We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
Debate House Prices
In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non MoneySaving matters are no longer permitted. This includes wider debates about general house prices, the economy and politics. As a result, we have taken the decision to keep this board permanently closed, but it remains viewable for users who may find some useful information in it. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
How is Austerity Coming Along?
Comments
-
How do the coupon payments bwork on the gilts that have been purchased as part of QE - is this effectively interest free borrowing?I think....0
-
How do the coupon payments bwork on the gilts that have been purchased as part of QE - is this effectively interest free borrowing?
AIUI the cash flow works such that the coupon and maturity is paid by the Treasury(?) to the holders of Gilts. As the Bank of England owns some Gilts via QE, they will receive those coupons and maturities.
The Bank of England has to pay 100% of profits made from printing notes. They then pay 25% of profits plus an 'agreed sum' to the Treasury.
However, the Gilts bought under QE seem to be held off the BoE's balance sheet (in 1976 the Labour Government gave the BoE certain exemptions from financial reporting). I assume that the coupons are being paid back to the Treasury but there is a company called Bank of England Nominees which has unnamed shareholders. If the Gilts are held by BOEN then the coupons could be being paid almost anywhere.0 -
With the cuts being front-loaded as well if we stay on track for another six months or so, I reckon we'll be over the major hurdle.
This is the thing.
A lot of people don't realise the cuts are front loaded. This is pretty much as bad as it's going to get, and for most people it's just not that bad.
There's been an awful lot of politically driven "expectation management" going on with the general public. Things need to be perceived as improving quite rapidly from next year onward if the Tories want to win the next election. One of the easiest ways to do that is make things appear to be worse than they are today.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »This is the thing.
A lot of people don't realise the cuts are front loaded. This is pretty much as bad as it's going to get, and for most people it's just not that bad.
There's been an awful lot of politically driven "expectation management" going on with the general public. Things need to be perceived as improving quite rapidly from next year onward if the Tories want to win the next election. One of the easiest ways to do that is make things appear to be worse than they are today.
In addition, simple maths tell us that the quicker the deficit is cut, the easier it will be to control in future as less interest will be payable.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.3K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.4K Spending & Discounts
- 247.2K Work, Benefits & Business
- 603.9K Mortgages, Homes & Bills
- 178.4K Life & Family
- 261.5K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards