Gilts attract record number of global investors – FT
This news report from today’s FT shows the positive side of Cameron and Osborne’s economic policy, so movingly excoriated by Polly Toynbee recently in The Guardian. The UK’s borrowing costs have not been so low since 1895 and this is because international investors, SWFs etc find the UK’s economic possible more credible than anywhere else. Gilts are even in more demand than bunds. How do square the circle? Italy and Spain are paying 7% and 5% respectively to borrow money, their poor are facing even greater austerity than those in the UK + the possibility of their countries going bust and civil cohesion breaking down. Notwithstanding what Polly Toynbee says I think the UK has probably got it less wrong than the others. It’s not nice to watch and I am sure that HMG is not enjoying doing what they think they have to do but we live in very difficult times.
Al Baraka
http://www.ft.com/cms/s/0/94544ab2-36f1-11e1-96bf-00144feabdc0.html#axzz1hm7odo1c
This entry was posted on Wednesday, January 4th, 2012 at 3:21 PM and filed under Articles, Europe, Politics. Follow comments here with the RSS 2.0 feed. Skip to the end and leave a response. Trackbacks are closed.
