{"id":4576,"date":"2022-08-21T01:41:00","date_gmt":"2022-08-21T01:41:00","guid":{"rendered":"https:\/\/www.asadkarim.co.uk\/?p=4576"},"modified":"2022-08-19T13:45:41","modified_gmt":"2022-08-19T13:45:41","slug":"hm-government-index-linked-debt","status":"publish","type":"post","link":"https:\/\/www.asadkarim.co.uk\/?p=4576","title":{"rendered":"HM Government Index Linked Debt."},"content":{"rendered":"\n<p>The UK Government, spends more that it earns in taxes. To bridge that gap, it borrows, issues debt, knows as Gilts.<\/p>\n\n\n\n<p><a href=\"https:\/\/dmo.gov.uk\/data\/gilt-market\/index-linked-gilts\/\">https:\/\/dmo.gov.uk\/data\/gilt-market\/index-linked-gilts\/<\/a><\/p>\n\n\n\n<p>Some of the borrowings, (debt issued), the interest rate paid to the creditors, is linked to the current inflation rate. Interesting to see how much debt the nation has to pay, where the interest paid on its debt, is linked to the current rate of inflation.<\/p>\n\n\n\n<p><a href=\"https:\/\/www.bbc.co.uk\/news\/business-62562025\">https:\/\/www.bbc.co.uk\/news\/business-62562025<\/a><\/p>\n\n\n\n<p><strong>10.1%<\/strong> is the current inflation rate.<\/p>\n\n\n\n<p>So debt linked to the inflation rate, means the interest payments are &#8220;<strong><em>inflated<\/em><\/strong> by the inflation rate&#8221;<\/p>\n\n\n\n<p>The pictures below show how much the UK currently owes that is linked to inflation.<\/p>\n\n\n\n<p><strong>\u00a3360,135.95 Million<\/strong>, and after factoring into inflation, that figure becomes <strong>\u00a3547,599.18 Million<\/strong><\/p>\n\n\n\n<p>That is <strong>\u00a3360 Billion<\/strong> that becomes <strong>\u00a3547 Billion<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.asadkarim.co.uk\/wp-content\/uploads\/2022\/08\/IndexLinked2.png\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"593\" src=\"https:\/\/www.asadkarim.co.uk\/wp-content\/uploads\/2022\/08\/IndexLinked2-1024x593.png\" alt=\"\" class=\"wp-image-4578\" srcset=\"https:\/\/www.asadkarim.co.uk\/wp-content\/uploads\/2022\/08\/IndexLinked2-1024x593.png 1024w, https:\/\/www.asadkarim.co.uk\/wp-content\/uploads\/2022\/08\/IndexLinked2-300x174.png 300w, https:\/\/www.asadkarim.co.uk\/wp-content\/uploads\/2022\/08\/IndexLinked2-768x445.png 768w, https:\/\/www.asadkarim.co.uk\/wp-content\/uploads\/2022\/08\/IndexLinked2-1536x890.png 1536w, https:\/\/www.asadkarim.co.uk\/wp-content\/uploads\/2022\/08\/IndexLinked2-624x362.png 624w, https:\/\/www.asadkarim.co.uk\/wp-content\/uploads\/2022\/08\/IndexLinked2.png 1950w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><figcaption><em>Courtesy of the UK Debt Management Office (DMO)<\/em><\/figcaption><\/figure>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.asadkarim.co.uk\/wp-content\/uploads\/2022\/08\/IndexLinked2-1.png\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"593\" src=\"https:\/\/www.asadkarim.co.uk\/wp-content\/uploads\/2022\/08\/IndexLinked2-1-1024x593.png\" alt=\"\" class=\"wp-image-4579\" srcset=\"https:\/\/www.asadkarim.co.uk\/wp-content\/uploads\/2022\/08\/IndexLinked2-1-1024x593.png 1024w, https:\/\/www.asadkarim.co.uk\/wp-content\/uploads\/2022\/08\/IndexLinked2-1-300x174.png 300w, https:\/\/www.asadkarim.co.uk\/wp-content\/uploads\/2022\/08\/IndexLinked2-1-768x445.png 768w, https:\/\/www.asadkarim.co.uk\/wp-content\/uploads\/2022\/08\/IndexLinked2-1-1536x890.png 1536w, https:\/\/www.asadkarim.co.uk\/wp-content\/uploads\/2022\/08\/IndexLinked2-1-624x362.png 624w, https:\/\/www.asadkarim.co.uk\/wp-content\/uploads\/2022\/08\/IndexLinked2-1.png 1950w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><figcaption><em>Courtesy of the UK Debt Management Office (DMO)<\/em><\/figcaption><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>The UK Government, spends more that it earns in taxes. To bridge that gap, it borrows, issues debt, knows as Gilts. https:\/\/dmo.gov.uk\/data\/gilt-market\/index-linked-gilts\/ Some of the borrowings, (debt issued), the interest rate paid to the creditors, is linked to the current inflation rate. Interesting to see how much debt the nation has to pay, where the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-4576","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/4576","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4576"}],"version-history":[{"count":1,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/4576\/revisions"}],"predecessor-version":[{"id":4580,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/4576\/revisions\/4580"}],"wp:attachment":[{"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4576"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4576"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4576"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}