This morning's thread from me on Twitter:
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Yes, and yes again. Latest report on investment suggests at least a 30 per cent drop. It is a no-brainer that companies hold on to cash wherever possible, as the future is so uncertain. The trouble with increased public shareholding is that the government does not have the capacity to handle it. It should. Sadly, yet another fine mess.
It could have the capacity to handle it
Creating that capacity is a choice
Yes, yes and even more Yeses!!!
[…] support this idea, but think it does not go far enough. Nor is it bold enough. As I have explained already this morning, we need a National Wealth Service. The aim would not be to negatively help recover debt, as the […]
We really are up ‘shit creek without a paddle’ aren’t we, what an abysmal government they are. Good on ye for keeping up the campaigning Richard, we really need more voices like yours determined to get those in power to see sense. I have to admit to getting waves of despair every time ,,, well, every time I hear anything about the uk government.
I am nit giving up
Indeed, I have never pursued Twitter so hard
I seem to remember in what now seems like the dark distant days of March and April that you were warning about the Government’s schemes to “save” business as being inadequate, the wrong kind of help when cash flow was the imperative and that disaster would follow in due course.
One of your blogs from April could sum up today’s issues just as neatly as then: “Businesses are almost out of money and the government’s schemes are not working. The UK economy is about to disappear and nothing is really being done to save it.”
I can see the chickens coming home to roost.
I am still humming the same tune…..
It is remarkable how similar your proposal for a National Wealth Service is to the proposals I made in 2013/2014 for a “National Investment & Pension Fund” for Scotland after independence, particularly the similarity to the investing model I proposed be adopted. I have returned to working on these ideas again now since independence is back on the agenda for Scotland. Here is a passage from the Intro to my current working paper:
[start of quote] “The proposals which follow, therefore, incorporate a proposed new mode of investing pension fund assets in the future — “Evergreen Direct Investment” (EDI). This is a mode of investing that avoids seeking returns from securities trading and instead focuses on investment in return for negotiated agreements on cash flow sharing from wealth creating enterprise. This mode of investing will reconnect the financial system to the real, wealth creating part of the economy.
The proposals are designed to address these serious shortcomings whilst simultaneously creating a sustainable fund for providing the nation’s retirement pensions and a national investment fund for the benefit of the domestic economy and citizens of Scotland.
In a nutshell, the proposal is to consolidate as many of the existing occupational pension funds as possible into one large, national “super fund” which will serve as the primary source of pension provision for citizens when they retire, and that this fund will also serve as a national investment fund to support the economy and the long term wealth creation upon which the prosperity of the whole nation depends. In this regard it could be classed as a form of “Sovereign Wealth Fund”.
The investment model to be adopted by the fund will not be the default form of investment through securities trading but a new investment paradigm consisting of long term committed investment in enterprise in exchange for binding agreements on the allocation of cash flows generated by enterprise as returns to the investment fund. This form of investing is called “Evergreen Direct Investment” (EDI).” [end of quote]
EDI involves the taking of a stake in a business and a negotiated agreement on sharing the cash flows generated from the business….it has similarities to infrastructure or property investment where the objective is to benefit from a share of the revenues generated by the infrastructure or property.
Great minds, and all that 🙂
Who are you submitting this idea to?
I am hoping that Common Weal will engage. I will be asking Tim Rideout to take a look at it too. Also thinking I might post something on Progressive Pulse since you invited contributions there the other day. Any other suggestions Richard?
Mail me or Peter May re Progressive Pulse