August 27 2021 at 4:01 pm
It’s perfectly reasonable for people on negligible income to expect a return on their savings at a rate comparable to that of inflation. That dwindling sum is all they have, with no prospect of earning any more.
The policy of zero interest rates can’t be sustained, since it’s driving up house prices & household debt. And as someone that’s had negative equity and sold at a loss, house prices need to be significantly reduced.
Richard Murphy says:
August 27 2021 at 6:24 pm
Why should people expect an unearned return?
Why has every major religion condemned this?
Why don’t we when savings do not contribute to macro well being ?
Sorry, but I am saying please justify why you want unearned reward
That savings finance investment (yes, S does equal I) seems not to have occurred to the P³. Nor that there is a time value to money. People do have to delay their consumption in order to have savings after all.
But at least we’ve an explanation why those green bonds should only pay 1%, well below inflation.