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Bank of England to temporarily finance UK government spending

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    Bank of England to temporarily finance UK government spending

    Interesting story from Reuters:

    Bank of England agrees to finance UK government if markets turn sour - Reuters

    #2
    So guilts not selling well then

    Comment


      #3
      Originally posted by AtW View Post
      So guilts not selling well then
      You mean Gilts?
      First Law of Contracting: Only the strong survive

      Comment


        #4
        Hang on, money is being raised without selling bonds? How does that work?

        Lunatics - protect your purchasing power, land, gold, bitcoin, whatever takes your fancy. Central bank madness is going to result in a Japan style stagnation for years and years.
        "Never argue with stupid people, they will drag you down to their level and beat you with experience". Mark Twain

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          #5
          It was called an 'overdraft' on R4 this morning.

          Comment


            #6
            Originally posted by _V_ View Post
            You mean Gilts?
            I think the spelling was deliberate.

            Comment


              #7
              Originally posted by AtW View Post
              So guilts not selling well then
              From what I recall, they were at 3x oversubscribed on the last sale.

              At least for now, there's nothing to see here.

              This is a standard mechanism, a drop in the ocean in terms of amount and the facility was also extended during the last crisis.

              Comment


                #8
                Originally posted by jamesbrown View Post
                From what I recall, they were at 3x oversubscribed on the last sale.

                At least for now, there's nothing to see here.

                This is a standard mechanism, a drop in the ocean in terms of amount and the facility was also extended during the last crisis.
                And who was the buyer - BoE?

                Comment


                  #9
                  Originally posted by AtW View Post
                  And who was the buyer - BoE?
                  Yes, this method cuts out the middleman from taking their cut. The banks are quite happy to buy the govt bonds from the govt knowing they can then sell them back to the govt at a profit.

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                    #10
                    The gold standard can't return soon enough.
                    "Never argue with stupid people, they will drag you down to their level and beat you with experience". Mark Twain

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