Economy

Since Victorian times, sandwich-board men proclaiming doom have been part of our urban street life, particularly in London. I’ve felt like a sandwich-board man lately, having warned endlessly in my weekly Telegraph column that Britain is heading for fiscal meltdown. In June 2024, just before Labour took office, I signalled that a government led by Keir Starmer ‘could soon face borrowing difficulties’. Six months later, I cautioned ‘we face a return to 1976 unless Labour changes course’ – recalling that 50 years ago, Britain was forced to declare itself insolvent and go to the International Monetary Fund for a bailout. It brings me no pleasure that many of the outcomes I warned of, to such derision, now dominate the news.

A century ago, Britain had reason to despair. A generation had been lost to war, influenza was killing those who survived and revolution was sweeping across Europe. A strange new movement called the Blackshirts was marching on Rome just as Russia’s civil war was ending in Soviet victory. Yet Britons were out having fun. The original Bright Young People cavorted across the country, holding scandalous parties. ‘Please wear a bathing suit and bring a bath towel and a bottle,’ read one invitation. The Metropolitan Police filled Bow Street’s cells with hundreds of nightclub revellers, mainly girls in fancy dress. Dancing, according to one clergyman, was a ‘very grave disease which is infecting the country’.

During last week’s excruciating Oval Office make-nice between an insultingly buddy-buddy American President and a fraudulently obsequious New York City mayor-elect, the contest was over which pol was the more patronising. At one point Trump graciously granted his petitioner permission to call him a ‘fascist’ while clearly implying the guy’s OTT campaign rhetoric had been embarrassing. Donald Trump sat regally on his throne, patting Zohran Mamdani’s arm while commending ‘Attaboy!’ as if petting a golden retriever that had fetched a ball. For his part, Mamdani stood mutely by the Resolute desk with cartoonish humility, hands over crotch. This cowed performance of beta-male submission was meant to disguise who’d got a leg over whom.

Zero chance Sir: In Tim Shipman’s wide-ranging article on Kemi Badenoch (‘I have a lot of self-belief’, 4 October), she claims that net zero has become just a slogan and that we can’t tackle climate change alone. In that she is right, but she fails to recognise that unless we can be seen to be world leaders in reducing emissions, then we will never be in a place to lecture other countries – many of whom just want what we have already had. By being the ‘goody-two-shoes’ in the fight against climate change, we will have the very best chance of bringing the rest of the world with us, without exposing ourselves to neo-colonialist aspersions.

Waning interest Sir: Michael Simmons correctly points out that the Treasury’s large-scale issuance of inflation-linked debt is adding heavily to the government’s interest bill at a time of relatively high inflation (‘Borrowed time’, 30 August). What he may not know is how complacent the Treasury has been about this matter. On the day Vladimir Putin invaded Ukraine in February 2022, I was interviewed for the role of chairman of the Debt Management Office. I suggested that a post-Covid inflation surge had started and that additionally oil prices might increase significantly because of the invasion leading to a need for higher interest rates.

By George There is a popular movement to fly St George’s flags from lampposts. The St George Cross was used as an emblem of Henry II of England and Philip II of France during the Third Crusade in 1189. From 1218 it was used as the flag of Genoa, and in 1348 became a flag used by the English royal family. Some others using it today: — Georgia: national flag incorporates a large St George’s Cross with a smaller one in each quadrant; Sardinia: St George’s cross with a Moor’s head in each quadrant; Barcelona: St George’s crosses in two quadrants, with stripes in the other; naval flags of Bahamas, Jamaica and St Kitts and Nevis; autonomous Caucasian regions of Abkhazia and Adjara; Swedish freemasons.