The UK economy is falling apart. It is getting worse.
CNN reported yesterday:
For the second time in two days, the Bank of England has been forced to offer extra support to UK markets still reeling from the government’s announcement last month that it would slash taxes and increase borrowing.
The central bank warned Tuesday that there was still a “material risk to UK financial stability” from a sharp-sell off in government bonds that has sent yields soaring, pushing up borrowing costs across the economy and forcing some pension funds to dump assets to raise cash.
A slump in UK government bonds that promise to protect investors from inflation — known as index-linked gilts — was the latest source of risk, it said.
“Dysfunction in this market, and the prospect of self-reinforcing ‘fire sale’ dynamics pose a material risk to UK financial stability,” it said in a statement.
The extent of the bond market strain was underscored Tuesday when the UK government sold £900 million ($994 million) of index-linked gilts due in 2051 at the highest yield since October 2008, according to Reuters.
Starting Tuesday, the Bank of England will include index-linked gilts in its emergency £65 billion ($71.7 billion) bond-buying program announced on Sept. 28. “These additional operations will act as a further backstop to restore orderly market conditions,” it added.
The bank said the program would end as planned on Friday, despite calls for it to continue for another three weeks.
George Gammon warned last night that the UK financial crisis is coming on fast.
Gammon shared:
The UK financial crisis is getting worse and the Bank of England is going into panic mode. I’m going to explain this to you and try to go over what the end game might look likein one simple fast step.
Step number 1, let’s go over the fact that collapse seems inevitable and if you think that I’m using hyperboli or I’m fear-mongering, I would challenge you to stay to the end of this video and I can guarantee you, you’ll explain it in the exact same way.
See the entire video below.