Craziness at the end of the Month

 It has been a turbulent week not least on the financial markets with the unprecedented reaction to the Mini Budget last Friday that appears to of spooked them with impact -we hope only temporary-on the exchange rates and mortgage product availability.

Whether or not actually in power Keir Starmer's Labour Party announced economic plans that include a chunk of what government is doing minus the scrapping of the upper level income taxes levels but adding a commitment to gather up and nationalize the energy companies that you might well think would add to borrowing to buy the companies and compensate share holders would be any better received by the markets is an interesting question.

I'm inclined to think not but hey, the current plan with them is about making political hay (from the government's problems) while the sun shines.

The problem with stagflation is being a combination of inflation and a stagnant economy the cure for any one makes the other worse so policy tends to be "chicken and egg", stimulate the economy, try to control energy costs, borrowing where needed or slash spending, increase interest rates and risk unemployment rising significantly with all the associated spending on unemployment benefits, training schemes and so on.

 

The onset of the fall reminds me what I miss still from Marmalade who died several years back, that curiosity and poise.

After the heavy rain here earlier on the week the woods were rather like this.