Name: “Most People Have No Idea What’s About To Happen To The UK”
Uploaded: 2025-07-17T09:33:17.000Z
Duration: 16 min 24 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

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The only reason that the economy hasn't collapsed yet is because the government has been relying on debt more than ever.

But you can't borrow your way out of a crisis.

A debt is a debt and it must be paid back.

After all of that debt and all of that spending by the government, the economy seems in a much worse shape than it was prior to that.

And it seems like the British economy is about to face a stagflation.

If it happens, everybody is going to be wiped out.

Because a stagflation is a rising inflation, a rising unemployment, and at the same time, lower economic growth.

Which means that prices are going to keep rising, but your wages are going to keep going down, which is essentially going to make everybody much poorer.

So let's figure out how close the British economy is to a stagflation.

If you are ready, give this video a thumbs up and let's dive right into it.

Just by looking at the British GDP, you already can see a very clear problem.

Over the last 25 years, it seems like the economy hasn't been growing at all.

In 2007, the GDP was 3.1 trillion dollars.

That increase isn't really much given the fact that almost 18 years has passed.

Did prices increase over the last 18 years?

But did the economy grow over the last 18 years?

Which means that prices have grown on one side, but people's wages haven't grown on the other side.

Because if wages have grown on the other side, then the economy would have grown as well.

Which means that over the last 18 years, every single British has been getting poorer and poorer.

And the only real growth that you see in this graph is in 2020 and it happened because the government massively borrowed money to get the economy out of the pandemic.

Even if you look at the recent GDP growth, you see the exact same pattern, that there is a negative GDP growth.

In May it was negative 0.1 percent, in April it was negative 0.3 percent.

And the only reason that it has grown in February and March is because the bank of England cut the interest rates.

If it wasn't for the cut of interest rates by the bank of England, then the GDP wouldn't have grown at all.

In fact, if you look over the last 12 months, there has been multiple months where the GDP had a negative growth.

And if we are going to have two consecutive negative GDP growth, that's already a recession.

And if the bank of England wouldn't lower down the interest rates, let's say to 1 percent or 2 percent, then chances of a recession is very likely.

And if that recession is going to continue for multiple years, then you are going to face a depression.

Because at the end of the day, stagflation isn't just about the economic growth.

You have to take a look at the second aspect of stagflation, which is inflation.

Inflation peaked back in 2023 at around 10 or 11 percent.

However, since then, the bank of England has done a fantastic job by hiking the rates from almost 0.5 percent to as high as 5.5 percent.

And that had its impact where the inflation was lowered down to almost 2 percent by May of 2023.

But a 2 percent inflation rate for a single month is not enough.

If you want to bring down inflation to 2 percent, you need at least 12 months of 2 percent inflation rate for you to claim that we had a 2 percent inflation.

That's why if you look at the numbers, inflation has been rising since then.

And currently, it's almost like 4 percent.

And this is how they calculate inflation.

There are different ways to calculate inflation.

Like literally selectively take a basket of stuff and you can say that this is the inflation.

However, that does not apply to the real life of people.

Because, for example, when you take things such as CPI, CPI does not include within itself house prices.

Suddenly, house prices have grown by 30 percent.

But you don't see that growth in the CPI report, which means that inflation hasn't grown that much.

Even by those standards, inflation has grown by 3.5 percent.

And here is the biggest problem is that the Bank of England cutting interest rates already by a single percentage.

And it seems like they will continue cutting interest rates.

Even according to Bank of England itself, like the inflation currently is 3.4 percent and the targeted inflation is 2 percent.

What does lowering down interest rates does to the economy?

It increases inflation because it is going to increase the supply of money in the economy.

So you haven't fixed inflation yet and you are already lowering down interest rates.

Now, compare that to the Federal Reserve.

The economy in the US isn't facing a recession, at least in the foreseeable future.

But at the same time, the inflation has gone down to like 2.3 percent.

And even in that case, the Federal Reserve is very hesitant to lower down inflation because it knows that you need at least 12 months of consistent inflation of 2 percent or below that in order for you to claim that.

That means that inflation is not going to go below 3.4 percent.

In fact, it is only going to rise after that.

But it also could mean that the government is very desperate and because they want to avoid a recession, since I have showed you just prior to that, that the GDP is slowing down.

And if you don't want to see a recession, you lower down the interest rates in order to give the economy that boost.

However, that boost is only going to be in numbers, it's not going to be in real life.

In real life, people will simply see the value of their savings to be devalued.

The third part of the stagflation is the unemployment rate.

Unemployment has been rising consistently over the last year or so.

It reached its all-time back in July of 2022.

However, since then, the trend is very clear.

Now, 4.7 percent isn't originally that bad.

If you have it like 5 percent and above that, then it's a problem.

It's a matter of time before it's going to get to 5 percent, especially when you see a lower economic activity.

Secondly, you see that the government is so desperate to lower down interest rates when inflation is like 3.4 percent, which means that based on their math, it seems like the unemployment is about to hit 5 percent and after that it can literally keep growing.

The second problem is that when you have high inflation, businesses are very cautious about spending.

Because high inflation means that the cost of doing business is rising.

And when you don't control your costs, then you're not having a profitable business.

Because at the end of the day, business is about getting something, turning it into something else, and then making a profit by putting your margin on top of it.

But when prices are rising so fast, you try to cut costs in order to control the cost of doing the business.

And one of the first things that you would do is cut your number of employees.

Because payroll is the largest expense that any business would possibly have.

And when you're cutting employment, that means that unemployment starts rising.

And this graph will again will keep trending upwards.

The second graph I want you to look at is the consumer confidence index.

You see, the economy is like a self-fulfilling prophecy.

People are going to act based on what they believe will happen with the economy.

So for example, if everybody believes that the economy is going to continue to grow, everybody will start spending.

If everybody believes that the stock market will continue to grow, people start buying stocks because they want to make a profit out of it.