Earth to Fed: Zero Rates Please!
"Biden should renominate Powell for the climate's sake. The argument for keeping him is simple. Biden wants to do a lot of hard things to combat climate change, including passing an infrastructure bill, regulating car and truck pollution, revitalizing American industry and attaining full employment. Powell is a Republican who wants to reach full employment. By keeping him, the President can spend more political capital on his other goals."
"If Powell is replaced by a Democrat, there's no guarantee that his successor would continue to keep interest rates low...When interest rates are low, the federal government can borrow more money. If the Fed hiked interest rates, then the left's dream of passing a Green New Deal would immediately become impossible."
"In the 'lower carbon' scenario, the ECB stops buying bonds issued by fossil fuel companies and by companies with relatively high carbon intensity that belong to the energy-intensive, non-renewable utilities and carbon-intensive transportation sectors. Instead, the ECB would purchase bonds of potentially green and renewable sectors, as well as green bonds and bonds of 'other' non-carbon-intensive sectors. The second, 'low carbon' scenario excludes all the bonds issued by carbon-intensive sectors..."
"Central-bank support for the climate change agenda is more than just rhetoric. Central banks regulate commercial banks and control payments systeMs.They may decide that loans to energy companies should be discouraged and finance for wind and solar systems should receive favorable treatment. They can also require disclosures by banks intended to cast carbon-intensive sectors in a bad light."
"All sources of energy have limits that can't be exceeded. The maximum rate at which the sun's photons can be converted to electrons is about 33%. Our best solar technology is at 26% efficiency. For wind, the maximum capture is 60%. Our best machines are at 45%. So we're pretty close to wind and solar limits. Despite big claims about big gains coming, there just aren't any possible."