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Posted on 11/12/2021 8:16:54 AM PST by karpov
At the COP26 U.N. climate change conference, a group of 450 financial firms pledged $130 trillion in capital to finance the transition to net-zero emissions. Government mandates have already driven large private capital flows into expanding renewable energy, and now financial firms are eager to kick the phaseout of fossil fuels into high gear.
The finance industry’s palpable excitement is electrifying to climate activists and the politicians who cater to them. Wall Street is now squarely on their side. Yet the enthusiasm of asset managers and banks is hardly surprising. Any government mandate that a large amount of capital must be swiftly retired and replaced creates a tremendous opportunity for financiers, no matter the underlying reason.
Suppose a government announces that all machines of a certain color, say brown, must be destroyed and replaced with machines of a different color, say green. Owners of the brown machines aren’t happy, but those who can finance the new green machines will profit handsomely. This artificial demand distorts the efficient allocation of capital and comes at a great cost to economic prosperity.
This thought experiment isn’t so different from current developments in the energy industry. Government mandates and incentives are artificially driving demand for renewable energy. The political desire to cater to climate concerns is increasingly benefiting large financial companies, which have been quick to lend their support. Institutional investors have been preparing by reducing their fossil-fuels exposure.
To be sure, private capital is better suited to fund energy investments than overstretched government budgets. Public investment is highly susceptible to inefficiencies such as project delays, cost overruns and politically-driven investment decisions. (Remember Solyndra?)
But it isn’t true, though it’s asserted often, that the benefits of energy transition investments make their ultimate net costs minimal or zero.
(Excerpt) Read more at wsj.com ...
The Extermination of the Human Race has already started
It’s like “Cash for Clunkers” on crack.
The poor will be left without any used cars to buy, because they’ve been outpriced by mandatory sh*tty electric cars.
The elites aren’t pushing this hoax to make themselves poorer. All of their hoaxes end up benefitting them.
I made an archive for you using the shortened URL and outline.com.
https://web.archive.org/web/20211112162421/https://outline.com/9sCFbT
The world has gone nuts.
And the sad thing....It won't do a damn thing to change the climate....which is and always has been constantly changing.
Psssssttttttt. There is NO SUCH THING AS NET ZERO!
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So, we should invest in banks and commodities, done.
I hate green energy but may have to consider it, Buffet and Pickens have sure used it to their advantage.
I would much rather have Wall St getting rich than poor since I don’t look at wealth as a zero-sum game, I’m a capitalist.
I remember when banks were going broke in the 90’s, the S+L crisis and the RTC, which was a nice money maker for real estate investors as we came out of that crash. Great opportunity. Same thing with the 2008 crash, that was a very good shakeout and recovery.
Waiting for the next opportunity now.
How do these businesses think they’ll make money ?
“Our entire military runs on fossil fuels.”
You are so right and much more. I laugh my head off every time I see those green-haired trans protestors screaming about oil. Guess what hair dye is made from, and their shoes, phones, tight pants, and on and on.
Check this out, it’s gobsmacking:
"Young fool, only now, at the end, do you understand."
Sure there is and it's so easy, even only a caveman can do it.
The scam to destroy Donald Trump was the biggest political con in the history of mankind. Of course, the two are deeply intertwined. If Trump had successfully drained the swamp, then the Wall Street / Washington DC axis would have been broken and the great Climate Change scam would have fallen apart. Getting rid of Trump was as much about preserving the climate scam as anything.
Good quotes from the article that get right to the point...
Government mandates and incentives steer existing capital, including natural gas and nuclear plants, to retirement for being “dirty,” rather than for age or obsolescence. These still-productive assets must then be replaced. This is on par with trying to get wealthier by breaking one’s own windows—the classic fallacy that holds that the necessary repairs would help the economy, not recognizing that the funds that must be spent on repairs now can’t be spent on efficient production.The crowd-out will be substantial. The $130 trillion in private capital pledged to support the energy transition, more than 135% of the world’s gross domestic product in 2021, is $130 trillion that can no longer be invested in other productive activities.
LOL! IF the gangreen assclowns deleted or dropped everything and anything they have that is in any way associated with petroleum products they’d be mostly (yewwwwwww) nekkid. And stranded where ever they happened to be. So much BS, so few shovels.
Yep, you got it.
$130 TRILLION is pledged to “green” energy. That investment is 135% of the ENTIRE WORLD’s GDP in 2021. And none of it is productive investment. NONE! It will replace perfectly good existing energy systems with the politically favored systems. It produces NOTHING NEW. It does not replace systems at the end of their economic life with new, more efficient systems.
The entire scam only exists because the government says “Shut down Machine A and replace it with Machine B.” There is NO new net gain of efficiency or productivity. As the WSJ article says, it is the same as smashing all the windows in a city and declaring you have “created jobs” replacing them.
How the hell can you declare “I’m a capitalist”? This scam is the biggest anti-capitalist command-and-control con in the entire history of all mankind. It is something that only COMMUNISTS could dream up and could not possibly be any farther from capitalism. You seriously need to re-think this.
Yeah, no ordering a zero carbon tesla for me. LOL! Or ford lightning or whatever. Triple A hasn’t got enough trucks with generators to answer the call when you run out of power on the 405. “Could you bring me 5 gallons of electricity please?”
“a group of 450 financial firms pledged $130 trillion in capital to finance the transition to net-zero emissions.”
These financial firms apparently believe they can loan $130T. That’s all this means.
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