The UK's £3 Trillion Debt Crisis: What Will It Cost You?

Britain's national debt is approaching £3 trillion. The question is: what happens next?

For more than a decade, politicians have ignored repeated warnings about excessive borrowing. Today, the UK is adding hundreds of millions of pounds to the national debt every single day, while taxpayers, savers and businesses face growing economic uncertainty.

In this episode of The Bullion Advantage, we discuss:

💷 Why Britain's debt crisis may be far worse than most people realise

📈 How the national debt has grown from £1 trillion to almost £3 trillion

⚠️ Why some believe the UK is heading towards an economic reckoning

🏛️ Could Britain require another IMF bailout?

💸 What debt monetisation is and why it could threaten the value of sterling

📉 How rising debt could impact your savings and financial security

🏦 Why diversification becomes increasingly important during uncertain times

🥇 Gold's recent pullback explained

🔍 Why short-term price movements don't always change the long-term outlook for gold

🌍 The key drivers that continue to support gold, including debt, inflation and central bank demand

🔥 What tensions in the Middle East could mean for inflation, energy prices and global markets

🏛️ Why central banks continue accumulating gold at record levels

💰 What growing central bank demand could tell us about the future of fiat currencies

📊 Whether gold could play a larger role in the global financial system in the years ahead

If Britain's debt continues to grow, what does that mean for the future of the economy, sterling and your wealth?

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The purchase of gold from Direct Bullion does not constitute an investment or offer financial returns. Gold is considered a store of value and not an investment product. Past performance of gold is not indicative of future performance. Prices and values of precious metals can fluctuate and are influenced by various market factors. Direct Bullion does not provide investment or tax advice and recommends that you conduct your independent research before making any purchasing decisions.

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Transcript

SPEAKER_00 0:01

Britain is headed towards economic reckoning. For more than a decade, politicians have stuck their head in the sand about the dangers of excessive borrowing, and instead of tackling the problem, they've doubled down on it. Today, the national debt is approaching an astonishing £3 trillion, with hundreds of millions of pounds being added to the total every single day. By the end of this episode, you'll understand how the UK's debt crisis developed, why the risks may be greater than most people realise, and what the potential consequences could be if current economic trends continue. We'll also discuss how people are protecting themselves, as confidence in governments, currencies, and the wider financial system comes under increasing pressure. If you've been wondering what Britain's growing debt mountain could mean for your future, this is an episode you do not want to miss. Before we start though, please remember to like and subscribe if you're listening to this on YouTube. And if you're listening on Spotify or Apple Podcasts, please do follow the show so that you never miss an episode. Right, let's get into this. Harry is here to break this all down. Harry, welcome back to the Bullion Advantage.

SPEAKER_01 1:18

Hiya Jake, yeah, thanks for having me back. It's uh it's good to be back on here.

SPEAKER_00 1:22

It's good to be back. So I think let's just dive right into it, first of all. What what's your main concern here?

SPEAKER_01 1:28

I I think it's similar to what we've been speaking about for a a lot of this. Is normally when we have meetings like this, normally when we speak to people, it's decisions that are being made by the government that we uh scrutinize and look through and try and work out their decision. The bottom line is still the same issue. They're not making any decisions. No. That that's one of the biggest frustrations that not only us but everyone we speak to is sharing them.

SPEAKER_00 1:54

So following on from that though, what why do you think why do you think the politicians have got us into this mess? Like, what's going on behind the scenes? What's the motivation for us for them to get us into this situation? It's it's very convoluted, isn't it?

SPEAKER_01 2:08

I know it's easy to sit here to say, well, they're just simply not doing their job well enough, and this and that, and so on and so forth, but it it truly does seem to the majority of the British public now, whether you sit centre, left or right, whatever way it is, that actually they're just not making the tough decisions. I mean, we we have so many issues in this country at the moment that we're not addressing. Too scared too? Probably, maybe. I I think that's it. Too too afraid to rock the boat, too afraid to lose seats in parliament, too afraid to not uh too afraid to tow company lines and and and party lines, I should say. Yeah. And and that seems to be a massive, massive issue. I mean, our NHS is stretched more than ever. Yeah, they're worried more about the private funding in the in the private sector than they are actually the NHS. I mean, the wait times at the NHS are the longest they've ever been. Immigration is heinously a problem. Yes. I mean, as you know, I'm I'm very much pro-immigration, but somewhere like Australia, where it's points measured, if you provide to the economy, yeah, then then you provide back. I saw a uh a ridiculous figure of 78% of Somalians in this country are on benefits. Well, there is no ethnic group or anywhere they should be on that sort of level, right? No. So it is we're we're stretched from pillar to post.

SPEAKER_00 3:25

So again, following on, we've obviously mentioned the economic reckoning. Now that sounds frightening, but how close do you think we are to a major catastrophe when it does come to our economy?

SPEAKER_01 3:38

I think we're very close, is the honest answer. I think we we've seen a pullback in the gold price, we've seen uh stock markets take a battery in, we've seen the oil price fluctuate up and down, and obviously uh a lot of this comes onto the Middle East, which I imagine you're probably gonna want to ask me about um later on. But it really feels like no moves are being made because it seems to be the next move that is made is gonna be the one that tumbles it down. It's like Jenga. All the all the pieces have been pulled out, and people going, right, what do we um and I I think that's the worrying part of it.

SPEAKER_00 4:12

Well, I think we're all worried about footing the bill ourselves. Do you think there is a danger of the the burden being put on the shoulders of the taxpayer?

SPEAKER_01 4:20

I don't think it's uh about a burden being put on the shoulders, I think the burden is on the shoulders of it. I I mean the the income tax threshold probably is the the biggest point I want to highlight in this. 2020 we're gonna be same phrase until 2031.

SPEAKER_00 4:35

2031.

SPEAKER_01 4:36

I mean to to give you an idea on just a a couple figures for for that though, back in 2021, uh an adult food shop for two people was about 70 quid. It's now 120 quid. Yeah. Some of the items that have gone up in that olive oil, 113% up, beef, wow, 64% up, eggs, 59% up, milk and butter, 50% up. Wow. Now to the listeners out there who think, well, this is very trivial. Why are we not talking about how the the economy's moved and how how we things cost more and inflation and so on? The point is that we're being frozen and it's the day-to-day goods we're suffering on now. This isn't about investment money, this isn't about growth, this isn't about wealth, this is well hang on, we've been frozen since 2021, Jay. I mean, think about the price of things back then versus what they're going to be in 2031.

SPEAKER_00 5:28

Well, exactly. I mean, 11 years freezing the thresholds, and inflation is what, averaging four percent a year?

SPEAKER_01 5:36

And this this is people's biggest issue at the moment. I mean, Labour seem to be wanting to keep the the side of the the benefits and those who aren't necessarily contributing to the economy, who are those expected to profit up? Well, it's us, isn't it? It's it's the the hard working class people, and I use working class now as a broad term because as we said the tax threshold has put pretty much 99.9%.

SPEAKER_00 6:00

Everyone's going to be falling into those brackets.

SPEAKER_01 6:02

Exactly, exactly. I and I mean it this is wherever you are in the country, but money just simply wasn't what it was. No, the average salary doesn't cover near enough what you need to in in to live in a big city, and as we've just seen, the the price of just our weekly food shop, your bare necessities, it's barely affordable.

SPEAKER_00 6:20

Yeah. Good segue from that, actually. Um talking about the currency. What what do you think? What does the future of the pound look like? What do you see in the future of sterling? Like, how long can it last being inflated in the way it is currently?

SPEAKER_01 6:35

Yeah, I mean the the high interest rates are a straight indicator that the the Bank of England, the the uh Fed in America, they just don't know what way to turn, and obviously all fiat currency in one way or another's slightly tied to each other because we trade and and and and so on and so forth. So it's no doubt that every currency, I mean we've spoken about it many times on this podcast, fiat currency comes, goes, gets destroyed, gets hyperinflated, and you reset the whole system again. It's just this shift is bigger and bigger, isn't it? Yeah. The BRICS Nations are still using the gold back currency, the dollars scrambling, Trump's doing his best to try keep it relevant in the markets, uh, and just the value of the pound. For those of I know a lot of people who listen to this are from Rob Moore. I mean, Rob talks fantastic about how much the pound's devalued over time and how little it's worth now. And it's so true. I mean, we go back to the point I was just making about a food shop. I mean, you could you could have bought your weekly shop and had your breakfast, lunch, and dinner for 50 quid. Now 50 quid isn't getting you an egg mcmuffin. It's it's it's it's it's it's crazy the movement, really. I mean, we have to laugh, or otherwise the option is crying. Yeah, I think that is the truth of it.

SPEAKER_00 7:43

Exactly. So in 1976, the IMF, which is the International Monetary Fund, had to bail us out as a country. Do you think there's any danger of that happening again?

SPEAKER_01 7:56

I I think people forget history quickly, and it's like, oh, this could never happen, this won't happen, this doesn't do it. But it didn't happen that long to go to Greece, did it? I mean, look at that, and that's an economy that's been crippled ever since. I think the big indicator, trying to keep it factual as opposed to just opinionated, is that borrowing and rates have just hit the same level as 2008. We've just slashed through that marker and we're now skyrocketing past it. So that's terrifying. Yeah, yeah. I and this is this is where it does get a little bit more serious. If we're exponentially running through them levels and no one's talking about it, this is where the real concern is.

SPEAKER_00 8:33

Yeah.

SPEAKER_01 8:34

Do I think it will be the IMF to bail us out? Hopefully not. Yeah, I mean that that that's that's where it becomes. I think if we go and we need the IMF bailed out, I think there's gonna be a lot of countries in the same position. This will be a global crash, and I think that's why people are taking this so much more seriously than the 2008 one. And I think again, I've said on this podcast many a time, it felt like putting a plaster over a bullet wound last time, it stopped it briefly. Yeah, but what we're now seeing is those cracks are bigger, deeper, and far more severe than we thought. And it's not just gonna be our economy that comes tumbling down. Don't get me wrong, I think Labour are doing a horrendous job at our just day-to-day living, but when we're looking at the bigger picture, finances, growth, that is the real worry. That's where we've got to be concerned.

SPEAKER_00 9:22

Yeah. So, silver lining or gold lining, I should say. Yeah, um, why is it so important to diversify now during these uncertain times?

SPEAKER_01 9:32

Yeah, I mean, bottom line, every everything I've said, uh, and don't mean wrong, I do think there's good markets, good gaps in the market in the stock markets. I think some things where they have tumbled, I think with the Strait of Hammers opening back up, there's going to be opportunities for growth out of that for sure. So um I'm not saying take all the money out, but what I do want to highlight is the fact that everything I've mentioned so far is all about counterparty risk. It's money tied up with the banks, yeah, it's money in government bonds, it's money that can be manipulated, it's money that people don't really appreciate is being invested. I don't know many people who open a bank account and go, Yeah, I'm gonna give the bank my money, and knowing full well the bank are gonna use that money and leverage it a thousand ways, for example. I don't think anyone really does think about that. Even when we talk to people about their pensions, it's invested, but where's it invested? They haven't got an actual clue. So diversification is important in the fact that find some great opportunities in bonds, find some great opportunities in the stock market. However, would you give your money to one person, all your money to another person and say, I trust you with it? No, exactly, exactly. So why do we do that with the banks? Yeah, because that's essentially what we're saying there. So true. So so having something that's not counterparty risk, and they used to say property, but even property now, I I would argue the toss that actually there's a lot of risk there, and there's a lot of people that can screw up a good sale, or tenants can really mess it up, or taxes can change really quick on it. Yeah, so again, we do get back to something like gold, like silver, where you can take it out of the system, where you can keep it in your own person, or you can have it in storage, doesn't have to be stored with us, could be stored with an independent company. It's just one step out of the system, another step out of the system, one step towards your own protection, another step towards financial control. Um, and that's what we're looking to achieve.

SPEAKER_00 11:17

Yeah, so it's obviously it's no secret, a lot has happened in the gold market since the last podcast. Um, it's had somewhat of a pullback recently. Do you think you could just explain that in a little bit more detail? What's been going on in the gold market?

SPEAKER_01 11:33

Definitely, and I the education is so important at the moment on this. People see it as a pullback and initially think, oh god, it's gonna just keep going, it's gonna keep going. Well, it's very, very logical as to why there's been a pullback in the gold market. Okay, the Middle East, you have a uh very convoluted uh affair there. They are sending ballistic missiles, ballistic missiles cost millions and millions and millions of pounds to run. Yeah, what do these countries usually sell in the Middle East? Oil. Yeah. What can't they sell at the moment? Oil. And the whole point is they're using gold for the exact reason clients, customers, uh, retail should be buying gold. They bought it for a safe haven, they bought it for when they needed it, and it was the only asset they can get their hands on. Where the Strait of Humas has been closed, these countries needed to raise money quick. What a great way of raising money quickly! Gold. They've done exactly what people do on a retail level, just on a huge commercial level. So it's natural. The market's been flooded with with a lot of sales. So great, the market's come down. Do not see that as a negative. If uh we we should see it as an opportunity, January this year. That when it was at its absolute peak was when we were the most busy. That's when most trades were going through. Where it's dropped off a little bit, we've been incredibly quiet. The demand's still there, but more people just looking in terms of what to do in the gold market. So, actually, what I would say to any savvy saver, investor, whatever it is, find the opportunity on the way down, not the way up. This is this is the time to make your bed and lay in it, exactly that. Not to panic. And I I think people once they go, Oh, well, that makes sense, they sold the gold, so there's more gold available in that terms of that, but central banks are buying more gold than ever, it's logical, isn't it? Yeah.

SPEAKER_00 13:20

So just following on from that, then what do you see for gold buyers and the gold market in the in the sort of relatively near future?

SPEAKER_01 13:28

Yeah, if we if we just talk till the end of the 2020, I mean the forecast for gold's always good, but yeah, um, if we just talk to the the end of the year, UBS, Goldman Sachs, Deutsche Bank, uh, Bank of America, they're all forecasting between five thousand and six thousand dollars an ounce. So it's about 16-70% growth from where we are now. Yeah. Good. That's a that's a natural growth. We've had a we've had a slight pullback, we're then gonna rally up towards the the the previous all-time high, yeah. Uh and all these banks, all these institutions see it finishing strong. And again, why is that good telltale sign? Because these banks hold a lot of gold, these central banks hold huge amounts of gold. These guys don't lose. So, as much as we can't guarantee anything, it's great signals for us, it's great signs to follow.

SPEAKER_00 14:12

Yeah. And just just finally, a little bit of current events, important news story. Tomorrow, it's uh supposedly going to be announced that there will be a deal struck between the USA and Iran. Obviously, recent tensions have put global energy markets on the edge. So, this tentative agreement may have eased some immediate fears, but obviously the markets are still really sensitive. So um, what should listeners think about this? Do you think we're in danger of maybe inflation coming over the horizon from all this? And uh yeah, just what what do we think is going on?

SPEAKER_01 14:50

Let's not be naive. I mean, this has happened every time we've seen an economic crash. Yeah. What's happened? America's gone into the Middle East, they've gone to get the oil, the oil prices spiked, it's then fallen, and then the next thing that happened is we see huge inflation and and uh well financial collapses. Um it happened in 2008, it happened in every recession previous to that. It is a common trend that happens. Oil price goes sky high, inflation follows for the next six months.

SPEAKER_00 15:16

Yeah, absolutely. How do you plan to save in order to pay your portion of the national debt? While sterling is in terminal decline, gold remains in a long-term upward trajectory, and no other asset is likely to hold its value better during the economic storm that Britain now finds its self-facing. As we've discussed throughout today's episode, Britain's debt problem is not going away. The warnings have been there for years, yet borrowing continues to accelerate and the burden continues to grow. Whether the future brings higher taxes, more inflation, further currency debasement or even external intervention, the reality is that ordinary people like us will be left to bear the consequences. At the same time, following recent volatility, many of the fundamental drivers behind gold's rise remain firmly in place. Governments continue to borrow, central banks continue to buy loads of gold, geopolitical tensions remain elevated, and confidence in fiat currencies continues to be tested on a daily basis. But of course, no one can predict the future. We do know that history has shown us that periods of economic instability like today often reward those who prepare rather than those who react. So for more information, please do go to guide.directbullion.com to get your free guide to Tax Free Gold. It's packed with information you won't get anywhere else. Just a reminder: if you are listening or watching on YouTube, please do like and subscribe to the podcast so you never miss an update. And if you're listening on Spotify or Apple Podcasts, please do follow the show so you never miss an episode. As always, leave a question below in the comments and we'll answer them in the next episode of the podcast. Thank you so much for listening to the Bullion Advantage today. Stay informed, stay prepared, and most importantly, stay golden. The purchase of gold does not constitute an investment or offer financial returns. Gold is considered a store of value and not an investment product. Past performance of gold is not indicative of future performance. Prices and values of precious metals can fluctuate and are influenced by various market factors. Direct bullion does not provide investment or tax advice and recommends that you conduct your own independent research before making any purchasing decisions.