The City of London has failed to provide funding for investment in the UK's private sector, and so too has the government for the state sector. It's time to reform saving in that case.
Brilliant idea, but I would vote for it to kick off with Defence Bonds, mainly to see just how many of those demanding huge increases in defence spending put their hands in their pockets. These Colonel Blimps are so concerned about this that they almost to a man require the already poorer sections of society to meet the extra cost of defending the assets of the wealthy.
Aho! That made me smile. I have to ask What would happen if we had much less defence?'. I have no clue how they justify it in detail. My thought is, what if they deployed the armed forces to help rebuild all the things that aren't working?
And I've often thought how beneficial the re-introduction of 'national service'. All youngsters do one year of community service locally. That would build character for sure - a very different character from being in the armed forces for a year.
What a very simple and appealing idea. Do I remember Government Bonds from my childhood in 50's England? Anything to bypass the banks and their pernicious 'interest'.
The labels are financially identical but they won't stay politically identical. Once savers allocate across them, the split becomes a published ranking of which purposes the public will voluntarily back, and governments will read it that way whatever the accounting says. Anything that attracts little saving acquires a legitimacy problem despite never having needed the money. A device designed to decouple spending from funding would quietly recouple it, just through preference rather than through the bond market.
RM you have some great ideas and our whole debate about money is not even being addressed. My fear is that as FIAT money continues to be devalued that inflation will accelerate, this does not mean we become richer as less people with assets can sell them, look at farms in the UK for example, we are likely to see more consolidation which is a BAD thing.
I had drinks yesterday evening with a friend I have know for 30 years. He has done well but his entire business model has died. He cannot make money in property (for lots of reasons) he is in a state of flux, not sure what to do longterm. He spends at a rate he cannot afford longterm as many of us do, has zero debt but capital is being eroded. His mental health is not great when he is not working and doing, as he loves his business. What we identified is that many in there 50s are giving up, unable to see much point in being part of a system that has failed and sucked out money via tax or corporate feudalism. We discussed at length of the 60-70 year olds with businesses that are effectively the owner of the business (a life of knowledge) who have a company worth X but cannot get off the conveyor belt, i.e. sell out. Cannot find staff or afford to hire. Yes, I am sure there is a lot of bellyaching and wishing for the go old times again. But the point is — the system is broken.
I will not repeat what I noticed about the younger adults, but we seem to have abandoned them for an elite class of family descendants that play all day with a family allowance. We are near a tipping point another depression and I cannot see Andy Burnham solving the problems when the key issues are not even being discussed. This debt bubble is going to implode it is just a question of when. I note stock markets remain almost at all time highs as if they are paused the indexes by the insiders. Yes IBM fell 20% in one day, but its not the company it once was and has far more competition.
Excellent out-of-the-box thinking. It's what we need to make real change. My question is 'what if there's an imbalance - too many people investing in infrastructure versus old age care. LOL. I know what bonds I would buy were I at the age to do that. BUT all that said, we won't improve anything if we don't make some big turns off the current path.
I quite like the idea. But fear, at its greatest extent, it could look like a referendum on competing priorities where only those with money to save get to vote, and those with most money to save count more.
Any direct savings investment put the vehicle in debt to the saver. But calling it savings looks at it from the other side of the ledger, and though the transaction is unchanged the renaming is a very clever idea, as hoi poloi are too ignorant to know the difference. But beware the knowledgeable commentators. And the treasury department.
"hoi polloi"(Ancient Greek) "the masses". Commonly used to name eateries, jeans, backpacks and gifts. "Ignorant": "not informed". If the general public were well informed, were well aware of all the issues you so well enunciated, then there would have been no need of your article. It was precisely because "hoi polloi are too ignorant" that you put pen to paper, I posit. Yes, that is what I think the people are, and your having to write your explanation helps prove it.
Brilliant idea, but I would vote for it to kick off with Defence Bonds, mainly to see just how many of those demanding huge increases in defence spending put their hands in their pockets. These Colonel Blimps are so concerned about this that they almost to a man require the already poorer sections of society to meet the extra cost of defending the assets of the wealthy.
Aho! That made me smile. I have to ask What would happen if we had much less defence?'. I have no clue how they justify it in detail. My thought is, what if they deployed the armed forces to help rebuild all the things that aren't working?
And I've often thought how beneficial the re-introduction of 'national service'. All youngsters do one year of community service locally. That would build character for sure - a very different character from being in the armed forces for a year.
What a very simple and appealing idea. Do I remember Government Bonds from my childhood in 50's England? Anything to bypass the banks and their pernicious 'interest'.
The City of London is just a mega casino for the idle rich.
What a brilliant idea! Imagine a country with these in place...
Genius!
There should be a public inquiry on the lending of banks and the subsidies the state provides to banks for this. Its a racket which should be exposed.
The labels are financially identical but they won't stay politically identical. Once savers allocate across them, the split becomes a published ranking of which purposes the public will voluntarily back, and governments will read it that way whatever the accounting says. Anything that attracts little saving acquires a legitimacy problem despite never having needed the money. A device designed to decouple spending from funding would quietly recouple it, just through preference rather than through the bond market.
This would take alot of power away from the current structures and turn a selfish idioligal economy into a truly collective one.
RM you have some great ideas and our whole debate about money is not even being addressed. My fear is that as FIAT money continues to be devalued that inflation will accelerate, this does not mean we become richer as less people with assets can sell them, look at farms in the UK for example, we are likely to see more consolidation which is a BAD thing.
I had drinks yesterday evening with a friend I have know for 30 years. He has done well but his entire business model has died. He cannot make money in property (for lots of reasons) he is in a state of flux, not sure what to do longterm. He spends at a rate he cannot afford longterm as many of us do, has zero debt but capital is being eroded. His mental health is not great when he is not working and doing, as he loves his business. What we identified is that many in there 50s are giving up, unable to see much point in being part of a system that has failed and sucked out money via tax or corporate feudalism. We discussed at length of the 60-70 year olds with businesses that are effectively the owner of the business (a life of knowledge) who have a company worth X but cannot get off the conveyor belt, i.e. sell out. Cannot find staff or afford to hire. Yes, I am sure there is a lot of bellyaching and wishing for the go old times again. But the point is — the system is broken.
I will not repeat what I noticed about the younger adults, but we seem to have abandoned them for an elite class of family descendants that play all day with a family allowance. We are near a tipping point another depression and I cannot see Andy Burnham solving the problems when the key issues are not even being discussed. This debt bubble is going to implode it is just a question of when. I note stock markets remain almost at all time highs as if they are paused the indexes by the insiders. Yes IBM fell 20% in one day, but its not the company it once was and has far more competition.
Thank you, and much to agree with.
Excellent out-of-the-box thinking. It's what we need to make real change. My question is 'what if there's an imbalance - too many people investing in infrastructure versus old age care. LOL. I know what bonds I would buy were I at the age to do that. BUT all that said, we won't improve anything if we don't make some big turns off the current path.
Brilliant idea!
I quite like the idea. But fear, at its greatest extent, it could look like a referendum on competing priorities where only those with money to save get to vote, and those with most money to save count more.
I have made a video on this in which I make clear that this could not be the case.
I had the same question. Can we have a link to the video, please?
As always. Excellent stuff Richard. I always copy in my MP, Clive Lewis, to your missives which I am sure he appreciates.
Clive and I get on.
what a GREAT idea.
Any direct savings investment put the vehicle in debt to the saver. But calling it savings looks at it from the other side of the ledger, and though the transaction is unchanged the renaming is a very clever idea, as hoi poloi are too ignorant to know the difference. But beware the knowledgeable commentators. And the treasury department.
How poloi? Sorry, but is that what you think people are?
"hoi polloi"(Ancient Greek) "the masses". Commonly used to name eateries, jeans, backpacks and gifts. "Ignorant": "not informed". If the general public were well informed, were well aware of all the issues you so well enunciated, then there would have been no need of your article. It was precisely because "hoi polloi are too ignorant" that you put pen to paper, I posit. Yes, that is what I think the people are, and your having to write your explanation helps prove it.