Best of the Week
Most Popular
1. Climate Change Mass Extinction - Birds, Bees and Bugs: Going Going Gone - Richard_Mills
2.A Purrrfect Gold Price Setup! - Peter_Degraaf
3.Who Finances America's Borrowing? Recession Indicator for Independent Thinkers Part 2 - F_F_Wiley
4.America’s One-sided Domestic Financial War - Raymond_Matison
5.Gold Price Summer Doldrums - Zeal_LLC
6.Two Key Events Will Unleash Gold - Jim_Willie_CB
7.Billionaire Schools Teacher in NAFTA Trade Talks - Richard_Mills
8.Get Out Of Crypto Cannabis Bubble Before It Pops and Move Into Bargain Basement Miners - Jeb_Handwerger
9.Stock Market Could Pullback for 1-2 weeks, But Medium Term Bullish - Troy_Bombardia
10.G7 Chaos, Central Banks and US Fed Will Drive Stock Prices This Week - Chris_Vermeulen
Last 7 days
Gold GLD ETF Update… Breakdown ? - 20th Jun 18
Short-term Turnaround in Bitcoin Might Not Be What You Think - 19th Jun 18
Stock Market’s Short Term Downside Will be Limited - 19th Jun 18
Natural Gas Setup for 32% Move in UGAZ Fund - 19th Jun 18
Magnus Collective To Empower Automation And Artificial Intelligence - 19th Jun 18
Trump A Bull in a China Shop - 19th Jun 18
Minor Car Accident! What Happens After You Report Your Accident to Your Insurer - 19th Jun 18
US Majors Flush Out A Major Pivot Low and What’s Next - 18th Jun 18
Cocoa Commodities Trading Analysis - 18th Jun 18
Stock Market Consolidating in an Uptrend - 18th Jun 18
Russell Has Gone Up 7 Weeks in a Row. EXTREMELY Bullish for Stocks - 18th Jun 18
What Happens Next to Stocks when Tech Massively Outperforms Utilities and Consumer Staples - 18th Jun 18
The Trillion Dollar Market You’ve Never Heard Of - 18th Jun 18
The Corruption of Capitalism - 17th Jun 18
North Korea, Trade Wars, Precious Metals and Bitcoin - 17th Jun 18
Climate Change and Fish Stocks – Burning Oxygen! - 17th Jun 18
A $1,180 Ticket to NEW Trading Opportunities, FREE! - 16th Jun 18
Gold Bullish on Fed Interest Rate Hike - 16th Jun 18
Respite for Bitcoin Traders Might Be Deceptive - 16th Jun 18
The Euro Crashed Yesterday. Bearish for Euro and Bullish for USD - 15th Jun 18
Inflation Trade, in Progress Since Gold Kicked it Off - 15th Jun 18
Can Saudi Arabia Prevent The Next Oil Shock? - 15th Jun 18
The Biggest Online Gambling Companies - 15th Jun 18
Powell's Excess Reserve Change and Gold - 15th Jun 18
Is This a Big Sign of a Big Stock Market Turn? - 15th Jun 18
Will Italy Sink the EU and Boost Gold? - 15th Jun 18
Bumper Crash! Land Rover Discovery Sport vs Audi - 15th Jun 18
Stock Market Topping Pattern or Just Pause Before Going Higher? - 14th Jun 18
Is the ECB Ending QE a Good Thing? Markets Think So - 14th Jun 18
Yield Curve Continues to Flatten. A Bullish Sign for the Stock Market - 14th Jun 18
How Online Gambling has Impacted the Economy - 14th Jun 18
Crude Oil Price Targeting $58 ppb Before Finding Support - 14th Jun 18
Stock Market Near Another Top? - 14th Jun 18
Thorpe Park REAL Walking Dead Living Nightmare Zombie Car Park Ride Experience! - 14th Jun 18

Market Oracle FREE Newsletter

5 "Tells" that the Stock Markets Are About to Reverse

UK Government Extends 4% Pensioner Bonds Grey Vote Bribe to Election Day

ElectionOracle / UK General Election Feb 08, 2015 - 03:56 PM GMT

By: Nadeem_Walayat

ElectionOracle

George Osborne today announced that the Collation government is extending the Over 65 4% Pensioner Bonds Tory election bribe for 3 months, all the way to election day. The original tranche was for £10 billion that has all but been consumed by yield starved cash rich pensioners with today's news likely to allow for a further £10-£15 billion of election bribe bonds to be sold over the next 3 months at an additional cost to the Tax payer of a least £700 million bringing the Pensioner bond election bribe total to at least £1.2 billion in terms of free money for pensioners.


This also implies that post election the pensioner bonds may become a permanent bribe as is the winter fuel allowance, free TV licence amongst many other bribes for the growing army of grey voters of approaching 12 million, who are not only twice the number of the 18-24 heavily penalised voting group (low pay, tuition fees, little chance of affording to buy a home, heavy taxation) but more than twice as likely to vote than the young, hence why Labour and Conservative tend to bend over backwards to bribe pensioners for their votes.

George Osborne's announcement on BBC1 - The Andrew Marr Show

“Our 65 plus pensioner bond has been the most successful savings product this country has ever seen. Over 600,000 pensioners have benefited from it.

“What I can confirm today is that we are going to guarantee that it remains on sale for another three months.”

My last article forecast better than 50% chance for the Government to make additional tranche's available for the primary purpose of BUYING votes as excerpted below -

15 Jan 2015 - New 4% Pensioner Bonds Election Bribe - Grab it While You Can

Election Bribe

As a comparison the best 1 year fixed rates average about 1.8% and the best 3 year fixed rates average about 2.4% gross!. So these bonds are paying 60% premium to the market rate, hence why they are an election bribe. Therefore the £10 billion tranche converts into a potential bribe of at least £500 million as the NS&I usually tends to under pay market rates.

Bond Details
  • For 65+ only
  • Invest between £500 to £10k
  • Interest is taxable.
  • 1 year pays 2.8% gross (2.24%net)
  • 3 year pays 4% gross (3.2% net)
  • Fixed rate term bonds

As mentioned earlier, if you miss applying for the current £10 billion offering then there is a better than 50% chance that the Government will make an additional tranche available later on as the purpose of these bonds is literally to BUY VOTES, especially as NS&I rates tend to be at the bottom end of the market i.e. the 5 year Issue 102 fixed rate bond carries a rate of 1.6% gross.

The bottom line is that the rest of the population and especially the young are being squeezed by the weight of the growing grey vote to breaking point, which implies an increasing trend towards a generational conflict as a growing ageing population unfairly skews allocation of economic resources in its favour that could trigger further outbreaks of disorder as we saw with the London riots as the young rebel against effective grey vote imposed slavery as an ever increasing share of the nations wealth is being funneled to the elderly as illustrated by the pensioner bonds with the young left to pay the price in terms of being saddled with debt mountains without any assets i.e. permanent insolvency.

By Nadeem Walayat

http://www.marketoracle.co.uk

Copyright © 2005-2015 Marketoracle.co.uk (Market Oracle Ltd). All rights reserved.

Nadeem Walayat has over 25 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis focuses on UK inflation, economy, interest rates and housing market. He is the author of five ebook's in the The Inflation Mega-Trend and Stocks Stealth Bull Market series that can be downloaded for Free.

Housing Markets Forecast 2014-2018The Stocks Stealth Bull Market 2013 and Beyond EbookThe Stocks Stealth Bull Market Update 2011 EbookThe Interest Rate Mega-Trend EbookThe Inflation Mega-trend Ebook

Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication that presents in-depth analysis from over 1000 experienced analysts on a range of views of the probable direction of the financial markets, thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any trading activities.

Nadeem Walayat Archive

© 2005-2018 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules