About this episode

The episode discusses the UK's leading position in sovereign debt issues and the implications for public spending and gold investment.

This is a free preview of a paid episode. To hear more, visit www.theflyingfrisby.com It is always nice to be a national of a country that is leading the pack. It makes one proud to be a world leader. When it comes to cracking sovereign debt markets, however, you do not want to be leading the pack. But that is where we are in the UK. Even Mohamed El-Erian is tweeting about it. Yields on 30-year gilts, ie UK long-term government borrowing costs, hit 5.75% this week, the highest level since 1998, and the highest in the G7. It’s local election day in the UK today, one of those events when we are kidded into thinking that a cross on a piece of paper is going to make the slightest iota of difference. This has barely been discussed as an issue, when it should be front and centre. The cost of servicing UK debt is now north of £100 billion, roughly 7% of annual expenditure. All you young folks grinding away at your desks to pay Income Tax, that’s what much your effort is being expended on: servicing debt. It’s not like you are contributing to anything new. As I say in Daylight Robbery, debt is a tax on the future. UK public spending is now £48,000 per household. That’s how out of control…

People in this episode

Host: Dominic Frisby

Topics covered

• sovereign debt
• UK economy
• gold investment
• public spending
• interest rates

Keywords

• UK debt
• gold
• interest rates
• public spending
• sovereign debt

Mentioned in this episode

Books & works: Daylight Robbery

Places: UK, Britain

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