Friday, December 19, 2008
Sterling suffering worst slide since UK exited the Gold standard in 1931
It's nice however that the Torygraph is relating this story in terms of the gold standard. The hundreds of posters on their comment pages who regularly refer to the gold standard, including a certain mono-maniac from Maturin Towers, may be finally be having an effect, even on Edmund Conway, author of the piece. It is also nice to notice that our Keynesian friend is clearly puzzled about what is going on. The silver penny may finally be dropping for him, too.
Time for a large gin and tonic then to set up the weekend, while I can still afford to buy lemons, or any other commodity, with my increasingly worthless pounds.
Though I would sacrifice my drink if I could be a fly on the wall inside Downing Street, at the moment. Brown will be pacing up and down, Mandelson will be sitting at the kitchen table surrounded by newspapers and pleading for a February election, while on a 40-inch plasma screen in the corner Sky News will be broadcasting every 15 minutes how much further the pound has devalued in the last 15 minutes.
(And remember, the Pound is falling against a basket of other fiat currencies, which are themselves falling against a true money, i.e. gold.)
If only I was a billionaire watching this for amusement, rather than a Middle Englander watching this in grim fascination, it would be funnier gallows humour than the last series of Blackadder, when Captain Rowan Atkinson seduced Nurse Miranda Richardson and then had her shot for treason.
So how low can the Pound go? With true inflation in this country accelerating to over 16% in the last month as part of Brown's deliberate plan to 'save the world', it could go very low indeed.
Suits made out of fifty pound notes, anyone?