On 05Jan2022 2319, Alex Goodwin - alex.goodwin at multitel.com.au (via
tml list) wrote:
>
> p7, ibid, mentions "The return on Imperial bonds (considered
> risk-free) is so low that people only invest in them to avoid keeping
> cash around"
>
> That's great, but what in blazes _is_ said rate of return?
As inflation seems to be effectively zero, the rate of return on a
government bond or the like would be just enough above zero to cover the
likely cost of buying, owning, and selling the thing. I'd expect things
like term deposits to return a little less than the average rate of GDP
growth - so very little more, as the 3I and its peers don't seem to
believe in growth, except perhaps the Solomani and Aslan, and they
aren't really into /per capita/ growth either. A good solid share or
property portfolio probably grows at a tiny fraction over the growth
rate of the economy as a whole.

This all explains why the rich are so incredibly rich in capital (like
owning chunks of whole worlds) - it's take a /lot/ of capital to support
an Imperial noble family given the tiny rates of return. Those who live
on economically active worlds and keep all their spending on-world
probably do better, but that would carry a high social cost.

--
Rupert Boleyn <xxxxxx@gmail.com>