Mandelson admits: "truth is my Kryptonite"

The business secretary, Peter Mandelson, has launched an extraordinary tirade against the head of the Starbucks coffee empire, accusing him of spreading gloom about the status of the British economy.

Earlier, angered at remarks by Starbucks chairman, Howard Schultz – who said the UK was in an economic "spiral" with "very, very poor" consumer confidence; adding "ok, listen. I'm a business man - have been for many years. I have tonne of buiness experience and expertise and making loads of cash is what I do best and I know a rotting donkey when I smell a rotting donkey" – Mandelson had accused him of spreading unnecessary misery and speaking out of turn and said "God damn, has Jacqui not passed anti-truth law yet - this coffee chap is making me work, jeez!".

At a diplomatic cocktail reception in New York, he said: "Why should I have this guy running down the country? Who the f--k is he? If I was ever to run a business it sure wouldn't be some stupid coffee bean house - I mean what's the point. I had a go once, well, when I say business I mean country, yeah me and me chums 'masterminded' this old political-party, and now we own loads of banks - now if that ain't good I dunno what is, man! that's where the money is man! seriously loads of free cash.. - " before being interrupted by a junior labour spokesman.

Schultz singled out Britain as a source of anxiety for Starbucks – which has stores in 49 countries – during an interview with the CNBC television channel. "The place that concerns us the most is western Europe, and specifically the UK," he said. "The UK is in a spiral."

Mandelson heard Schultz's remarks while waiting to appear on the same television show and, once on screen, immediately took him to task.

"The UK is not spiralling, now I'll have you know - and I know just what a spiral is - and this is not a spiral, I mean - for christsakes have you ever seen a spiral. No? then what the hell is all this spiral talk about spiralling about?" he said, and then adding "Yeah, we own the banks, our tax payer uses our banks, we take money off the taxpayer, they pay the banks, did I mention we own the banks, then the taxpayer get credit from the banks, then the taxpayer pays for the banks and then we own the banks, then the banks make money from the tax payer who uses the banks, oh yeah, and we own the banks too y'know!!! - Ha! spiral my arse!"