I find it interesting that the United States at its formation fought us over taxation, kicked us out, then enjoyed immense success proving out the model, ~250 years later, we’re still viewing everything through the lens of taxation & they’re still telling us it’s dumb…
⚡️The debt has already won.
No future Congress is going to reverse the trajectory through discipline.
No electorate will vote for the scale of sacrifice required.
No administration will voluntarily trigger the recession, asset collapse, entitlement cuts, tax shock, and political revolt needed to restore a genuinely hard fiscal path.
The system will preserve continuity.
That means the currency will absorb the damage.
The national debt is a claim on future production. When claims grow faster than the productive base, the gap has to close somewhere. It closes through inflation, repression, taxation, reduced public capacity, lower real returns, slower private investment, and periodic monetary rescue.
The number itself is almost secondary now.
The real signal is that the United States has crossed from using debt as a tool into depending on debt as a condition of social order.
Government spending holds together retirement systems, healthcare, defense, state budgets, research, infrastructure, household transfers, corporate revenues, and entire regional economies. Remove the borrowing and large sections of the country discover that what looked like private prosperity was partially public leverage.
That is why the machine cannot stop.
The debt is embedded inside income.
Income is embedded inside asset prices.
Asset prices are embedded inside pensions, collateral, banks, housing, consumption, and political legitimacy.
Any serious attempt to shrink the debt burden violently would detonate the structure built around it.
So policy will choose erosion over rupture.
The state will keep paying every nominal promise.
The unit in which those promises are paid will weaken over time.
That is the real default.
No courtroom declaration.
No missed Treasury payment.
No cinematic collapse.
A long transfer from savers, wage earners, and fixed-income holders toward debtors, asset owners, and institutions closest to money creation.
The public will be told that inflation is temporary, manageable, external, or necessary.
The deeper reality is that inflation becomes part of the solvency mechanism.
The Federal Reserve will resist this until resistance threatens the system. Then the definition of responsibility will change. Stability will come to mean keeping markets functioning. Market functioning will require liquidity. Liquidity will protect Treasury financing. Treasury financing will protect the political order.
That loop is already visible.
The most important consequence is moral.
Once debt becomes structurally permanent, honest pricing disappears.
Capital no longer flows only toward the most productive use. It flows toward whatever benefits from policy support, liquidity, guarantees, regulation, and proximity to the sovereign balance sheet.
The economy becomes less capitalist in the classical sense and more managerial.
Returns become increasingly political.
Risk becomes increasingly socialized.
Losses become negotiable for institutions and terminal for individuals.
That corrodes legitimacy because people can feel the asymmetry even when they cannot name the mechanism.
Now today's out the way I'm sure we will be hearing a lot more about how:
- Labour's first two Budgets increased taxes on British workers by £36 billion and £26 billion respectively, pushing the tax burden to an historic high of 38.3% of GDP
- The OBR forecasts 240,000 more people will be unemployed in 2026 than it previously projected - it said this is largely attributable to Labour's employment policies
- The UK unemployment rate was 4.9% as of early 2026, up from 4.6% a year earlier, an increase of 124,000
- Total UK welfare spending this year is estimated at £333.7 billion - up from £315 billion
- The UK is spending £301 million per day just to service its debt interest on Labour borrowing
- Labour promised 1.5 million new homes this parliament. Between 9 July 2024 and 15 March 2026, it had build just 342,100, way off target
- More than 1 million young people aged 16-24 were not in education, employment or training in the first quarter of this year - up 89,000
- The NHS waiting list stands at 7.22 million cases
- When Labour took office in July 2024, just 58.8% of patients were treated within 18 weeks. The target is 92%. By March 2026 it had only reached 65.3%
- Around 100,000 patients are waiting over a year for NHS treatment
- Over the past year, approximately 1.56 million people waited more than 4 hours in A&E - a huge breach of the target
- The outstanding caseload in the Crown Court stands at around 80,200 - the highest level recorded since 2016 and more than double the pre-Covid caseload
- A quarter of all Crown Court cases have been open for more than a year
- There are currently 14,749 sexual offences cases waiting to go to the Crown Court - a 75% increase
- There were approximately 530,640 shoplifting offences recorded in England and Wales over the past year - the highest in the entire time series on record
- There were 41,000 small boat arrivals in 2025
- Of all people who have arrived by small boat since 2018, only around 7,500 (4%) had been returned from the UK by the end of 2025
- Last year the Home Office spent £4 billion on asylum support. This includes £2.1 billion on hotel accommodation alone - around £6 million per day
A quick audit of my week, since people ask what it’s like at Palantir.
✅ Brought NATO’s first AI-enabled command system to full operational capability, live across the Alliance’s classified networks.
✅ Was declared evil.
✅ Accused of dodging tax I demonstrably overpay.
✅ Informed that the software 32 nations now trust to deter Russia — the same software that’s helped the NHS deliver 110,000 extra operations and faster cancer diagnoses — may be deemed too hazardous to be used to schedule hip replacement operations back home.
✅ Remained evil.
The rule seems to be: the more it works, the angrier the room. Onwards.
You can just do things. Get inappropriately caffeinated. Bring that dormant idea to life (you know which one I'm talking about). Explore a new café. Write. Taste niche olive oil. Try some banned cheese. Make basque cheesecake. Go for an aimless walk. Walk streets you've never been in. Explore different cuisines. Write. Pick up niche sourdough from a bakery far away. Meet your mutuals. Make tiramisu. Use a disposable film camera. Lay in the sun. Say yes spontaneously.
@thesamparr Sell side - add back costs to increase EBITDA , deal value and fee . Buy side - include more costs to reduce EBITDA and lower deal value. Reality - somewhere in the middle
@RollingHedge Take your post tax savings and start a business , no certainty of pay, sleepless nights, hiring & firing decisions etc etc with 100% of the downside and a proposed 55% of upside if any.. we are governed by morons.
@Diabolical75492@Sir_reads_a_lot@JumbleStil63602@SDPhq Government expenditure depends on the tax base which rests on the strength of the private sector. You can’t tax a loss. Ultimately, what we have is a function of what we produce.
The average British salary should be £65,000.
It's £34,000.
Fifty years of political failure.
One plan to fix it.
The SDP's Investment State documentary, out now:
Singapore’s Foreign Minister, Dr Balakrishnan casually explaining how he built his own AI agent (a 2nd brain for diplomacy) using Claude & WhatsApp integration etc. on a Raspberry Pi
“You cannot govern a technology you have only been briefed on.” 🇸🇬