Thursday 26 March 2009

How long before a UK gilts strike?


Yesterday's failed auction caused rumblings in the City. Effectively, the City trading desks want to buy short-term guilts off the government and sell them back to the bank of England at a profit.

In this way, the taxpayer is transferring money to the Banks for re-capitalisation. Easy, risk free profit for the City Traders.
QE (Quantitative Easing) was not meant to do this, as longer-term buyers were supposed to be involved, but it is the law of unintended consequences. When the Government tried an issue of long-term debt though, there was a strike, whereas the short-term debt auction today, which has a nice guaranteed bonus on it from HMT, goes without a hitch.
The long-term is an issue though, QE is going to cause inflation and long-term bonds at under 5% return with no inflation guarantee does not look like a great investment, hence the lack of buyers. Do you think inflation will stay so low for the next 40 years?

If the Bank of England ends QE early, then we will see if there is a short-term strike too. To fob off yesterday as a blip is incorrect, it is still a big warning. Hence Mervyn King sounding off earlier this week.

The Government is going to have funding issues big time if it follows a route of spending more money without any cuts in other expenditure.
Bonus points is you can associtate the picture in the comments.

15 comments:

Mark Wadsworth said...

I always thought it was spelled 'gilts'.

When they started this QE thing, they'd issue gilts on Tuesday and Thursday and buy them back on Wednesday. So what day is the buy-back this week?

roym said...

smashing. where do we buy these babies?

Demetrius said...

If I want to borrow, then someone has to lend it to me. If I lend to myself then the money has to come from somewhere. In the case of government this can only be from two sources, one is the taxpayer, the other is by inflating the currency, that is forced lending on the unlucky ones. There is every sign the government is going to do both.

Bill Quango MP said...

MW.
But when you think about it GUILTS does seem more likely what they had in mind.

Electro-Kevin said...

You seem to be in 'dialogue' with the present Government.

This is a mistake. We simply can't move forward with Brown at the helm. Nor Nu Lab for that matter.

Electro-Kevin said...
This comment has been removed by the author.
Electro-Kevin said...

And ...

Was McBroon trying to sell gilts or was he trying to sell quilts ?

If the latter then he's a bit of a twat. Summer's on the way.

He wouldn't even make the first round of The Apprentice.

Judy said...

Employing Pig's to mix cement?

diogenes said...

Hmmm. A few weeks ago I was talking to a senior Labour backbencher, whom I believe to be a man of integrity, whatever his politics. "What should we fear" he asked. "A gilts strike" i said. " What's that ?" . " Ask Callaghan "

Isn't he dead?

Anonymous said...

Don't think so. I saw him in a film recently.

Richard Elliot said...

Robert Preston was talking about the possibility of BofE buying equities rather than gilts. Do you think that would be a good idea?

Wouldn't provent the gilts strike, but would stop traders profiteering on the short term gilts.

Anonymous said...

Does the B of E pay interest to deposits held there by the clearing banks?

Man in a Shed said...

Good to have some of this explained.

Anonymous said...

aaaa片, 免費聊天, 咆哮小老鼠影片分享區, 金瓶梅影片, av女優王國, 78論壇, 女同聊天室, 熟女貼圖, 1069壞朋友論壇gay, 淫蕩少女總部, 日本情色派, 平水相逢, 黑澀會美眉無名, 網路小說免費看, 999東洋成人, 免費視訊聊天, 情色電影分享區, 9k躺伯虎聊天室, 傑克論壇, 日本女星杉本彩寫真, 自拍電影免費下載, a片論壇, 情色短片試看, 素人自拍寫真, 免費成人影音, 彩虹自拍, 小魔女貼影片, 自拍裸體寫真, 禿頭俱樂部, 環球av影音城, 學生色情聊天室, 視訊美女, 辣妹情色圖, 性感卡通美女圖片, 影音, 情色照片 做愛, hilive tv , 忘年之交聊天室, 制服美女, 性感辣妹, ut 女同聊天室, 淫蕩自拍, 處女貼圖貼片區, 聊天ukiss tw, 亞亞成人館, 777成人, 秋瓷炫裸體寫真, 淫蕩天使貼圖, 十八禁成人影音, 禁地論壇, 洪爺淫蕩自拍, 秘書自拍圖片,

做愛的漫畫圖片, 情色電影分享區, 做愛ㄉ影片, 丁字褲美女寫真, 色美眉, 自拍俱樂部首頁, 日本偷自拍圖片, 色情做愛影片, 情色貼圖區, 八國聯軍情色網, 免費線上a片, 淫蕩女孩自拍, 美國a片, 都都成人站, 色情自拍, 本土自拍照片, 熊貓貼圖區, 色情影片, 5278影片網, 脫星寫真圖片, 粉喵聊天室, 金瓶梅18, sex888影片分享區, 1007視訊, 雙贏論壇, 爆爆爽a片免費看, 天堂私服論壇, 情色電影下載, 成人短片, 麗的線上情色小遊戲, 情色動畫免費下載, 日本女優, 小說論壇, 777成人區, showlive影音聊天網, 聊天室尋夢園, 義大利女星寫真集, 韓國a片, 熟女人妻援交, 0204成人, 性感內衣模特兒, 影片, 情色卡通, 85cc免費影城85cc, 本土自拍照片, 成人漫畫區, 18禁, 情人節阿性,

Anonymous said...

情色電影, aio交友愛情館, 言情小說, 愛情小說, 色情A片, 情色論壇, 色情影片, 視訊聊天室, 免費視訊聊天, 免費視訊, 視訊美女, 視訊交友, ut聊天室, 視訊聊天, 免費視訊聊天室, a片下載, av片, A漫, av dvd, av成人網, 聊天室, 成人論壇, 本土自拍, 自拍, A片, 愛情公寓, 情色, 舊情人, 情色貼圖, 情色文學, 情色交友, 色情聊天室, 色情小說, 一葉情貼圖片區, 情色小說, 色情, 色情遊戲, 情色視訊, 情色電影, aio交友愛情館, 色情a片, 一夜情, 辣妹視訊, 視訊聊天室, 免費視訊聊天, 免費視訊, 視訊, 視訊美女, 美女視訊, 視訊交友, 視訊聊天, 免費視訊聊天室, 情人視訊網, 影音視訊聊天室, 視訊交友90739, 成人影片, 成人交友,

免費A片, 本土自拍, AV女優, 美女視訊, 情色交友, 免費AV, 色情網站, 辣妹視訊, 美女交友, 色情影片, 成人影片, 成人網站, A片,H漫, 18成人, 成人圖片, 成人漫畫, 情色網, 日本A片, 免費A片下載, 性愛, 成人交友, 嘟嘟成人網, 成人電影, 成人, 成人貼圖, 成人小說, 成人文章, 成人圖片區, 免費成人影片, 成人遊戲, 微風成人, 愛情公寓, 情色, 情色貼圖, 情色文學, 做愛, 色情聊天室, 色情小說, 一葉情貼圖片區, 情色小說, 色情, 寄情築園小遊戲, 色情遊戲, 情色視訊,