And please no one tell me that they need this profit because they could not otherwise invest in green programmes, because that’s nonsense. Those green programmes existed and were viable before this profiteering happened. Those programmes can pass all the required hurdle interest rates to ensure rational investment at rates of return sufficient to keep shareholders happy using readily available borrowed funds.
If the capital’s all entirely available at reasonable prices then we’ve no need to confiscate everyone’s pension savings, have we?
This I did find entertaining
I genuinely try to find the best in people. I find life easier to manage that way.
I read TRUK most days and notice how he finds the best in the Conservative government and those that backed Brexit (for example) – I know I try and brighten people’s lives every day by calling them racists and fascists – goes down a storm at the water cooler and in the pub I tell you…
On this occasion, I am struggling. I cannot think of a single reason why anyone would rather a pensioner freeze or a family be unable to cook food because the cost of energy is too high because the profit of a multinational corporation is more important.
One thing the UK excels in (at least on Twitter and in large part thanks to the likes of Murphy) is the construction of straw men. Of course we could reduce the level of taxation on pensioners and their assets – so perhaps lower IHT – increase the pension allowances, increase the Income Tax threshold where families start paying tax. But of course that would mean no role for the likes of him and that would never do.
And please no one tell me that they need this profit because they could not otherwise invest in green programmes, because that’s nonsense.
Is anyone arguing this? Is this some kind of oblique reference to various banking analysts who continue to advocate investment in fossil fuels to assist the firms in transitioning to ‘Green’ energy?
Those green programmes existed and were viable before this profiteering happened.
So in addition to his other fields of expertise he’s now an authority on Green energy and new environmentally friendly technology as well?
Those programmes can pass all the required hurdle interest rates to ensure rational investment at rates of return sufficient to keep shareholders happy using readily available borrowed funds.
I do wish he’d not been able to use either his twin or some undergraduate substitute to get him through the accountancy exams. He then might have been able to write coherently. What are ‘hurdle interest rates’ – so he appears to be suggesting that the government take a windfall tax and squander it because the projects can then be funded by borrowing? Am I reading that right? Does he even know what he is talking about?
The unfortunate thing is reading the news last night, focus groups have polled that the windfall tax is ‘wildly popular’ so my guess is there’ll be a ‘U-turn’ and he will be able to claim some sort of belated vindication. He truly is one of the most evil, as well as stupid people ever to get access to a keyboard.
I presume this is “investment” in the public sector sense. Spending.
Nevertheless think about what he’s proposing. Borrowing. So for the lender the downside risk is losing the lot & the upside benefit is capped at the interest rate. Who but a complete idiot would get involved with it? Not saying there isn’t an almost inexhaustable supply of complete idiots around, these days.
Last week on the Jeremy Vile show they had an item about energy bills. A nice little graphic showing total cost to the average UK consumer, wholesale price etc. etc. I cannot remember the exact numbers but from a bill of around £1880, VAT was £94, green taxes (they weren’t called that) something like £153 and energy company profit was £35. Per year. Per consumer. I wouldn’t call 2% profit excessive……..
He’s a bit quiet about pensions now. Even he must have realised that investing pensions on 1% bonds at a time of 9% inflation is lunacy.
Sam Jones
He’ll be back to try and steal them (or suggest the government do so) soon enough! Besides which – the idea of Bonds is that they’re invested in things which are good for ‘society’ – forget staying ahead of inflation. You will own nothing and you will be happy!
You’d soon enough own nothing if anyone were daft enough to follow Spud’s investment advice.
To try and undercut your criticism Tim he has taken to using Screendumps from Twitter to prevent you quoting him – I’ll use my Dummy account to bring it into the comments:
Apparently we need to
4/ Rejoin the Customs union and Single Market to seriously cut costs
5/ Stop Trade War in Ireland
Who said ‘never let a crisis go to waste’
Also love the (hopefully) spoof comments:
Angela Reilly says:
May 18 2022 at 8:45 am
I really wish you were running the economy!
Reply
Richard Murphy says:
May 18 2022 at 8:58 am
Thanks
I think there are many who would not agree
Reply
James De Gale says:
May 18 2022 at 9:48 am
I agree..why do you not offer your services to the Labour Party or the Treasury. You are wasted writing a blog to us!
Reply
Richard Murphy says:
May 18 2022 at 10:41 am
They know my number
They know my number.
Is that in the sense us Ooop North use it I’ve got your number.
Also, maybe they do need that profit because these ‘Green’ programs are just barely profitable so they need the extra money on hand to invest in marginal programs after they’ve put the other money into ones with better expected returns?
Even if they don’t need the ‘extra profit’, it certainly doesn’t hurt to have *more* money on hand to invest in those ‘Green’ programs, right?