Wednesday, March 14, 2012

The UK Government's Latest Moneymaking Scam - 100 Year Gilts

Brit Dee, Contributing Writer

As massively indebted Western economies stand on the verge of financial collapse, the British government has come up with a cynical new wheeze so that it can steal yet more money from the people, to give to the corrupt political and financial elite. In next week's budget Chancellor George Osbourne will announce that the government is to begin offering 100-year gilts - bonds which offer a fixed rate of interest, and which will not be repaid until next century.

The bankrupt British government is attempting to persuade us to exchange our money for a piece of paper that we are expected to trust will have at least the same value when our grandchildren own it in the early 22nd century. Considering the dire state of the British economy -- the country is currently officially in debt to the tune of £1 trillion, with some estimating the real total to be £5 trillion -- as well as extremely low interest rates and high inflation, with the possibility of future hyperinflation, you would have to be insane to imagine that such an investment is a good idea.

We cannot be sure of what state the economy will be in, or what purchasing power our fiat currency will have next year, let alone in a century's time. Any rise in inflation before the 100-year gilts are redeemed -- guaranteed under the debt-based, growth-driven economic system in which we live -- will reduce the purchasing power of both the interest paid by the gilt, and its maturity value on redemption. Purchasing power is the amount of tangible goods and services you can exchange for your paper, metal, and digital pounds.

It is very likely that gilts bought today will be worth nothing, or practically nothing, in a century's time. This eventuality is amply supported by examples from history. It has been estimated that £100 invested in War Loan stock nearly a century ago (the British government issued gilts to raise money for the First World War) would be worth little more than £2 today. This is borne out by comments made on a Daily Telegraph article, where one commenter recounts how his mother patriotically bought £300 of British war bonds in the 1940s, and ended up smiling "resignedly after she cashed them in about forty years later".

Another reader explains how his £100, 3.5% wartime bond, which he inherited and kept just for fun, pays out a paltry £3.50 in interest a year. He points out that £100 was a lot of money when the bonds were purchased. 

The chief executive of a large trust fund similarly bluntly states that:
it makes no sense at all to buy 100 year bonds at these yield levels in relative or absolute investment terms...I think the 100 year bond is about as useful to investors as a chocolate teapot.
The fact that the British government has previously sold such bonds to fund world wars is highly ominous. With the West fomenting chaos in Africa and the Middle East, militarily deposing sovereign governments and backing armed insurgencies, whilst demonizing oil-rich Iran and antagonizing heavily nuclear-armed Russia and China, the world is in a highly dangerous situation and global conflict is a real possibility. 

In addition to sucking taxpayers dry, the latest gilts scam is another way in which the political and financial elite can raise money to fund their imperial wars. Such funds fuel the elite's war machine, securing the globe's natural resources, forcing open new markets for the banks and multinationals, and generating huge profits for the military-industrial complex. 

In a sick twist, British taxpayers' and bond investors' money is additionally used to fund our own enslavement, and keep dissenting voices in check. Huge amounts of our tax revenue is paid annually to the security industrial complex, which is currently working to introduce ever more effective systems of control and  surveillance -- all in the name of protecting us from those evil terrorists, of course!

If you are lucky enough to have any spare money, do yourself a favor: do not buy the government's gilts, and instead invest in goods that you can store and use in times of future economic crisis -- tools, food, water etc. -- or invest in precious metals such as gold and silver.

This article first appeared at Resistance Radio.

Brit Dee runs an independent online radio station called Resistance Radio, which broadcasts daily news, views and analysis challenging the lies of our corrupt political and financial leaders, and the controlled corporate media, at


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Anonymous said...

Gee, I guess our govenrment should spend nothing on anything then, well, then what is the point in having a government at all? I guess that would go down well with the many Ayn Rand and von Mises fans who read this website. But for the rest of us, we'll just call it what it is: Feudalism and A New Dark Age, kay?

Anonymous said...

A Con-Artist's creation, that only a MORON would buy,...

Ba-bye Britian!,.. and none to soon. The UK is now a fully functional Terrist State in its own right.

JD - US Marines

Anonymous said...

Oh, to only be in debt by 1 Trillion. I wonder what that is like. We go that much further in debt every year.

Anonymous said...

Considering the extent of the disaster(at battle of Austerlitz and of Ulm before that in 1805 instigated by england with money stolen from India), The Autrian Emperor said
The Emperor forgot to mention that the payment is from the victim or some other pople’s wealth.

And england is too coward to fight on their own-it has never won a single war on their own since boar war in 1899 and that too with all resources of loot from empire.

Anonymous said...

You mean the Boer Wars, right? I don't recall any warring between Brits and piggies... but there was that minor Falklands conflict back in the 80s.

Anglo Saxon said...

Reply for JD - US Marines.

I am English. And I totally agree with you. But go easy on the English / Scottish / Welsh / Irish people ... just like I am trying to go easy on ordinary American folk.

The source of all our problems is daily, coming ever more clearly into focus. So don't pull your trigger until you can see the whites of their eyes. Then make sure.

Our true enemy (or at least, one of several prime antagonists) is what is commonly called "The Crown".

Don't get confused. In the case of the United Kingdom, "The Crown" does NOT mean its Monarchy. Instead, "The Crown" refers to the Committee of Twelve who run the City of London.

Did you know that about 80 to 85 percent of all of Canada's landmass is Crown Territory?? In other words, the bulk of Canada is literally owned, lock, stock and barrel, by the Banksters housed in the City of London.

The English were the first to be enslaved by these "International Jewish Financiers" who slithered their way into England from Holland courtesy of Oliver Cromwell (the bloody killer of the Irish).

The world's first central bank was the Bank of England, after which, all other central banks in the world have been modelled. The Bank of England established the fiat money system which today is attempting to eat away our very bones, even as we breath.

What we need to do is "take out" the Borough of Westminster, London, for that is where you will find the City of London (the Square Mile). Evil has to be eradicated. That is a natural law. You cannot ignore natural laws for long.

London is doomed. The whole world will soon turn upon that evil, dirty, grim, and sexually perverted city, and throw it into the trash can of history ... where it deserves to be.

London is NOT my capital city. Any Englishman who knows his history will realize where his true capital really resides.

Anonymous said...

I remember when I was 18 and I wanted to move to London, I am now 22 and screw that, there is no way you will get me anywhere near there, I am considering running away to highlands just for saftey, possibly in a hut made of anti nuclear moss.

The olympics - of course it is in LONDON in 2012.

Hello, we are the super power and we are the smallest, evilist and elitist ridden country, I am ashamed that I am british, it is nothing to be proud of.

Everything is failing, and we need a solution, we need a flipping peoples revolution, but you know what we arent even allowed to speak our mind against a system that is failing us, the people. because if we did, now we'd take a leaf out of the book of america and have drones and microwave machines to control us.


I do not understand why we have royalty, what on earth are we thinking of placing these people above ourselves when they do nothing, NOTHING AT ALL.

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