Ritchie wants pensioners to lose money on the Green New Deal

Since incentives are already provided by the government, simple rule changes could encourage savers towards Green New Deal bonds. For example, if an interest rate of 1.5 per cent or more was paid on such bonds with a government guarantee being provided, then the £70bn that goes into Isas each year could be directed towards the Green New Deal.

1.5% interest rate.

The current inflation rate is 1.7%.

Ritchie wants people to lose money on their pension investments.

13 thoughts on “Ritchie wants pensioners to lose money on the Green New Deal”

  1. Dullard that he is, Spud has admitted that he himself has invested in gilts.

    I expect he wants everyone else to be as miserable as he is.

  2. Man who can’t afford to retire wishes to punish those who can.

    Why should we take lectures on investments from a 60 year old accountant who has enjoyed a good professional income for more than 35 years but can only afford a mediocre end terrace in Ely and is desperately thrashing around for another grant.?

  3. “You would struggle to find a cash ISA that paid 1.5%”

    Murphy is proposing bonds of a long life say 25yrs. The market price will be volatile and move with inflationary and interest rate expectations. Savers could only get there initial investment back at the end of 25yrs. In the meantime there is a good chance if they wanted to sell before the date they would suffer a capital loss. .. so Green bonds and cash ISAs are completely different. Don’t think Murphy understands duration risk.

  4. It needs to be repeated again and again.


    Money Box, Radio 4, September 2019.

  5. JL
    Quite so. My oblique point is that pensioners who invest in a cash ISA are losing money now – never mind Spud’s crazy scheme.

  6. Why are they needed? MMT can produce all the money necessary.

    What is this thing he has with getting his hands on other people’s pensions, if MMT can deliver all the funding required?

  7. “But I was paid nothing as the creator of country-by-country reporting.”

    Spud is still at it….

    But –

    “The UN agreed that it was necessary to cast greater light on corporate structures and finances
    and commissioned a ‘Group of Eminent Persons’ in 1972 which ended up drafting
    far reaching proposals which would have required large companies to publish data
    similar to country by country reporting” hilariously, this is from a TJN briefing

    So the idea of CBCR has been around since 1972.

  8. 1.5%, generosity itself… Anyway, who in their right mind has a cash ISA in the present climate? I have several equities in my ISA paying 5% dividends and a couple paying over 10 – with adequate cover, OK I’ve others that pay nothing but are making good capital growth (and a couple of “stinkers” that are doing neither!).

    It’s always struck me as odd that if you put money into a deposit account you get about 0.5% but can get 10x that by holding the bank’s shares. OK, “share values can go down as well as up” but with online dealing it’s cheap and easy to get in and out of equities.

  9. @ Andrew C
    I am pretty sure that when I started reading company accounts in 1971 it was *already* compulsory for UK companies to report separately for every country in which they had “material” sales or profits or capital employed in either the year being reported or the prior year.
    The UN was inventing it – it wanted to make a practice common to several advanced countries mandatory for all advanced countries.
    That was when Murphy was at school.
    What segmental reporting frequently showed was some awful performances in some overseas countries and, a bit less frequently, some pretty good performances when the UK company was bring technology and know-how into another (often Commonwealth) country.

  10. I used to work with bonds, repo trading, hedging, everything else except taking a view ie no trading the actual position but even I know buying bonds now is not the time. You buy them when rates are high, wait them to drop so price goes up, and if this fails keep them to maturity and hope to avoid any nasty credit events, so do your research beforehand. I’d love to have some fixed income but unfortunately times are not normal. It is the savers who are getting shafted. Check out FOFOA easy money camp versus hard money camp.

  11. @john77 November 9, 2019 at 9:33 pm

    What segmental reporting frequently showed was some awful performances in some overseas countries

    Usually USA – one of most recent being Tesco : it does seem weird to me given UK/USA being similar

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