Hell Is Coming For The UK Economy – Even Russia Will Fare Better!

So things are really bad for the British Economy and even Russia will fare better Now I believe things are pretty big when Even the IMF believes your economy will Be worse than the most sanctioned Country on planet Earth right so Apparently the UK is going to be the Worst Advanced economy in the world the Black ship of the G7 they are going to Experience a recession I mean even Russia is going to enjoy a 0.3 percent Growth this year while Britain is slated To contract by 0.6 percent now things in The UK are truly going from bad to worse And a stagflation hell is coming we are Likely going to see a recession with High inflation as unemployment continues To rise is the worst case scenario and This is a whole that Britain just dug Itself into now inflation has fallen to 10.5 percent from the peak of 11 last Year but it is still double digit Inflation guys so if you believe things Are bad in the United States or Asia the UK is having it really bad now what we Are seeing is the market betting that The bank of England and will chicken out And stop their rate hikes to save the British economy right it's going to be a Battle between pride and reality because If the bank chooses to Pivot now and Reverses their hikes the pound will just Turn into toilet paper now Britain is Suffering from a lot of structural

Problems they are made worse by the Energy crisis and now they are alone in Fighting the inflation monster they have Cut themselves away from the EU and They're pissed off China so it's not Surprising that the UK could very well Be the worst economy in 2023 I think we All remember Lee's trust right the British PM who lasted a grand total of 49 days now she started the spiral into Economic health with an insane plan to Stimulate the economy out of the Recession we had tax cuts for the rich Halting corporate tax increases and Getting to debt to fund them wasn't the Best idea and let's also recall that the Bank of England had to step in and save The guild Market by printing a ton of Money to bring down ball news right now Investors they understand that the UK Doesn't have the appetite for recession Or financial crisis their Central Bank Will step in to save the day at the Expense of the taxpayer and we have the Bank of England sending mixed messages On one hand it is too early to declare Victory and on the other hitting that Interest rates are near their Peak now The bank of England is trying to play Their hand like the Federal Reserve but The big problem is they are not the Federal Reserve the U.S economy is far Bigger and the dollar system gives the FED much more room to maneuver around

Now what the bank of England is trying To do is to buy time for the UK Government to solve the structural Problems but I think they're going to be Very disappointed because even God might Not be able to save London Jeremy Hunt The chancellor of the exchequer which is The equivalent of the treasury has come Up with a very vague Plan called The Fall ease and it's all about building up Enterprise education employment and Everywhere this is extremely Broad and There are no pacifics and it's something That even a high schooler could have Come out with during recess and even if It's the right plan you'll take years to Build Britain back because what the Boe Is doing right now is just going to Cause inflation to remain high for Longer and the problem with demand Destruction is how you have to raise Rates above inflation to meaningfully Bring it down right now inflation is Above 10 but the Benchmark rate is only Four percent and this won't work the Gap Is just too big to bring inflation down Fast right even in the U.S the FED funds Rate is at 4.75 and inflation is 6.5 Percent much closer to reality and what We have is the Bank of England trapped Right they can't raise rates without Collapsing the eye economy and the Property market so they have chosen to Stay in an inflation limbo and hope and

Pray for shadow recession now the hope Is for production to rise and Supply to Increase to bring down inflation right But we'll quickly see why that is rather Impossible it's quite impossible now now There are many problems that plague Modern Britain their productivity issues And energy crisis and cutting themselves From the rest of the world now the UK They are isolated from the rest of the World and they all started with brexit And the reasons included immigration and Over regulation from the union now on The surface this sounded like a good Idea to really maintain total Sovereignty but it got written away from The largest economy in the world which Was only next door and as a whole the EU Is the largest trading block eclipsing Even the U.S and China they cut Themselves away from getting workers From the EU making their labor shortage Even worse trade with other EU countries Has also stopped because now the UK Isn't part of the single market and they Are talking about tons of regulations Paperwork and custom problems you can't Even drive a delivery truck from UK to Germany or Spain in one fail swoop Anymore right so what did this do you Make British companies and investors Leave the UK right if you wanted to Access the European markets you might as Well save money and open your

Distribution center in the EU so this Sucks Away business and revenue from the British economy now in fact this is Costing them 100 billion pounds a year And reducing Britain's output by four Percent and obviously brexit is just one Factor that's now crushing the eye Economy but it is making their problems Even worse now the UK has an insane Productivity problem and acute labor Shortage that won't be solved anytime Soon and when you train 10 inflation the UK economy is on the brink of a Stagflationary crash is on the brink of A collapse a recession when inflation is Still Sky High and the disturbing part Is how the UK might have more unemployed People than the official figures right According to the official unemployment Rate it is at 3.7 percent but a think Tank believes there are three million People missing from the figure because They reported themselves as it can Economically inactive basically these Are jobless people who are not looking For employment and if this is true then The UK economy is in a world of problems And the UK is becoming more isolationist Guys that is the main problem it is Still acting like the British Empire Where the war goes to the UK and not the Other way around so we have Britain cut Away from Easy trade the EU we know that Already and now the UK is also pissing

Off China the second largest economy in The world and one of Britain's largest Trading partners after the United States And EU countries we have Rishi sunak Announcing that the Golden Era of UK China relations Is override and According to him China poses a systemic Challenge to British values and Interests but the numbers don't show That China needs the UK it's the other Way around in 2022 China's foreign trade The UK fell by 6.7 percent and its Overall trade grew by 5.9 percent while We have a UK cutter from regular trade Thanks to brexit and worsening relations With China because of politics and the Fate of the UK economy is now in the Hands of America so it's really no Surprise guys that IMF downgraded the UK Economy to the point that even Russia Will do better and now if you are the Bank of England you have to do the Ultimate Balancing Act Right on one hand You can't let the economy crash because That will destroy the stock market and Cost investment to just run away from The UK and that's why we are hearing all The job burning about rates reaching a Peak right but inflation is still a big Problem at 10 this is the cost of living Crisis just check out this report guys UK Supermarket price inflation hits Record high adding 788 pounds to annual Bills that's a 16.7 inflation in

Groceries which I would argue is closer To the true inflation rate for the man On the street and that's why sooner or Later I believe the UK will do that Thing able and either rejoin the EU or Open up trade with China and either way It's going to be painful the UK might Have to swallow their pride and rejoin The union or say sorry to China and Re-establish normal relations maybe they Have to do both to save their economy Who really knows they cannot afford to Be isolated especially when a recession Is coming and the problem with this Economic crisis is the pressure it puts On a pound sterling remember that the Bank of England is stuck between a rock And a hard place the bank of England's Mandate is to keep inflation at two Percent but to also support economic Growth at the same time right and we can See this bipolar situation being Reflected in the pound even after 10 Rate hikes for the bank of England from Zero to four percent the pound is still Down 11 to the Dollar on the year and When you hike rates it's normally Strengthens your currency because the Market kind of believes you're taking The inflation fight seriously right but Investors also know from the trust Debacle that the bank of England could Step in to support the bond market and Print money if a crisis hits and that's

Why we are seeing so much choppiness in The currency we have UK bonds rising in Value but this isn't exactly strength Investors they are piling to British Guilds because they believe the Boe is Going to stop hike soon and pivot right They are betting on interest rates to Fall and to push up Bond values but the Boe has already introduced the moral Hazard of saving the market by buying an Unlimited amount of bonds to support Them in the past it's not because the British economy is recovering but I hope That the Boe will build out London even The collapse happens right but there's a Big risk that's really building guys Staying in this limbo of high inflation And moderate interest rates in putting The pound sterling on the knives Edge if The UK economy really collapses and the Government decides to do a bailout it Could crush the pound even further and It really doesn't matter if it's debt Monetization from the Boe to really push Down bond yields or to inject stimulus Directly into the economy it could Spike Inflation further and that could crush The pound and cause foreign investors to Really pull out of the British economy Because even if Bond values Rise by five Percent but you lose seven percent on The currency exchange what's the point Of staying you still lose money and I Think what we are saying is money

Flowing to British bonds and stock Market not really because investors Believe the worst is over but because They believe the bank of England will Chicken out and do a bailout now the Pound isn't like the dollar you don't Need to buy Commodities and a majority Of international debt isn't in pounds It's in dollars investors buy pounds Because they are placing a bet they are Speculating that the Boe will Flinch and Print now the good thing is that if the UK really enters a recession it probably Won't drag down the whole world I Believe the smart money and the ldis Have already leveraged themselves from The British bonds after the list Trust Disaster and the bad news is that the UK Is heading into a stagflation crisis There's going to be a mixture of high Inflation and Contracting growth in the Economy and normally the right thing to Do is to allow the recession to fully Play through now think of it as washing Away The Sins of the past you need to Keep rates High to crush inflation and If unemployment has to rise it has to Rise guys in fact the bank of England Has won the higher unemployment is the Price of fighting inflation so there's Probably no escaping this reality and The big worry is what the Boe will do if Unemployment spikes and the economy Collapses right will they bite the

Bullet and let Britain go through the Pain and really solve the structural Issues for Real Recovery or will they Immediately pivot at lower rates to stop The crash and this is what the market is Betting on and if I'm a betting man I'm Leaning more towards this unless the UK Reintegrates with the rest of the world And becomes more productive there's only Doom and Gloom left this course of Living crisis is not gonna end so let me Know what you think in the comments Below is the British economy truly Doomed will the bank of England chicken Out and beavert let me know in the Comments below stay safe be sure to Smash the like button and subscribe as We navigate through these crazy times