Posted on 08/25/2025 3:59:03 AM PDT by fluorescence
Rachel Reeves’ tax-and-spend gamble is driving Britain towards a 1970s-style debt crisis and bailout from the International Monetary Fund, leading economists have warned.
They have said the Chancellor’s handling of the economy risks a return to the years of high inflation and borrowing that ended with Britain being forced to borrow billions from the International Monetary Fund (IMF) 50 years ago.
It came as leading retailers sounded the alarm over the rising cost of taxes and red tape, which is pushing the country into an era of “stagflation”.
On Saturday night, Nigel Farage, the Reform UK leader aid the economic situation was like “the 1970s all over again”, while Kemi Badenoch, the Conservative Party leader, said that the surging cost of government borrowing was “the price” of Labour’s “economic mismanagement”.
Ms Reeves is under huge pressure ahead of the autumn Budget, with forecasts showing rampant borrowing has created a £50bn black hole.
She is widely expected to put up taxes again to cover the shortfall despite warnings that doing so will only further stunt Britain’s anaemic growth.
Prof Jagjit Chadha, who recently stepped down as the head of the National Institute for Economic and Social Research, claimed the economy was at risk of “collapse”.
He said the financial situation was “as perilous the period leading up to the IMF loan of 1976”, when Britain had to be bailed out by the global banking body.
He told the When the Facts Change Substack, written by the Telegraph columnist Liam Halligan: “I’m in a world in which I could imagine it [an IMF bailout] happening, and we’ll be bereft in that case.
“We will not be able to roll over debt, we will not be able to meet pensions payments, benefits will be hard to pay out.”
(Excerpt) Read more at telegraph.co.uk ...
THey could not have foreseen that problem. We aren't a cautionary tale, because we get seigniorage on the world's reserve currency.
https://www.imf.org/en/About/Factsheets/Where-the-IMF-Gets-Its-Money
It’s a trillion dollar slush fund...
🤬
UK: what happens when you kill masculinity.
Top 10 IMF Member Nations by Quota Share
I was actually expecting it was going to be much worse.
FWIW, I’m not sure I’d trust those numbers.
And I bet it IS much worse.
But didn’t they say that importing millions of unskilled welfare seekers was going to grow their economy in the long term and was in fact the answer to the future pension crisis?
There’s no mention of Starmer in the excerpt. Surely, he is relevant.
I wouldn’t be surprised if Trump is reluctant to bail out britain.
“But didn’t they say that importing millions of unskilled welfare seekers was going to grow their economy in the long term and was in fact the answer to the future pension crisis?”
They based it on the fact that “British Values” (whatever the hell they are) would ‘rub-off’ on the migrants and thus they’d work for near-slave wages. But like one clearly-identifiable minority group in the US, their attitude is that working in the UK shows that you’ve accepted your defeat.
Could that be the plan. The liberal countries run themselves into the ground with their liberal policies thinking they will be “re-energized” with loans from a very liberal global entity.
How about some more Kool-Aid, chaps?
As horrible as Starmer is, he’s only been in office a year. The rot that resulted in the UK headed toward a humiliating IMF bailout started under the decade of “Conservative” rule. The Conservatives allowed the rot. Starmer’s Labour Party just put it in overdrive.
.
What happens when the USA ops out of the IMF.
The English people should call on the Windsor family to use their fortune to payoff the country’s debt.
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