Red Rag - One of the things Osborne keeps pointing to is the fact the UK Government Bonds rates are low, lower than Germany, which he says shows the markets faith in his economic plans. However as with everything he says you need to get past the bullshit to find the truth.
In 2008 the Bank of England owned 0% of UK Government Bonds, today it owns 30% of all UK Government Bonds through Quantitative Easing.The Bank of England has kept the demand for the bonds artificially high by buying huge amounts of them which in turn has kept the debt rates returned on them so low. However, as we all know, the Bank of England cannot keep Quantitative Easing going forever. With the forthcoming Osborne induced recession and the fact that the UK will be losing it's AAA credit rating within months, lets see how many times Gideon mentions bond rates in April when they have started to rise.
share on: facebook
