All eyes on John Healey: Government advised to slow down or to halt sale of bonds of public debt

 

UK Government advised to slow down or to halt sale of bonds of public debt

The latest reports indicate that economists have stated that to prevent an acceleration in terms of the growth of British public debt, selling less bonds of public debt or stopping sales altogether would be the safe thing to do.

This would leave the Chancellor of the Exchequer with two options: more taxes or budget cuts or both options at the same time.

This is a dangerous time for the British economy because as inflation rises, more resources will be needed. Every time inflation rises, salaries are devalued and the currency is naturally devalued. You can buy less and less with the monies that you have in your pocket or the monies that you are bound to receive. This can mean, once again, industrial action.

Whether the Chancellor of the Exchequer decides to slow down or to halt the sale of bonds of public debt, the fact remains that Britain needs money to pay for its budget. The news that the European Union could be about to implement legislation designated as Made in Europe to deal with Chinese increasing competition that could lead to the lost of more than 300,000 jobs across the European Union is not good news for Britain as this could restrict British investments in the European Union.

Things are not becoming any easier for branches of the public sector like the National Health Service that are asked to create redundancies to ease out the pressure on the budgets run by NHS Trusts. Local and regional authorities have been dealing with deficits in their public finances as asking for more financial support from the Treasury as a way not to raise local and regional taxes that could put families that are already under pressure due to rising taxes and rising inflation. The official rate of inflation that was 2.9% (0.9%) is now thought to be 3.1 per cent and could go as high as 4%. Why is this important? Because much of public debt is indexed - linked to inflation rates. So when inflation rates go up, public debt goes up.

Today, the Bank of England will have to decide if it keeps the present official interest rate. This can have a direct impact on how much the financial sector - especially the banking sector - can charge for loans and mortgages. Under pressure, asking prices for sale of properties are falling in an effort to find new buyers. As much of the British economy depends on the capacity of banks to lend and on the capacity of buyers to acquire loans and mortgages, there is financial uncertainty. Financial institutions borrow to lend to potential buyers. If at any point buyers cannot make payments, leading to defaults, then the full weight of having to pay back credits falls on the banks shoulders. Some years ago, the British government had to rescue the banking sector and used government reserves to that end. For the British government to be able to do the same, once again, there would be not enough reserves available.

The British government wants to invest more in Defense, but this means taking resources away from other areas of the public administration. With limited sources of income and facing the prospect of having to pay more to keep public services as they are, there is very little or no room to maneuver.

There is always the danger of increasing industrial unrest and rising unemployment that automatically increases pressure on the so called Welfare State that needs to support those who are unemployed. Already, about 60% of those aged between 18 and 25% have little chances of finding a job to pay the bills and a growing number depend on parental financial support.

All eyes on John Healey: As Chancellor of the Exchequer, he is the Gatekeeper

 

John Healey is the Gatekeeper. All eyes now focused on the Chancellor of the Exchequer who has to decide who gets what

The honeymoon over, Labour must now focus on delivering what was promised. This is a time when national politics and geopolitics could not be more closely linked. The former Secretary for Defense that resigned when the now former Chancellor of the Exchequer Rachel Reeves did not deliver the monies that he needed to beef up Defense. Now, he has his hands on the public purse and resigning is not a viable option.

As always, the promise was 3% for Defense, but what is the timetable and how is it going to be achieved. Prime Minister Andy Burnham has stated that health and other vital public services will not have to suffer budget cuts and he was adamant about it. Words like Austerity, according to Labour thinkers, can only be found n the Conservative Lexicon.

Financial institutions ie Banking sector are already getting in touch with the economics team, afraid of taxes imposed on the banking sector. Lets remember than some years ago the Treasury had to intervene to save the financial sector, including the banking sector, from total destruction. Thanks to that intervention, the financial institutions that survived and did not go the way of Northern Rock, did somehow prospered. Now, it is the State´s time to survive more borrowing at higher interest rates, with less economic activity and rising unemployment. Even the Armed Forces that an inyection of cash should beef up are told to "limit training activities to what is absolutely essential because we need to save money". How is the now mythical 3% going to be spend, if it ever reached? 

And there is the issue of the Welfare State. For a myriad of reasons, local and regional authorities have been forced to pay for uncontrolled migration that includes asylum seekers. The burden is pretty obvious with local and regional authorities dealing with people as if they were pingpong balls, simply because there are not enough resources. Because of immigration with migrants often put at the top of the list for accommodation, waiting lists get longer and longer and Britons complain about the fact that they are often unable to have access to social accommodation "because migrants and refugees are given priority".

There are not enough jobs, there is not enough accommodation, and public services are being squeezed, but due to budget shortages people are not able to work because there is not enough money to fill up vacancies. Even outsourced services are being cut off with contracts that are not renewed. For all the talk about apprenticeships, none other than the BBC had to tell apprentices that there would not be jobs at the end of the line. So you might be training for a job that will not exist when you finish your training. The buzzword when it comes to real jobs that pay real money is "layoffs". Companies are laying off workers to deal with balancesheets.

So the Chancellor of the Exchequer has to deal with the biggest balancesheets. October is just round the corner and this is the time when all will be revealed. 

United Kingdom: bills keep piling up with prices that are rising almost on a monthly basis

For many people, the way rates of inflation are calculated is an absolute mystery that bears no relationship with the their cost of living. The cost of utilities and the cost of the shopping basket (itens that you need to buy or buy because you could not possible be without) is rising and often by 100%. 

No sooner you are trying to digest the cost of recent increases you get another letter informing you about additional costs to be introduced next month. In my mind, this amounts to devaluation. You are getting less for your monies. Your pounds are worth less and less and less and there is end in sight.

Another issue that should have more and more people worried is the fact that house prices are dropping and for those who have mortgages and loans used to acquire the property that live this means the certainty of having to deal with negative equity - when the value of the assets is less than the financial commitments you signed for in order to acquire the said assets.

You could have a mortgage for 1,000,000 Pound when in fact your property value is now 700,000 Pound. Even if you sell your property you will still owe the lender the amount of 300,000 Pound. No property left. Just debts. Those who have been faced with negative equity can tell you that it is not a nice experience.

For you is a very bad experience. For the financial system it could be even more catastrophic. Northern Rock was bankrupted. Many of the big banks had to be rescued with taxpayers monies. When Gordon Brown made the decision to rescue the banks, he did it because the alternative was financial paralysis.

If peoples incomes go down because of additional taxation, rising cost of borrowing and inflation, it is to be expected that disposable income will go down dramatically thus affecting consumption. Less consumption, more unemployment and more support needed to keep the unemployed and those do not earn enough alive.

We have not seen the nex budget being prepared by the Chancellor of the Exchequer John Healey. The Prime Minister says that increases in defense expenditure will not happen at the expense of welfare and of vital services. The cost of public debt is rising and the country is left with unsavoury alternatives - more borrowing, tax increases and budget cuts.

AfD: Young German voters prefer Alternative für Deutschland

Alternative für Deutschland is the favourite political party for young Germans

Statistically, young German voters prefer Alternative für Deutschland and turnout was over 70% in elections in Anhalt-Saxony.

Despite being an institution in German Politics, the alliance CDU/CSU has been running out of steam. It all started with Angela Merkel that made two fundamental mistakes. One critical mistake was to get rid of nuclear power thus making Germany almost totally dependent on fossil fuel, much of which was imported and is still imported. Another mistake was a policy of open borders that threatens to destabilize Germany and has negatively affected other members countries of the European Union. 

But, worst of all, the most recent mistake has been made by its present Chancellor Friedrich Merz that promote confrontational policies that push Germany towards war in Europe. Such policies will not make him the darling of those who suffered the consequences of two World Wars. The young will not vote for war and one of the fundamental weaknesses of the present Chancellor is that whatever he states as declared intention of the German State the fact remains is that he will struggle to persuade young Germans of military age to support his stances of military aggression.

Providing money and weapons, Germany is alread fighting an undeclared war. Friedrich Merz has gone as far as getting rid of all the financial safety mechanisms that prevent over´spending at a time when German manufacturing is struggling to compete with the rest of the world. A flag company like Volkswagen has already lost 100,000 workers and there are about 50,000 workers on the way out. Germany cannot compete either because of trade barriers or because of technological advances of competitor ie China.

The more Chancellor Friedrich Merz and his supporters seek to ban Alternative für Deutchland the more the few German voters that supported CDU/CSU will move away from CDU/CSU.

CDU/CSU is not even a shadow of its former self and CDU/CSU barely managed to form a coalition that given economic and financial circumstances will struggle to survive another German Federal Election.

Already under Angela Merkel, CDU/CSU representatives were working together with Alternative für Deutschland, something that led to threats issued by Angela Merkel against CDU/CSU members who cooperated with Alternative für Deutschland.

Althernative für Deutschland is de facto the party for Peace in Europe. No German soldiers in foreign wars has Alternative für Deutschland stated over and over again. Friedrich Merz was a political figure that inspired mistrust and hatred. His actions as German Chancellor have only confirmed what many, the vast majority who did not support him, already thought. He was only confirmed as Chancellor after a second round of voting in the German Parliament, having been rejected during a fird round of voting.

Many believe that Friedrich Merz, like Benjamin Netanyahu, is more than willing to send German young to their deaths in a war of aggression for the sole purpose of keeping himself in power.

 

Germany is not staying behind. Germany is keeping up. Why should Britain be the only one?

Argentinian President Javier Milei: The winds of change

 

Argentina: The Winds of Change

President Javier Milei finds himself talking about the "Winds of Change" and winds there are many when it comes to the South Atlantic on the way to Antarctica.

What did not happen in 1982 under a Military Junta could happen under a democratically elected President. Britain was not in the best position in 1982, but Britain is in a much worse position in 2026 and we still have not seen the numbers that the Chancellor of the Exchequer, former Secretary for Defense John Healey, is going to provide. It will not be nice. Mr Healey might have even less monies for Defense than the monies he was offered by Rachel Reeves and the reason he resigned his post as Secretary for Defense. What is essential or not essential in terms of training is a debatable subject. Argentina just announced that it will be new military installations that will give Argentina better access to Falkland Islands, and Falkland Islands are not the only islands under British control in the South Atlantic. In 1982, Britain was not caught up with a conflict in Europe for which it is not well prepared. President Trump has been found laughing about British military power and he might not offer Britain any support should there be a conflict, once again, in the South Atlantic.

I would say that for Britain things are much worse than they ever were in 1982. Equipment that Britain had and that made the difference in a conflict that happened more than 40 years ago has not been updated nor replaced.

Argentina does not need military forces on mainland Argentina for internal puposes or as a precaution because of strained relationships with Chile at the time when the invasion happened. President Allende did support Margaret Thatcher and Chilean support in 1982 was for Britain a sine qua non. President Kast, shares President Milei´s ideology and so that President Trump that is visibly involved in developing American influence in Latin America.

So things have changed exponentially and not in a favourable way for Britain.

The USA, and not just those who support President Trump, have good reasons to support Argentina. As members of the American Administration stated very openly, Europe is no longer a priority. China is. So countries that are closer to the USA, where China has been playing an ever greater role, are also a priority. With Venezuela "under control", Panama controls the passage between the Atlantic Ocean and the Pacific Ocean, which is a crossing of fundamental strategic importance for the USA - a passage that was built by the USA.

So where is Britain in all this? What is happening with the geopolitical agenda? What is happening with trade? Britain has a limited presence in Antarctica, but so do other countries. Undoubtedly, British Islands in the South Atlantic are relevant as a gate to Antarctica. For Argentina, it is obviously a bonus. It is about asserting Argentinian influence. This is for Argentina a James Monroe Moment. Just imagine what it would mean for the Argentinian peoples and for President Milei himself. Imagine what it would mean to be seen as the Argentinian President that "recovered the South Atlantic Islands".

So we keep following developments. This could be the ultimate slap on the face of Britain. So President Trump is using it. "You did not help me with Iran. I would not help you in the South Atlantic."

In Brazil, President Lula da Silva is campaigning for a presidential election in which the son of the now former President Bolsonaro is standing, but with or without a Bolsonaro as Brazilian President, the winds of change are not blowing in favour of Britain. 

UK Preparing for War? What is actually happening?

Preparing for War?

Does it feel like a country looking to beef up its defense? I hope Conservatives could wake up and stop talking about wars that Britain is unfit to fight. Empty chit chat passing as serious analysis. Present and former MPs are making themselves look and sound like assholes. 

https://www.theguardian.com/uk-news/2026/sep/04/british-army-halt-non-essential-training-exercises-save-money

 Britain cannot even produce proper tanks and Britain created the tanks. I followed the whole thing including what happened when Ben Wallace was Secretary for Defense, talking about cutting manpower to create rapid response SAS like teams. British drone technology, the magic response, is already outdated.

While this is happening, Lithuania indicated that it is ready to attack Russian Federation and Friedrich Merz, the German Chancellor, make similar comments. Both Lithuania and Germany attacking Russian Federation not as NATO countries, on their own.

Obviously this can cause one of two things: 1) a widespread European War 2) the end of NATO when other NATO countries refuse to get involved. But there is a third possibility: USA might decide not to get involved as it goes against USA interests and say that it is nothing to do with NATO.

When NATO countries are making military alliances of their own, this is also a reason to be extremely concerned. Pakistan, Turkey and Saudi Arabia just signed a mutual defense pact. Israel and Muslim hating Modi from India have an ongoing arrangement as India provides crucial resources to Israel.

So, if Israel decides to go against Turkey, something that Benjamin Netanyahu has already spoken about, Israel would be actually going against Pakistan, Turkey and Saudi Arabia.

Faraway from Europe, Middle East and Asia Minor, President Milei of Argentina, with American support is preparing to take over South Atlantic Islands. The story tells about fundamental differences between USA and Britain when it comes to geopolitics.