And that means shorting – or betting against – British gilts (government bonds) will probably rank as one of the smartest speculations over the next five years.
Long-term break-even rates for U.K. TIPS in 2035 show a 3.4% inflation rate – the highest in the G-10. This compares to 2.2% for U.S. break-even rates maturing in 2039.
The U.K.'s financial system is essentially bankrupt. In 2008, the aggregate cost of bailing-out its banks exceeded the entire value of England's gross domestic product. The government already owns most of the country's largest banks – including Royal Bank of Scotland (RBS) and Lloyd's (LYG).
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ukmike8
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