Over at the Adam Smith Institute blog today there is a short post from Dr Eamonn Butler with the following neat summary of where the world seems to be heading :

Central banks hate recessions. So they keep interest rates low. People borrow to buy homes and other assets. The bankers see the bubble and rein back. Borrowers and their banks run out of cash. Governments bail everyone out and print more money. Public debt soars and the currency falls in value. Foreign investors get cold feet. Bankers raise interest rates to restore confidence. Everyone is squeezed, and consumer spending falls. There’s a recession. Governments bail everyone out and print more money, and off the cycle goes off again, round and round, until eventually you get stagflation, hyperinflation, and a huge collapse.

Arguably Britain is now on this cycle.

Arguably indeed but it seems our government just doesn’t get it. Spend spend and more spend still seems to be the order of the day and I am not convinced at all that it will be much different whatever the outcome of the election.

Perhaps a huge collapse is what is actually needed for the UK to rid our political system of the big two. Unfortunately, it will more likely result in the Civil Contingency Act being enabled and we will be back to slaving in the fields all day just to get enough food to survive.