Thursday, Dec 24, 2009

And so it begins ...

Telegraph: Gilts sell-off as Britain joins Italy in debt house

The cost of borrowing for the British Government has surged to within a whisker of Italian levels as global markets issue their punishing verdict on the Government’s spending plans. The yield on 10-year gilts spiked Wednesday to 3.97pc, 46 basis points higher than costs on French bonds. Britain and France were neck and neck as recently as last month, before Labour’s pre-Budget report raised deep concerns among Chinese, Arab, and Russian investors. Julian Callow, Barclays Capital, said “The Bank has bought more gilts over the last nine months than the Government has issued. It has magically eradicated the cost of financing the deficits, but this is going twist dramatically the other way in early 2010. Markets know this. They are demanding a risk premium on sterling.”

Posted by wanderinman @ 12:24 AM (2391 views)
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1. devo said...

and still people blame brown!

he is a mere pawn in the game

i get it

crunchy gets it

anyone else?

Thursday, December 24, 2009 12:33AM Report Comment

2. devo said...

let me put it another way

the global economy is a given

is global politics a given?

think about it

Thursday, December 24, 2009 01:38AM Report Comment

3. devo said...

or, as the 'cleverest' contributor to hpc once said...

there is no conspiracy.... there doesn't need to be.......

Thursday, December 24, 2009 01:44AM Report Comment

4. devo said...

bear in mind that he also said that the formulae behind house price rises/derivatives only worked in an ever increasing market


Where are you, 51ck-6-51x?

Thursday, December 24, 2009 01:53AM Report Comment

5. alan said...

From a bond perspective, losing our AAA rating is academic. The markets have already made their move.

Perhaps when the AAA rating goes for the UK, then the electorate will understand? Fitch has already warned that ratings will drop - what are the odds of the drop happening before the election. It must be evens?

Thursday, December 24, 2009 02:30AM Report Comment

6. devo said...

"Perhaps when the AAA rating goes for the UK, then the electorate will understand?"

The UK losing its AAA rating will mean feck all to the electorate.

are you serious?

Thursday, December 24, 2009 02:33AM Report Comment

7. amjidk said...

buy some gold!!

Thursday, December 24, 2009 03:18AM Report Comment

8. quiet guy said...


"I get it"

I'm delighted to hear that. Now perhaps you would like to educate us by stating clearly and concisely what 'it' is?

Thursday, December 24, 2009 08:50AM Report Comment

9. alan said...


Yes. I think the AAA rating is a yardstick which the many of the electorate judge the country. Also the commentators\people they listen to plus articles in the magazines.

The UK's AAA rating could be lost in the next few months....we could also have to go to the IMF, but that's another thread.

Thursday, December 24, 2009 09:13AM Report Comment

10. happy mondays said...

Mike Prysner get's it !

Thursday, December 24, 2009 09:26AM Report Comment

11. inbreda said...

It annoys me when people have multiple sign-ins

Thursday, December 24, 2009 09:31AM Report Comment

12. Inbreda said...

It also annoys me when people talk in riddles

Thursday, December 24, 2009 09:31AM Report Comment

13. p. doff said...

Devo is right. A large proportion of the electorate neither know nor care anything about the UK's rating. A diet of football the X-Factor and Homes under the hammer keeps the masses quiet.

Thursday, December 24, 2009 09:31AM Report Comment

14. devo said...

Now perhaps you would like to educate us by stating clearly and concisely what 'it' is?

Simple: national governments are the slaves of the financiers.

is that clear and concise enough?

Thursday, December 24, 2009 10:21AM Report Comment

15. quiet guy said...


Thank you. That was straight to the point.

I'm off for the holiday now so merry Christmas everybody!

Thursday, December 24, 2009 10:33AM Report Comment

16. Not Long Now said...


The UK's AAA rating might be irrelevant to the elecorate per se.

However, the increase in interest rates a downgrading would cause would not be. Cause and effect should not be ignored.

Thursday, December 24, 2009 10:33AM Report Comment

17. andy_boy said...

How do you see Sterlings performance next year against major correncies liek the Euro.

Thursday, December 24, 2009 10:42AM Report Comment

18. crunchy said...

12. p. doff ... That's a bit Orwellian for you. Slowly but surely mate.

There is a new programme coming out soon, it's called 'People under the Hammer.' Don't miss it!

Enjoy your turkey, p. doff.

Thursday, December 24, 2009 10:49AM Report Comment

19. p. doff said...

16. crunchy said...''Slowly but surely mate''

Sorry to disappoint but I haven't changed my stance at all - I still know where to draw the line between fact and fiction.

Spend less time looking for the conspiracies and worrying, mate. That way you will enjoy your turkey.

Thursday, December 24, 2009 11:24AM Report Comment

20. markj69 str05 said...

Many people have been duped into living happy lives, ignorant of true facts. This is true at all levels. This could just be an extravegant scam. Who really knows, we'll never find out for sure. Personally, I am not yet convinced, but still have an open mind.

RE-nationalize any organization capable of bringing the country to its knees. Any organization thinking it's too big to fail. Then at least the elected party will maintain some control.

Thursday, December 24, 2009 12:00PM Report Comment

21. crunchy said...

17. p. doff I will try again in 6 months when it should be very clear to you.

The evidence is mounting if you care to look. Don't choke on your wishbone.

Thursday, December 24, 2009 12:22PM Report Comment

22. p. doff said...

@ 19 Crunchy/Devo/Malct/Alex etc. No need, it's already very clear to me who the winners and losers will be. I just don't share your analysis of the position.

PS. I'm still trying to work out your agenda. Is trying to influence others on a blog your full time job, or just an all consuming hobby? Either way, it makes me uneasy, and apt to question your motives.

Thursday, December 24, 2009 01:29PM Report Comment

23. hpwatcher said...

and still people blame brown!

he is a mere pawn in the game

i get it

crunchy gets it

anyone else?

Whilst I agree that there are forces outside the UK, at work, the actions of this ''politician'' are certainly a contributing factor.

Thursday, December 24, 2009 02:19PM Report Comment

24. andy_boy said...

I can't help thinking a lot of bloggers on here are sometimes looking at things a bit to deeply and reading to much into situations eg conspiracies, etc. The reality is often far simpler. The governemnt are attempting at all costs to keep things going until after the election.
Pretty much all action up to now has only succeeded in delaying the next phase of the downturn. But the next phase is coming, and thats next year. Up to now savage cuts etc have been avoided, but they must come to pay back the borrowed money. Inflating away debts wont really work because of the potential gilt/currency issues (if the currency suffers much more think of the inflation that would result from all our imported goods).

Thursday, December 24, 2009 02:31PM Report Comment

25. mdmick said...

Cheer up everyone!
It's the World Cup year coming up!!
Merry Xmas, Happy New Year!
And thank you to the HPC people for this informative site! Even if I can't write A R S E !!!

Thursday, December 24, 2009 03:29PM Report Comment

26. crunchy said...

20. p. doff There are conspiracy hopes for you yet. If not you will have much in common with the turkey you will be ripping into soon.

Let me help you in your choice, The Gulf of Tonkin. A Christmas project for you with worthy rewards.

Crunchy? A trader who likes to vent the stresses, or a CIA double agent. Some may think of me as an unpleasant (two soups) waiter.

The menu is yours!

Thursday, December 24, 2009 04:54PM Report Comment

27. crunchy said...

23. mdmick


Thursday, December 24, 2009 04:56PM Report Comment

28. rumble said...

"there is no conspiracy.... there doesn't need to be......."

Exactly. Creation vs evolution. Engineering vs accident. Control vs chaos.


Thursday, December 24, 2009 06:37PM Report Comment

29. fallingbuzzard said...

No-one can control something they don't understand. And even they understood it, it doesn't mean its controllable.

Thursday, December 24, 2009 10:23PM Report Comment

30. tick tock said...

Simple: national governments are the slaves of the financiers.

To be fair mate, I think everyone with half a brain already knows this really. However, people have differing reactions to this reality. I suspect that mine is similar to yours in all honesty, but implying that people are stupid for not sharing the same view seriously underestimates peoples individual capacity for rational thought, and I thinks harms your (our?) cause.

Peoples view of human capacity for change has been eroded by decades of capitalist rule, their belief in human decency as a genuinely implicit characteristic of species all but destroyed. Well founded cyniscism is the best description of the UK's contemporary political consciousness, and this should not be underestimated (or disrespected)

Seeing the problem is easy. Obtaining consensus upon the way forward, less so.

Merry Christmas.

Thursday, December 24, 2009 11:41PM Report Comment

31. devo said...

28. tick tock

Such a well-written post is difficult to respond to with my customary one-liners.

Suffice it to say, I have a number of issues with the points you make.

Friday, December 25, 2009 12:01AM Report Comment

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