“A house divided unto itself can not stand” …. It was unforgivable for the Govt to blame the Bank of England…
@SalsaKingoftheApes
2 жыл бұрын
Truss is acting like a child vomiting in a sweet shop
@antonmursid2714
2 жыл бұрын
Antonmursid🙏🙏🙏🙏🙏❤
@mrme3717
Жыл бұрын
3 monetary faults and their fixes. Our world has 3 fundamental practices that are problematic. If we dont understand the root causes of a problem we will address the symptoms or actors, not the causes. The 1st is that large private and Central banks have obtained the Exclusive franchise to create ALL new Currency as Debt, with interest attached. An increasing population needs an increasing currency, but it is all created as debt bearing interest. This indebts the whole world, every person, every government, in totally unpayable debts, enslaving us all to bankers through personal debt or ever increasing excessive taxation, surcharges, permits, licences, registrations, regulations, fees, rates, duties, fines, levies, adinfinitum, of which an increasing volume goes straight to the debt creators, who created it for free. (At zero cost to themselves.) 2nd. Virtually no limitation plus fractional banking allows banks to effectively create massive new Currency volumes, blowing massive bubbles (in housing/stocks) which devalues everyone's savings, work, pension by raising all prices. Meanwhile taxation creates artificial demand for fiat currency. The fix ? Go back to Sound Metalic Money and stop all banks and financial institutions loaning out more than they have on deposit. Return legal currency creation to national treasury departments with a zero Inflation policy. This will not create inflation like some bankers/economists would like to have you think. It is not WHO creates currency that drives the constant devaluation of your money & work, it is THE VOLUME per population and productivity. The banks increased the base currency supply by over 65 % since March 2020. This is further multiplied by fractional banking. You can't spend it off planet, and we've had no increase in population or productivity. How can it not devalue our savings, wages and retirement funds by at least 50% as it enters the economy ? 3rd. Fiat currency whether paper or digital has no intrinsic value, thus it cannot be used as a long term store of value, particularly in an ever expanding fiat system. The fix ? Return to constitutional Silver, Gold, Copper & Nickle currency, designated by weight not cents/dollars. These will find their own local value. These can't be printed to oblivion, have intrinsic value, and are a safeguard against selfish human nature. Continue to keep the manufacture of Gold & Silver rounds by private mints & foundries to help keep the government mints honest as to premiums. Do not allow bankers and economists trained in the current system to con you into believing there isn't enough Metalic Money. You mix 1% gold, 99% copper, you have a Gold backed currency. Same with Silver and Nickle. Mint 10th ounce, 2 10ths, 5 10ths and 1 ounce. Never give it a 'value number,' which is always a lie. Give it its weight & purity, and let the market place decide what it will buy. Call it 'slow money" like 'slow food.' It's slower for sure, but it's 10 times better for you. Necessary to nationalise mines & pay shareholders out in metal. Correct these 3 Principles and >80 % of a nation's problems would disappear. Do not allow your masters the Debt slave creator's to tell you it can't be done. It is easily done. Beware. The WEF wants you totally enslaved with Digital currency. Convert your garbage fiat currency into Gold and Silver or prepare for destruction.
@chrisdaviesguitar
2 жыл бұрын
So, with all our money in the banks, why aren't they paying US interest. After all, it's OUR money they are lending out to people and businesses. Or should we just keep a minimal amount in the banks and keep it all under the mattress like my grandmother did?
@JohanTetzel
2 жыл бұрын
You've put in a real shift for us over the past few weeks, Ramin - thanks so much!
@Pensioncraft
2 жыл бұрын
Thanks @AlexW my pleasure! Ramin
@user-gq2vn1xj2r
2 жыл бұрын
Amazing. For the first time in my life I am starting to really understand fixed income investing. Thank you.
@Pensioncraft
2 жыл бұрын
Glad it was helpful!
@navidr2811
2 жыл бұрын
Love your videos! It’s certainly one of the most sold and educational financial channels I’ve come across!! Thanks a lot for your time
@Pensioncraft
2 жыл бұрын
Awesome, thank you @Navid R
@ianbaker2599
2 жыл бұрын
There is so much turmoil in the world right now, my gut feel is that things are going to get significantly worse.
@sleepingbearffg5008
2 жыл бұрын
Lol the bible tells me..God bless
@spaceoddity2485
2 жыл бұрын
😱😱😱😱
@mrme3717
Жыл бұрын
3 monetary faults and their fixes. Our world has 3 fundamental practices that are problematic. If we dont understand the root causes of a problem we will address the symptoms or actors, not the causes. The 1st is that large private and Central banks have obtained the Exclusive franchise to create ALL new Currency as Debt, with interest attached. An increasing population needs an increasing currency, but it is all created as debt bearing interest. This indebts the whole world, every person, every government, in totally unpayable debts, enslaving us all to bankers through personal debt or ever increasing excessive taxation, surcharges, permits, licences, registrations, regulations, fees, rates, duties, fines, levies, adinfinitum, of which an increasing volume goes straight to the debt creators, who created it for free. (At zero cost to themselves.) 2nd. Virtually no limitation plus fractional banking allows banks to effectively create massive new Currency volumes, blowing massive bubbles (in housing/stocks) which devalues everyone's savings, work, pension by raising all prices. Meanwhile taxation creates artificial demand for fiat currency. The fix ? Go back to Sound Metalic Money and stop all banks and financial institutions loaning out more than they have on deposit. Return legal currency creation to national treasury departments with a zero Inflation policy. This will not create inflation like some bankers/economists would like to have you think. It is not WHO creates currency that drives the constant devaluation of your money & work, it is THE VOLUME per population and productivity. The banks increased the base currency supply by over 65 % since March 2020. This is further multiplied by fractional banking. You can't spend it off planet, and we've had no increase in population or productivity. How can it not devalue our savings, wages and retirement funds by at least 50% as it enters the economy ? 3rd. Fiat currency whether paper or digital has no intrinsic value, thus it cannot be used as a long term store of value, particularly in an ever expanding fiat system. The fix ? Return to constitutional Silver, Gold, Copper & Nickle currency, designated by weight not cents/dollars. These will find their own local value. These can't be printed to oblivion, have intrinsic value, and are a safeguard against selfish human nature. Continue to keep the manufacture of Gold & Silver rounds by private mints & foundries to help keep the government mints honest as to premiums. Do not allow bankers and economists trained in the current system to con you into believing there isn't enough Metalic Money. You mix 1% gold, 99% copper, you have a Gold backed currency. Same with Silver and Nickle. Mint 10th ounce, 2 10ths, 5 10ths and 1 ounce. Never give it a 'value number,' which is always a lie. Give it its weight & purity, and let the market place decide what it will buy. Call it 'slow money" like 'slow food.' It's slower for sure, but it's 10 times better for you. Necessary to nationalise mines & pay shareholders out in metal. Correct these 3 Principles and >80 % of a nation's problems would disappear. Do not allow your masters the Debt slave creator's to tell you it can't be done. It is easily done. Beware. The WEF wants you totally enslaved with Digital currency. Convert your garbage fiat currency into Gold and Silver or prepare for destruction.
@jimbojimbo6873
2 жыл бұрын
I never truly appreciated how much content you produce till now Thnx
@Pensioncraft
2 жыл бұрын
Glad you enjoy it @Jimbo Jimbo
@robertcraig7241
2 жыл бұрын
Excellent explanation ,we are facing similar circumstances in Australia with climate & esg madness.Will look at pension craft , thanks bob
@paulprescott147
2 жыл бұрын
Thanks so much for breaking this down and explaining the contagion. Shocked as to how little the BOE have actually bought after all the 65billion headlines.
@tb-cg6vd
2 жыл бұрын
Well they were trying to offload the things after a decade of QE not buy more!!!
@19grand
2 жыл бұрын
The Elephant in the room for me is interest rates averaging below 1% for 12 years. This has been a historic low, never seen before. Now that they are on the rise people are in a state of shock. I don't a great deal about interest rates, but I would like to what damage and where the damage has been done to the economy?
@newby2224
2 жыл бұрын
why are the banks being so greedy they aren't passing the interest rate rise to saving accounts....they are putting up rates on mortgages but not savings
@MrHotrod79
2 жыл бұрын
Thank you for doing this Ramin, been waiting for your breakdown, so much going on!
@tatianafoule6257
2 жыл бұрын
Yeas. It is. I know out
@jauld360
2 жыл бұрын
I know the usual introductory details of bonds, but the practical side does not seem to be covered anywhere I can find. For example, in your happy returns pod cast you mention 4% returns on one year UK gilts. I can see an instrument with the description 0.125% 31/01/2023 GBP1000 in my SIPP. For a traditional gilt, I understand that coupons are paid on the 22 January and 22 July, or the next business day. Since the maturation date is 0.125% 31/01/2023, does that mean that all of the coupons have been paid and the best outcome is getting nothing but my money back? It's these kind of details that don't seem to be described anywhere. Perhaps you could record a buyers guide for gilts?
@CB-dv1ox
2 жыл бұрын
I learned something new, actually many things. Amazing content as always, Ramin. Related to your mention on uk/us property market, can I suggest you check out the Australian and particularly New Zealand property market, as I believe it is really a canary in the coal mine situation for many countries that have been fed low cost debt.
@tatianafoule6257
2 жыл бұрын
Maybe in new zeland they are going better. The point is unmeasurable.
@ayg2199
2 жыл бұрын
in case people haven’t figured it out yet, there’s not much money in the pension system. i wouldn’t count on getting a penny of it
@mohammadhashemi1771
2 жыл бұрын
serves you right for falling for the same lies and electing the same liers time and time again
@MagicNash89
2 жыл бұрын
So, basicly, the reason is that the UK has a nutcase government right now, or at least PM and Chancellor Kwarteng.
@andyballard1883
2 жыл бұрын
Hi Ramin, I think your chart showed that the BoE buying intervention has not stabilized yeilds and the reason was that the government fiscal policy just does not add up. That bring the case if they continue buying after Friday it will not ' fix' the problem because as you said the Government is not backing down on their fiscal corporation tax or NI plans
@oneeleven9832
2 жыл бұрын
The problem is a FIAT currency problem..the fuse was lit in 1971 & the mandarins think our debt based system based on nothing but belief can go on forever, by forever pulling currency from the future..frankly I’m amazed it’s gone on this long..the chickens are coming home to roost 🤷♂️
@mattinthehat22
2 жыл бұрын
‘Spending’ projections at 12:00 are highly flawed unless, or until natural gas stabilizes, also
@caparn100
2 жыл бұрын
If interest rates are put up to historically normal levels the the value of a 68 year 3.5% bond is obviously going to fall. There seems to have been some assumption that the free money and low interest rates was going to keep going indefinitely.
@jabberwockytdi8901
2 жыл бұрын
What I haven't seen mentioned yet - When pensions funds start failing those schemes are going to end up on the government pension protection scheme. Means the government will have to issue yet more gilts to cover the shortfall of the pension schemes that fail = doom loop. Plus a significant number of pension scheme members will get a 10% haircut on the pension they expected to get.
@groovejet77
2 жыл бұрын
I think he has limited understanding of what is going to happen.
@johnristheanswer
2 жыл бұрын
Is that run by the Govt . I thought all pension providers paid a levy to be members , effectively insuring each other.
@normanprice5351
2 жыл бұрын
Enjoyed the laid back presentation of the UK/Market Meltdown...I have to say though that even if it is by default...it is better to let interest rates rise higher now rather than later even though it will be painful for some ..In the West we now live in a world where it seems people must not go under but the price we all pay for that is the evil of inflation which hurts the poor the most ...If economic crisis were allowed to play themselves out ...although for some as in the early 1990s it would be painful proper price stability and growth could then be restored with rising living standards for all ... Trying to save to many people in the life boat only ends up meaning that everyone else in the life boat will end up drowning as well !!!!
@tastypymp1287
2 жыл бұрын
Of course we are getting two conflicting messages. We've been getting conflicting messages between different gov officials and between gov and the media for years now. When we don't we get complete lockstep. Hypernormalisation....
@Nilsis1986
2 жыл бұрын
An inconvient truth, that leaders of this world, in banking and in politics might be thinking "You'll own nothing and be happy", but don't realise that everybody who will belong to that class will not contribute to the system, or at very least should not be expected to contribute. There is no free lunch, there never will be.
@RIZFERD
2 жыл бұрын
no bright future there, save your investments from western world and surrounding. Singapore, our former tiny island of Sumatra, will soon rejoin Indonesia again after been donated by our Ancestors in the past to the Brits. no bright future there, save your investments from western world and surrounding. Karma Never Sleep, they (UK, Europe, USA, and so on) never been real rich and will always be where they belong the real third world countries. Indonesia the very center of the equator line was and will always be the real global superpower. Soon the world map will be modified to the real size scaling, real Indonesia is much larger than UK+Europe+Middle East combined not the present too small scaling they've been drawing on purpose since Mercator 1569. Indonesia has 3 timezones: GMT +7, +8, +9 Gunung Padang, Just 25000 years old pyramid older than Egypt after all so many times I wrote Egyptian and Greek were just adopting what we had especially before Toba Supervolcano Sumatra erupted 75000 years ago (larger than Yellowstone USA resulting today world's largest volcanic lake Toba lake of Sumatra with length around 100 kilometers), all Indo around the world (Indo Persia, Indo America, Indo Europe, etc even Batak of Bulgaria is Batak of Sumatra) came from Indo Nesos (Indus/Hindu/Hindia Islands = present Indonesia, Indo were from Indonesia to allover Europe then only India today most significant has preserved as India is far from the equator line and more than 80% natural resources in India up-to-date come from Indonesia from coconuts to many kind of wood to wooden furniture to spices as India is a total mess yet very limited agricultural space because of overpopulation and Hindu today wasn't real Hindu back then) even Indonesia on present world map is too small since Mercator 1569 this very center of human civilization exactly on the center of the equator line is the real Atlantis to put onto Europe is like from UK to half of Russia. The highest humidity (too many water in the air) has decayed the artifacts faster than in any part of the world. But the spirits/soul never die, I am one of the kings and queens descendants.
@lyrical-feline
2 жыл бұрын
Thank you Ramin. Invaluable summary and analysis. I learnt a lot. Much appreciated!
@Pensioncraft
2 жыл бұрын
Glad it was helpful @Jennifer Fisher
@TheNicoliyah
2 жыл бұрын
Thank you for explaining this, I finally understand the depths of this governments incompetence
@tatianafoule6257
2 жыл бұрын
Tell me they are just waiting bubies to explode.
@caviarshower
2 жыл бұрын
its not incompetence, its been done on purpose, they want u to think its incompetence. they r trying to get us to accept global governance via private public partnership and get rid of governments
@aristotlechange1424
2 жыл бұрын
The maximum weekly state pension is £141 in the UK, £507 in Germany, £304 in France, and £513 in Spain.
@pistopitpit
2 жыл бұрын
So many people thought that bond fund is a fixed income. Hopefully this is a wake up call for them. I will never ever buy a bond fund. Cash and equity only.
@BlazinDragon88
2 жыл бұрын
What about the inflation ? Why would anyone want to buy uk bonds when the yield is far lower than the inflation rate??
@mattanderson6672
2 жыл бұрын
Thank you so much This is the sound of sanity
@chrisf1600
2 жыл бұрын
@34:15 small point, but you only need a 25% gain to reverse a 20% loss.
@yourplumbingpal1225
2 жыл бұрын
Best explanation of what is and has happened, on the internet, brilliant work, thank you really wanted to know about the pension investment strategy that I had never heard of before the last ten days and I thought , just maybe I knew a bit, makes you wonder what else we/ I have never heard of that is round the corner , hold on tight eh. Was looking at moving house but have decided to put it off for 5 or 6 years. Shame as had found the right house, but way too risky even within the last 6 weeks. Anyway awesome work thank you.
@donkeytonk
2 жыл бұрын
Ramin would make a fine Chancellor of the Exchequer
@MacksCurley
2 жыл бұрын
No third party risk in physical Gold.
@marctamtonthat
2 жыл бұрын
I believe there is a misunderstanding. The transaction value of the bond is mixed with the fact that this bond will be repaid at maturity. There are always people who want to buy or sell these bonds. The market value which is sadly dropping very low does not affect the annual interest or the fact that the initial money invested will be refunded.
@mario7027
2 жыл бұрын
Right, which makes me think whether these bonds are a bargain buy now that they are at such a low price? Though I'm not sure how much further they could go down if interest rates and inflation keep going up.
@awolgeordie9926
2 жыл бұрын
70% S&P500, 30% Bitcoin, 0% Bonds. Been a rough year but sleeping OK.
@bartwaggoner2000
2 жыл бұрын
Thank you and we appreciate you here in the USA
@MikeNewland
2 жыл бұрын
Different versions of the pension problem around. One says its margin calls on leveraged gilts. Another says its to do with interest rate swops??
@thomasbradley3195
2 жыл бұрын
Sir, I just discovered your channel while looking at the BoE/Gilts with the Truss scheme. Are you a published author? Haven't heard such a fantastic lecture since college. Much appreciate, thanks.
@Pensioncraft
2 жыл бұрын
Hi @thomas bradley yes I have published a couple of books. This tells you about one of them www.pensioncraft.com/books/a-financial-bestiary/ Thanks for watching
@MrMatisse22
2 жыл бұрын
Retire early they said...it'll be fun they said. Well they never said anything about stocks crashing, nor bonds down the toilet. Oh, and a pesky nuclear war thing, it's all so bloody tiresome.
@tastypymp1287
2 жыл бұрын
Well, actually they did. You are repeatedly warned that investments can go down as well as up, and you can receive less than you put it. Not that boomers listen, too busy watching Come Dancing and looking for Campervans.
@royed31
2 жыл бұрын
Pension providers should not be involved in margins calls
@jw8578
2 жыл бұрын
Thx for the explanation. I was curious what was going on.
@Pensioncraft
2 жыл бұрын
Glad to help @J W
@ssorcnivek
2 жыл бұрын
Of course they are going to step in!! YES they are ! They cannot have the alternatives .
@robertwilson214
2 жыл бұрын
So....beg the markets for debt restructure,anchor the pound back to gold,or the country won't be worth living in?
@asdreww
2 жыл бұрын
So it was the most shocking rise in 30yrs... but the government's mini budget was not exactly that radical?
@rdaxthedog
2 жыл бұрын
I hope the PM & Chancellor are watching!
@fvlok
2 жыл бұрын
Fantastic content over and over. Thanks
@Gaz12360
2 жыл бұрын
KwasiCoin, to replace Gilts: for those for which stability is not so much an issue, as merely an irrelevance. A super video, as usual.
@tomb6865
2 жыл бұрын
I love the information and detail in this channel. But some technical, rather than financial, criticism can you turn on rnnoise if you're using obs or some other noise cancellation? it will reduce the mouse clicks and background noise.
@tastypymp1287
2 жыл бұрын
No. You need to grow tolerance rather than trying to shape the world to fit you.
@smvinay1206
2 жыл бұрын
Thank you Ramin... we can totally understand..thank you for the regular update 👍
@Pensioncraft
2 жыл бұрын
My pleasure 😊 @Vinay Shenvi
@AidanMyne
2 жыл бұрын
Would be interesting to see an update on this because my understanding is that the bank of England withdrew it's propping up of pension funds on the 14th October.
@davejohnston5158
2 жыл бұрын
Thanks for your research to keep us all informed. Unfortunately we are now in my opinion in the final stages of a plan to draw all heavily indebted economies into an IMF /world bank digital currency that will introduce irrevocable inflation levels and mass hardship - worse than the 1970's 'rescue'
@MisterNumber6
2 жыл бұрын
it def feels like something is brewing behind the scenes. Esp with the US trillions in debt
@user-wr4yl7tx3w
2 жыл бұрын
I’m not sure if your description of LDI is accurate. They were swaps used to help match duration to reduce interest rate risks.
@JohninRosc
2 жыл бұрын
Many thanks Ramin - always a beacon of light in these dark times.
@Pensioncraft
2 жыл бұрын
Glad you enjoyed it @JohninRosc
@chamsedine1999
2 жыл бұрын
Disfunctional debts market is just le début, debts market is a leveraged based system on rates going lower. Time is running out things are breaking
@davidfrick2621
2 жыл бұрын
Thank you so much for your analysis Ramin Nakisa. It was technical yet accessible. Today all eyes are upon Britain so it is very helpful to find such a rational and informative overview of the issue. Keep up the good work!
@Pensioncraft
2 жыл бұрын
You are very welcome @David Frick
@davidfrick2621
2 жыл бұрын
Thanks!
@Pensioncraft
2 жыл бұрын
Thanks @David Frick
@florianmaier104
2 жыл бұрын
I was hoping you put a video out explaining what happened. Too many news outlets or youtubers just skipped over it labeling it as 'not relevant, too complicated'.
@tastypymp1287
2 жыл бұрын
Proof?
@Blainkennithtrades
2 жыл бұрын
Great stuff as always. I'm working on a video now on what I think will be the final, big leg down for Crypto in OCT/NOV. Generational buy opportunities incoming! Appreciate the content, keep it up.
@vinay4886
2 жыл бұрын
Maybe you should do a video on how the BoE screwed up by not raising interest rates over the last three years and only woke up to reality this year!! The whole world has volatile bonds and equities not just the UK!
@gabrielsoo2939
2 жыл бұрын
Which central bank would have raised interest rates in an environment where the entire world was concerned with how Covid was going to crash the world economy?
@vinay4886
2 жыл бұрын
@@gabrielsoo2939 Central banks have been in denial over inflation (remember Jerome Powell’s “…inflation is transitory..” nonsense through all of last year?) The BoE has ONE job- to keep inflation under check!
@caparn100
2 жыл бұрын
I can see why Andrew Baily wants to stop buying bonds as soon as possible because he has a target on inflation to maintain. All the new money the Bank of England are creating to buy these bonds is going into the economy and causing inflation, this is the opposite of his objective.
@karlnightingale9078
2 жыл бұрын
Thanks for the considered, calm information.
@lainiwakura44
2 жыл бұрын
Everyone would like to avoid dealing with emergencies, well... that's what happens when you put too much trust in the financial system, governments and CBs
@richardcoppack5357
2 жыл бұрын
Great explanation. Thanks for doing this.
@HughJason
2 жыл бұрын
Thanks for the explanation. Who would Rishi have had as chancellor, do you know ?
@AJ-et4zp
2 жыл бұрын
So the BOE decision was responsible for 20 hours of movements but government's decision was responsible for 5 days?
@andrewjackson8089
2 жыл бұрын
Why isn’t the pound on melt down 🤷♂️ 1.14 euro/ 1.116 on dollar as I type.
@AbuSous2000PR
2 жыл бұрын
i have been watching you for years and i benefited a lot please accept my humble donation $$$ more to come soon your explanation here was right on the money a question... do you think the government action was just the trigger..to something that has been brewing for a while? i know the communication was horrible.. they did zero homework. sweet lord... Johnson must be enjoying this🤣 much respect from Palestine keep up the good work many Thanks!
@Pensioncraft
2 жыл бұрын
Thank you @Abu al-Sous much appreciated. Ramin
@lisalu3994
2 жыл бұрын
New subscriber here, really enjoying the content.
@franciscoknower5756
2 жыл бұрын
I think it’s a good time to short UK property
@MyInfotainmentFix
2 жыл бұрын
Brits should go out and cleanse their political system in the style of French Revolution. Get rid of this trash generation of politicians!
@harveyarber2543
2 жыл бұрын
is it safe to buy individual shares. say bp with view of long term dividend payments
@colinfraser9342
2 жыл бұрын
You are very generous in giving everyone your informed opinions, thank you
@Pensioncraft
2 жыл бұрын
I am glad you find it helpful @colin fraser
@jabberwockytdi8901
2 жыл бұрын
I wouldn't invest in the FTSE250 now if you gave me half the money to do it with . Still got way further to fall
@petearmstrong2778
2 жыл бұрын
UPDATE: Today - Fri 14 Oct - Kwarteng flies home a day early from finance meetings in US and Truss has called a press conference this afternoon. Watch for all change again.
@rajibear77
2 жыл бұрын
Why don't the government and the BOE work together for the benefit of the country as a whole. How can you have one group just doing whatever they want without taking into account what the other group will have to do to mitigate the damage. Seems nonsenical to me. Never seen any business work like this.
@heinzbucksandcastle2053
2 жыл бұрын
People have no idea of the bond risk in a rising rate environment.
@tastypymp1287
2 жыл бұрын
What risk is that? If you're holding to maturity it's irrelevant.
@gabrielsoo2939
2 жыл бұрын
@@tastypymp1287 the risk is in the opportunity cost.
@Sabhail_ar_Alba
2 жыл бұрын
It worries me that Andrew Baillie is the governor of the BoE ( Jay Powell is a genius compared to him).
@MangoManZ1
2 жыл бұрын
Hi Ramin, really appreciate your videos, thank you.
@lorristan
2 жыл бұрын
There are a number of players in this debacle and it should not be overlooked that as well as the BOE and the GOV that the OBR hasn't covered itself in glory by not criticising the BOE. The OBR cannot criticise only one side when it is clear where the majority of the fault lies. When Mohammed el Arian was criticising the FED RES about being late to the party as early as October 2021 then it was clear that most other economies would also be late to act. The only difference between other economies was the amount some of them had borrowed to support their economies through the COVID crisis. If the OBR does not have a remit to comment on BOE policy then it is becoming increasingly clear that the voter on the street is not getting a GOV that runs the country. The voter is getting a GOV that ultimately is subserviant to the central Banks.
@LovemyGTI
2 жыл бұрын
Stark to compare BTC and UK bond on same chart!!
@Pensioncraft
2 жыл бұрын
Hi @LovemyGTI it certainly is. Thank you for supporting us on KZitem. Ramin
@looneytoons171
2 жыл бұрын
As a young person and someone on the housing market, this is the best news we can hope for. We need armageddon like we had in the late 80/90's so we have a chance to live a life without debt eventually. The horror of a 50 year mortgage would give me nightmares.
@jimmyhvy2277
2 жыл бұрын
T Patel : Look at the Crash in 1929 1930 , I think that's is more Likely , IMHO .
@davidbaker5561
2 жыл бұрын
Good luck getting your first home, but I hope prices don’t go up by more than inflation once you have bought!
@bspiderm
2 жыл бұрын
If you don’t lose your job ;)
@looneytoons171
2 жыл бұрын
@@bspiderm lucky for me I work in an industry where people usually turn their noses up at. Even if they were on their last pennies they wouldn't put in a hard day's work so I think im quite safe.
@bspiderm
2 жыл бұрын
@@looneytoons171 that’s what they all say ;)
@robertallen591
2 жыл бұрын
ten years ago before the financial crisis a pound was about 2 $ now its 1 we face real collapse we borrowed more and more and now investors will pick the carcass charging ever more interest, i have no idea how bad it will get but nothing is impossible fifty qiuid a pint, or food shortages, property collapse who knows , to even sugest it was madness a few weeks ago,
@MatsNorway
2 жыл бұрын
I have cash.. i want a safer thing to buy than stocks which is now only a long term option.. What do i look into?
@leelofty4485
2 жыл бұрын
gold
@Robo8
2 жыл бұрын
I would love your take on why the FTSE100 is so resistant compared to other major indexes. If you look at Dow Jones, Nasdaq, Dax and so on - they are all down 20-35% from their top. FTSE100 just passed 10%. Is it due to not being as overvalued as others? Resistant energy giants along with healthcare and such? It has fallen in lockstep with other indexes in previous market crashes (2000, 2008, 2020) but not this time. Can we expect it to "catch up"?
@SlobberySlob
2 жыл бұрын
The FTSE is not resistant. It suffers from a central bank which was determined to destroy savers and financial investors with withering inflation, and not to meaningfully raise Interest rates in the face of horrific rising12% inflation and labour strikes popping up everywhere. The currency is being trashed like the Italian Lira or Argentinian Peso. In USD terms the FTSE is down massively.
@Robo8
2 жыл бұрын
Thank you for your insight @@SlobberySlob. So would that basically mean that the FTSE100 is resistant at the moment in part due to the low GBP. Because export companies (and if I remember correctly about 2/3 of FTSE100 income is from outside UK) are extra competitive with a cheap pound? And thus the explanation of FTSE250 not being resistant, is that they are more leaned towards the UK market? Is your assessment then that when BOA catches up with their rate hikes, the FTSE100 will increase the steepness of it's decline? And eventually "catch up" to other big indexes?
@Pensioncraft
Жыл бұрын
Hi @Robert Lindblad I think you're right that it's largely the index composition. Lots of energy & pharmaceuticals and almost zero tech stocks but also very high dividend yield all of which have worked well this year. While those investment styles hold up so will the FTSE 100. If you look at earnings forecasts energy will start to fall back next year, so that will start to be a problem for the FTSE 100. Thanks, Ramin
@ScoobieDoo-zy1rh
2 жыл бұрын
All described on the Duran channel.
@ronnie7983
2 жыл бұрын
Sorry i admit im financially illiterate are premium bonds at risk?
@gepetto0019
2 жыл бұрын
BOE money printers go brrrrrrrr
@kquat7899
2 жыл бұрын
The UK is royally stuffed. Short sterling.
@Maggiemay1942
2 жыл бұрын
How do we buy single bonds? Tks
@simonspencer3108
2 жыл бұрын
HI. Why does it matter if the price changes during the life of the bond? You still get the coupon and at the end you get back what you paid for it at the start… so why does the price change half way through the life of the bond matter?
@FamilyFinancialCoach
2 жыл бұрын
Most people don't hold bonds directly. You have to buy them directly from the treasury at auction to hold them directly (I.e millions of pounds at a time) Also, even if you do own the bonds, often people will pay more than the face value of the bond I.e a bond that matures for £100, they paid £160 for it so they're not fully compensated on maturity
@user-wr4yl7tx3w
2 жыл бұрын
It matters because of the mismatch in duration between asset and liability. Can google this to see more details. Too much to explain just in KZitem comment.
@chrisf1600
2 жыл бұрын
It doesn't matter, if you hold to maturity. The problem is that many people own constant-maturity bond funds (often as part of their DC provider's "safe government bonds" option), some of which have taken a massive haircut. The prices of those funds will creep up, slowly, but for many people close to retirement they'll never see a profit.
@brightbluesmurf
2 жыл бұрын
Because of the use of leverage
@stevo728822
2 жыл бұрын
Inflation
@isthereanyname
2 жыл бұрын
very good explanation
@linzhang4881
2 жыл бұрын
Great content.
@Pensioncraft
2 жыл бұрын
thanks @Lin Zhang
@thornsaresharp
2 жыл бұрын
If you cannot service your debt you go bankrupt. This applies to any government. The problem is not Truss. It is Bailey of the Bank of England. He should have increased the bank rate of interest gradually over the past 10 years instead of reducing it and using QE to make up the difference.
@stevemace1725
2 жыл бұрын
well with interest rates you lose over 5% every year with inflation. on bonds. it's simple bonds are no longer a safe secure holding. commodities are much better without price controls.
@Dr23rippa
2 жыл бұрын
Are we looking at the end of pensions?
@bluedunn374
2 жыл бұрын
Replace “Was close to collapse” with “Is close to collapse”
@paulturner4419
2 жыл бұрын
Trend following models are best diversification bet in this market. CTAs managed futures etc. low or negative correlated to equities
@richardkossow5574
2 жыл бұрын
How come you're not saying anything about all those interest-rate swaps purchased by the pension providers?
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