Dear stockbrokers, dear stockbrokers,
the COP27 climate conference in Egypt has come to an end. In a historic moment, participants agreed to launch a new financing mechanism to compensate the countries most affected by climate change.
Basically, it’s about climate reparations, which the western industrial nations in particular are supposed to pay to the southern developing countries.
In addition to the reparation payments, it was also about a complete exit from fossil fuels. Here, however, it was not possible to agree on a clear statement for a complete exit, which was mainly due to the oil states.
This debate has shown once again that western nations are obsessed with wind and solar power. It is forgotten that a large part of agricultural and industrial production is dependent on fossil fuels. In addition, the conditions have not yet been created for wind and solar energy to be able to maintain the base load that a modern electricity grid needs.
„Eco-Friendly“
An average wind farm consists of around 150 turbines. Each individual turbine requires an area of around 1.5 hectares. A wind farm with 150 turbines therefore requires 225 hectares. Think of all the trees that have to be felled in many areas just to build a wind farm. Trees absorb carbon dioxide. So if you were serious about reducing carbon emissions, you would plant trees instead of cutting them down. Not to mention that these wind turbines are known as bird killers.
Also, the machinery needed to manufacture and transport these turbines runs on fossil fuels. The same goes for the equipment needed to maintain the facilities. So if you want wind energy, you’d better have a thriving fossil fuel industry.
So you have to ask yourself: How environmentally friendly is wind energy really?
When ideology and reality collide
For years I have been critical of decision makers who put the second step before the first. Unfortunately, financial institutions and transnational organizations are run by a group of like-minded people, so their actions are coordinated together. So the results are mostly the same – good or bad.
From this perspective, measures such as deindustrialization, abandoning efficient energy sources such as natural gas and oil, switching to central bank digital currencies and much more make perfect sense. As is so often the case, the population bears the bill in the form of inflation, higher prices and state control.
Best regards
Jim Rickards
