New Labour New Poverty thinks it can borrow £146 billion this year.
'Investors shunned one of the most liquid and safest assets in the world on Wednesday as a German bond auction failed ', reports the FT. Germany is not a government pursuing crass keynesian policies, nor is it a government deeply distrusted as to its economic and financial competence, let alone probity, nor is it seeking to raise record amounts of debt.
Thus the first eurozone bond auction of the year gives an ominous signal. It is estimated that $3,000bn is expected to be issued in sovereign debt in 2009. There have been failing bond auctions in 2008 with less than a third of that being hawked. If Germany cannot do it, no-one can.
In the meantime resentment is beginning to colour at least my decision-taking. Why lend for a negative return? Why spend if consumption helps the regimes responsible for this mess to stay in power? No longer will people seek a return indifferently. We are beginning to look for investment in revenge.
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You're not the first to feel he pressure to invest because bonds may tank and cash may be devalued. But I wonder if it's like running to another tree in the rain because the first one's dripping water down your neck. I think the search is on for anything with intrinsic value.
I thought about putting a few quid into National Savings then thought: why should I help these scumbags out when I can get a slightly higher rate at HSBC?
If Germany can't raise debt, then UK rates are going to be *high*..! Who's got the number for the IMF?
A propos: http://economictimes.indiatimes.com/Marc_Faber_sees_precious_metals_outperforming_equities_bonds_in_2009/articleshow/3937375.cms
S, everyone agonises and considers; things are numbered, weighed, divided. At last decisions are acted on and I think it's gone away to somewhere safe and that we can't do better than that. And then, after a few months, it all comes back again! But the world has changed utterly - also again - and all this choosing and assessing starts - even more also, again.
I'm sick of it. This time whatever choices are made the main aim is damage. To them. Whatever they need, I'm not doing it. And of course it will make no difference to them, but I see it makes Blue feel better too.
Gold, HG, gold !!
the precioussss
[thisisnotfinanialadvicepricesmaygodownaswellasuptheworldmaycometoanendnextweek]
I thought silver bullets, ND.
Gold's a bit.. a bit ...Dubai, No?
Nick, HG: posssssibly sssssilver, as HG facetiousssly ssssugessstssss.
I bought HSBC shares for the dividend yield.
Anti-C, have you seen the proposals to raise taxes on savers, deposits - drive us all out do the decent thing and owe? The Times is giving page space to total delusional economic pornography.
That Kaletsky person, can he possibly be serious?
Hats, sending me to read that has spoiled my morning.
Kaletsky is mad. If there is a tax on savings, people will simply withdraw all their money from the banks. That'll solve things!!
What Blue Eyes said+
I bought the shares because they
1/ pay more than bank interest.
2/ Harder to grab than cash in the bank.
3/ hedge against inflation AND deflation.
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