Government borrowing ?

Galaxy66

Galaxy66

Jeremy Beadle
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Ok, we keep hearing of government borrowing, just heard we are going to borrow 100 billion.

So what I would like to know, and it might be a silly question to some.

Who lends us 100 billion :shrug:
 
Other countries...
I guess it's like in the US where the gov asks for say $100billion, and people/countries put offers forward with what they would like as an interest rate, and then the gov picks the lowest rate offers.
For example, the UK has about $350billion of US bonds :)
 
Santa ? :shrug:



wmann_guitar.gif
 
wonder if we can cajole them into buying us all a decent bit of kit each? ;)
 
hepburn said:
wonder if we can cajole them into buying us all a decent bit of kit each? ;)
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I've emailed Gord already. I'm sure he can spare 5 grand out of that 100 billion for a D3 and 24-70.

I'll keep you updated.
 
Remember government borrowing is them borrowing it on our behalf and WE will have to pay it back plus interest of course.

It's 118 billion next year, by 2014 it will be a total debt of 1 trillion pounds
that's £1,000,000,000,000 or about £16,000 each.
 
TO answer the OP's question...

The government sells goverment bonds on the international money market bascially.
 
Matt. said:
Other countries...
I guess it's like in the US where the gov asks for say $100billion, and people/countries put offers forward with what they would like as an interest rate, and then the gov picks the lowest rate offers.
For example, the UK has about $350billion of US bonds :)
Click to expand...

We have bought $350 billion in US bonds, effectively lending that amount to US government, so now we have to borrow £100 billion pounds and the US could buy that amount in bonds off us so effectively lending the UK back it's own money.

:D
 
Galaxy66 said:
We have bought $350 billion in US bonds, effectively lending that amount to US government, so now we have to borrow £100 billion pounds and the US could buy that amount in bonds off us so effectively lending the UK back it's own money.

:D
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and now you see why everything is so screwed up :bang:
 
whiteflyer said:
Remember government borrowing is them borrowing it on our behalf and WE will have to pay it back plus interest of course.

It's 118 billion next year, by 2014 it will be a total debt of 1 trillion pounds
that's £1,000,000,000,000 or about £16,000 each.
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this is where it gets tricky, are we talking american billion(thousand million) or an english billion(a million million)? the two numbers are massively different and i dont want to see how big an english trillion is:eek:
 
Galaxy66 said:
Ok, we keep hearing of government borrowing, just heard we are going to borrow 100 billion.

So what I would like to know, and it might be a silly question to some.

Who lends us 100 billion :shrug:
Click to expand...

Keep going up... they said £1 trillion on the BBC last night, been the government they can print what they like, just means we are in debt.
 
My bet would be the money is coming from the middle east or China. Apparently China's rainy day pot is the same as the GDP of the rest of the world combined, how true that is I don't know, you can't believe everything you see on the telly.
 
fletch5 said:
this is where it gets tricky, are we talking american billion(thousand million) or an english billion(a million million)? the two numbers are massively different and i dont want to see how big an english trillion is:eek:
Click to expand...

Numerical Systems

Short scale is the English translation of the French term échelle courte. It refers to a system of numeric names in which every new term greater than million is 1,000 times the previous term: "billion" means "a thousand millions" (109), "trillion" means "a thousand billions" (1012), and so on.

Long scale is the English translation of the French term échelle longue. It refers to a system of numeric names in which every new term greater than million is 1,000,000 times the previous term: "billion" means "a million millions" (1012), "trillion" means "a million billions" (1018), and so on.

In 1974, the then prime minister, Harold Wilson, announced that henceforth a "billion" would mean nine zeros and not 12 in official reports and statistics. This was a change from Long scale numerical systems to the Short scale numerical systems, as used in the USA.
 
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Garnock said:
And who is buying these bonds ......... basically ?
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Anyone can buy these Bonds, including you and me. As the bond is issued by the government they are call gilts.

Gilts (government bonds)

Gilts (or gilt-edged stocks) are bonds issued by the government which pay a fixed rate of interest twice a year. They are considered safe investments as the government is unlikely to go bust or to default on the interest payments.

However, you are not guaranteed to get all your capital back under all circumstances. Gilts, like corporate bonds, are bought and sold on the stock market where their price can go up or down.

Gilts can be bought and sold through brokers, high street banks or through the government's Debt Management Office (DMO) which produces a guide to buying gilts.
 
whiteflyer said:
Anyone can buy these Bonds, including you and me. As the bond is issued by the government they are call gilts.

Gilts (government bonds)

Gilts (or gilt-edged stocks) are bonds issued by the government which pay a fixed rate of interest twice a year. They are considered safe investments as the government is unlikely to go bust or to default on the interest payments.

However, you are not guaranteed to get all your capital back under all circumstances. Gilts, like corporate bonds, are bought and sold on the stock market where their price can go up or down.

Gilts can be bought and sold through brokers, high street banks or through the government's Debt Management Office (DMO) which produces a guide to buying gilts.
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I'm with you now.

Thanks for that. :thumbs:
 
I wonder how linked to these gilts the recent interest rate plunge was? ;)
 
As I understand it they are FIXED rate until maturity, which in the current climate means if you have the money some of these could have been a great buy.

GILTS IN ISSUE ON 24 NOVEMBER 2008

4% Treasury Stock 2009
5¾% Treasury Stock 2009
4¾% Treasury Stock 2010
6¼% Treasury Stock 2010
4¼% Treasury Gilt 2011
9% Conversion Loan 2011
3¼% Treasury Gilt 2011
5% Treasury Stock 2012
5¼% Treasury Gilt 2012
4½% Treasury Gilt 2013
8% Treasury Stock 2013
5% Treasury Stock 2014
4¾% Treasury Stock 2015
8% Treasury Stock 2015
4% Treasury Gilt 2016
8¾% Treasury Stock 2017
5% Treasury Gilt 2018
4½% Treasury Gilt 2019
4¾% Treasury Stock 2020
 
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