Osborne bond will make our kids pay
Wednesday 14 March 2012
Printable
EmailShameless Chancellor George Osborne is aiming to make generations of unborn children pay for the debt racked up by bailing out his banker buddies.
Reports on Wednesday said he'll use next week's Budget to launch an "Osborne bond."
This "gilt" - a gilt-edged government bond - wouldn't be repaid for up to 100 years or even in perpetuity.
It would mean that children not yet born will continue to pay interest throughout their lives on the government's debts.
Britain last issued perpetual gilts at the end of WWI, rolling over some of the war debt incurred during hostilities.
In fact these debts - as well as some issued to following the notorious 18th century South Sea Bubble - are still held by the Treasury, but inflation has reduced them to negligible significance over the decades.
The Treasury is hoping to take advantage of Britain's historically low interest rates, but with inflation threatening to eat away these new Osborne bonds there may not be many takers.
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