Why The Economics of Environmental, social, and corporate governance(ESG) is doomed to fail and how to Profit from the Fall of Global Socialism – August 5, 2022.
What’s that, you say? You thought we beat and discredited socialism decades ago? Yeah, but… Socialists don’t have much to offer humanity except for empty promises that sound nice to the human ear but are economically destructive in practice. Why would PRIVATE companies sign on to the ESG movement? Well, you have to remember that a lot of private companies in Western countries HIRED a lot of these WOKE CEOs who very well may have gone to the WOKE School of Business.
When I was growing up, if you saw a minority or a woman in a CEO position, it was an absolute certainty that they EARNED their position, in 2022, if you see a minority or woman in a position of power, they could be there via a special quota large corporations have to adhere to in order to avoid scrutiny from their government or “thought leaders.”
In both Canada and the United States as an example, both the Joe Biden Administration and the Justin Trudeau Federal Cabinet are FILLED with people who got their positions because the new Liberal-Progress agenda includes things like gender parity, meaning that the people you see in Joe Biden and Justin Trudeau government are not the best and brightest; instead their there to represent a WOKE agenda.
In Canada and the United States, we have never seen such dysfunction in the government; it’s getting quite scary to observe, and the fish rots from the head down. If you’ve ever read Atlas Shrugged by Ayn Rand the book revolves around the behavior and actions of PRIVATE sector participants when they’re faced with public pressure as well as family pressures from INCOMPETENT people who imagine they can do a better job operating their business than the OWNERS of the business can.
No more moving up the corporate ladder because of competence; now, you have a lot of LARGE companies that allow people to move up the corporate ladder because they check the “ESG” boxes. One of the great things about a market economy is that you can see failure from a distance; however, what failure will ULTIMATELY look like is anyone’s guess.
Sometimes it could take 100 years before a socialist idea is dead and buried. In many parts of Africa and Latin America, socialism is alive and strong. The nation of Colombia recently made former Communist Guerilla Gustavo Petro the President of the country. How could this happen, you argue? Easy, we’re on a fiat monetary system in which the United States dominates, and the key to this fiat money dominance is OIL.
Well, Joe Biden declared WAR on DOMESTIC fossil fuel production, which led to OPEC+ countries now having a defacto monopoly on Oil prices. Why would Colombians then vote for a Communist Guerilla? Well, guess what country Gustavo Petro wants to unite with? His neighboring Oil-rich Venezuela, ofcourse. If Americans didn’t make the mistake of making Joe Biden the President, chances are Colombians wouldn’t be facing record-high INFLATION.
At the very least, the voters could argue that Gustavo Petro won’t be making ESG a part of his agenda. Former Communist nation of Russia, the current communist nation of China, and other authoritarian regimes, at this moment, can JUSTIFIABLY look at the Western world as weak; only an idiot would phase out oil without having a VIABLE alternative in place, but the leaders of the ESG movement, many of whom have NEVER experienced an economic downturn, do not imagine the world this way. The faster you comprehend the stupidity of ESG, the faster you can put your capital to work for you FAR, FAR away from it.
During periods like this, you want to follow the cash flow, most of these ESG companies can’t pay a dividend, and if they can, you’ll want to research how that dividend is being paid. Solar and Wind, as constructed now, can’t pay a dividend without the government’s help. It still annoys me how people lie about Solar and Wind generating electricity.
Solar and Wind have no BASELOAD power now; what does that mean exactly it? This means under our Alternating Current model, a lot of solar and Wind energy is being WASTED. Solar and Wind are Direct Current, which then has to be converted to alternating current, which can’t really remain idle for too long because it can’t be STORED anywhere.
Solar and Wind are both HEAVILY reliant on government subsidies, so if a solar or wind company is paying you a dividend. You’re being rewarded for ESG incompetence.
Staying on the topic of solar and wind, People talk about Nuclear being this evil thing; well, did you know in 1954, the U.S. tested its first hydrogen bomb fueled with a lithium compound? Lithium is just as deadly as Nuclear.
I remember being a forklift driver in my younger years and assuming the propane forklift was more dangerous than the electric forklift. I was wrong; the electric forklift was more deadly than the propane forklift, so much so that most of our training revolved around the maintenance of the electric forklift. I don’t know what planet these ESG people live on, but there’s nothing environmental about solar or wind.
Regarding the “social” aspects of the ESG, as an investor, you will want to pay close attention to competence because only recently have SOME of these WOKE CEOs been getting fired.
Many of them won’t be fired, and many of these ESG companies have been lobbying the government. You’ll notice with Joe Biden and Justin Trudeau as an example, the laws they’re trying to get passed continue to get dumber and dumber; why? Because they have lobbyist groups, they have to adhere to.
In the mind of any Progressive Socialist, they might be imagining a “greater good” Furthermore, Socialists also assume all people are corrupt, so they’ll justify in their minds that being corrupt is just playing the game of politics.
As an investor, you have to comprehend this and accept it for what it is; trying to make sense of Justin Trudeau or Joe Biden will drive you insane instead, pay close attention to their AGENDA and who they work for.
Why would ESG companies want to phase out DOMESTIC fossil fuels? Who knows? Who cares? What you need to focus on is what the end game is going to be. The overall MACRO picture of what happens when a few industries are granted monopoly status by the government. Haven’t you been noticing that Russia and China all of a sudden appear to have more competent economies than most Western Nations?
Has China or Russia become better at governance, or has the Western World merely embraced one of the DUMBEST Socialism experiments ever devised? ESG, from an economics perspective, is STUPID, but stupid might be here and in charge for a long time, so you’d be wise to prepare yourself right now. Communist Gustavo Petro was made President of Colombia FAIR and SQUARE; why? Because of rampant inflation!
Sure, people like me listen to Austrian Economic thinkers, but the average person doesn’t, and that’s okay; it’s a free world, but not everyone wants freedom; most humans want security, and you’d better recognize what that means, in my mind, it equates to EVENTUALLY austerity measures being employed, but this could take DECADES!
Why ESG will fail is because Environmental, social and corporate governance as constructed now revolves around making PRODUCTION costs more expensive, inflation is so rampant that the central banks are being FORCED to raise interest rates, and we’re only in the EARLY stages of the ESG movement.
If you know anything about socialists, socialists have a hard time comprehending how money is valued; in countries like Zimbabwe, for example, when a currency collapse, the thinking is, “Well, why don’t we create a new currency?” These “leaders” never imagine that it was their ideas were bad economic ideas that caused their currency to become worthless; instead, these “leaders” and their followers imagine that some mysterious “power” is punishing them to keep all the wealth to themselves.
So in the modern Western world, we’re now having serious discussions about Central Bank Digital Currencies (CBDCs). As these ESG idiots drive up production costs, they’re already preparing for a way to prevent consumer price inflation; why ESG is doomed to fail is that ESG is a giant WELFARE State, and money is merely a medium of exchange.
So even if CBDCs can suppress consumer price inflation, what you’ll have are a lot of jobless and UNPRODUCTIVE people fulfilling government agendas, which differs from a market economy as the consumers will likely be disinterested in a lot of government initiatives, which have a price tag.
Transsexuals in a market economy struggle to find an audience, sure some transsexuals have some talent and are entertaining. Still, most aren’t, so a lot of transexuals lobbied the Federal, State/Provincial, and municipal governments to give them an audience, which is why a lot of transsexuals found their way into PUBLIC SCHOOLS.
This is an example of ESG trying to FORCE consumers to like something. Even if you’re a far-left ideologue, you’d know drag shows are boring to most people, including children, but that’s what socialists do with their top-down model economic models; they use taxpayer funds to EXPERIMENT their socialist ideals on people.
Wealth redistribution for political objectives is similar to burning money; you have also to comprehend that ESG is creating ARTIFICIAL demand. If Transexual shows in public schools become the norm, you will get 100% straight males, who might be political Conservatives seeing dressing up in a dress, and putting on make up as an opportunity to make some easy money.
This is just one example of all the market distortions that ESG will create, and you’d be wise to prepare your mind as an investor for the potential stupidity of the future.
Interesting times ahead!