Dr Strangelove returns? Dysfunction in Washington reaches new extremes. While the economy booms.

'Dr Strangelove' was a 1960s movie that satirised the cold war. It explored 'Mutually Assured Destruction' and was a riff, in a way, on 'game theory'. A number of characters have emerged that echo Strangelove.

The US economy continues to power ahead, not least in terms of almost unbelievable job creation.

Higher interest rates were supposed to cool the economy, destroy jobs and therefore lower inflation. In theory anyway.

Job growth continues to astound yet inflation is, essentially, back to target. If interest rates are responsible for that fall in inflation, a big if in our view, they haven't worked via the channel of the labour market (or the housing market or most any other market). So how have higher interest rates achieved anything? Would - did - inflation come down all on its own? After a supply shock, yes! The US may yet run into demand problems now - too much of it thanks to very strong labour demand but that hasn't been a problem until now, at least.

And Jim has a few words about farms and farmers.

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