Authored by James Rickards via DailyReckoning.com,
There’s a lot going on in the world right now that bears close monitoring. But we can’t forget about the elites’ war on our freedoms…
You’ve no doubt heard about the “Green New Deal” – a set of government proposals designed to fight the “climate change crisis.”
If enacted, these laws would impose radical changes on nearly every facet of society, costing companies billions of dollars while diminishing our standard of living.
But anyone who examines the scientific facts instead of the pseudo-science and phony models knows that these government-mandated sacrifices are in vain.
The fact is, there is no climate crisis, the ”renewable energy” being pushed on us can’t replace fossil fuels and the policymakers who aren’t willfully ignorant of these facts have something much more devious in mind.
Today you’ll learn exactly why the Green New Deal is actually a Green New Scam, as well as how to position your portfolio for what’s really going on.
The Green New Deal was first proposed by Howie Hawkins of the Green Party, who ran for governor of New York in 2010.
In its current form, it’s just a list of goals for the U.S. government to strive for.
Of course, the centerpiece is to make the country completely reliant on renewable energy sources. But it also covers social concerns like universal employment and health care.
There aren’t many specifics in the proposal, however — most notably, how to pay for any of it.
Still, that hasn’t stopped bits and pieces of the Green New Deal from popping up in various legislation.
For example, the Inflation Reduction Act had nothing to do with stopping inflation, but did devote $1 trillion for subsidies on electric vehicles, solar panels and offshore windmill farms.
And it’s only a matter of time before we start seeing full-blown mandates that will hamstring businesses and reduce our standard of living.
These extreme measures are touted as the only way to end the climate change crisis. But in reality, there is no crisis.
Here’s just a sample of the dire predictions that get a lot of media attention — regardless of what the data says is actually happening.
Surging sea levels will inundate the coasts.
This is false. Sea levels have been rising at the same pace for 100 years, unaffected by climate change or human activity.
The rate of increase is about 7 inches per 100 years — barely enough to get your feet wet in 2121.
Hurricanes are becoming more powerful and more frequent.
This is false. The 2014 U.S. National Climate Assessment said, “There has been no significant trend in the global number of tropical cyclones nor has there been any trend identified in the number of U.S. land-falling hurricanes.”
There is evidence that property damage from hurricanes is increasing. Does this mean hurricanes are getting stronger? Not at all.
It just means that rich owners with subsidized insurance are building mansions on sandbars where they don’t belong. That’s not climate change. It’s stupidity.
Tornadoes are more powerful and more frequent.
This is false. The strength of a tornado can be measured using what’s called the Enhanced Fujita (EF) Scale. The scale starts at EF0 and goes up to EF5.
According to National Oceanic and Atmospheric Administration records, between 1954 and 2014, the number of EF1 or greater tornadoes has been fairly consistent per year, with spikes in 1973, 1982, 2008 and 2011.
The number of tornadoes measured as EF3 or greater has been steady, too, except for spikes in 1957, 1965, 1973 and 2011.
To date, no correlation has been shown between tornado strength and CO2 emissions.
Wildfires are destroying larger areas more frequently than ever before.
This is false. Satellite data from NASA reveals that the global area burned annually by fires from 1998–2015 has declined by about 25%.
So much for the fear.
Scientists who aren’t looking to needlessly alarm anyone generally agree that slight global warming is detectable — but it’s not a crisis and won’t be in the foreseeable future.
But the alarmists are pushing for an immediate end to all use of fossil fuels — even though the “renewable” energy sources they tout simply aren’t ready for prime time.
Below, I show you why the Green New Scam isn’t about the climate. Also, why fossil fuels aren’t going anywhere anytime soon. Read on.
It’s Not About Climate
Protecting yourself from the rhetoric and harmful policies of the Green New Scam starts by understanding the truth behind their hysterical claims:
1. Yes, the climate is changing.
It always has and it always will. But it’s a slow process and quite complex. What’s needed is observation and experimentation, not hysteria.
2. Yes, carbon emissions are increasing.
But most of that increase occurred before significant consumption of oil and gas, and most of the increase is from natural causes.
So humans are contributing to carbon emissions. However, they are not the sole source and the impact on total warming is unclear.
3. Yes, sea levels are rising.
But they have been rising for 100 years at about the same pace — about 7 inches per century. That’s far from an existential threat, and there’s no evidence it’s being caused by global warming.
But the reality is there’s a lot of money to be made by perpetuating the Green New Scam. Scientists who espouse alarmist positions on climate change are in line for large research grants from activist foundations and NGOs.
Executives who take alarmist positions may find their stock prices boosted by institutions making environmental, social and governance (ESG) investments. Wealth advisers who promote ESG funds profit from management fees and performance fees as the money rolls in.
The Biden administration wants to promote the widespread adoption of electric vehicles (EVs).
The U.S. government has spent billions of dollars to support EVs, with subsidies to companies producing them and tax breaks for people driving them. But EVs are not an efficient solution to carbon emissions, either.
For one thing, they need to be charged — and that electricity comes from an energy grid that is still largely powered by oil, natural gas and coal. Just look at China, which has the largest potential market for EVs.
Over 50% of China’s domestic energy comes from coal-fired plants. China is adding to their coal burning capacity continually. So the “clean” EV is really just a battery-powered intermediary for coal-generated electricity.
The other major problem with EVs is batteries. There is nothing environmentally friendly about making or disposing of these expensive power sources. They limit a vehicle’s range, and recharging them isn’t nearly as fast as filling up your gas-powered car at a nearby station.
Yet policymakers still push the “climate crisis” narrative — jeopardizing our entire standard of living by insisting we switch to inferior power sources and modes of transportation.
Meanwhile, academics who caution that the climate threat is overblown may be denied tenure or publication and be subject to cancel culture disparagement. Media anchors who promote climate alarmism can improve ratings. Websites that feature climate catastrophe stories get clicks.
Politicians can get votes by appearing to “do something” about a supposed existential threat, while central bankers want to claim that climate is a threat because it’s a basis for garnering even more power. They can comb through a bank’s books to see if they are lending to “bad” industries such as oil and gas or to “good” industries such as solar panel manufacturers.
At that point, the bankers themselves will fall into line in order to appease their regulators.
And the rest of the world sees an opportunity to guilt wealthier countries into handing over truckloads of cash.
In November 2022, the United Nations held its regular climate change conference — known as COP27 — at the resort town of Sharm El Sheikh, Egypt.
What’s powering all these lights? (Source: Expedia.com)
Most of the attendees arrived in private planes and drove to and fro in gas-powered vehicles. So clearly the goal wasn’t to curb carbon emissions. But the real scam was revealed when the parties agreed to transfer over $230 billion to poorer countries as “climate reparations.”
In other words, wealthy nations are handing over money because of the damage they’ve supposedly done. Yet China — one of the largest polluters in the world — will not be contributing to the fund.
And thus the true motive is revealed — to transfer wealth from rich western nations to poor nations all over the world. That’s the dirty little secret behind the climate alarmist agenda.
Some of these alarmists may be “true believers” who’ve deluded themselves into thinking the world needs saving. In truth, they are just repeating things they’ve heard from other media or political leaders without independent inquiry or investigation.
For the rest of the alarmists, however, something much more nefarious is at play. It’s not about saving the planet. It’s about transferring your tax dollars to kleptocrats abroad. It’s about imposing world taxation, world governance and ultimately the demise of democracy and individual autonomy.
What better way to impose global control than to rely on a global catastrophe, even an invented catastrophe?
But far from the hysterical claims of climate alarmists, there is no crisis. Climate change will continue, but on its own will have almost no economic costs. Hurricanes, tornados, wildfires and droughts will continue as they have in the past, unaffected by climate change or even global warming.
Climate change may even create economic benefits as certain regions become more productive in terms of agricultural output due to longer, warmer growing seasons.
The real danger is from policymakers looking to enrich themselves while reducing the standard of living for everyone else. We’ll also see plenty of political posturing and virtue signaling.
The Biden administration has already shut down pipeline projects and has said it won’t support further oil and gas exploration. Expect to hear more about global carbon taxes and caps on carbon emissions as well.
In the end, however, these schemes will fail in the face of reality. All you have to do to see through the deception of the Green New Scam is to follow the evidence. Then you need an action plan.
Energy demands will grow as developed economies continue to grow in order to support aging populations. Developing economies will grow even faster to support a huge youth cohort looking for at least a middle-income lifestyle.
Renewable energy sources like solar and wind will be part of that mix, as will hydropower and geothermal, where available. Nuclear reactors are another option, though objections to nuclear power are even more strident than the objections to hydroelectric.
In the end, however, it will become clear to everyone that oil and gas are not going away. They are too important, have too many embedded structural advantages and have huge economies of scale.
Once politicians and the media become more aware of the real science of climate change, they will distance themselves from the false science of the climate alarmists. Then the oil and gas industries will regain their footing.
So the smart thing to do is invest in a mixture of companies developing carbon-based and renewable energy sources. And where I see the most opportunity is in the traditional hydrocarbon-based sectors of the market.
Rumors of the demise of fossil fuels are greatly exaggerated. Invest accordingly.
