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macarony
21 Apr 15 07:53
Joined:
Date Joined: 13 Mar 05
| Topic/replies: 7,036 | Blogger: macarony's blog
Who are we borrowing all this money off year after year, and at what price?

I am not just talking about interest rates, but also any unusual demands.
Are we being funded by the Arabs and are they demanding mass muslim immigration into Europe, in exchange for the cash?

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Replies: 5
By:
i_agree_with_nick
When: 21 Apr 15 09:30
Government bonds which are usually bought by pension funds, investment funds, other financial institutions and, to a lesser extent, private individuals.
By:
brendanuk1
When: 21 Apr 15 09:34
Arabs and Chinese mostly.
By:
macarony
When: 21 Apr 15 09:36
So we are led to believe but we also had huge debt in the 70s and this was not enough we needed bailed out by IMF, yet no mention of the IMF today?
By:
Jack Hacksaw
When: 21 Apr 15 09:36
Why borrow when we can print?
By:
bongo
When: 21 Apr 15 10:03
This guy has done some nice graphs and has a couple of recent quotes from the FT.

.
http://www.taxresearch.org.uk/Blog/2010/05/18/who-owns-our-debt/

It's Insurance Companies, Pension Funds, Overseas, Banks, and other financial institutions all holding a fair bit each. None clearly dominant. Overseas ones on the rise.
I'm guessing macarony wants a break down of those Overseas owners of debt, Arab sov wealth funds, Chinese central and municipal banks, that sort of thing. Sorry, haven't got it.

What does it cost investors - about 1.5-1.6% for a 10 year gilt. Why are they investing at bad value when many shares pay 2%+ dividends, also land and other assets grow by more than that. Because of many factors such as UK being regarded as safe, financial advisers telling them should have diverse holdings and because London has a great escort scene ( seriously ).

What does it cost us though - think of it this way - paying the interest on the debt takes about 11 days worth of national income and rising. So if it didn't exist we could notionally all have 11 days holiday at the beginning of the year and start doing work from the 12th January. Which would ne nice.
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