UK consumer spending falls for first time in nearly 4 years: Visa | Reuters

Reuters reports that British consumers cut their spending for the first time in nearly four years last month, figures from credit card firm Visa showed, as households turned more cautious even before last week’s shock election result. It cautioned that the Bank of England expects further tightening of belts post election.

Source: UK consumer spending falls for first time in nearly 4 years: Visa | Reuters

UK consumers have been living off credit for years, happy to buy today rather than wait for tomorrow. Well with the prognosis for the foreseeable future full of deep downside risks and limited upside potential, expect consumers to apply the emergency brake.

Jeremy Corbyn is today’s Pied Piper of Hamlin. He knows that by ending austerity and kicking Brexit into the long grass, he has a vote winning formula. But of course, people of my generation remember full-blown Sterling crises and that Labour always leaves the cupboard bare.

Speculators will benefit from the uncertainty and sadly poorer people will panic precipitating a greater personal crisis.

My advice is to ride it out by battering down the hatches.

Thoughts?

Inflation numbers show why Tories do not want another election – Business Insider

This is a good read. Having called an election to increase her majority and her personal mandate heading into Brexit talks, May’s plan backfired spectacularly last week and now inflation numbers show why Tories do not want another election

Source: Inflation numbers show why Tories do not want another election – Business Insider

Let’s recap on the strategic highlights of the Cameron/May years:

  • Austerity
  • Brexit

The pain of austerity in the earlier years impacted the working and middle classes. Now because of the Brexit referendum, Sterling has fallen and inflation increased. So austerity and rising costs are impacting all bar the wealthy, viz. it’s the wealthy who are sponsoring the right-wing of the Conservative Party, pushing Theresa May for a hard Brexit.

BUT ordinary people have been duped and had the wool pulled over their eyes. If it’s painful now, post Brexit will be much, much worse, with job losses, lower incomes, higher costs, collapsing social services and worse, as downside risks materialize.

Some of us still think that common sense will prevail. There are two elephants in the room, austerity and Brexit.

As highlighted in this blog many time, radical reform is preferable to austerity but it takes strong leadership. With regard to Brexit, the public attitude has softened considerable – people are frightened and hostile to the Far Right – and an interim solution towards a soft Brexit makes sound sense.

Thoughts?