Cameron and Osborne manoevering for a sterling crisis

Benedict Brogan suggests that the Tories may be initiating a sterling crisis at least that is what the earnstwhile Robert Peston thinks.

Peston cites McKinsey’s “Debt and Deleveraging” report, which has crunched through all available data on British debt compared to other countries and concludes that when you tot it all up our real debt to GDP ratio is a whopping 466pc; only Japan is worse, on 471pc. Signs of Tory hesitation on spending cuts could make it that much more difficult and expensive for the Government to sell gilts, just when the Bank is supposed to be turning off the QE taps. Why do that, unless…he wanted deliberately to provoke a crisis that could tip the balance against Gordon Brown during the election.