Parallels between Argentina and Britain’s inept political class
John Gray in the New Statesman.
The catastrophic meltdown in public finances that very nearly happened during Liz Truss’s short spell as prime minister was not the result of a one-off act of political folly. Her madcap dash for deficit-financed growth revealed Britain’s heavy dependency on global capital flows and acute vulnerability if they come to a sudden stop. Since then, UK government borrowing costs have risen. Quantitative easing after the financial crisis of 2007-08, the costs of lockdown, and energy subsidies have left colossal levels of public debt.
In effect, the British state is operating as a highly leveraged hedge fund.
It won’t end well.