With all these rescues and injections of liquidity, I got to wondering where all this money comes from. Does the govt. just create more, or does it come from reserves or other budgets? Presumably if they just make more money to bail out someone, this just adds to overall inflation?
Pete
In the short term it will come from reserves, but in the medium term it will come from you and me.
Whoever wins the next election is going to have on hell of a job balancing the books
tim
When Northern Rock went t*ts up I think it is no surprise that the Treasury issued bonds giving 8% return/year... it was a successful attempt to get institutional investors to move any liquidity they had there.... including the british steel pension scheme which bought millions£s worth of these...some going on until 2021!...and hopefully will be the saviour of that scheme.
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