Last week, there was an article in the Wall Street Journal titled, “A Climate for Failed Bank Regulation.”
Silicon Valley Bank, which just failed despite having the Jedi Master of banking oversight Barney Frank sitting on its board, was also under the oversight of the San Francisco Fed (which is not a governmental agency, mind you, but a bank).
Instead of concerning itself with the core financial activities of SVB – you know, banking – San Francisco Fed President Mary Daly was laser-focused more on “the progressive priorities of climate change and equity.”
These included “formal surveys, listening sessions, and targeted meetings with CEOs to better understand how climate risk affects decision making and resiliency planning.”
For instance, climate change may “challenge the resiliency” of banks and “low-and moderate-income communities and communities of color.” Just a reminder, we’re still talking about a bank.
Here the Wall Street Journal ponders, “What about the resiliency of banks to runs on deposits or rising interest rates?” Great question!
SVB didn’t even have a chief risk officer for the last 8 months of 2022! At a bank. Until weeks before their collapse. That didn’t bother the San Francisco Fed, SVB, or Barney Frank. Climate change was a more immediate concern.
This isn’t a one-off. The financial collapse in 2008 started with the government compelling a social agenda onto the banking industry. One can debate whether the goal of home ownership is appropriate for every American, whether rich or poor. But government policy pressured banks to make lousy loans, which led to economic catastrophe.
When the government, or business, puts social priorities directly in contradiction with financial priorities, money is lost.
It happened in 2008, and it is happening now in the investment industry in which you likely participate, particularly in the ESG (Environment Social Governance) movement.
If you don’t know or don’t care what ESG is, get ready to lose money.
It is not only economically disastrous, it likely flies in the face of your value system if you’re reading this newsletter.
I highly recommend this podcast with Jordan Peterson and presidential candidate Vivek Ramaswamy, where VR adroitly details the fundamental conflict of interest between money managers and ESG.
Further, please take the time to listen to this JBP podcast about some state treasurers rejecting ESG pushers like Blackrock.
Starting at the 23-minute mark, Peterson lays waste to the entire oxymoronic ESG argument even on their own terms in about 3 minutes flat.
If you’re uninterested in putting in the time, just know that ESG is a not a way of people using their money to promote their own social and environmental goals (diversity mandates, divesting from Israel, banning fossil fuels, etc.), which naturally they have the freedom to do. It is promoting their agenda using your money, by force. And likely without your knowledge! Are you paying attention yet?
Banks are not looking out for you. You should know that by now. The modern banking system is rigged, corrupt, structured intentionally to create booms and busts, to require repeated taxpayer bailouts, and to move our economy further toward implosion. It’s happening again, right now, before our very eyes.
But it’s not just the banks. As if there isn’t enough risk in the stock market as it is, the subjugation of historically universal investing principles (such as “the role of a fiduciary is to maximize the returns of its investors”) by ESG activists not only conscripts you to finance their agenda – without your consent and likely without your knowledge whatsoever – but it will also lose you money!
Now you know.
The only better time than today to take control of you own financial success is yesterday!
What is ESG and Why Should you Care? – April 2023(Pdf Download)
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Thank you for your time and for taking control of your financial future!
Sincerely,
Sam Arieff
Arieff Consulting
(904) 478-0102
Disclaimer: This newsletter represents the opinion of Arieff Consulting, Inc, and does not constitute financial, tax, or legal advice.