Climate Policy Is a Much Greater Threat Than Climate Change

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.

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.

Some 73% of small and medium-sized enterprises in one survey reported feeling heavy pressure from energy prices, and 10% of those say they believe they face "Existential" threats to their businesses over the next six months.

A separate survey published this week by the BDI, a major industry association, found 34% of respondents describing energy prices as an "Existential challenge." Business failures will ripple up and down supply chains and quickly into the banks.

No one has seriously bothered to "Stress test" catastrophic increases in energy prices, even though the Bank of England claims to have modeled the economic impact of allowing global temperatures to rise by 3.3 degrees Celsius over the next few decades.

What needs to be stress tested is the reverse, the inflationary impact of a push for clean energy before battery storage technology exists, grid improvements exist, and whether or not physical metals for all the batteries that will be needed are even available.

https://mishtalk.com/economics/climate-policy-is-a-much-greater-threat-than-climate-change