Thursday 21 May 2009

Have I brought down the British government?

Until recently I held three investments in gilts. Back on 18th March I was sent the usual reminder telling me of the impending maturity of one of these investments. They ask whether you want to reinvest in another gilt and if you don't reply the money is sent back. I ignored the letter and got the cash back on Tuesday and just managed to deposit the cheque a few minutes before my bank closed yesterday afternoon. Now I see that UK government debt has been downgraded.

Serves them right. A year ago I would have reinvested in another index-linked government security. Now I don't trust them. Murray Rothbard used to say that libertarians shouldn't lend to the government. His wishes are coming true.

1 comment:

David Farrer said...

Comments made on previous template:

David Farrer
Technically correct. 
But as the Spectator reports this week: Britain should lose its triple-A rating, says Stuart Thomson, a bond fund manager at Ignis Asset Management. which has £70 million under its control. "If the ratings agencies were being honest, they would downgrade the UK."

26 May 2009, 06:06:30 GMT+01:00
– Like – Reply

Jonny Newton
No, it hasn't been downgraded, but they are signalling that it could be in the future.

22 May 2009, 22:28:37 GMT+01:00