The UK current account - another huge deficit

With economic growth flat, sterling crashing and import prices rising, you would think that UK households would hold back a little on spending. I am afraid not; the UK ran up yet another huge current account deficit.

Some commentators will probably point to higher oil prices as the main underlying cause. However, I don't find that explanation all that convincing. If the price of something goes up, and incomes are stagnant, the sensible thing would be to cut back expenditure.

That isn't how we do things here in the UK. If we want something, we must have it now.

Isn't that what debt is for?