Government borrowing

[filibuster]

This is probably not the right section in which to post this question, but I thought it would be seen more readily here.

We know the Government is borrowing millions of pounds but does anyone know from where they are able to borrow it?

[Rollo]

From people like you and me.

They issue bonds that pay interest - eg Gilt Edged Stocks.

http://en.wikipedia.org/wiki/Gilt_edged_securi ties

[filibuster]

Thanks, Rollo, I was sure we'd be in it somewhere but my sister-in-law was desperate to get an answer to this question.

[Rollo]

Pension funds, insurance companies, and even overseas governments, buy these stocks in large quantities.

[Curvylady]

Premium bond prizes have been reduced from 4% to 1.8 %


So I read.

[filibuster]

Curvylady, I heard that too. My friend and I have been buying Premium Bonds since the 70's and have well over �3,000 between us. We will still hold on to them as we do occasionally have a win, usually �50, the odd �100 and once �1,000.