Rationing has not been imposed in the UK since the 1950s (Julien Behal/PA)
(Picture: PA Wire)The UK has not seen inflation like it since the 1980s, and it has been the main economic and financial factor of the year. Tne cure for it could involve drastic tactics last used in the 1950s according to one City expert: Rationing.
Saxo Bank’s chief investment officer, Steen Jakobsen, says the drastic step could help the government fix the “underlying issues” behind rising prices. It comes as part of Saxo’s annual end-of-year exercise in making “outrageous predictions”, in a light-hearted effort to speculate on what might yet shock financial markets as the calendar flips over.
“In 2023, expect broadening price and even wage controls, maybe even something like a new National Board for Prices and Incomes being established in the UK and the US,” he said.
“Nearly all wars have brought price controls and rationing ... Controlling prices without solving the underlying issue will not only generate more inflation but also risk tearing at the social fabric through declining standards of living,” Jakobsen warned.
Saxo itself describes its predictions as “unlikely but underappreciated events” which would send shockwaves around the world if they were to occur. Others on the list for 2023 include the resignation of France’s President Macron and the gold price rocketing to $3,000, roughly double current levels. It also said the EU could set up a full army.
It can all sound like fanciful stuff in the dog days of December. But the bank has been proved right on previous occasions. It was one of the few to predict Brexit, and this year it pointed to a potential second referendum on EU membership next year.
You can read the full set of outrageous predictions from Saxo here.
