British Default: As things go, a British Default is becoming more likely by the day

A British default is becoming more likely by the day. A country that owes trillions of US Dollars, pays billions on a monthly basis and has little to show for a real economy looks increasingly as a ship heading towards the rocks.

John Healey, former Secretary for Defense and now Chancellor of the Exchequer, has very little to be happy about and so do millons of Britons whose lives are turning into a nightmare. Prices that used to be relatively stable are now rising monthly or weekly.

By the time you finish doing your budget, you have to start all over again. If the Chancellor of the Exchequer has even less money to distribute then the risks of job losses and welfare cuts are all too obvious. If this comes together with loss of trust regarding the Pound then the ugly face of Devaluation is all too visible. It is also obvious that is the economy goes drastically downhill then investors trust will evaporate. Investors are already asking for higher and higher returns for public debt.

Reserves? What reserves? When Prime Minister Gordon Brown, former Chancellor of the Exchequer, was in charge then Britain had reserves to deal with the consecuences of an American financial upheaval. He could keep the banking system afloat, but there were many casualties. This time there are no reserves. The ship is going down and there are no lifeboats.

 

Conservative Party about to break one of two new records?

On September 5th 2022 in Britain, the Conservative Party will break a new record whoever is elected British Prime Minister: it would be the first Asian Prime Minister or the third female Prime Minister, after a leadership campaign in which there was a very diverse range of candidates.

The original article indicated 'second female Prime Minister' when in fact it should have been said that she would be the third female Prime Minister. We totally forgot Theresa May. 

Candidates openly disagreed regarding many issues and no one knows with any degree of certainty what will the direction of travel of the new Conservative government. The next hurdle is the choice a new Conservative Cabinet to support the agenda of whoever is elected. Expertise and stamina will be in high demand given the kind of problems the new government will have to deal with from the very beginning. There are extremely hard choices ahead. It is all about energy: energy of the chosen team to deal with lack of energy that is pushing up inflation and leading to industrial unrest.

The situation is especially worrying since British woes are directly linked to geopolitical decisions made by the present government of which one was the Chancellor of the Exchequer and the other still is Foreign Secretary. Until the beginning of the electoral campaign, they were part of the same team, but during the hustings both candidates let it be clear that their agendas were remarkably different. 

The one thing they have got in common is the concept of self-sufficiency and self-sufficiency when it comes to energy supplies will be on a collision course with enviromental commitments. For strategic reasons, Britain might have to delay, water down or even push aside many of the declared goals. Fracking could be at the core of new efforts to make Britain self-sufficient.

Having said that, in the immediate future, the new government will have to deal with the fact that there will be shortages and that the costs of energy might not be coming down as many would like them to come down. The words 'rationing' and 'blackouts' have been mentioned as something Britain will have to face in the coming months.  

British Conservative Party is about to break a record: first Asian Prime Minister or second female Prime Minister

On September 5th 2022 in Britain, the Conservative Party will break a new record whoever is elected British Prime Minister: it would be the first Asian Prime Minister or the second female Prime Minister, after a leadership campaign in which there was a very diverse range of candidates.

Candidates openly disagreed regarding many issues and no one knows with any degree of certainty what will the direction of travel of the new Conservative government. The next hurdle is the choice a new Conservative Cabinet to support the agenda of whoever is elected. Expertise and stamina will be in high demand given the kind of problems the new government will have to deal with from the very beginning. There are extremely hard choices ahead. It is all about energy: energy of the chosen team to deal with lack of energy that is pushing up inflation and leading to industrial unrest.

The situation is especially worrying since British woes are directly linked to geopolitical decisions made by the present government of which one was the Chancellor of the Exchequer and the other still is Foreign Secretary. Until the beginning of the electoral campaign, they were part of the same team, but during the hustings both candidates let it be clear that their agendas were remarkably different. 

The one thing they have got in common is the concept of self-sufficiency and self-sufficiency when it comes to energy supplies will be on a collision course with enviromental commitments. For strategic reasons, Britain might have to delay, water down or even push aside many of the declared goals. Fracking could be at the core of new efforts to make Britain self-sufficient.

Having said that, in the immediate future, the new government will have to deal with the fact that there will be shortages and that the costs of energy might not be coming down as many would like them to come down. The words 'rationing' and 'blackouts' have been mentioned as something Britain will have to face in the coming months.