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https://wlockett.medium.com/the-federal-reserve-is-catastrophically-wrong-about-climate-change-f9d7cfe385ad>
"At a recent event, Federal Reserve Governor Christopher Waller said that
climate change does not pose a serious risk to financial systems, and the large
banks don’t need to worry about it. To be clear, he does believe that climate
change is real, just that it isn’t a risk, at least when it comes to the
banking industry. But this notion seems to fly in the face of what climate
scientists have said for years and what common sense seems to say about the
knock-on effects of the looming climate disaster. So, is Mr Waller misguided?
And is the Federal Reserve, and in turn, the American economy, on course to be
woefully underprepared for climate change?
To quote Mr Waller exactly, he said, “Climate change is real, but I do not
believe it poses a serious risk to the safety and soundness of large banks or
the financial stability of the United States” and then went on to say “Risks
are risks. There is no need for us to focus on one set of risks in a way that
crowds out our focus on others.” In other words, Mr Waller doesn’t see climate
change affecting the economy or the banking system, and so the Federal Reserve,
who “monitors financial system risks and engages at home and abroad to help
ensure the system supports a healthy economy for U.S. households, communities,
and businesses” doesn’t need to give it any special attention. While it is true
that the Federal Reserve has a lot of other risk factors to mitigate presently,
such as ensuring inflation doesn’t go bananas, this seems terribly
short-sighted.
But rather than speculate whether Mr Waller has the right stance here, let’s
look at the numbers and see if he is right."
Cheers,
*** Xanni ***
--
mailto:xanni@xanadu.net Andrew Pam
http://xanadu.com.au/ Chief Scientist, Xanadu
https://glasswings.com.au/ Partner, Glass Wings
https://sericyb.com.au/ Manager, Serious Cybernetics
