The David McWilliams Podcast The Coming IMF Bailout of Britain!
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Jan 23, 2025 In this discussion, young Irish economist Philip Pilkington dives into the cracks emerging in Britain's economy. He highlights the alarming rise of bond yields and the weakening pound, drawing parallels with historical currency crises. The conversation addresses the UK’s overreliance on financial services, the risks of an IMF bailout, and the implications for the Labour government. Pilkington warns that without urgent reforms, Britain might face political and economic upheaval reminiscent of troubled nations like Argentina.
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UK vs. Greece Bond Yields
- UK bond yields are higher than Greece's, indicating greater perceived risk.
- This reveals market doubt in the UK's economic stability and solvency.
Labour and Currency Crises
- Labour governments have historically faced currency crises, including Ramsey MacDonald in 1931, Harold Wilson in 1968, and Jim Callaghan in 1976.
- These past crises involved leaving the gold standard, devaluing the pound, and requiring IMF intervention.
1992 Sterling Crisis
- In 1992, George Soros, with Scott Besant, strategically devalued the pound, profiting immensely.
- This was driven by the UK's property boom, rising inflation, and tying sterling to the rising German mark.