Thursday, March 26, 2009
Scary Gilts Issuance Graph
"Yesterday's failed auction of 40 year gilts underlined a few ghastly truths we may possibly have mentioned once or twice before. Let's start by asking whether you would be prepared to lend to the UK government? Right here and now. Today. In particular, would you lend the government money at a fixed interest rate of 4.25% for 40 years?" Now check the first graph. If this article is half correct then we are in big trouble.