711: UK Energy Crisis - Economic Collapse is Almost Certain with the UK's Virtue Signalling Socialist Mantra
02-09-2025
PropertyInvesting.net team
Energy has fuelled civilisation and led to massively increasing life expectancy, living standards and healthcare. It fuels businesses, private enterprise and leads to higher tax revenues that can then be used for social spending on essential services like hospitals, schools, roads, rail and defence.
Since oil and gas was found in the North Sea starting in 1964, the UK commenced large scale oil production by 1982 and by the year 2000 the country was booming of the back of record oil and gas exports. Financial services expanded in London and people's utility heating bills declined as a proportion of their earnings. Borrowing costs were also low because of a strong pound backed by oil and gas energy exports. It was the days of Cool Britannia - Oasis, New Labour and prosperity.
All this changed after the financial crisis in 2008 as successive governments increased the tax burden of the North Sea leading to increasing oil and gas imports, deficits, a weakening of Sterling and a declining GDP growth trend.
Roll on to the disastrous Brexit Referendum - caused by David Cameron panicking about UKIP - that was meant to be advisory but became a firm plan after Teresa Mau announced "Brexit means Brexit" to everyone's dismay – the issue was the kicked around May and Corby for 3 years before Boris Johnson promised everyone "an oven ready Brexit deal" - a final self-inflicted destruction of the economic trade with Europe and condemnation to a world of economic hurt and decline and irrelevance for the UK on the fringes of Europe - just before Russia invaded Ukraine sending gas prices skyrocketed - Putin detecting a weak underbelly with Biden now in charge - and Merkel now retired.
Worse was was still to come. Labour achieving a landslide majority when only 20% of the population voted for them (33% of the voting population) – and now wield enormous power to change the economic course for the worse for a full four years of mayhem. The damage in the first six months has been immense - but this is just the start.
The collapse has only just started – off the back of a senseless public sector expansion of wind farms, solar farms and every other intermittent energy investment by virtue signalling woke politicians that pander to a globalist climate agenda. A "Britain Last" mentality.
Electricity prices are now six times higher than in the USA and on 5 January spiked to 30 times higher when an electricity shortage during a cold snap with no wind almost led to blackouts. It was only because of our friends in France exporting 16% of our electricity to us that day that saved us – as gas shortages and gas turbines operating at maximum capacity - this just about got the UK over the line by the end of the day. Electricity prices spiked to 30 times those in the USA for an hour hour period.
A few days later - as if to rub salt into our wounds - the USA declared an "Energy Emergency" – they want to improve their competitiveness further by halving their energy/electricity costs. So in four years time – as our energy prices will likely double and the US costs halves, we might see our electricity prices up to 24 times those of the USA according to our models.
Anyone that is in the private sector or knows Economics 101 – will understand it is totally unsustainable - the economic fabric of our country - off the back of our lack of competitiveness, our delusionary economic thinking and our declining work ethic.
No-one recalls the 25% unemployment in parts of the UK in 1982 for example – before the North Sea boom saved the day. No-one remembers how London was so incredibly economically vibrant in the year 2000. No-one can remember how everything seemed to work in 2015 when the economy was booming, per capita GDP was expanding rapidly off the back of London being a dominant financial centre for the world - all the European brains wanted to work in London. Then it all changed. We shot ourselves in the foot, And we aren't able to admit it. We are all in denial. In a typically English way.
Datacentres and AI are incredibly electricity hungry – and companies that have these centres are global. We can't think of one reason why anyone would want to set up a new AI Datacentre in the UK because of our cumbersome planning regulations, nimbies complaining, electricity prices six times higher than our competitors and draconian working regulations with gigantic tax burdens. Everyone knows the outlooks is for things to worsen. So our prediction is – compared to other European countries – our portion of datacentres will actually decline – especially as most businesses understand the tax burden and electricity prices are set to rise sharply in the next four years. Worker rights will also rise - putting added burden on employing anyone.
It’s forecast that up to 8 million UK jobs will be lost in the next 10-15 years
because of AI. AI Agents will attack professional jobs all across the board. It will disproportionately affect well educated higher earning “white collar workers”. Staff jobs with corporations will be few and far between in 5-10 years time in the UK as massive global corporations managed out of the USA and China will take over global economic control. Many young people do not know what is just about to hit them – many are living in “Lalaland”. Although most have been to University – many work in cafes, have useless arts degrees, are doing three low paid gig jobs and are just getting by. They are saddled with huge student debts that are expanding rapidly as interest rates rise - a complete rip-off for students. They have not chance of owning their own home or even starting a family. Most are broke.
But it’s just about to get a whole lot worse. Music and the arts will be decimated. Most shops, cafes and restaurants will close – as energy and wages costs spiral – whilst inflation will start to take off as the Pound Sterling collapses against the Dollar. A function of our lack of competitiveness and huge deficit spending.
On 4 Feb 2025 – the Bank of England made a huge mistake by dropping interest rates when they know damn well inflation has started to take off again. They have not killed inflation and they know it. It’s running hot as Sterling declines and they choose – in a huge blunder – to reduce interest rates further. They bottled out. Pandering to their globalist socialist pay-masters. Spineless UK central bankers.
If you raise energy prices, raise taxes on businesses, increase wages for public sector workers, increase taxes on the North Sea and increase the public sector workforce – what do they really think the outcome will be? It's crystal clear – higher inflation, lower growth, more poverty, increase utility bills, higher unemployment, higher social welfare spending and a spiral do-loop of economic collapse will ensue. Homelessness - single men cold and roaming the streets will rise sharply - these people are treated worse than dogs - they have not food, not warmth, no shelter - the three Maslov requirements for human beings - they have none. It will make the Financial Crisis look like a tea-party.
Our advise is – get your investments out of the UK quickly, don’t buy property for the next 4 years, get into the dollar with investment and take your English rose tinted glasses off and get real about the calamitous economic situation the UK has put itself in – all self-inflicted misery.
Property prices are likely to drop sharply, homelessness will increase, rents will skyrocket as Buy-to-Let investor leave in droves. Even though base rates drop - mortgage rates will rise because yields will rise - because the bankers/markets don't trust the government. Many smart people will sell up and move abroad. The best brains are leaving the UK for the USA, Dubai, Australia, Canada, Italy and Portugal. Who can't blame them. The exodus will increase. Dear old blighty is going down rapidly. And the politicians are not telling the truth of the abyss we are starring at. Net migration is increasing dramatically - but we all know almost all the new people entering the country are less well educated, less wealthy and more of a drain on the public sector than the people leaving - it's just that no-one either has the numbers or wants to show the numbers. The brain drain of high net wealth creators is real.
If you live in the UK and want to stay – it's time to get off grid with domestic solar, battery, EV car charging and water as much as possible – with back-up gas boilers for the coldest dark winter days. You know in your hearts utility bills will skyrocket in the next four years.
The best investment – as mentioned before are:
Tesla – AI/Electrification, robots, energy storage and autonomous EV
Strategy (Microstrategy) – Bitcoin treasury/banking
Bitcoin – decentralised digital gold
Solana - the guide rails for Web3 internet of money and digital Apps
Palantir – industrial and defence intelligence/AI
All these entities are exposed to the US dollar and will do well after the new Administration’s stated “USA First” goal of making the US the dominant AI and Crypto centre of the world. Do you want to bet against them?
Finally - think about this very important insight. The USA is rapidly transforming away from a Virtue Signalling Bureaucracy into a Technocratic Meritocracy. The USA is run by a Real Estate Businessman and the best entrepreneur, rocket scientist, software engineer and wealth creator on the planet. They want the USA to win big. They have announced they want to compete head-on against Europe and China - the chance of a socialist UK coming out of this competition a winner is zero. Elon Musk hates our Prime Minister - he also hates Bureaucrats and unelected quango, just to add insult to injury. Apparently he will not talk to anyone in Tesla who is not an engineer. He thinks managers and leaders should be PhD engineers. There are no engineers or private sector business people in the Labour party. His distain for Labour has only just surfaced - but it's only going to amplify as he finds out the damage the Democrats did in the USA - the corruption of wasting Trillions of dollars on useless foreign affairs and their friends.
So if you are in business - would you want to invest in the UK or USA at this time?
We hope this Special Report has highlighted the key threats of investing in the UK and the opportunity to risk mitigate by investing in the highest quality US companies/entities that will dominate in the next 10 years.