The U.S. Federal Reserve Board, the nation’s central bank, has officially joined the Network of Central Banks and Supervisors for Greening the Financial System (NGFS). That’s “Greening,” as in “environmentalism,” “Greta Thunberg,” “Green New Deal,” and all that. And as the Times makes clear in its headline, the left is loving it.
NGFS is an organization that few Americans have heard of, and yet it’s potentially one of the most powerful entities on the planet: Its roster of members and observers is nearly 100, including such mighties as the Bank of Japan, the European Central Bank, and the International Monetary Fund.And now, the U.S. Federal Reserve.So we can see that just about all the money in the world passes through its institutions.That’s power.
It’s interesting to note that in the past, the left has been mostly hostile to big financial institutions, seeing them as pillars of Capital.And yet nowadays, the left — at least its huge green faction — is cheering for the financiers.
Why this turnabout?Because NGFS is an an institution that the green left can control, and thus guide, in its pursuit of “sustainability” — that being the favored buzzword of the ecologically woke. …
The administrative state now has a choke hold on corporations — go woke, or we’ll starve you of capital:
Now that Joe Biden is in the White House, pledged to the green agenda, the Fed will feel all the more emboldened to do exactly as the New York Times wishes. …
The U.S. Fed has the power to choke off bank financing for any business, or even for a whole industry; that is, if the Fed declares something to be a “systemic credit risk,” lenders will shy away, lest they be labeled as violating their fiduciary responsibilities.
In this fashion, the Fed could build a blockade against industries despised by the greens, including oil and natural gas, mining, and manufacturing. …
Of course, such discrimination is exactly what NGFS — now including the Fed — has in mind: to use the power of discriminatory finance to force industries, companies, and people to go green. Either that, or cease to exist altogether. …
It’s likely that we’ll see the impact of this Woke Capital SWAT team in the years to come, as NGFS, plus the World Economic Forum — plus BlackRock and all the other Wokesters running billion-, even trillion-dollar outfits — put the green hammer down on politically incorrect sectors.
All this is bad news for, most immediately, American coal. As an aside, we might note that, yes, it’s a bit strange that China is still building new coal plants, while global greens look the other way; greens prefer, instead, to focus on un-employing the last West Virginia coal miner, while accepting China’s promise to fix everything by 2060. Yes, that’s the scenario that China puts forward: Let us do whatever we want now, and four decades in the future, everything will be fine. And the greens are eating it up.
Swiftly rising power prices due to decarbonization mean almost nothing to the better-off, but hurt the poor big time. Reducing carbon emissions is almost perfect virtue signalling by the upper middle class — they get to trumpet their virtue at virtually no cost to themselves, while hurting their political opponents. Twofer!
The NGFS is yet another example of the left’s administrative state teaming up with corporations to force society in the woke direction, in an manner so opaque that (a) most of us are not even aware of it and (b) we never get to vote on it. It just happens.
hat-tip Scott of the Pacific