Now is the time we juxtapose.
First up, from MarketWatch, June 17:
Britain’s worsening jobs market could be a “canary in the coalmine” for the risks posed by high interest rates in major economies worldwide, including the U.S., a top economist has said.
Until recently, even the world’s most precarious economies had expected they would dodge recessions and avoid suffering widespread job losses, as central banks worldwide have hiked interest rates to yearslong highs in seeking to push down inflation.
But the Bank of England is now at serious risk of sparking widespread layoffs in the U.K. economy by failing to cut interest rates quickly enough, despite signs of a serious downturn in Britain’s jobs market, TS Lombard economist Dario Perkins said.
He explained that just two years ago, the U.K. was suffering from labor shortages as acute as those in the U.S. Now, the U.K.’s labor shortage problem is over. But the Bank of England has refused to cut interest rates.
This has seen Britain’s central bank keep interest rates at long-time highs of 5.25%, despite signs of an uptick in unemployment, as the Bank of England has instead focused on pushing down wage growth in its fight against inflation.
“My worry about the U.K. is that we are now beyond normalization, which means policy is too tight,” Perkins said in a note. “In fact, as labor shortages diminish and margins decline, a genuine recessionary dynamic can take over — people actually lose their jobs, which triggers a plunge in confidence and further job losses.” ....
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When mated with Sunday's story of Manchester as hub of the Industrial Revolution, home of an Engels family factory and the city's righteous working class during the American Civil War:
"£2.5m penthouse named after communist revolutionary"
Is Silicon Valley Bank The Canary In The Coal Mine? (SIVB)
Nah.
In the same way that Northern Rock wasn't the canary in September 2007.It took almost a full year before the Great Financial Crisis made itself known to the masses.However, should this analysis prove incorrect, we have on offer in the museum gift shop:This device was used to resuscitate canaries in coal mines
