No one likes us, we don't care

Yesterday we spoke about post-truth politics where feelings took precedence over facts in shaping our reality. In trying to understand this further we will try analyse the why, what is this feeling and why is it seemingly leading us to economic catastrophe?

Regarding the BREXIT vote, what is abundantly clear is that the abstract concepts invoked as justification were not at well matched to the realities that would follow as a consequence of the decision being made. 'Take our country back', 'regain sovereignty' but sovereignty over what exactly? Clearly this is something all concerned on the BREXIT side are still trying to figure out. The sense is that the feeling is matched to a nostalgia to a past that know one can quite define. One could argue it is a nostalgia for isolationism combined with difference and superiority, a sort of Millwall FC 'NO ONE LIKES US WE DON'T CARE' attitude, where every economic blow landed further reinforces and solidifies this feeling.

If this is true, and certainly it seems as if the government is tapping into this spirit, then we are all in for a rough ride. Last month, and now clearly just a little bitter taster of things to come, the price of Marmite went up over 10% in response to sterlings fall on the international exchange markets. Today The National Institute of Economic and Social Research forecast UK inflation will rise from 0.7 to 4 per cent next year. In an era of low interest rates and low inflation this is huge. What this means is that as a minimum average UK citizens can expect a reduction in living standards of 4%, likely higher.

No doubt post-truth reporting will find the real villains responsible and this will make us feel better, yet without any capacity or willingness to actually do something to fight this dawning economic reality it is easy for one to fall into despair. Those in power that have not yet had their brains eaten by the BREXIT zombie, such as Mark Carney and Phillip Hammond, are under attack. Yesterday Mark Carney announced the he will only serve 2 of his remaining 4 years as governor of the Bank of England. Meanwhile, ahead of his autumn statement Mr Hammond seems to be battling against the odds to create the required fiscal headroom necessarily to react to the BREXIT fallout.