Spend now, pay later. A lot later

[DimPrawn]

Britain to offer 100-year gilts - Telegraph

Britain is to offer 100-year gilts, meaning current Government borrowing will not be repaid until the next century, under a radical plan to be unveiled by George Osborne in next week's budget.



I pity our great grandchildren. Still, lets spend spend spend!

[TimberWolf]

They should be called guilts.

[DimPrawn]

Guess who will buy up these gilts?

BoE

And how will they pay for them?

Printed money (QE)

[BrilloPad]

A very sensible idea from a borrowing perspective. Though IMO they should issue gilts with no maturity(like war loans).

I have 2 concerns :-
1. Isn't the main buyer of gilts the government via QE?
2. The second main buyer are those forced to buy like pension funds. How do they feel about being forced into a low rate of return?