Richard Smith’s MoneyTrainers- MoneyMinute #11

Worldwide we are seeing a power grab from Governments becoming more authoritarian, in Canada personal assets were seized from those people who disagreed with the State. Sanctions applied to Russians meant that their assets were frozen. These are individuals that have had their money and property frozen because they agree with a rogue state or at least are linked to a Government that no longer agrees with yours.

There are other threats. The threat to the dollar as a global currency, of the thought of overseas investors in the UK having their assets seized by an aggressive action will mean that they will consider investments held in pounds or dollars very carefully. If for example you are a Saudi Prince looking to purchase property in the UK, perhaps even a business. Then as soon as your country does something the British Government doesn’t like then…

If you can move your money anywhere why would you choose the UK?

One of the reasons is that the UK is incredibly dependent and accepting. Large chunks of our infrastructure are owned by overseas players, we are not independent in food or energy and successive Governments have done little to solve these problems. Investing in the UK, in particular in an area like fuel or energy could be seen as no risk and highly lucrative. With Government corruption at record highs with the two main political parties here happy to accept overseas money – there are lots of issues. 

Longer term, I can see the United States arrive at the end of empire, we are going to see more mass migration than ever before as the poor south moves ever north. I think we are going to see less and less true politics, with more authoritarian Governments of all colours arriving in the next couple of years. There will be no back lash. Most people are just to worried about their next meal or holiday, their Primark haul or what celebrity punched who to focus on the real issues.

In the UK we have a binary electoral choice that seems like the same whatever way you look at it and none focusing on the real issues that need to be solved. 

For our personal finances.

The usual stuff still applies. We are going to see a good deal of uncertainty over the coming couple of years and you will need to pay attention to your money stuff. It is valuable resource and you trade a big chunk of your life getting it. 

We are likely to see food and energy prices rise further, we are going to see markets going up and down like yo yo’s and politics becoming more and more divisive. I think we have to be nicer to each other, I think we have to become more involved in making our money work hard and I think we should all be focusing on learning more skills, watching less Netflix. 

The old stuff still works.

So I’d do this.

  1. Review your spending.
  2. Work out how you can increase income.
  3. Spend less time politicking
  4. Stop watching the news.
  5. Reduce your time on social media
  6. Get involved with debate where the positions are one sided.
  7. Meditate – a lot. Get some focus back.

Perhaps you’d like someone to come along to your place of work and talk about these issues, perhaps pensions or care fees planning – then get in touch.

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