the day boe has obligations to pay interest on the reserves it holds. So if that money isn't coming from the Treasury (aka taxpayer) BOE would just have to create more money to meet it's financial obligations which as you might have guesses is inflationary. So you're back to the Truss situation. Here's the tl;dr: As long as inflation remains high there's very limited options for the government to raise money apart from raising taxes or cutting spending. You simply can't borrow your way out of inflation and that's a *fact*. Disclaimer: I haven't looked into BOE's balance sheets so I do not know how much liquidity they have but I'm just trying to make a more general point.

the UK is 2.96 TRILLION pounds in debt increasing by 5,100 pounds per SECOND

By covering BoE losses with money from taxes, the Government takes pounds out of circulacion helping to decrease inflation. The other option would be that the BoE prints more money to cover those losses which would be inflationary.

Britain has ran out of money decades ago. Why do you think we have a huge national debt?!

A video on his much of school, hospital, prison and infrastructure budgets go on paying off loans they were forced to take to finance their own development, please.

The money is there, but it’s not for you. Remember, it’s for all the hardworking billionaires.

We aint surprised. I mean all the millions we kept hearing they're putting into projects but we're yet to see it 🤷

Hasn't all the wealth just transferred to the people who were more well off already?

The UK ha# run out of money when it comes to helping average people. When it comes to helping the wealthy and businesses, there’s plenty of money to go around

The problem is, it's a false dichotomy. I think most people are rarely fully right or fully left and anyone that is shouldn't carry any weight of opinion. I'm tired of division being pushed everywhere.

The system is working fine. Rich get richer, poor get poorer. Working exaclty as intended.

If you are in trouble … just call me Dave 😂

A private central bank owned by guess who? The five arrows crew ofcourse.

I appreciate the honesty in the title

Being able to borrow more money doesn’t mean that you haven’t ran out. The interest that we already pay on the public debt is almost half of what the whole NHS gets. It still makes sense to borrow more, but only if that money is invested into something that will actually grow the income.

Plenty of magic monet trees when they need them. Orchards full of them.

Does Nebula have extra TLDR content pls?

But what is the ostensible explanation for why UKG writes such enormous cheques to the BoE every year when nobody else does? Is it to protect against something? What do other central banks do to cover their losses? There must be at least some rationale to it.

"..the government is flirting with austerity..." ??? What are you talking about? What do you think the last 13 years have been, a picnic?

no. the tax take alone is indicative that there are bundles of dosh in the country. trouble is that bundles of people haven't got it and a few have.

Interesting how the graph depicting national debt starts to climb around 2010. I wonder why that is.

It's quantitative, not quantitive.

Hi, I hope you are well. I visit your channel and your video making is very good. Your content idea are very good and huge informatics. Thank you

What's funny is that those on right are supposed to be the ones worrying about taking on debt and yet it was a conservative prime minister who decided to go on a borrowing spree. I genuinely don't understand how Truss's plan was any different from Labour apart from the fact that they wanna spend that borrowed money in different ways.

The moment has arrived for Britain to call in or sell the French loan. France hasn’t paid a penny on its Treasury debt since 1931, there’s almost a trillion owing, and the debt doubles every 14.5 years.

You really need to give more screen time to your graphs. The animation is nice but the labels only show up at the end for a second. Constantly having to pause.

The average wage in UK they say is £35 grand a year , not many people earning that around here

The tobacco industry is at the worst it has been. From everyone smoking to being taxed, restricted, and sometimes even outright banned for some people, is a big downturn. "Banning" tobbaco will just create a black market for it, one which will sell much more unsafe and dubious tobacco.

Greedy politicians need to stop pretending we're on the gold standard so they can line their pockets, and instead just accept MMT, while their needs to be more public awareness of what inflation actually is (inflation does not mean printing money).

Why are they giving so much money to the central bank? What exactly are they aiming to do?

Can you make another video further explaining the part about compensating the central bank for losses? Is this something we can just NOT do? (Like it sounds like from the video).

Once the majority electorate understand central bank Quantitative Easing and how the treasury can “borrow” which is creating new money things will be differently different…

Why does the uk feel like it’s going to shits

A government that has control over finances cannot per se go bankrupt. But we all know that inflation, special assets, and endless debt haircuts have a counter-effect.

UK needs support. All of us need to support Commonwealth.

Of course not. They know how to use virtual money printing machines too. 😄

I wouldn’t mind paying more tax if I knew it was going towards something useful, like fixing our schools or upgrading our military. And not being shoveled into the pockets of MPs and ministers

it's a crazy world

......wrong tense, it has ran out.