100 Year Perpetual Bonds – Mortgaging our Future?

100 Year Perpetual Bonds – Mortgaging our Future?

George Osborne wants to exploit historically low borrowing rates by making plans to issue “perpetual” government bonds which will never have to be repaid & to relieve the debt burden on future generations by extending the length of bonds to 100 years or into perpetuity. Bondholders would simply receive regular interest payments.

When interest rates do eventually rise, bond holders will incur large capital losses.  A case of mortgaging “our grandchildren’s future?”

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