Gilts

the famous unknown moderaters may decide that this one is inappropriate for your blog but I think not. I am studying Philosophy, Politics and Economics as well as having worked in the financial industry for over forty years.

What is my point. The government is having to borrow huge sums of money, they have in the past and they will in the future. How do they fund this, through Gilts as much as anything else.

One of these is Treasury 8% 2021, currently priced at 132.02. What does this mean to the man in the street, it means that you buy this at the current price and that in the year 2021 the government promises to redeem the stock at 100.00, or par. Yes folks, you can buy something in the market where the governmnet promises to give you 32.02 pounds less than what you paid for it. Now that is a really good deal.

One, you don't actually get 8% per year in interest, because tax is deducted and the real irony is that you can't even offset your Capital Gains Tax liability against gains on other investments.

Nick, this is a cruel duel, where there is only one winner and it is not the taxpaying public who will be left standing. It is knowledge which needs to be spread, not tittle tattle, but knowledge. Not whistleblowing, but information, transparency if you like.