Investors Flee Fiscal Fiction

UK government debt took a whack yesterday, the gilt market dropped heavily on what the FT describes as ‘fiscal fiction’. The FT is blunt:

Investors took fright on Thursday at the timidity of the government’s plans to balance the books with one of the biggest sell-offs of British gilts this year.

The fiction will continue, the Bank of England will print more money and buy take billions more gilts on to its books to prop up the market.  The Moodys bond rating agency warned that the ‘AAA’ rating on UK sovereign debt was good for now, but within a few years that could be historyThe day of reckoning will be postponed, only to be worse when it comes…




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Quote of the Day

Boris on Osborne and Project Fear:

Unemployment has fallen by 250,000 to a new low of 4.2 per cent while record numbers of jobs have been created – including no fewer than 8 for the former chancellor and chief architect of project fear who has become a glorious living rebuttal of his own preposterous warnings.”

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