State pours money into a massive black hole

CAN anyone assure me that we are not paying 5.3% annual interest on the sale of our government bonds to the same financial institutions that we are investing our pension funds in at less than 2.1%?

Only this week, the National Treasury Management Agency sold €1.5 billion government bonds at 5.3%, while the Government is forgoing €4.1bn tax per annum (2007 figure) on private sector pensions. The National Pensions |Reserve Fund claims it is outperforming other pension funds with returns of 2.1% since its 2001 inception, so the Government tax foregone on subsidis ing private sector pension funds is a total waste, benefiting only the financial wizards out there in the ether. What are we at? Will someone please take the spades from the people who are still digging us into a massive black hole?

Michael Terry