Spend now, pay later. A lot later

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BrilloPad replied

14 March 2012, 08:54
A very sensible idea from a borrowing perspective. Though IMO they should issue gilts with no maturity(like war loans).

I have 2 concerns :-
1. Isn't the main buyer of gilts the government via QE?
2. The second main buyer are those forced to buy like pension funds. How do they feel about being forced into a low rate of return?
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DimPrawn replied

14 March 2012, 08:52
Guess who will buy up these gilts?

BoE

And how will they pay for them?

Printed money (QE)
Leave a comment:
TimberWolf replied

14 March 2012, 08:50
They should be called guilts.
Leave a comment:
DimPrawn started a topic Spend now, pay later. A lot later

14 March 2012, 08:48
Spend now, pay later. A lot later

Britain to offer 100-year gilts - Telegraph

Britain is to offer 100-year gilts, meaning current Government borrowing will not be repaid until the next century, under a radical plan to be unveiled by George Osborne in next week's budget.

I pity our great grandchildren. Still, lets spend spend spend!
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