The Bank of England, one of the oldest banks in the world, has joined the growing ranks of those warning of the financial risk posed by a "carbon bubble," which will occur if urgently needed climate change regulations render coal, oil, and gas assets worthless.
If companies can spend $670bn in 2013 searching for more fossil fuel investments
Then they can also spend comparable amounts in Clean Technology R&D
I see no reason to spare them a collapse of asset value, since "IT'S KILLING US"
Thanks for the "probably higher" than 4C due to feedback loops.
Additionally, these massive climate disruptions do not take place in a vacuum. The generalized dis-integration of the Earth's ecology, and the mass extinction that is now underway, might alarm the bankers if they forced themselves an honest look.
Oh poor Bank worried it will lose money in a carbon bubble. Get over it it is only money. The chorus of what is looming that real live good people care about is ending the use of fossil fuels which is destroying our home. Caring about your loss and bankruptcy not at all. Welcome to the 99% banker. Hope you enjoy your stay.
Hello Robert. Wanted to catch you on a fresh comment and apologize for my rant of several days ago. Wasn't directed at you, and glad you didn't take it that way. Your nuanced comment here is just what I was thinking as I read this piece. However, the money people are pragmatic, if nothing else, and earlier today on the Progressive Newswire box there was a statement by PNC Bank that they are withdrawing financial support for companies that deal primarily in mountain top removal for coal.
It is ironic that actual real glaciers are now moving faster than the financial sector.
The bubble won't go bust. The planet will.
Dear Bankster Overlords: You (and we) cannot eat and drink money.
P.S. "Despite such warnings, the Guardian notes, 'companies spent $670bn (£436bn) in 2013 alone searching for more fossil fuels, investments that could be worthless if action on global warming slashes allowed emissions.'"
They did so of their own volition; there was no law that forced them to do this (indeed, there are practically no laws forcing them to do anything they don't want to do). So it follows that they may well drag us down with them.
Another immutable law of nature before which we are helpless.
This Bank of England warning is news, because they're admitting the collapse. The cause they point to is just smoke in our eyes, and readers of CD should see that! There is indeed a huge, multi-trillion-dollar carbon bubble, which I have been tracking for a couple of years. It involves massive over-investment in very high-cost oil and gas fields such as deep sea, tar sands and shale, and a huge Ponzi scheme where old investors in unprofitable fields are paid off with money from new ones. Plus a huge derivatives bubble built on top of it.
Could share some links, but this is a new account. Check out George Washington's Blog and search on Shale and Ponzi for a good overview.
The price of oil is collapsing now due to the collapsing world demand for oil and other basic commodities from iron and copper ore to lumber, and the fact that the price is very sensitive to changes in demand. Even as the number of new wells and wells in production collapses at rates of up to 2-3% a week, world oil production continues to grow as countries and corporations step up their pumping of the lowest-cost oil and gas to keep their cash flow up and stave off bankruptcy! If every environmentalist in the world were to drop dead tomorrow the carbon bubble would still be collapsing - the bow wave of a catastrophic global system failure.
Here in Massachusetts, the cost of energy is down but the electric company doubled its per-kWh rate at one whack, blaming the organized resistance to a new shale-gas pipeline - and our liberal politicians and policy makers bought it because it sounded plausible to them! Now the mantra is "you're getting screwed, blame the environmentalists!"
We shouldn't put up with this kind of propaganda for a minute!
Addiction always erases the future
"It's a bet that effectively says to government: 'nah, we don’t believe a word you say. We think you’ll do nothing about climate change for decades'."
We'll be goners in "decades"....
I agree that the Oil companies deserve a collapse of asset value... however, we must look at how that plays out in terms of people having jobs to put food on the table... now, before everyone jumps into their computer to choke me... I am totally for the end of fossil fuel use... what I am getting at is... our wonderful government could put forth a program, to off set this... not just unemployment or welfare... but, how about something like... acreage give away... grants for small organic farmers... or sheep herding, so we'll have wool to make yarn to make our clothes etc... there will be a gap.... of jobs missing ... so, until things get up to speed( I personally think it will not ever be what we have now, horah!! ) ... in other words, we could have PROACTIVE programs to help people keep food on the table... and what about people's mortgages .,,,, Our whole economy is run on oil... or fossil fuels... so, if we cut way back on it's use... WHICH WE NEED TO DO... we have to come up with a way to still provide a way for people to make a living... we won't be making as many widgets... nor playing in our casinos so much anymore... so, having your own plot of land will be a nice jobs program....
But, something tells me that this is not on the minds of any one in our government... nor most people, even green people... we are no where near being up to scale with renewables... and I personally, do not think we ever will be... i was reading on one sight.. .a responder said, that if you can't go out and payout right for a renewable set up...like solar... then, "take a loan"...like gee why didn't I think of that... well,now, I do not think that everyone can just go out to their bank and say, "I'd like a loan today, please... and have one handed to them... especially when we have a carbon bubble collapse staring us in the face... full circle...
Are you a long lost cousin of Hunter S. Thompson? That is in a way a compliment. Now I'll go take a shower.
The Bank of England is the Central Bank for England and has tentacles all over the world (esp. Britain's former colonies) but, as I understand, the BOE is subservient to the BIS (Bank of International Settlements). All international transactions must be cleared at the BIS in Switzerland (the Central Bank for Central Banks) and all war funds and arms shipments must clear at BIS. Rocked by constant scandals and with a constant rain of falling bankers, the BIS is evil incarnate. The BOE is no better.
Of course, the BRICs swifcode system threatens to upend this monopoly and to not accept the US dollar. That's where many of our conflicts stem (Iraq, Iran, Libya, etc refuse to accept the petrodollar or let the Texas Oil Mafia dictate world oil prices for them.
Central Banks = Tyranny.
You did not understand my post at all....and you are apparently not familiar with my postings.... my post had nothing to do with continuing to use fossil fuels..... my post was about getting off fossil fuels, but with a PLAN.... immediately, because I am very aware of tipping points and the time factor... I talk about it all the time.... I am saying, that since our very survival is currently based on the current economic system based on fossil fuels.... if the economy collaspes due to the bubble, we will have even a much worse situation then 2008.... SO, WHY NOT SHAKE UP OUR CAPITALIST PRISON ECONOMY..... and put together a system in which there will be SAFETY NETS to help people .... our economy will take a massive hit... and maybe you own your house have it paid off... but many do not... as jobs would fall by the way side... what then? I do not want to continue on the fossil fuel death train.... This is why I put in the phrase.... "now, before everyone jumps into their
computer to choke me... I am totally for the end of fossil fuel use"
central banks = tyranny..... agreed..
11 hours 59 minutes and counting down.
It is obscene that hundreds of billions went to support the banks and wars after 2008 collapse, and pennies to support and create alternate energy programs in this country. We need Rooseveltian type programs and subsidies to every household and business to convert away from fossil fuel based economy. Along with support of local farm programs, mass transit, and of course cutting the excesses. We need national leaders who care for the earth and common good.
A collapse is coming one way or another. The potential chaos and struggle for survival for basic needs will probably be violent.
The Poor Fellow-Soldiers of Christ sure started something big. I'm not sure JC would have approved.
You are speaking my language. We are not being "proactive" to avert that violence either. In my field of work, I have to be "proactive" a lot, especially, when I was in special education, working with younger people. I work with people with disabilities. Being proactive to avert a child with autism, helps not only you, but the child. When you are not proactive, that child can become frustrated and the temper tantrums start and you know you have missed an opportunity to help that child communicate, or fulfill a need.
Oddly enough, if our economic system were as "rational" as many pretend, these repeated forecasts of carbon reserves having to remain unused would motivate the energy companies themselves to move toward renewable energy, now. Seems like I recall T. Boone Pickens started to do that by moving into wind energy.
However, since the politicians are owned by big business, the businesses will be encouraged to invest instead in these schemes that can't end well, because they believe the politicians and taxpayers will have their back, just like they backed the banks in 2008 when their schemes blew up. That's another reason to get money out of politics ...