A single country can manage a couple of radical issues at one point in time. But if the country faces issues in most areas at the same time, then it is nothing less than chaos city. This phrase cannot be changed to chaos country for obvious reasons and yes there are more important things to cover.
In the past few months, the UK had become that country. Right now it is undergoing political change and along with the hottest summer that is leading to deaths. In addition to this real wages have dropped by 8%, a number not seen in the past 100 years.
Anyone might discount these issues and expect them to happen but the problem is they occur when globally there is a wave of crisis especially next door which is nothing less than chaos in itself.
Another issue that concerns all is the rise in power prices that are about to start in October. It is estimated that by October on average the monthly power bill will be $360, pointing to an increase of 70% year on year.
Given all of this central bank has already warned of a recession that it anticipates starting by the end of this year or the start of next. Despite this due to the high inflation the rates are being hiked at every meeting.
This makes the next two quarters very crucial for the country and the risk of additional external crisis would make it worse. The main tug of war would be when central banks will not back down from raising rates despite all this as inflation is unlikely to crack meaningfully.