FNArenaA new era of technology is being defined right now—and not only by the “magnificent seven” tech giants that are collectively worth $7.7 trillion.Oilprice
Instead, it’s being defined by a new generation of tech-driven companies that operate across multi-trillion-dollar industries … and target the trillions of dollars that Big Capital is shifting into ESG, or “impact” investing.
These next-gen tech companies create entire “ecosystems”, some with unlimited verticals …
And they de-risk by focusing on ESG.
In other words, big capital dictates that things are about to get a lot more eco-friendly and a lot more socially responsible. Doing so, it has triggered what many analysts now see as the biggest transfer of wealth ever....See alsoIn Part 1 and Part 2 of the Covid series, we discussed the mooted “green” recovery, the anticipated rise of the social enterprise, and explored the macro-economic backdrop and stimulus funding for these two massive shifts.
In this article, we discuss the affects of covid on the broader investment market and drill down into the implications for green investing, social investing, and corporate governance. We finish with the winners and losers....
Modern monetary theory has gained ascendancy, as governments commit to print money to repump the economy on the premise that, as long as supply outstrips demand, inflation will be kept in check.
The agenda is to issue free money to institutions and governments which then on-lend it. The wildcards are historic debt levels and economic drag from zombie corporations.
Much of this stimulus is expected to be channelled via central banks and governments to countries and companies that demonstrate commitments to decarbonisation, a circular economy, social enterprise (including health) and 4IR technologies....
ESG Focus: Covid, The Aftermath – Part 3
Sarah Mills
“The agenda is to issue free money to institutions and governments which then on-lend it.“
ReplyDeleteWho/what is issuing the “free money!” to the government?
The agenda is to issue free money to institutions and governments which then on-lend it. Kim Brown
ReplyDeleteThis is the "loanable funds" fallacy since the economy runs on bank deposits, not on fiat*. And since the banks create deposits too when they "lend" ("Bank loans create bank deposits") then fiat creation for the general welfare must compete for real resources with bank "lending" for the private welfare of the banks themselves and for the most so-called "credit worthy", the rich.
And should the deposits created by deficit spending or by bank lending or by both create excessive price inflation, MMT proposes to tax the non-rich rather than reign in bank "lending."
So what we have offered is disguised welfare for the rich with the non-rich bearing all burdens.
*exception: mere physical fiat, grubby Central Bank Notes and coins to a limited extent.
Who/what is issuing the “free money!” to the government?
ReplyDeleteImmaculate conception.
MMT (Mary Mother of Theory) is the patron saint of bankers.
Negative interest and yields on inherently risk-free sovereign debt would make such debt self-extinguishing over time.
ReplyDeleteThere's your "free money."
That said, individual citizens should be shielded from negative interest up to a reasonable account limit - per their inherent right to use their Nation's fiat.