The UK Takes A Step Closer to Meltdown

Although the chances of it are not more than 10% or 15%, there is a meltdonwn scenario for the UK. It is that inflation rises sharply, the currency collapses and the Bank of England has to hike interest rates sharply to control inflation. Then the economy would be in real trouble. It came a step closer today with the news that inflation roese despite the recession. Could it happen. Probably not. But it is a scary prospect, and even it doesn't, 1970s stag-flation is the best the UK can look forward to right now.