The £9K George Osborne tax we’re all secretly paying.

George Osborne buried a lot of his borrowing in treasury bonds, but thanks to Liz Truss, its now a debt timebomb.
Right, so George Osborne, Mr Austerity himself, former Tory chancellor of the exchequer and inflictor of much misery. The rot in this country and our finances began with him and as it turns out are still happening, as we’ve all been stung to this day, years after he left politics, to the tune of £8,900 per household by him and we didn’t even know it.
So what’s the story then Damo? Well, old Georgie Porgie bleed them all dry, picked their pockets and made them cry, he was rather fond of a financial fudge or two back in the day, it all goes back to the vast amounts of quantitative easing he once had to put into place, the creation of new money, but instead of using it to spend and invest, he just fed it the banks, forking it into the trough and they were snouts in, couldn’t get enough. He had to do this because Mr barely passed his O level maths George Osborne cut via his austerity program too hard, too fast and nearly pulled a Liz Truss budget as a result, omnishambles as it was called way back when. So he printed all this new money and he created sovereign bonds, which is how government’s handle debt they themselves create without causing a spike in inflation for instance, because it basically files the debt away for a set period of time. An agreed amount of interest will be paid on it, the government lending to itself, so favourable interest rates and this debt created then basically goes away for however long, 20, 30 years even. It gets added to the national debt total, but isn’t something we have to pay back before it is due. So Osborne created these bonds to offset his quantitative easing and put them into a Treasury Bond Fund, think of it as a folder that holds them all and this one was labelled the Asset Purchase Facility. Well, it’s not doing very well. Depending on other factors such as how well the country’s finances are handled, inflation, interest rates particularly, the value of the bonds, even though we don’t need to pay them back yet, still fluctuate. And boy have they done so. I mean the point of the fund, it was created in 2009 incidentally by Labour, so Osborne just took it over – was to lock away government debt so interest rates were kept low, inflation low, all things so that having created this new money, it wouldn’t hurt the economy immediately. Since then however in the last year, we’ve seen 14 consecutive interest rate rises as the Bank of England have done have hiked what we owe, or in another roundabout way of looking at these things, have devalued the bonds.

►SOURCES:
https://www.thelondoneconomic.com/business-economics/economics/theres-a-black-hole-at-the-heart-of-our-countrys-finances-354324/?fbclid=IwAR3iAWikIkU-VafBSDd-U0oJYgFy0KD-Ebuj6Ar0shIwX9jjOkShZszTw14
https://www.msn.com/en-gb/money/other/plunge-in-value-of-treasury-bond-fund-could-cost-8900-for-every-household-in-uk-labour-says/ar-AA1f1LF6
https://www.bankofengland.co.uk/-/media/boe/files/letter/governor-apf-letter-february-2022.pdf?la=en&hash=ECD7AA1EEB38EE1179EDDFCB80653217E11FF67E

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Hi, I'm Damien Willey. I'm a former welder, but now I'm a writer, blogger, vlogger and presenter and interviewer with Socialist Telly (Please do go and visit what we all get up to on https://www.youtube.com/c/SocialistTelly)
I'm an unpaid carer for my disabled wife and daughter and as such we know all too well the difficulties that associated with that living in Tory Britain and I personally believe the answer lies in socialism.
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