UK Chancellor George Osborne proposes 100-year bonds. Essentially his message is "I Will Gladly Pay You 100 Years From Now, For a Hamburger Today". Whether it's Tuesday of next week or Tuesday a hundred years from now, the safe bet is the debt will never be repaid.
The Telegraph reports Britain to offer 100-year gilts
Britain is to offer 100-year gilts, meaning current Government borrowing will not be repaid until the next century, under a radical plan to be unveiled by George Osborne in next week's budget.
The Chancellor hopes that the 100-year gilts will help to "lock in" the benefits of Britain's international "safe haven" status.
Currently, the average duration of the Government's £1 trillion debt is around 14 years – with maturities ranging from months to a 50-year bond issued in 2005. Longer-dated debt is widely thought to offer a country more stability.
A Treasury source said tonight: "This is about locking in for the future the tangible benefits of the safe haven status we have today. The prize is lower debt interest repayments for decades to come.
"It is a chance for our great-grandchildren to pay less than they otherwise would have done because of the government's fiscal credibility."
Only a politician could make such a preposterous claim. For another take, please consider The Guardian report George Osborne budget plan could mean never having to pay his debts
New Time 11:20 AM PT: Get the Market Movements in Advance: William's Edge Webinar for Thursday April 17th, 2014 | John Ransom
New Time 11:20 AM PT: Get the Market Movements in Advance: William's Edge Webinar for Wednesday April 16th, 2014 | John Ransom