Hyperinflation and massive Interest Rates for 2014 - someone print that and put it on their office wall and call me back on it 5 years on!
Careful, WWW, you only get that if the BoE lost control of monetary policy in its entirety, which is about as likely as pigs flying. It is unlikely that speculative flows due to high interest rates would push inflation up further, based upon the control the BoE have over monetary policy. That occurs generally where central banks are politically controlled.
Rates up for sure (depending upon QE exit), but hyperinflation just won't happen. It is a myth that generating inflation will allow governments to exit their debt responsibilities quicker, as debt rollover is constant, not at one point in the future (as is the case for homeowners).
I would also estimate that the rate rises would be earlier - perhaps 2012-13, and at that point they realise they need to get out of QE extremely quickly.
I am in full agreement with you about the pit we have yet to reach though. My earlier posts are clear!