Wednesday, March 22, 2006

UK budget 2006

“Everyone wants to live at the expense of the state. They forget that the state wants to live at the expense of everyone.”

- Frédéric Bastiat.

Some good news though, the Chancellor announced a sharp increase in the supply of very long-dated gilts. He said that he would direct the UK Debt Management Office to increase the share of gilts issued with maturities of greater than 15 years from just under a half, to just under two thirds of issuance. IT'S ABOUT TIME.

Finally we can see the UK government taking advantage of available funds from foreign (mostly Asian) savers like the US has been for a while, to raise its money. It's a win-win situation because it means less dependence on the country's already heavily taxed people and businesses.

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