Yesterday’s UK inflation numbers hint the Bank doesn’t understand the modern drivers of inflation or how to address them. It leaves some stark likely outcomes: stagflation or a Reflationary Death Scramble. Neither are good.

Two parts this morning: What the Bank of England actually said, and The Big Lesson from the Ukraine War is simple: “Things are seldom as bad as we fear, but never as good as we hope.” Global geopolitics and markets have taken a knock, but will coalesce around whatever new global links emerge.

By some freakish temporal rift, a Morning Porridge from 10-years in the future was delivered into my email box last week – describing the monumental political and economic events of the last decade… Freaky eh? Who would expect such a thing…? It happens…

It was a disastrous weekend for UK energy strategy as the biting cold and lack of wind demonstrated the fallacy of wind as “the” renewable solution. Energy security requires predictable power. Meanwhile, Central Bank mull rate hikes and implications for dollar strength.

Elections are a wonderful way to unravel the risks of political incompetency by letting the people, rather than politicians, decide. Meanwhile, the collapse of another thing in Crypto comes as no surprise. If it did, consider a career change.

The Bank of England laid out bleak scenarios for the UK economy – but the outlook and long term future will be worse because the Government has “straight-jacketed” its budget options down to Austerity – which will lead to economic disaster. There is an alternative!

The New UK Sunak Government had steadied markets, but in coming weeks it will become increasingly clear the fractured Tories are trapped in no-Growth Austerity. Can they escape, or is it time for a Political Reset?

Budget U-Turns and a P45 should take the edge of the UK’s Financial Woes for a few days, but the big question is what comes next, and who should iterate the New New Conservative Thang. It looks like we have Adults Back in the Room!

The headlines could not be bleaker in terms of open political plots within Government and The Bank of England undermined internally and externally. This is how nations fall – this is not what the UK deserves.

The Bank of England averted a run on the UK’s investment institutions yesterday. Chancellor Kwarteng is unlikely to thank them for their calm competency and credibility. The Bank’s intervention has triggered a global rally as the market now expects more central bank support.