The UK attracted a record £137 bln order book for its £10 bln Green Gilt. But what does the Green Gilt achieve? Its marketing puff. It may disguise how ill-considered and ultimately self-defeating the Government’s rush to looking green has been. No matter how well intentioned a Green Gilt is – its style over substance, papering over the cracks in a confused and contradictory long-term climate-change mitigation strategy.
The UK’s decision to hike taxes and put a sticking plaster on the cash-haemorrhaging NHS highlights serious issues for Soveriegn Debt Investors. Expectations on interest rates and currency markets are one issue, but the competency of governments to manage the quantum of debt raised through the pandemic and avoid rising uncertainty will be increasingly under the microscope.
The UK is going through periodic angst as everything looks terrible and we wonder how to balance the budget, pay the bills and avoid penury. Relax. We worry too much. Everyone else is cooking their national accounts. The UK can do it better. Buying Boots at the Ready!
SpaceX remains on course to be one of the most important companies ever, and is driving competition to commercialise space… and some comments about the UK budget.
Blain’s Morning Porridge (2) – May Day – 2020 – Solving Sov Debt? “These are not the Gilts you are…