Britain under mounting pressures

Key Markets report for Wednesday, 17 June 2026

Fearsome troubles and complications are gathering for Great Britain. Each day, the situation seems a bit worse than the day before and good news seem hard to come by. In yesterday’s report I touched upon Britain’s schizophrenic Russophobia and her ruling establishment’s irrepressible push for war against Russia, which seems to be gaining momentum, for some reason.

In oligarchic-dominated societies, wars against external enemies have frequently been used to divert ordinary people’s grievances away from troubles at home and the real, domestic enemies. Since the days of the Roman Empire, they cry has been, “barbarians at the gates!” The sudden urgency to provoke a conflict with Russia may stem from the ruling establishment’s same basic need, and the reason behind this urgency could be Rupert Lowe’s 219-page “Rape Gang Inquiry Report,” which was published just yesterday. The subject of the inquiry has been characterized as the biggest peacetime crime and coverup in British History.

The establishment’s blind panic

Rupert Lowe’s inquiry brought to light the subject which the whole British establishment, from top to bottom tried hard to conceal and push down a memory hole. The coverup was directed from the very top of the political hierarchy, involving at least two Prime Minsters: the serving knight of the realm, Sir Keir Starmer and Tony Blair’s successor, Gordon Brown. Another Prime Minister, Boris Johnson, must have been aware of the scandal’s magnitude as he scornfully dismissed calls for an inquiry, saying that that money spent on investigating child abuse crimes was money “spaffed up a wall.”

The official narrative promoted the idea that the whole story of grooming gangs was an exaggerated urban legend that unfairly stigmatized the “mostly peaceful” ethnic minorities in the U.K. Any disagreement with the official narrative can be prosecuted as hate speech, and suppressing hate speech became one of the government’s main obsessions, to the point that they turned Britain into something resembling a totalitarian police state:

British police now arrest more people for social media posts than the next three nations (Belarus, Germany and China) combined, and very nearly matches the total of the ten most repressive countries. What can possibly explain such zeal? The core motivation behind the UK’s fanatical war on hate speech isn’t the enforcement of kindliness, but a blind panic that the truth will out. Except that the truth just did out…

The rape gang inquiry report

The key findings of Rupert Lowe’s report are utterly shocking. At least 250,000 young girls were victimized through repeated rape, gang rape, trafficking, torture, drugging, blackmail via recordings, forced pregnancies/abortions, and in some cases trafficking abroad. A quarter of a million figure is likely a minimum: the real figure probably much higher due to underreporting. Rape gangs' crimes took place in at least 149 local authority districts comprising about 40% of the UK. Cases date back to the 1950s, escalating post-1997 mass immigration.

The perpetrators were overwhelmingly men of Pakistani, with smaller involvement from other immigrant groups like Bangladeshis and Somalis. The victims were primarily vulnerable white British working-class girls, in some cases as young as 11, often from care homes or disadvantaged backgrounds. The grooming involved “boyfriends” offering gifts, alcohol, and/or drugs, then transport to houses/hotels for group abuse, torture (”red rooms”), and control through blackmail or pregnancy.

All this and more was often facilitated by the police, social services, National Health Service (NHS), schools, councils, and politicians, ostensibly for fear of “racism” accusations or political correctness. Examples include the police arresting the victims rather than perpetrators or returning the girls to their abusers, shredding of records and punishing the whistleblowers punished. The NHS frequently treated pregnancies or cases of sexually transmitted diseases without reporting.

Government complicity and destruction of legitimacy

The most damning aspect of the entire sordid rape gang affair is the complicity of government structures in perpetrating the crime and in covering it up, which is now undeniable. It also can’t be explained away as having been done by a handful of bad apples. One of the main protagonists of the colossal crime’s coverup is none other than the country’s current Prime Minister. Nazir Ahmed, one of the convicted members of the rape gangs, was made a Labour peer, Lord Nazir Ahmed, by Sir Tony Blair.

The perpetrators were foreign immigrants. The victims, ordinary British girls. The government clearly sided with the perpetrators, which raises the question of the whole ruling establishment’s legitimacy, and once the government’s legitimacy is in question, the stage is set for a revolution or a civil war. Recall, David Betz of the King’s College in London has been warning about this very risk. He said that British society is now “explosively configured” to descend into a civil war which could erupt within the near future, driven by the system’s “destruction of legitimacy.”

It gets worse, however…

Pakistani grooming gangs were allowed to operate in Britain for a reason. Like other organized crime groups, they were generating a great deal of cash and much of that cash funded flowed to Britain’s governing structures, think tanks, and clandestine operations of the British deep state as detailed in the March 30, 2019 Sunday Times article, “Taxman kept quiet while £8bn fraud helped fund Osama bin Laden.” The article cites a 4-year investigation by His Majesty’s Revenues and Customs (HMRC) which found links between the rape gangs and 9/11 and 7/7 terror attacks (11 Sep. 2001 in New York and 7 July 2005 in London).

At the time when Osama Bin Laden was already the most wanted man in the world, hiding in the mountains of Abbotabad, the Pakistani organized crime network funelled tens of millions of dollars to him through Afra Syab Ilyas, an accountant based in Burnley in Lancashire. An investigative report allegedly drafted for Elon Musk and titled, “The Connection Between VAT Fraud, Pakistani Grooming Gangs, and National Security Cover-up,” raises the following question in its concluding remarks:

“… the UK Government may have inadvertently or even purposefully become a key financial enabler of the 9/11 and 7/7 attacks. … Should the United States under the leadership of Donad Trump or any other administration, hold the UK accountable for tis role in funding terrorism? Should the UK face lawsuits for the loss of life and the financial cost of the War on Terrorism?”

Unfortunately, I have been unable to find the Elon Musk report online any more, but have saved a copy around the time when The Sunday Times report was published. This brings the report’s authenticity into question, but Elon Musk’s strange focus on Great Britain and the rape gangs scandal shows that he is keenly aware of the scandal and its broader ramifications including the terror financing angle. Almost as soon as Donald Trump won the 2024 elections, he started posting pointed jabs at the British establishment in general and Sir Keir in particular.

Here’s how Euronews commented on the scandal last January: “A raft of erratic social media posts by the billionaire tech mogul has put a decades-long child sexual abuse scandal back under the political spotlight.” Musk’s X-feed is in fact chock-full of posts focused on corruption and crime in Britain and there could be an ulterior motive to all this. ln a pinned tweet posted on 6 January 2025, Musk asked his 234 million followers whether, “America should liberate the people of Britain from their tyrannical government.”

This was not a passing whim: Musk still has the British establishment in his crosshairs and frequently makes scathing jabs against them in his posts. Here’s one of the most recent examples:

Ultimately, all this is steadily undermining the foundation of the British state and at some point the UK could face some kind of a once-in-a-century disruption. Whether it takes form of a revolution or a civil war, which Professor Betz believes is inevitable, remains to be seen, but the instability seems to be gathering at present and the unravelling could happen in the very near future.

My “investment hypothesis” predictions stand

All these developments only further exacerbate Britain’s systemic crisis that has been festering for many years now, and which I first elaborated in October 2021 in my article, “The Fall of Global Britain: an Investment Hypothesis.” At the time, I made the following prediction:

“Today the UK could be in the early stages of the same sequence of events: a severe crisis at home coupled with the dramatic loss of international leverage and a very costly addiction to imperial prestige. The UK will likely make all the mistakes made by other powers in that similar position through history: it will suffocate its domestic economic growth by imposing hard austerity at home while at the same time increasing military spending and foreign adventurism. Britain’s public debt will continue to outpace its GDP growth and the government’s budget deficits will be covered by Bank of England’s monetary inflation. This recipe reliably leads to stagflation and possibly to hyperinflation.“

For investors, here is what this likely implies: British bonds will continue collapsing (as they have done since 2021) along with the British pound. At the same time, its stock markets will likely continue to rally into an accelerating bull run. However, the nominal gains in stocks will be outpaced by the collapse of the pound, which implies that investors will still sustain substantial losses in real terms and which further implies that any investments in British equities have to include a hedge against the pound’s collapse.

The good news is that none of this will happen overnight. Instead, it is most likely to unfold over the coming months and years as trends. The winds of change descending on Great Britain really could be among the trades of a lifetime, which is why this report includes securities like the British pound, gilts and FTSE 100. At least so far as the market trends are concerned, the “Fall of Britain” scenario is already unfolding (short gilts and the pound, long FTSE index):

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Today’s trading signals

With yesterday’s closing prices we have the following changes for the Key Markets portfolio: