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Nice find.

You made a post earlier about the international bond market not accepting national debt of over 100% GDP.

I replied

"Not sure if the bond markets matter now for the UK or US. Their central banks are just printing money to buy government debt."

Does this mean I was correct?

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Nice find.

You made a post earlier about the international bond market not accepting national debt of over 100% GDP.

I replied

"Not sure if the bond markets matter now for the UK or US. Their central banks are just printing money to buy government debt."

Does this mean I was correct?

Of course that is QE, I know that, but they can't keep doing that, as it would generate a huge inflation.

More importantly: It would be very interesting if we could find more up-to-date data.

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I wonder why. :ph34r:

Yes, that thought did cross my mind. But then I thought I was turning into a "conspiracy theorist". But then I thought: "Jeeez this graph is really scary. It is strange that they published it!

Perhaps it was done by some junior civil servant, doing it every year, until a boss saw the new 2010 version, and decided to stop this particular "tradition".

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91Percent.jpg

Banks and building societies bought £7.7bn of the £12.8bn of new gilts sold in April.

Over the last six months, their purchases have totalled £36.1bn, up from £11.4bn in the prior half-year and equivalent to 91pc of net issuance of £39.8bn.

Overseas buying of gilts, by contrast, fell to £12.4bn in the six months to April from £33.5bn in the prior half-year, probably reflecting a slowdown in capital flight from struggling peripheral Eurozone economies.

Non-bank domestic investors, meanwhile, sold £8.2bn of gilts in the latest six months.

http://www.telegraph.co.uk/finance/economics/gilts/8550716/Banks-buy-bulk-of-39.8bn-of-new-gilts.html

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Q3 2010: http://www.dmo.gov.uk/documentview.aspx?docname=remit/drmr1112.pdf&page=Remit/full_details

p.20 Table A.2: Gilt holdings by sector (£ billion, cash value)

Banks 66.8

Building societies 14.4

UK households 12.4

Insurance companies and pension funds 276.4

Local authorities and public corporations 1.5

Other financial institutions and other 103.4

Overseas 302.6

Bank of England Asset Purchase Facility Fund Ltd¹ 205.9

Excellent northshore, thanks!

So, banks (67bn) + BoE (206bn) = 273bn, in Q3 2010, up from ~180 in Q3 2009.

.

Edited by Tired of Waiting

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Thanks XswampyX.

I wonder if the BoE is one of these "banks", and if so, how much is its share.

As far as im aware there is only one bank - the BOE, everything else is just smoke and mirrors. If "other banks" are buying up these guilts up then they must be getting the money from somewhere which I would imagen is the BOE.

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As far as im aware there is only one bank - the BOE, everything else is just smoke and mirrors. If "other banks" are buying up these guilts up then they must be getting the money from somewhere which I would imagen is the BOE.

Too true.

If the person in the street actually understood the Bank's collateral rules they would be apoplectic.

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As far as im aware there is only one bank - the BOE, everything else is just smoke and mirrors. If "other banks" are buying up these guilts up then they must be getting the money from somewhere which I would imagen is the BOE.

Yes, a few days ago we had another thread ( here: http://www.housepricecrash.co.uk/forum/index.php?showtopic=164479&view=findpost&p=3006999 ) and I replied with this question:

Is this what is happening?

BoE prints and lends to banks at 0.5%, banks in turn lend to Gov. at 4%.

Not direct QE. And the banks pocket 3.5% for the "service".

Is that it?

Edited by Tired of Waiting

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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