Re: The Triple Lock.
Originally Posted by
The Artful Todger
->
Bit of a mess. The treasury invested money in some UK banks but doesn't actually
own Treasury money comes from taxes and selling "gilts" (treasury bonds) to cater for deficit annual budgets but these need to be serviced and that is where money comes from to cater for deficits. Gilts are sold through government's Debt Management Office - or through brokers. Banks, world wide, can and do buy gilts as part of their business models.
Is there a shitload of money just laying around? Not really but there are tradeable credits that can be - well traded.
It's a highly complex subject that is all but impossible to describe just thinking of money, which is why money comes in different forms, M1, M2, etc. Unfortunately there is no "101" for international high finance. The expression "Time is Money" is true in so many ways.
So there is nothing to back up the so called " gilts" Todgy?
Just the government's "word" that Joe public will be willing to
pay up when the time comes by paying higher taxes ?? Or maybe
use some high value asset to satisfy the creditors ?
Who sets the interest rate for these "gilts", the buyer or the seller?
surely if the rate is low enough to keep the seller happy, it will be too
low to attract a buyer in competition with more juicy offerings on
the the stock exchanges? If l remember correctly the main buyers of
government bonds was the pension funds due to the lack of risk,
I believe this is no longer the case? So who does buy "gilts" now
then?
Sorry to bother you so much, but l have been trying to get to the
nitty gritty of all this shyte for some time now with no success !!
Donkeyman! 👎🤔🤔👎