Complete Investing – Newsletter #6 · Complete Investing Skool

Complete Investing – Newsletter #6

The British Economy Is Broken – So What Do We Do About It?

I’ve been investing for 25 years. Stocks. Index funds. Property. Crypto. And a little bit with Bonds.

And if I’m honest, I’ve never felt more uneasy about the direction of the British economy than I do right now. That’s me being nice about the UK economy. I’ve never felt so shitty about the state of the UK economy.

This is because structurally something (well a lot of things) doesn’t feel right. I don’t like to get too political with this group but the current UK economy scares me BIG TIME! This labour is not for the working class!

This newsletter is going to start negative. It’s going to be my attempt at keeping you up to date with the UK economy.

But I will finish on a positive. As I talk about what me and you can control.And how long-term investing is a MUST in a broken system.

MARKET CONDITIONS & MACRO UPDATE

Most people are too busy surviving to care about macroeconomics. But if your goal is financial freedom you have to zoom out.

Here’s the harsh reality:

Government spending is about 45% of GDP
Tax revenues historically struggle to rise much beyond ~38% of GDP
The gap is funded by borrowing

That gap compounds. Compounding by the way can be negative or positive. Anything relating to the UK economy with this current government of human rights lawyers (dangerous twats) is going to compound negatively. On the flip side, if you invest into assets like global index funds, your wealth will compound positively over the next few decades – based on historical performance.

When borrowing compounds, one of three things happens over time:

Higher taxes
Inflation
Currency weakness

Usually a mix of all three.

We’ve already seen:

Higher stealth taxation
Frozen tax thresholds
Rising cost of living
Mortgage chaos
Public services stretched

And beneath all of it?

Debt.

This isn’t about fear. It’s about understanding incentives.

When a country consistently spends more than it earns, the pressure builds slowly… then suddenly.

We’ve seen it before:

Argentina
Germany (a century ago)

No one thinks it can happen to them. Until it does.

Just look into Germany between world war 1 and world war 2. And how bad inflation has been in Argentina over the last 20 years.

BRITAIN IS LIVING BEYOND ITS MEANS

Every economy works like a household. Income in. Expenses out.

If expenses exceed income:

You cut spending
You increase income
Or you borrow

The UK has chosen borrowing. And borrowing works until the interest bill becomes one of the largest items in the budget.

Long story short, the current financial system is BROKEN....

WHY RAISING TAXES DOESN’T FIX IT

There’s a historical ceiling to how much tax revenue the UK collects as a percentage of GDP — around 38%.

Push beyond that, behaviour changes:

People work less
Businesses relocate
Capital moves
Productivity falls

You can increase the percentage. But you shrink the pie. Just look at all the millionaires and billioanires who have left the UK.

That’s why “we’ll just tax more” doesn’t have the desired effect.

It slows growth instead. And for us investors, growth is everything.

DEBT, MONEY PRINTING & THE INVISIBLE TAX

If taxes can’t fix it… and spending won’t fall… what’s left?

Debt.

Money creation. They basically turn the money printers on. Sorry add a few zeros to the balance sheets….this leads to inflation.

Inflation is a silent transfer of wealth:

Savers lose
Cash decays
Asset holders benefit
Debtors win

You don’t see it deducted from your payslip. You feel it at Tesco or Asda or Aldi – hopefully you get the point.

This is why financial education isn’t optional anymore. This is why im talking about inflation all the time on social media and trying to get people to at least consider long-term investing.

MINDSET

You cannot control:

Government spending
Tax policy
Monetary policy
Political incompetence

Waiting for politicians to fix this is not a strategy.

You can control:

Your financial education
Your savings rate
Your asset allocation
Your time horizon

That’s where responsibility shifts from the state to the individual. Whether we like it or not.

For me we no longer have any excuses when it comes to financial education. We all have access to YouTube, podcasts, books etc…

You can whinge about your parents, your school, the UK government etc but from my experience it doesn’t get you ANYWHERE.

WHY LONG-TERM INVESTING IS A MUST

This is the positive part. Historically, during inflationary or unstable periods, those who survive and thrive:

Own productive businesses
Invest globally
Stay patient
Think in decades

Long-term investing isn’t speculation. It’s ownership.

Ownership of:

Companies that adapt
Businesses that raise prices
Innovation that compounds
Productivity that grows

Cash decays. Productive assets adjust. That’s why I keep repeating:

Low-cost index funds. GlobL exposure.Long-term thinking.Consistency.

After 25 years, this is still my favourite approach.

Not because it’s exciting. Because it works. And mainly because its stress free!

STEP-BY-STEP GUIDE TO INVESTING – DESPITE THE UK ECONOMY

Here’s what I would focus on in a “broken” economy:

1. Invest Globally

Don’t concentrate everything in one country.

The UK might struggle.The world will still innovate.

2. Own Productive Assets

Global equity index funds
Businesses with pricing power
Exposure to technology & AI

3. Use Tax Wrappers

ISA
SIPP

If taxes rise, shelter what you can legally.

4. Increase Skills & Earning Power

In stagnation, skill becomes leverage.

I’m a crypto bull. I’m very bullish. But when things turn round is out of my hands. That’s why Im doing a little pivot this year – and focusing more on work and trying to get more money so I can invest into assets long-term. This is the best way for me. It’s what suits me.

5. Ignore Short-Term Panic

Economic cycles are brutal in the short term. But over decades, productive economies grow. Always have. And in my opinion, always will.

SUMMARY

Is the British economy perfect? No.

Is it structurally strained? Yes.

Is it collapsing tomorrow? No.

But direction matters. You don’t need to panic. You need to prepare.

And preparation looks like:

Long-term investing
Global diversification
Financial education
Emotional discipline

I’ve been investing for 25 years.

I’ve been stressed about money.I’ve made mistakes.I’ve learned slowly.

But one thing I know with conviction:

Owning productive assets over decades beats complaining about politics. Always.

If this resonated, make sure you’re subscribed to my YouTube channel @completeinvesting. And if you want more info on how bad the uk economy is – have a look at my latest video – BROKEN BRITAIN.

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