It’s because it’s a fucking terrible idea Ritchie

What I have also argued is that a condition of this relief is that 25% of all contributions – likely to easily exceed £80 billion pa – should be invested in job creation programmes. It is impossible to specify that these must be in the UK but the availability of specific infrastructure bonds would make this incredibly easy to link to investment in UK sustainable growth. £20 billion a year would transform that.

So why is no one adopting the idea? Is it another case of cowardly politics where it is too risky to demand that pension funds be used for social good rather then funding speculative bubbles?

1) You don’t want your long term pensions savings to be in bonds. Because inflation: anyone who had stuck their money into gilts in the 1950s would be dead of starvation by the 90s. Also because you want exposure to the generally increasing wealth of society: that means equities.

2) You’ve also insisted that this 25% must go into new projects. That means venture capital. And no, VC is not really the right investment world for pensions.

No one is adopting this idea because it’s a fucking stupid one. Especially since there’s an R. Murphy out there demanding that we have a higher inflation target in order to shed some of the debt load. Bonds are a really, really, bad investment in a high inflation world. That’s why R. Murphy is suggesting the higher inflation of course, so that gilts become worth less.

9 comments on “It’s because it’s a fucking terrible idea Ritchie

  1. Perhaps the man himself can provide a proof of concept. Put the entirety of his and his wife’s pension funds into the idea so as to prove to others how good it is. Get his supporters to also put their pension pots into the idea.
    After all they cannot possibly be following a bad idea can they?

  2. In what way are pension funds not currently a social good? They are people’s savings for their retirement.

    This c*nt doesn’t see them as such. He sees them as a big pot of money he can ‘courageously’ steal and plough into various Lefty approved wheezes.

  3. Excellent point Tim, one I hadn’t thought of. He is arguing strongly to inflate away our government debt, i.e. to destroy the real value of these bonds.
    So insisting that people saving for their pension be required to place their money into precisely the bonds whose value you are trying to destroy is declaring war on Britain’s working man: Bastard.
    But then his view is through the prism “eminent economist” Howard Reed has ground out: that tax relief on your pension savings isn’t really your money anyway; fuckwit.

  4. “In what way are pension funds not currently a social good?”

    A social good is one which benefits those who haven’t paid for it.

  5. Strange really, how most of Dick’s ideas are illegal.

    Taxing companies that don’t make profits
    Advocating directors should breach their fiduciary duties and pay more tax than their company’s legal liabilities
    Breaching the Trustee Investment Act 2000

    Should be a law against it.

    Oh, wait…

  6. It is not about the money, it is about the power.

    Ritchie wants him and his mates to have the cash to re-shape the way that Britain looks. Build a road there, a power station here. A small time God Complex.

    There is no way that he should be trusted with anyone’s money

  7. The man is totally ignorant. I don’t want to wave my paper credentials around but I know a fair bit about this.

    The big annuity companies have already invested billions in infrastructure bonds and are still doing so. these are to back annuities rather than people saving up for retirement, which as pointed out above, would be a terrible idea.

    His problem with these investments will be that they are through PPI/PFI projects.

  8. Man whose wife is a GP and will therefore get a gilt-edged NHS publicy-funded pension prepared to shaft those who have to fund their own pensions shocker

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