This is to encourage governments to issue simple savings products – in effect, time limited bonds exchangeable for cash at any time, but with a penalty for early redemption – and make these the only or main products that can be offered by tax favoured tax savings schemes like pension funds and the equivalent of the UK’s Individual Savings Account schemes.

Entirely missing the point that bonds are the wrong investment for the long term. And he’s entirely missing the liquidity problem of everyone having a put on the bonds, hasn’t he?

Say the bonds are issued at 3% – he’s mentioned this number before. So, inflation rises to 5%. Everyone and their Granny sells their bonds back to the government.

And then what?

7 thoughts on “Sigh”

  1. Everyone and their Granny sells their bonds back to the government.

    You think?

    but with a penalty for early redemption.

    So that takes care of that then: Capt Potato takes; Capt Potato keeps.

  2. “simple savings products – in effect, time limited bonds … and make these the only or main products that can be offered by tax favoured tax savings schemes like pension funds”

    How to destroy private pension saving overnight; he really is on a different planet. Since the reality started to outperform the parody, I can’t go over there any more. Are there still people out there that take his deranged extreme authoritarian ramblings even half seriously?

  3. He’s a fvcking tool, but behind this he’s still angling for vermine at some future date, remoter though it is now than was

  4. “Everyone and their Granny sells their bonds back to the government.”

    The answer would be for the government to immediately stop repurchasing these bonds, obviously.

    Never mind that that would destroy any potential market for the next series of bonds through this breach of trust – he doesn’t think that far ahead.

  5. “Diogenes
    January 15, 2020 at 1:13 pm

    I doubt if even Capt Potato would put money in this total pile of crap”

    Of course not. This sort of thing is never for smart, sophisticated people like him and his friends. Its for the proles – they need those strong guiding hands to take care of them.

  6. The whole idea is to destroy, then abolish, private pensions that frees people like us from total dependence on the state.

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