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Uk Government Prepared To Launch 100-year Gilts Next Week

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By Author: Jack Grayn
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Since the UK is struggling to get rid of its second financial crisis and the economist are making their criticizing remarks on the measures taken by the government and the Bank of England. Whereas the treasury sources reveal that it would result adversely. UK chancellor George Osborne is all set to outline a new meticulous proposal along with the budget for the government next week on Wednesday to launch 100-year gilts. It is considered that it is an attempt by the government to attempt to "lock in" the benefits of the UK’s international "safe haven" status for upcoming generations.
According to the sources, the Office of Debt Management is expected to present a consultation in addition to the budget on biggest ever and even perpetual gilts in bid to avoid the short-term debt crisis prevailing in Euro zone. Earlier, after the First World War, when the UK required funding the massive cost of its war effort, the first ever perpetual gilt was created to recover from the very devastating South Sea Bubble in the 18th century.
Today, when Spain and Italy have already been paying record high interest to their money lenders ...
... in recent months and had to suffer also for the renewal of their two and three-year gilts. The UK, apart from its average length of 10 years gilt, has planned to create it’s the longest ever 50-years gilt to capitalize on low borrowing costs. At present, the UK has a 50-years longest gilt, but the DMO is still willing to double it or creating it with an indefinite period. Save yourself from the pressure of financial crises by applying with 12 months bad credit loans and get quick funds and settle down all urgent expenses you are facing in this tough period of crises.
According to a treasury source, the government is planning to lock in for the future the tangible benefits of the safe haven status they have today. The government thinks that it’s a great opportunity for them to ease their future generation by bringing down the interest payment for the today’s tax payers which is expected to be challenging because of the Government’s fiscal credibility. Credit rating agency Moody has warned the government about this as he believes that it is like considering a possible downgrade to the UK’s credit status. Sources also confirmed that however the government’s new policy could be an attempt to get over its low borrowing costs, but it’s an extra 1% increase in gilt prices would cost the UK an extra £20bn by the end of 2016 which is going to be an extra burden of £1,000 for each household. These figures also give the government a broader alarm about the risk that the Labor would likely to face in case the government relaxed the deficit-cutting plans of the Coalition.

Jack Grayn is financial advisor and shares he best views on 12 month bad credit loans @ http://www.12monthbadcreditloans.co.uk/ , loans for people with bad credit and 12 month loans no credit check

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