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The British economy is in trouble due to high welfare spending, which is unsustainable in the long term.
The analogy of a drug dealer refusing to sell more drugs applies to countries reaching unsustainable debt levels. The bond market may demand higher interest rates as a result.
Dominic Frisby explains that the reason things are more expensive today than in the past is due to the lack of constraints on money creation. He highlights that prices in the UK have increased twice as much as in the US because the pound has been roughly twice as weak as the US dollar.
Most money is debt-based, with only 1-2% existing in physical form. This system's survival is due to the vested interests in the financial architecture.
The economic instability in the UK is partly due to a high welfare bill and the inability to sustain current levels of public spending.
Gordon Brown's decision to sell two-thirds of the UK's gold reserves at the market's bottom is considered one of the worst financial decisions in history, haunting him as gold prices rise.
Japan's government debt is at 236% of its GDP, the highest in the world, yet the country has not suffered economically as a result. This anomaly raises questions about Japan's economic resilience.
Rep. Tim Burchett expressed concern about the U.S. Congress's financial irresponsibility, stating that the country will not continue to exist if it doesn't get its financial ship in order, given the $36 trillion debt.