Yesterday, April 22nd, marked Earth Day, and to commemorate this occasion, President Biden convened a virtual Leaders’ Climate Summit. This event brought together leaders from major carbon-emitting countries, where they collectively committed to the goal of decarbonizing the global economy. During the summit, Biden announced plans for an international climate finance initiative to support these efforts.
This virtual gathering served as one of the focal points of an executive order Biden issued on January 27, 2021, aimed at addressing the climate crisis. The order outlines its intentions as follows:
“…to tackle the climate crisis at home and abroad while creating good-paying union jobs and an equitable clean energy future, building modern and sustainable infrastructure, restoring scientific integrity, and evidence-based policymaking across the federal government, and re-establishing the President’s Council of Advisors on Science and Technology.”
From our perspective, the virtual summit appeared to be more of a display of flattery and contrition rather than a serious endeavor. It acted as a facade for a more complex agenda.
At Economic Prism, we find the phrase ‘climate crisis’ to be misleading. Weather events like fires, floods, hurricanes, and heatwaves have always occurred and will continue to do so. The shift from discussing weather to framing it as a climate crisis gives the government an opportunity to reshape society according to its desires.
The alleged climate crisis is less about environmental preservation and more about wealth redistribution. This approach aims to terminate certain industries while bolstering others, particularly in the renewable energy sector like solar and wind power. It also involves redirecting substantial amounts of capital.
Arsonists
The aspiration for cheap, abundant, and clean energy is commendable, and we support it wholeheartedly. If this ambition brings jobs and new industries along with it, that’s even better.
However, history shows that true innovation is often birthed out of individual ingenuity through exploration, experimentation, and determination. The most significant breakthroughs come from inquisitive minds that tirelessly test, refine, and discover new solutions. Remarkably, advancements are still being made in this field every day.
Unfortunately, the Biden-Harris administration and its cadre of planners are unlikely to achieve the goal of affordable, clean energy. Instead, they seem more focused on large-scale wealth redistribution, akin to placing those who cause fires in charge of extinguishing them.
For instance, last month, the Federal Reserve established a Financial Stability Climate Committee and a Supervision Climate Committee. Fed Governor Lael Brainard remarked:
“Climate change and the transition to a sustainable economy also pose risks to the stability of the broader financial system. A second core pillar of our framework seeks to address the macrofinancial risks of climate change.”
Treasury Secretary Janet Yellen has also aligned herself with the climate agenda. This week, the Treasury Department revealed its plan to combat climate change through fiscal policies.
Moreover, they are creating a “Climate Hub” aimed at tackling climate issues through financial strategies. John E. Morton, an experienced climate finance advocate, will head this initiative.
Yellen considers it a crucial step because she views climate change as an existential threat. She recently stated:
“The steep consequences of our actions demand that the Treasury Department make climate change a top priority. Finance and financial incentives will play a crucial role in addressing the climate crisis at home and abroad and in providing capital for opportunities to transform the economy.”
The direction of these policies is concerning.
Biden’s Global Climate Summit Kicks Off Full-Tilt Wealth Redistribution
The central planners appear to be laying the groundwork for government-driven renewable energy projects, turning the public purse into a source of profit that will enrich everyone—except average citizens. Funds are destined for large-scale solar and wind initiatives, driven by monetary and fiscal policies.
What’s often overlooked is that central bankers themselves are significantly responsible for atmospheric pollution and greenhouse gas emissions. Their policies have left an indelible mark on the environment, and now it seems they are being tasked with repairing the damage they’ve done.
While the connection between central banking and carbon emissions might not initially seem straightforward, it is. Central bankers, including the Federal Reserve, control credit. Their relentless credit expansion policies create an environment of excessive credit availability.
This increase in credit inevitably leads to more debt. Borrowing pulls future production and consumption into the present. If you compare a graph of global CO2 emissions over the last eight decades with parallels of U.S. Debt and Rest of the World Debt, you will notice striking similarities in the trends. While correlation does not imply causation, we suspect that without the surge of credit from central banks over the last century, greenhouse gas emissions would likely be lower.
Moreover, the unchecked printing of money and the proliferation of debt, thanks to central banks, have resulted in trillions being squandered, not to mention the funding of perpetual conflicts, both contributing significantly to carbon emissions.
It is hard to ignore the irony of the Federal Reserve and the Treasury aligning themselves with the initiative to address a climate crisis—they are among the largest perpetrators of pollution!
In essence, the Biden-Harris administration has orchestrated a coordinated effort with the Federal Reserve and the Treasury to redistribute wealth under the pretext of addressing climate change, impacting the lives of millions along the way.
Sincerely,
MN Gordon
for Economic Prism
