Bailout : Gordon's £1.4 Trillion Fail

giltsHere is the futures price chart for the generic Gilt.  All that is stopping that chart going further south faster is that the Bank of England is printing money (though printing isn’t the way it done nowadays, the Bank just changes amounts in the electronic ledger).  Some of that money is recycled into mopping up gilts.  It won’t work for ever.

Gordon has convinced fellow members of the IMF to sell the fund’s gold reserves, this visibly holds down the gold price as the relative value of paper money is destroyed.   There will be an awful day of reckoning.

The gilt market will revolt sooner or later.   Darling’s fantasy forecasts will be rejected by those of us in the reality-based financial markets.   The numbers are horrific.  Bloomberg’s Andrew MacAskill has totted up the cost of the bailout as £1.4 trillion.  That is over 100% of GDP.




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