• The post you are reporting:
   
  Here is some news for you that casts further problems for the Brown approach...
  
  Bill Gross is the founder and chief investment officer of Pimco. He thinks the prospects for the UK economy is very bad. I quote:
  
  "The UK is a must to avoid. Its gilts are resting on a bed of nitroglycerine.
  
  "High debt with the potential to devalue its currency present high risks for bond investors.
  
  "In addition, its interest rates are already artificially influenced by accounting standards that at one point last year produced long-term real interest rates of 0.5 per cent and lower."
  
  Pimco are the world's biggest bonds-based fund managers and the Government is depending on the sale of Government Gilts to fund its spending. This man's opinion matters to the British Government and is a good sign that the UK is headed for a downgrading from AAA. This is the route to much higher interest rates payable by the Government, that will then require bigger cuts to public spending and services to stop further downgrading. We are risking a catastrophe of a downward spiral.

Report Post

Your Name

Reason