Given a choice of taking a chance with politicians or with Mother Nature, most of would pick Mother Nature. From Mish at mishtalk.com:
A global financial crisis is brewing. The easy scapegoat is Putin. The biggest problem is policy everywhere you look.
Inept Climate Policy
Germany’s decision to scrap its nuclear reactors before having replacement energy is in play.
In April, then UK Prime Minister Boris Johnson bragged his Energy Security Strategy would “bring clean, affordable, secure power to the people for generations to come.”
In the US, California marches on with the blessing of president Biden, preposterous targets for electric cars without having the faintest idea where the minerals and mining for those batteries will come from.
Global Crisis of Climate Policy
The Wall Street Journal comments on the Coming Global Crisis of Climate Policy.
A crisis isn’t coming, it’s already here, and obviously so.
The Federal Reserve, Bank of England and European Central Bank, among others, want to know how global temperature variations a century hence might weigh on Citi’s or Barclays’ or Deutsche Bank’s capital and risk weightings today. The fad is for quantifying, with preposterous faux-precision, the costs of reinsuring flood risks, or fire, or the depressed corporate profits of a dystopian hotter future.
Well, if you seek “climate risk” to financial stability, look around you. It has arrived, although in exactly the opposite manner to what our current crop of eco-financiers predicted. Europe’s plight tells a tale that could become all too familiar in the U.S. soon.