| Enough of enjoying yourselves....debt slavery news. 09:12 - Oct 4 with 694 views | BanksterDebtSlave |
https://www.theguardian.com/business/live/2023/oct/04/tesco-food-inflation-profi
UK 30-year borrowing costs hit highest since 1998
"Britain’s long-term cost of borrowing has hit its highest level since 1998 this morning, as the sell-off in the bond market continues.
The yield, or interest rate, on 30-year UK government bonds has hit 5.115% this morning, Refinitiv data shows.
That is above the levels seen a year ago in the panic after Liz Truss’s mini-budget."
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| Enough of enjoying yourselves....debt slavery news. on 09:15 - Oct 4 with 670 views | MattinLondon |
The only sensible way to manage this situation is, during the next international break, the club allows both KM and MA a couple of days off to sort out this mess. |  | | |
| Enough of enjoying yourselves....debt slavery news. on 09:23 - Oct 4 with 645 views | giant_stow |
I've got a slightly technical question about something in that article. It says:
"Two years ago, the UK’s 30-year gilt yield was just 1.5% – a great opportunity to borrow cheaply to fund long-term investment."
My question: does that mean if the Govt borrowed at £10b 1.5% two years ago, it would still be paying 1.5% now on that specific debt, or would it now be paying 5.11% / today's rate?
Sorry if this is a thick question. |  |
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| Enough of enjoying yourselves....debt slavery news. on 09:24 - Oct 4 with 642 views | SuperKieranMcKenna |
Lucky we don’t have a record national debt then isn’t it…oh right. Still at least we have some nice wallpaper in Downing Street to show for it.
That’s why Starmer’s going to have his hands tied (annual debt servicing is already over GBP80bn). The Party of Business also oversaw two credit ratings downgrades which makes our borrowing more expensive. Unless Starmer proposes tax rises, which he won’t because people won’t vote for it. We want US taxes and Scandinavian services.
Perhaps if we were to join a nearby trading bloc, the biggest in the world we could lower inflation and boost the economy (and associated tax take). Brexit is still a taboo but no reason we can’t rejoin the Single Market and still be ‘out of Europe’. |  | | |
| Enough of enjoying yourselves....debt slavery news. on 09:30 - Oct 4 with 622 views | SuperKieranMcKenna |
| Enough of enjoying yourselves....debt slavery news. on 09:23 - Oct 4 by giant_stow |
I've got a slightly technical question about something in that article. It says:
"Two years ago, the UK’s 30-year gilt yield was just 1.5% – a great opportunity to borrow cheaply to fund long-term investment."
My question: does that mean if the Govt borrowed at £10b 1.5% two years ago, it would still be paying 1.5% now on that specific debt, or would it now be paying 5.11% / today's rate?
Sorry if this is a thick question. |
It depends whether the Gilts are index linked or fixed. | | | |
| Enough of enjoying yourselves....debt slavery news. on 09:38 - Oct 4 with 601 views | BanksterDebtSlave |
| Enough of enjoying yourselves....debt slavery news. on 09:24 - Oct 4 by SuperKieranMcKenna |
Lucky we don’t have a record national debt then isn’t it…oh right. Still at least we have some nice wallpaper in Downing Street to show for it.
That’s why Starmer’s going to have his hands tied (annual debt servicing is already over GBP80bn). The Party of Business also oversaw two credit ratings downgrades which makes our borrowing more expensive. Unless Starmer proposes tax rises, which he won’t because people won’t vote for it. We want US taxes and Scandinavian services.
Perhaps if we were to join a nearby trading bloc, the biggest in the world we could lower inflation and boost the economy (and associated tax take). Brexit is still a taboo but no reason we can’t rejoin the Single Market and still be ‘out of Europe’. |
Hmm ......
https://www.reuters.com/markets/rates-bonds/german-10-year-yield-heads-back-towa
https://www.politico.eu/article/discontent-eu-green-deal-climate-change-backlash | |
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| Enough of enjoying yourselves....debt slavery news. on 09:45 - Oct 4 with 594 views | SuperKieranMcKenna |
What does the price of German Gilts have to do with frictionless trade?
Also a moot point since the German debt to gdp ratio is materially smaller than ours (66pc vs 102pc) so they’re not going to be impacted nearly as much as us. Sorry. | | | |
| Enough of enjoying yourselves....debt slavery news. on 09:49 - Oct 4 with 583 views | giant_stow |
| Enough of enjoying yourselves....debt slavery news. on 09:30 - Oct 4 by SuperKieranMcKenna |
It depends whether the Gilts are index linked or fixed. |
Thanks fella. | |
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| Enough of enjoying yourselves....debt slavery news. on 09:58 - Oct 4 with 551 views | DJR |
| Enough of enjoying yourselves....debt slavery news. on 09:30 - Oct 4 by SuperKieranMcKenna |
It depends whether the Gilts are index linked or fixed. |
And the position of the UK is made worse by the fact the it has a higher proportion of index-linked government bonds than other countries.
This from the following recent FT article, if you're not able to access it.
"The UK is on track to incur the highest debt interest costs in the developed world this year as persistently high inflation and an unusually large proportion of government bonds linked to price rises damage the public finances."
The Treasury will spend £110bn on debt interest in 2023, according to a forecast by Fitch. At 10.4 per cent of total government revenue, that would be the highest level of any high-income country — the first time the UK has topped the data set that goes back to 1995 — after an improvement by the previous leader Iceland." [In contrast the western European median is just over 2 per cent of total government revenue.]
"Roughly a quarter of UK government debt is in the form of so-called index-linked bonds, whose payouts fluctuate in line with inflation, making the country a huge outlier internationally. Italy has the next highest share with 12 per cent of its bonds tied to inflation, while most countries have less than 10 per cent."
https://www.ft.com/content/b25903fd-2ebe-4f65-aa20-c21d873946f3
Questions ought to be asked about why the UK is an outlier in this respect, but I am not aware of them being raised. [Post edited 4 Oct 2023 10:04]
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