Obamas current dire approval ratings will be on the Tories minds post-election. THere is a LOT of pain coming up post election and I wouldnt be surprised to see 15-20% cut across the public sector on the day after the emergency budget. The Canadians did it, with the advent of 3% CPI gives the BOE very little wiggle room for QE and therefore funding gilt purchases. The bonds market are going to DEMAND higher yeilds and therefore rates will rise significantly without drastic action on spending. Big pain in 1st year of term, followed by 3 years of economic recovery.
I am expecting 0% this year, even if those tw*ts Labour give us a pay rise, I wouldnt be surprised to see it reversed in the emergency budget.
Lets face it, what faces us as the UK is an enormous excrement sandwich and unfortunately, we are ALL going to have to take a big bite.
Welcome back to Stagflation folks. Labour have managed it twice in a row.