Everything about politics and economics within the UK is designed to deceive the average person as to how bad things really are.
And in particular, the legacy media has made a concerted effort to ensure this remains the fact.
I recently put together a video showing exactly how the media achieves this, complete with a breakdown of some of the lies Sky News was pedalling just days ago on TV.
So I thought I’d give you 2 gifts today:
And I’ll give you a quick synopsis in this email in case you want to save yourself a click.
(click the link above to watch the full video and see for yourself)
Rising Gilt Yields
What are gilts? What are yields? Why are they rising?
Gilt’s are just bonds issued by the British government (basically British treasuries).
Yields are the interest payments the British government has to pay on those bonds.
They’re rising because investors have lost confidence in the ability of the British government to pay it’s debts, and because inflation expectations are high.
But what would Sky News have you believe?
“Something odd is happening in the markets - with no compelling explanation”
The supposed “economist” who Sky News are using to parrot their propaganda went on to explain that gilt yields are rising, but this is happening at the same time as the Bank of England’s interest rate is falling.
Usually, you would expect the opposite to happen, and so Sky News are well and truly stumped, witnessing a once in a lifetime economic mirage which is completely unexplainable.
Except this isn’t unusual. It’s isn’t a mystery either.
Bond markets (and yes that includes gilt markets) are not magic machines, they are simply manifestations of supply and demand.
How many people want to buy gilts vs how many people want to sell gilts.
When supply of gilts rises (from the British government issuing more debt) prices of gilts fall, and yields rise.
When demand of gilts falls (from investors not having confidence in the British government or economy) prices of gilts fall, and yields rise.
And that is exactly what is happening right now.
The British government is going into monumental amounts of debt.
And investors have little confidence in the British government ability to pay off that debt.
Which is why gilt yields are rising, even as interest rates fall.
In case you forgot how deceptive the legacy media can be, I hope this can be a reminder.
Max