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    (Original post by Jammy Duel)
    Somehow stop that god awful ATA being repealed, it's got you on a surplus in excess of £100bn
    *goes to change my vote*

    From James' budget, it says we're in a £36bn deficit....
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    (Original post by PetrosAC)
    *goes to change my vote*

    From James' budget, it says we're in a £36bn deficit....
    Because his ATA is severely understated, the lower bound for the revenues of the LVT alone are about £125bn more than the stated total for the Act, giving a suprlus of at least 90bn, or about 70bn when the housing is accounted for correctly.
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    (Original post by Jammy Duel)
    Because his ATA is severely understated, the lower bound for the revenues of the LVT alone are about £125bn more than the stated total for the Act, giving a suprlus of at least 90bn, or about 70bn when the housing is accounted for correctly.
    But people are being charged a hell of a lot more than they should be?
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    (Original post by PetrosAC)
    But people are being charged a hell of a lot more than they should be?
    Define how much they should be
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    (Original post by Jammy Duel)
    Define how much they should be
    RL rates or lower
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    (Original post by Jammy Duel)
    Except the revenues don't, again, you don't understand the way government borrowing works. Suppose we just break it down into £20bn borrowing chunks that each lead to 500m revenues, to get that £20bn to spend £20bn worth of GILTS would be issued, the question then becomes for how long and at what rate, let's take the long term GILTS issued in 2014 as an example. They have an interest rate of 3.5% on them and are redeemed in 2045, it is worth noting that that 3.5% is above inflation, so for the first round of calculations we shall assume zero inflation. When it comes to those GILTs being redeemed, the payment that needs making is 58.1bn, over those 31 years, however, the revenues are only 15.5bn, not even what was borrowed in the first place, and not even half the interest.


    However according to this chart the rates are 2% at the moment, and inflation is not at 0, it is at 0.3% as of 5 days ago.

    We could say an inflation rate of 0% to make the costing easier, but when you look at GILT rates of 2% as well as revenues of 2%, when the cost savings are also taken into account the housing plans actually bring in a surplus.
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    (Original post by Jammy Duel)
    Because his ATA is severely understated, the lower bound for the revenues of the LVT alone are about £125bn more than the stated total for the Act, giving a suprlus of at least 90bn, or about 70bn when the housing is accounted for correctly.
    (Original post by PetrosAC)
    But people are being charged a hell of a lot more than they should be?
    The Budget was based on the amendment that later failed to pass, PetrosAC should have known that.
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    (Original post by Lime-man)


    However according to this chart the rates are 2% at the moment, and inflation is not at 0, it is at 0.3% as of 5 days ago.

    We could say an inflation rate of 0% to make the costing easier, but when you look at GILT rates of 2% as well as revenues of 2%, when the cost savings are also taken into account the housing plans actually bring in a surplus.
    Two different things, the one you give is to do with the trading of gilts, not the interest on gilts. That's the yeild, not the coupon, which is the interest.

    http://www.telegraph.co.uk/finance/p...-buy-them.html
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    (Original post by Lime-man)
    The Budget was based on the amendment that later failed to pass, PetrosAC should have known that.
    I can't remember what I had for Breakfast let alone what you based your figures for the budget off
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    (Original post by Jammy Duel)
    Two different things, the one you give is to do with the trading of gilts, not the interest on gilts. That's the yeild, not the coupon, which is the interest.

    http://www.telegraph.co.uk/finance/p...-buy-them.html
    so where did you get the 3.5% figure from?
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    (Original post by Lime-man)
    so where did you get the 3.5% figure from?
    As I said, I looked at the list of issued gilts, the interest doesn't actually seem to vary much

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    (Original post by Lime-man)
    so where did you get the 3.5% figure from?
    bout tree fiddy
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    (Original post by Jammy Duel)
    As I said, I looked at the list of issued gilts, the interest doesn't actually seem to vary much

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    Do you mind if I have a look? Because, I have this list here, and the coupon rates range from 1.75 to 8.75 and the yield ranges from 0.2 to 2.2 depending on the life of the GILT.
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    (Original post by TheDefiniteArticle)
    bout tree fiddy
    What's that?
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    (Original post by Lime-man)
    Do you mind if I have a look? Because, I have this list here, and the coupon rates range from 1.75 to 8.75 and the yield ranges from 0.2 to 2.2 depending on the life of the GILT.
    Follow the link on the bottom of the telegraph link, quite easy to find from there, over the last few years long term gilts have generally been 3% or so, yeild is totally irrelevant because we're examining on the front of government borrowing, not from the position of investors.

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    (Original post by Jammy Duel)
    Follow the link on the bottom of the telegraph link, quite easy to find from there, over the last few years long term gilts have generally been 3% or so, yeild is totally irrelevant because we're examining on the front of government borrowing, not from the position of investors.

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    But if the yield is what people get, and is what the government pays, then the yield is the cost to the government, right?

    I found a range of GILTS available on the UKDMO and they range from 1-5% depending on the duration.
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    (Original post by Lime-man)
    But if the yield is what people get, and is what the government pays, then the yield is the cost to the government, right?

    I found a range of GILTS available on the UKDMO and they range from 1-5% depending on the duration.
    The yeild is not what people get, the coupon is, in real terms, I.e. the percentage given on the gilt along with the year they are redeemed in. The yeild is to do with people buying and selling gilts to each other rather than the transaction between the holder and the treasury.

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    (Original post by Jammy Duel)
    The yeild is not what people get, the coupon is, in real terms, I.e. the percentage given on the gilt along with the year they are redeemed in. The yeild is to do with people buying and selling gilts to each other rather than the transaction between the holder and the treasury.

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    But I could get a 1.75% treasury GILT to redeem in 2017.

    Or a 2.5% treasury GILT to redeem in 2065.
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    (Original post by Lime-man)
    But I could get a 1.75% treasury GILT to redeem in 2017.
    But being short term the rate is lower, the long term is what we're more interested in given such a project would likely use longer term gilts

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    (Original post by Jammy Duel)
    But being short term the rate is lower, the long term is what we're more interested in given such a project would likely use longer term gilts

    Posted from TSR Mobile
    As edited, I could get a 2.5% interest rate redeemable in 2065, and given that the revenue on the housing scheme is 2.5% the government breaks even on it.
 
 
 
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