Sterling has broken it's November lows against both dollar and euro. On top of widely expected interest rate cuts, the market has an eye on Gordon Brown's rushed plan to add - on average - eighteen thousand pounds of long term debt to anybody who can prove that they have no equity in their home and a reduced ability to repay.
In a climate of global money printing, commodities prices will increase fast once supply and demand are in equilibrium (we may have already reached that point). With sterling falling faster and harder than other currencies imported inflation is going to far outweigh any benefits felt by our shrinking export base. Interest rates will have to rise - and the extra debt being lumbered on already bankrupt homeowners by the Government may become a very heavy millstone indeed.