Could Britain Be the Next Iceland? The Gilt-Sterling Doom Loop. (maneco64)

Could Britain be heading toward its own version of Iceland’s 2008 currency crisis?

In this video, I examine the growing risk of a gilt-sterling doom loop as UK government bond yields rise, sterling shows signs of weakness, and Britain becomes increasingly dependent on foreign investors and the Bank of England to support the gilt market.

I also look at how an energy and diesel crisis could compound the problem—and why renewed Bank of England intervention could put even more pressure on the pound.

Could rising yields, falling gilts and a weakening currency feed on each other and trigger a much bigger UK financial crisis?



[Posted at the SpookyWeather2 blog, September 29, 2026.]