The Times (August 5)
“The ruse to offset new ‘assets’ may allow the Burnham government to say it has not broken its fiscal rules,” but more borrowing “is still more borrowing. And more borrowing will mean more expensive interest payments….. Whether it is the NHS, benefits or the state pension, spending is too high. For the UK to avoid fiscal disaster, it must be restrained if the debt pile is ever to shrink. Rising borrowing cannot continue indefinitely.
Tags: Assets, Benefits, Borrowing, Burnham, Debt, Expensive, Fiscal disaster, Government, Interest payments, NHS, Offset, Pension, Ruse, Spending, UK
Bloomberg (May 19)
“‘Sell America’ is back as Moody’s pushes 30-year yield to 5%.” Just a week after traders “had to react quickly to weekend news of an improvement in trade relations between the US and China,” they will again have to paddle hard, but this time in the opposite direction. Rising Treasury yields are also expected to “complicate the government’s ability to cut back by running up its interest payments, while also threatening to weaken the economy by forcing up rates on loans such as mortgages and credit cards.”
Tags: 5%, China, Economy, Government, Interest payments, Loans, Moody, Mortgages, Rates, Sell America, Threatening, Traders, Treasury yields, U.S., Weaken
