Don’t Worry, the Fed Has a Plan to Tackle… Climate Change!?!

The U.S. is in serious trouble.

  • Our country is in debt to the tune of $27.5 trillion.
  • The economy is once again rolling over as states begin imposing economic lockdowns.
  • And according to Yelp, some 800 small businesses are closing per day.

In light of this economic carnage, you would think the U.S. central bank, the Federal Reserve, would be introducing policies to help small businesses… or push back against lockdowns. 

You’d be wrong.

The Fed has decided the big issue it needs to focus on is…


I’m not kidding. In November, Fed Chair Jerome Powell state the following:

 “What we’re really working on is: how do we incorporate climate change risk into all that we do,” Powell said during an online panel Thursday hosted by the European Central Bank. “It has potential implications for monetary policy, for bank regulation, for financial stability, and I would say we’re in the very early stages of trying to work through what that means for our goals.”

Powell said the Fed is in the process of applying for membership in the Network for Central Banks and Supervisors for Greening the Financial System, an international group formed in 2017.

Source: Bloomberg

Nowhere and I mean NOWHERE in the original Federal Reserve Act of 1913, nor in its 1977 amendment, is there any mention of climate change. The Fed’s job as explicitly stated in the legislature is to use interest rates to insure economic growth with minimal inflation.

That’s it!

So what is the Fed up to?

Because with the U.S. at record levels of wealth inequality and income inequality, policymakers are looking for political cover to allow them to continue to provide stimulus/ interventions.

Social justice issues like climate change provide them with a politically acceptable excuse.

By introducing these topics, economic policymakers can IGNORE the fact that their money printing is the primary reason the U.S. has such horrific wealth and income inequality in the first place.

Remember, loose monetary policy inherently benefits the wealthy who can leverage up to acquire assets. Someone worth $1 billion can borrow $200 million to buy real estate and stocks, thereby amassing a second fortune when the Fed and Treasury create bubbles in those assets.

By way of contrast, someone who is worth $50K and who earns $45K per year, likely has little if any exposure to stocks or real estate. And even if that person were to invest ALL $50K in stocks and time the bubble perfectly, they’ll at best make $150K out of the deal.

Meanwhile our billionaire has likely seen his or her wealth increase by hundreds of millions of dollars.

Again, money printing and loose monetary policy CREATE wealth inequality. And with these inequalities at RECORD levels today, the Fed is looking for POLITICAL COVER to allow them to continue intervening.

Social Justice issues like climate change give them this cover. Which is why we can expect MORE talk about climate change, more money printing, and more inflation in 2021.

Gold knows this, which is why it has exploded higher in EVERY major currency.

Investors who are well positioned to profit from it could see literal fortunes.



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As I write this there are just 37 left.

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Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

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