We must invest via bonds!

So, ISAs must only be allowed in future if the ISA funds are invested in bonds that in turn fund activities that can be shown, without doubt, to produce new jobs that support the required transformation of the UK.

And the interest would be covered by government. Suppose the rate might be 1%.

So will they work? In terms of attracting funds I have not a shadow of a doubt. I think people would be queueing to get them.

The worlds is just packed with people who want 1% bonds, right? And bonds and bonds only are the way to fund investment and pensions, right?

Sheesh, if only P³ understood the first thing about finance. Or savings. You’ve got to have an equity layer in a project. Further, 1% bonds, when inflation is 1.7%, just ain’t the way to be saving. Finally, who the hell wants to buy these things when the government can’t even sell its own gilts – that’s why the BoE owns £800 billion of them.

9 thoughts on “We must invest via bonds!”

  1. Bonds on sale to retail investors can only be negligible-risk assets – so not invested in creating jobs. Creating jobs involves new ventures which are risky: most economists have a poor record of forecasting the immediate past [hence all the shocks when sales/employment/unemployment figures are published] so what makes Murphy think tat industrialists will have 100% accuracy on forecasting the future?

  2. He might as well just say “ISAs must all have negative interest rates”, given the rate of inflation at the moment.

  3. @john77 – you are making a fundamental error. The economics of the potato are not based on facts or thinking – they are based on feelings, getting brownie points from the latest fad campaign de jour and most importantly conning some charity to give him funds to develop his latest hare brained flatulent tosspottery. Of second importance is the praise that he’ll get from his sycophants on his blog. Theres no chance that either himself or his followers would ever put any of their own money into any of his schemes. When he says people will be queuing up to buy potato bonds he means at the point of a gun.

  4. A very strange post. He is demanding investment in green infrastructure but says there should be no direct link to any income stream and the bond rate should be fixed at 1%. So it is just government borrowing, but current 10 year gilt rates are 0.26% so no government would want to pay 1%.

  5. He is banning people by the half dozen today as they pick holes in his bonkers bond plans. It’s amazing he posts away for hours about things he doesn’t understand. I mean what a waste of his own time.

  6. “No doubt the potato will claim he invented green bonds”

    More like he’ll claim to have invented ‘green’. Before spud that was a gap in the rainbow between yellow and blue.

  7. “1% bonds, when inflation is 1.7%, just ain’t the way to be saving”

    Well one of Spud’s pals asserted that you should not consider inflation when investing, you should simply compare the rates of return on alternative investments. I have a green bond to sell him, locking his money at 0.5% for 10 years. I will at least have the satisfaction of making him poorer

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