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    (Original post by Jammy Duel)
    The average revenues would be £1.5bn and the average interest £2.1bn
    Based on rents of £100pw, that's 5200pa.

    Revenues:
    (520 + 1040 + 1560 + 2080 + 2600) / 5 = £1560m

    Savings:
    (93.6 + 187.2 + 280.8 + 374.4 + 468) / 5 = £280.8m

    Interest (2.5%):
    (500 + 1000 + 1500 + 2000 + 2500) / 5 = £1500m
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    (Original post by Lime-man)
    Based on rents of £100pw, that's 5200pa.

    Revenues:
    (520 + 1040 + 1560 + 2080 + 2600) / 5 = £1560m

    Savings:
    (93.6 + 187.2 + 280.8 + 374.4 + 468) / 5 = £280.8m

    Interest (2.5%):
    (500 + 1000 + 1500 + 2000 + 2500) / 5 = £1500m
    You are not going to be able to sell an extra £20bn of gilts a year at 2.5%, especially nearer the end of the 5 years.
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    (Original post by Jammy Duel)
    You are not going to be able to sell an extra £20bn of gilts a year at 2.5%, especially nearer the end of the 5 years.
    why not?
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    (Original post by Lime-man)
    why not?
    Because they need to be desirable compares to other forms of investment

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    (Original post by Jammy Duel)
    Because they need to be desirable compares to other forms of investment

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    and how are they not?
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    (Original post by Lime-man)
    and how are they not?
    Because we're talking about a long period of time, not a few years

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    (Original post by Jammy Duel)
    Because we're talking about a long period of time, not a few years

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    Then finance the plan with 10 year GILTS at 1.5%
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    (Original post by Lime-man)
    Then finance the plan with 10 year GILTS at 1.5%
    Will even 10 year gilts sell that many for that much, and you'll only be reissuing them at a higher rate in 10 year.
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    (Original post by Jammy Duel)
    Will even 10 year gilts sell that many for that much, and you'll only be reissuing them at a higher rate in 10 year.
    However 10 year Gilts are lowering, we could finance it with 10 year Gilts at 1.5% and in 10 years we reissue them at whatever the going rate is. Or, we go for security financing the plan with 50 year Gilts at 2.5%.
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    (Original post by Lime-man)
    However 10 year Gilts are lowering, we could finance it with 10 year Gilts at 1.5% and in 10 years we reissue them at whatever the going rate is. Or, we go for security financing the plan with 50 year Gilts at 2.5%.
    Can you please remind me what has been happening over the past few years and what is expected to happen over the next 10? Remember that 10 year gilts are fairly well tied to expectations of the BoE rate

    Why bother with 2.5% GILTS, whyu not try to sell 1.5% 50 years, or 0.5% 50 years since you seem insistent that investors don't like money.
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    (Original post by Jammy Duel)
    Can you please remind me what has been happening over the past few years and what is expected to happen over the next 10? Remember that 10 year gilts are fairly well tied to expectations of the BoE rate

    Why bother with 2.5% GILTS, whyu not try to sell 1.5% 50 years, or 0.5% 50 years since you seem insistent that investors don't like money.
    The BoE rate has been improving for a while now and unless there's another global economic downturn it should continue.

    I have a problem with all this, because the TSR economy would be massively different to the RL economy, and I think that debates like this really do take the whole MHoC game too seriously. Neither you or I is an economist, so unless we had a team of economists looking into every policy enacted, and the state of the make-belief economy, then using the RL rates is just as inaccurate as using any make-belief rates that anyone plucks off the top of their heads.

    In any case though, I was only using the sources that you provided to find a 50 year 2.5% Gilt as well as a 1.5% 10 year Gilt, so unless you can provide anything solid to suggest otherwise then your reductio ad absurdum is utterly pointless.
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    (Original post by Lime-man)
    The BoE rate has been improving for a while now and unless there's another global economic downturn it should continue.

    I have a problem with all this, because the TSR economy would be massively different to the RL economy, and I think that debates like this really do take the whole MHoC game too seriously. Neither you or I is an economist, so unless we had a team of economists looking into every policy enacted, and the state of the make-belief economy, then using the RL rates is just as inaccurate as using any make-belief rates that anyone plucks off the top of their heads.

    In any case though, I was only using the sources that you provided to find a 50 year 2.5% Gilt as well as a 1.5% 10 year Gilt, so unless you can provide anything solid to suggest otherwise then your reductio ad absurdum is utterly pointless.
    Are you from the future, or do just not understand the rate, which would not surprise me one bit

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    (Original post by Jammy Duel)
    Are you from the future, or do just not understand the rate, which would not surprise me one bit

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    Do forecasts not exist?
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    (Original post by Lime-man)
    Do forecasts not exist?
    The rate has not changed, and the forecast has been the same for years: been pushed back

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