Lagarde Pushes ECB To Shun Fossil Fuel Bonds As Central Banks Embrace "Green" Future

Later this year, the ECB will meet for a grand strategy review. Expected to be one of the most consequential policy reviews for years to come, the central bank could opt for changes to its inflation target (some doves have proposed following in the footsteps of the Fed by loosening the ECB's inflation target) as some have insisted. But one change that appears virtually certain, is that the central bank will adopt language addressing matters like climate change, economic equality, etc.

From the minute the ECB selected Christine Lagarde to succeed Mario Draghi, it seemed almost like a forgone conclusion. But more than a year later, Joe Biden's decision to nominate Janet Yellen to lead the Treasury Department showed that across the Atlantic, central bankers are focusing on a similar agenda.

During a recent interview with International Man, Doug Casey rebutted demands for the Fed to take on inequality by doling out 'reparations'. Fed Chairman Jerome Powell has repeatedly called on the central bank to address inequality...but the irony is, the Fed is one of the progenitors of economic inequality.

He also pointed out that central banks in Asia don't spend time virtue-signaling.

International Man: Fed chairman Powell has made countless remarks about the need for the US central bank to address climate change.

What is going on here?

Doug Casey: It’s a good question.

How can they address the so-called problem of climate change? Climate change has been going on since the Earth came together 4.5 billion years ago, and it will continue on its own path, primarily influenced by the sun and secondarily by things like volcanism, cosmic rays, and peculiarities of the planets orbit, long after mankind has gone.

But destroying the economy by printing up more money certainly isn’t an answer to climate change. However, I’m sure that what’s on Powell’s mind is making money easier to get for things like windmills and solar panels. This is more state direction of investment. It was a disaster for the USSR and every other socialist and state-directed economy and will be for us as well.

You’ll notice that the Chinese and other Asian economies don’t indulge in this kind of politically correct investing. It’s a major reason why they’re on the way up, and we’re on the way down.

Janet and Jerome’s excellent adventure in climate engineering won’t end well.

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