Just in case there is any doubt about the size of the headlines which Mandelson needs to cover up, the chart on the left (composite sterling since June '07) gives a pretty good idea of just how bad a sterling crisis we are facing, and how quickly the fall is accelerating.
Those that are hoping blithely for lower food prices, energy costs etc. in the months to come may want to examine how much of the food they eat and the oil they consume is denominated in sterling...
On the bright side, exports will be cheaper. If there are any.
Seekingalpha speculates that the pound may now re-visit the historical lows of 1992, and trade below $1.40. Perhaps Gordon shouldn't rule out 15% interest rates in such a hurry!
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