British Bonds, and the German Liberation...

Day 652, 15:30 • Published in United Kingdom United Kingdom • by DillTheDog

This instalment of The Investor comes to you early, as two developments have given real interest. First as ever, we focus on investment plans – strategies, long term profit, ensuring the profit comes rolling in on a regular basis, and a ‘basket’ of sound, and relatively safe investments. This sort of strategy then allows for those speculative ‘punts’, usually the focus of the second part of these articles.

The British Bond

As to safe investments, bank accounts offer good value, and the risk is underwritten by the bank. This is usually backed up by a sound contract that notionally protects your investment. Risk is therefore minimised. However, the safest investment should surely be one from a National Government. Thus I was delighted to read that the UK Treasury is preparing a bond offering to residents of the UK. The announcement stated that the offering would allow payments in GBP as well, with the stated intention of restricting a somewhat bloated money supply. Whether it works or not, it does seem an elegant solution to a problem affecting many economies.

The terms and rates of return intended are:
“Treasury bonds pay a fixed rate of interest every four weeks until they mature. They are issued in a term of two months. When a Treasury bond matures, you are paid its face value.
RATES:
10 GOLD :: 20% interest :: 2 GOLD return.
50 GOLD :: 15% interest :: 7.5 GOLD return
100 GOLD :: 12% interest :: 12 GOLD return
500 GOLD :: 10% interest :: 50 GOLD return”

Looking at this, it seems, unusually, that the small investor is the preferred client, really encouraging the next generation of investor into the financial markets. At the same time, an institutional investor, such as a bank, may be able to offload all of its risk onto the UK Government. if the rate offered is comparable.

However if the plan is successful, it will not just be the residents of the UK who will benefit. The GBP market has always offered one of the best returns (at c.4😵 of the major currencies, but selling GBP of late (due to the problem of too much currency) has been a problem. Thus a valuable source of good value investment will be restored.

German liberation

The Germans have for a while now been under Hungarian occupation. This was due in main part to a successful PTO by a Polish faction. However, with successful election results from Congressionals, it appears that the Hungarians are giving the regions back in a phased series of Resistance Wars, which they are starting, starting with Westphalia, and now raging in Baden-Wurtemburg. High ranking Hungarians fighting for the Resistance mean these regions should return. It is, however, up to the Hungarians as to where they stop.

Unoccupied Germany, having always had a history of conquest and resistance, has historically had a currency trading around 0.02DEM – GOLD. When under Hungarian protection (pre invasion), the DEM became more buoyant, trading at 0.022 and 0.027. However, under occupation it has been stable at 0.018. Little is left on offer at 0.018. It is time to buy...