The British economic debate is bewildering, marooned in a discourse in which the pivotal economic fact of 2022 is ignored. The chancellor and governor of the Bank of England will talk about the dangers of inflation, of the risk of a wage price spiral and the need for pay restraint – but never about the escalating sterling crisis and what lies behind it. Nor will the opposition lay into them for their vows of silence – equally anxious to avoid mentioning the dread word or its baleful economic impact.
But Brexit is not going away. It cannot be avoided. Last week, we learned that in the first three months of this year Britain’s current account deficit was the worst since records began in 1955. It stood at a stunning 8.3% of GDP – the kind of deficit recorded by banana republics before they collapse into slump, banking crises and hyperinflation.
