Returns for one of Crispin Odey’s funds have soared after his short bet on government bonds paid off.
The financier’s Odey European Inc hedge fund jumped by about 15pc in March after he shorted government bonds that mature in 2050 and 2061.
The aim of investing for a pension is that you get some investment gains – not losses – over the years…..
To the extent to which one can discern a ‘logic’ in Capt Potato’s thinking (admittedly this might be a futile task), I think he believes in financial repression.
Once everyone’s pensions are invested in Green New Deal bonds, their prices will not be allowed to fluctuate (“neoliberal speculators can’t be allowed to profit from the savings of hard-working ordinary people” etc etc). The BoE will manage prices so that coups like Odey’s will be impossible.
After 20 or 30 years, the hard-working ordinary people will discover that they have indeed received a steady return of 1% or 2% per year. They will be much less pleased when they discover what rampant inflation has done to the real value of their wealth, though.
The aim of pensions in the Courageous state is that it’s another source of income that the state can confiscate to keep it’s servants in lucre and the whole show on the road. ‘Social justice’ being much more important than getting a return.
I am in favour of Ritchie’s pension plan.
It should be applied to all public sector workers immediately. No more final salary pensions, just contributions to a defined contribution scheme only invested in 1% bonds. All the pension statements should include Ritchie’s address and phone number so if anyone is not satisfied with their pension they can give him a call.