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Uk Government Borrowing Falls To £6.8Bn In April

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http://www.bbc.co.uk/news/business-32841016

UK government borrowing fell to £6.8bn in April, down from £9.3bn a year earlier, official figures show.

It is the lowest April government borrowing figure since April 2008, when public borrowing stood at £2.5bn.

The Office for National Statistics (ONS) also revised its previous estimate of borrowing for the full financial year up slightly to £87.7bn, from £87.3bn.

But that was still comfortably below the government's target of £90.3bn.

As it is the start of the financial year, little can be gleaned from the public borrowing figures as yet.

Yeah only £6.8bn added to the national debt this month. Result.

If we can maintain this level of borrowing for the next 12 months that would be only £81.6bn.

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Why do I suspect 'non-government' Education, NHS, other-government-services borrowed more money this month, but that does not appear on the government balance sheet.

It's like saying I extended my overdraft by a smaller amount than I extended it last month, but my 5 year old daughter was force to take on even more debt.

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Was going to post this with my other recent 'liquidity illusion / narrower exit' posts but had already done a run of them. Typed the post but didn't send. As this about UK Gov borrowing/debt, pulling up the articles from history, to post here. Similar liquidity concerns, but the UK guy reasonably sanguine about it staying okay. If not, and liquidity becomes and issue, I guess we could always have a HPC and banks making out like crazy, rebalancing UK debt loads.

Wed Mar 18, 2015
UK debt chief fears further fall in bond market liquidity
http://uk.reuters.com/article/2015/03/18/uk-britain-budget-gilts-interview-idUKKBN0ME2DT20150318

WSJ (no paywall afaick)

ECB’s Coeuré: Volatility Signals Reduced Market Liquidity
May 19, 2015

Comments reflect concerns about sudden movements in government bond market

Robert Stheeman, who is responsible for issuing bonds to fund the U.K. government’s fiscal deficit as chief executive of the U.K. Debt Management Office, said “a deep and liquid market is absolutely critical to all we do.” “We feel liquidity is not as good as it was 12 months ago. There is a potential cost associated with that for government debt managers,” he said.

http://www.wsj.com/articles/ecbs-coeure-volatility-signals-reduced-market-liquidity-1432058272

and on the same theme (liquidity)... but when the concern to exit.. 6 months, 12, 5 years, 15 years...

Meet "The Most Bearish Investment Manager You Will Find Today"
18 May 2015

..The billionaire founder of Universa Investments exclaims, "stocks are the side show of the world. They shouldn't matter that much. They matter too much. They're the realm of punters, the realm of hair-trigger traders, flashing, colorful lights, blips and bleeps of Bloomberg terminals... What does matter is investment in capital, investment in the the tools of greater productivity, of really the progress of civilization."

..Predicting the end of this bubble is impossible "because it's entirely Fed-driven.. and you're relying on liquidity," what we don't understand about markets is there's a buyer for every seller, there's a seller for every buyer, "the market doesn't owe you liquidity."

"The beautiful thing about the business is when the markets get really rich, really overvalued, really distorted like today, the cost of insurance goes way down. There's incredible complacency. People are selling (tail insurance). This is another one of those carry trades that are so popular today. We're back to this Great Moderation. There's a religious belief that the Fed is our savior. And it's priced into the market."

..Spitznagel: "Right, this is what the entire world is doing, what you're describing. Don't fight the Fed, go with the Fed. But, of course, the problem there is we're relying on our ability to change our mind, change our position. Is there an exit to this idea for us?

You're relying on liquidity, of course. What we don't understand about markets is there's a buyer for every seller, there's a seller for every buyer. The market doesn't owe you liquidity."

http://www.zerohedge.com/news/2015-05-18/meet-most-bearish-investment-manager-you-will-find-today
Edited by Venger

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Some elderly wisdom-looking guy was saying this to me in the dream I just woke up from.

The billionaire founder of Universa Investments exclaims, "stocks are the side show of the world. They shouldn't matter that much. They matter too much. They're the realm of punters, the realm of hair-trigger traders, flashing, colorful lights, blips and bleeps of Bloomberg terminals... What does matter is investment in capital, investment in the the tools of greater productivity, of really the progress of civilization."

"The beautiful thing about the business is when the markets get really rich, really overvalued, really distorted like today, the cost of insurance goes way down. There's incredible complacency.

You're relying on liquidity, of course. What we don't understand about markets is there's a buyer for every seller, there's a seller for every buyer. The market doesn't owe you liquidity."

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Some elderly wisdom-looking guy was saying this to me in the dream I just woke up from.

So true what he says about liquidity.

When 'investors' are looking for an exit only so many can get through the door at the same time.

Edited by RentierParadisio

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