More warnings about the threat of a double-dip global recession emerged yesterday after a slew of depressing economic news highlighted the fragility of the world economy. With Europe in a state of economic paralysis, the outlook for the UK is pretty terrible. Such that, Bank of England governor, Mervyn King, warned that Britain might have to resort to further quantitative easing. He’s short on options but there are serious questions as to where this will lead…

Bloomberg: Britain has been following the mainstream prescriptions of his [Keynes] followers more than any developed nation. It has cut interest rates, pumped up government spending, printed money like crazy, and nationalized almost half the banking industry.

Short of digging Karl Marx out of his London grave, and putting him in charge, it is hard to see how the state could get more involved in the economy.

The results will be dire. The economy is flat on its back, unemployment is rising, the pound is sinking, and the bond markets are bracketing the country with Greece and Portugal in the category marked “bankruptcy imminent.” At some point soon, even the most loyal disciples of Keynes will have to admit defeat, and accept that a radical change of direction is needed.

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As a philosopher once told King Solomon, “This too shall pass”. We might just have to be very patient.