UK Economy Flatlining

Money Tips Daily by Charles Kelly, former IFA and author of

Like a patient on the operating table with no pulse, the UK economy is barely growing. Prime Minister, Keir Starmer and Rachel Reeves are desperately banging on the chest of the patient trying to revive it.

December figures show that the economy barely grew by just 0.1%.

They talk of growth, but where is it going to come from?

10,000 millionaires have quit the UK in the last six months!

China’s economy grew by 5% last year.

Watch video version - https://youtu.be/FgXuoDMFE3c

Retail sales were down in December! I’ve never heard of retail sales falling over Christmas.

More inflation is expected as UK borrowing costs and bond yields have risen sharply.

The country’s additional borrowing costs will run to £12 billion per annum. Paid by us, taxpayers of course. Governments screw up, we foot the bill.

This could mean higher interest rates and higher mortgage costs for all of us at a time, and the Bank of England should be cutting rates.

The market has lost confidence in the UK chancellor Rachel Reeves.

And yet, the FT 100 index, reached a record level today! Apparently they expect interest rates to be cut by 0.25% when the Bank of England meet next month

Will the Bank of England hold or cut rates next month?

The implications are huge for the country and for the 700,000 borrowers who will come off fixed interest rates this year, as well as the first-time buyers who want to go on the property ladder.

Buy to let property investment has become almost unviable, unless you have a large deposit or buying cheap properties up in the north-east.

Some good news could be on the horizon for first time buyers as regulators are expected to relax lending rules. However, could this lead to another boom and bust?

The massive building firm Taylor Wimpey has reported good profits of over £400 million last year and they built almost 10,000 new homes. Perhaps labours plan to relax planning rules will bring more homes onto the housing market.

China

What is going on between Labour and China?

Why did Rachel Reeves desert her post at the time of the bond crisis last week?

What are they given away for China to buy UK bonds? The Chinese government does not give anything without expecting something in return, and they normally bargain very hard.

In summary, the lunatics have taken over the asylum!

What does this mean for you?

What can we do to cope on a personal level?

If you believe we are entering choppy waters and stormy weather, now is the time to batten down the hatches and tighten your belts.

This is not the time to purchase an £80,000 car on a lease or buy a fast-food franchise and open up yet another burger bar.

Manage your money and control your spending.

· Invest wisely.

· If you’re nearing retirement, I would check with your financial advisor as to where your pension funds are invested.

· If you are young, I would learn more about AI.

AI will kill 300 million jobs worldwide according to a recent report.

People already been laid off in the City of London and Wall Street due to the impact of AI.

Expect the best but prepare for the worst.

See also:

Is Great Britain Finished?

As the UK faces mounting economic challenges, many are asking, "Is Great Britain finished?" The debt crisis in the bond market, combined with political and economic turmoil, paints a grim picture.

Watch full video - https://youtu.be/smyXgIM0lWg

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