Standing on the brakes...
For those of us old enough to remember these things it looks like the Bank of England is about to jump on the brakes before the UK economy has picked up much speed at all.
With the economy still 3% smaller than it was before Covid struck and with a dozen things that the Government needs to spend money on to keep things going smoothly, the Bank of England is planning to increase interest rates.
It is all deeply depressing because this used to be the normal British disease, higher growth met lack of supply, normally of workers, wages rose and so did inflation. The economy then ground to a halt as inflation was squeezed out of the system. Sound familiar?
The UK thought it had solved this one through Thatcherism but it was EU membership and free movement that did the real work.
Now the Chancellor will use the threat of higher inflation and therefore higher interest rates to stop spending money. The Health system, care network, law and order, defence etc etc etc, will all suffer.
Growth will slow and tax revenues will not grow as fast as expected. Years and years of austerity will be the result as the Conservatives having completely ignored and forgotten Keynes, stumble from cuts to further cuts. The government will slash investment and spending and pretend the system is not grinding to a halt, abandoning the poorest and tell us all to buy British.
Economics, trade and Brexit, not necessarily in that order but the dog always comes first.