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Britain is on track to borrow a record £206bn from private investors this year as Rishi Sunak embarks on a debt binge ahead of the general election.

Economists at Nomura have forecast that the Government will be forced to rely heavily on financial markets to fund borrowing this year and next as the Bank of England reverses bond buying which was carried out under its quantitative easing (QE) programme.

George Buckley, economist at Nomura, estimated that the private sector is being asked to fund £206bn of borrowing this year and £237bn next year, a record high.

OK, QT always was going to come home to roost. At which point we’ve a suggestion from Spud.

The cost of nationalisation would run into billions – all of which could be paid for by the issue of government bonds.

To raise capital for the future of the publicly owned industry, the public could be offered the chance to buy a bond paying 4% or more in the long term to last for at least 70 years. For the first 15 years the return would be guaranteed by the government, encouraging the public to buy the bonds at scale and fund much of the required investment the industry needs over time.

Yes, that’s right. Spud suggests raising an extra quarter trillion of 70 year debt at 4%.

That’s gonna work well, no?

8 thoughts on “Guess what?”

  1. 4% guaranteed by government for the first 15 years. Fair enough.

    And over the next 55+ years??? It could make the discounted pricing of War Loan stock look like a minor hiccup by comparison. Unless of course we enjoy two to three generations worth of responsible fiscal policy and low inflation (Fnarr fnarr).

  2. Deuteronomy 28:43-53

    43 “Foreigners who live in your land will gain more and more power, while you gradually lose yours.

    44 They will have money to lend you, but you will have none to lend them. In the end they will be your rulers.

    45 “All these disasters will come on you, and they will be with you until you are destroyed, because you did not obey the Lord your God and keep all the laws that he gave you.

  3. The establishment are getting more and more blatant, which I find very worrying. Having hoodwinked an entire population in the West with Net Zero, Covid and DIE, they now are convinced that the main lesson learned at their schools and university, that the public are “mostly stupid”, means that they don’t have to disguise the crassness of their own efforts.
    So Andy getting rid of Truss, to get the aptly named Hunt and Sunak in place, who then belatedly adopt her policies is just one of many things they just DO.
    No toss given…

  4. I ignored Spud’s suggestions, which is the extent of their worthiness, but does anyone seriously think that an organisation run by people who will not, except in the most dire circumstances, work at weekends, insist on 12 weeks holiday a year (sickies are complicitly used), simply must get in to work at 9:30 at the earliest and be on the train home at 17:00, cannot under any eventuality be expected to sacrifice quality of life for productivity, function to the benefit of others?

  5. Martin Near The M25

    17:00? When I did some consulting in the public sector the building was empty by 16:00. Except for us, who had to work until stuff was done.

  6. Tim

    What you have of course studiously ignored is yesterday’s post whereby he established himself as the leading global authority on Money and the Money supply. Surely a man with such authoritative understanding is someone we should all be turning to for guidance.

    I think the term in German was:

    ‘Ein Volk, Ein Reich, Ein Fuhrer’

    Ringing a bell somewhere for sure out towards Ely….

  7. Would 40 years be sufficient? If so, look out for the upcoming 4% Treasury Gilt 2063 (20th Feb). If you can’t wait until February, and 10 years is enough, how about the 4 5/8% Treasury Gilt 2034 (next Wednesday)?

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