750 Billion Rea$on$ Why Goldman Is Rooting For Greta Thunberg's Success

Having lost much of its central banker incubation skills over the past decade, and handing over the crown of Wall Street's most profitable trading desk to Morgan Stanley, in recent years Goldman Sachs has been best known for enabling and profiting wildly from Malaysia 1MDB criminal fraud, which culminated with the arrest of former Malaysia PM Razak, but not before Goldman made billions in illicit profits from selling bonds offered by the country's sovereign wealth fund.

And while Goldman is still waiting to learn its criminal and civil fate, and more importantly, how many billions it will have to pay Malaysia/the DOJ to put its 1MDB fraud in the rearview mirror, the company - which a decade ago was hoping to make billions from aggressively entering the carbon credit/offset market as profiled delightfully in Matt Taibbi's "The Great American Bubble Machine" - is already scheming how to profit from the latest round of anti-climate change euphoria, conveniently spawned by a 16-year-old child with Asperger's Syndrome.

On Monday, Goldman Sachs said it will provide $750 billion in financing, advisory services and investments for initiatives that fight climate change, as well as those that foster economic opportunities for under-served people over the next decade. What Goldman did not say is that it will pocket a generous commission, somewhere in the 3-5% ballpark, by peddling "green" products to naive investors (including central banks) who have fallen for the whole ESG virtue signalling charade.

The bank also updated its internal environmental policy framework to rule out providing financing to any new projects that will drill for oil in the Arctic or that create new thermal coal plants or new thermal coal mines. Of course, the destructive consequences of the bank's involvement in the 1MDB scandal would be quietly excluded from this virtuous charade.

Ironically, Goldman's policy changes come just as the United Nations concludes a conference that failed to ramp up efforts to combat global warming, according to Reuters.

Goldman CEO David Solomon announced the plans in an editorial in the Financial Times, where he wrote that there is "a powerful business and investing case" for the bank to take steps to address climate change and the growing worldwide opportunity gap. Very powerful: having failed to make almost any money from the bank's last foray into carbon tax and cap-and-trade, Goldman is now seeking to directly appeal to fellow fake virtue signalers, who in turn will hope to extract capital from naive investors pursuing the oh so noble goal of only investing in green, renewable, and "clean" (whatever that means) projects. Goldman's bottom line, assuming a blended 3% commission on the $750BN in financial services it sells to gullible clients, works out to about $22.5 billion - a "powerful business case" indeed.

Additionally, Goldman emphasized that it will not pass up any significant amount of revenue as a result of the $750 billion commitment and the ban on financing certain drilling and coal activities. A Goldman Sachs executive said on a call with reporters that the bank has not financed any projects like those in recent memory. However, since US shale producers, most of whom are funded by the ultra-generous US junk bond market, are hardly losing sleep, it only means that other, less "virtuous" banks will be delighted to pocket a far higher commission by stepping into the "dirty" market where ESG virtue signalers now refuse to tread.

And speaking of drilling and coal activities, the bank said it has a rigorous due-diligence process that takes into consideration, among other things, impacts on endangered species and indigenous populations, the executive said.

The $750 billion commitment will be deployed in several ways, including by investing in and advising companies to take steps to reduce their carbon emissions and become more sustainable, the bank said. For example, earlier this year Goldman worked with Italian electricity company Enel to raise $1.5 billion through a bond offering that linked the investments to Enel’s commitment to increase its renewable energy base by 25% before 2022.

Translation: Goldman made about $15 million selling a bunch of bonds to a bunch of "green" liberals managing other liberals' money. Because when central banks have taken over the market and Goldman's own trading desk is shrinking quarter after quarter, and when the coming negative rates will make Goldman's recent investment into retail banking a disaster, one can always make money betting on liberal guilt, and nobody knows this better than Goldman Sachs... and Greta Thunberg.

Read the rest of the article at the following weblink:

https://www.zerohedge.com/markets/750-billion-reasons-why-goldman-r...

President Trump Mocks Wind Power

“Darling, I wanna watch television tonight, and there’s no damn wind. What do I do?” Trump mocked wind energy before a laughing audience, who applauded enthusiastically. Trump even imitated the noisy, unreliable contraptions that litter the landscape.

“I wanna watch the election results. Darling, there’s no wind, the damn wind just isn’t blowing like it used to because of global warming, I think,” Trump mocked. “I think it’s global warming. Global warming – no more wind. No more life!”

The President then trolled the climate alarmists, sarcastically warning: “The oceans are gonna rise an eighth of an inch within the next 250 years,” said Trump, feigning breathlessness. “We’re gonna be wiped out!”

“Clean air, clean water”

The President then conveyed to the audience that the focus needs to be on clean air and clean water, and without shutting down industries and causing job losses.

Read the full article at the following weblink:

https://notrickszone.com/2019/12/14/trump-sees-through-climate-hoax...

Federal Reserve Bank of San Francisco: The Economics of Climate Change

https://www.frbsf.org/economic-research/publications/economic-lette...

What is going on at Drudge Report?

https://www.americanthinker.com/blog/2019/12/what_is_going_on_at_dr...

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Comment by Willem Post on December 18, 2019 at 12:25pm

That is a lot of rah rah on top of expensive wind and solar in New England.

https://www.rechargenews.com/transition/liquid-air-storage-offers-c...

Comments on Below Table

http://www.windtaskforce.org/profiles/blogs/cost-shifting-is-the-na...

 

Indirect subsidies are due to loan interest deduction and depreciation deductions from taxable incomes.

Direct subsidies are due to up front grants, waiving of state sales taxes, and/or local property (municipal and school) taxes. See URL.

 

An owner of ridgeline wind would have to sell his output at 18.8 c/kWh, if the owner were not getting the benefits of cost shifting and upfront cash grants and subsidies.

That owner could sell his output at 16.4 c/kWh, if his costs were reduced due to cost shifting.

He could sell his output at 9 c/kWh, if on top of the cost shifting he also received various subsidies. The same rationale holds for solar. See table.

 

In NE construction costs of ridgeline wind and offshore wind are high/MW, and the capacity factor of wind is about 0.285 and of solar about 0.14. Thus, NE wind and solar have high prices/MWh. See table.

 

In US areas, such as the Great Plains, Texas Panhandle and Southwest, with much lower construction costs/MW and much better sun and wind conditions than New England, wind and solar electricity prices/MWh are less.

 

Those lower prices often are mentioned, without mentioning other factors, by the pro-RE media and financial consultants, such as Bloomberg, etc., which surely deceives the lay public 

 

Future electricity cost/MWh, due to the planned build-out of NE offshore wind added to the planned build-out of NE onshore wind, likely would not significantly change, because of the high costs of grid extensions and upgrades to connect the wind plants and to provide significantly increased connections to the New York and Canadian grids. 

 

NOTE: For the past 20 years, Germany and Denmark have been increasing their connections to nearby grids, because of their increased wind and solar. 

 

The subsidy percentages in below table are from a cost analysis of NE wind and solar in this article. See URL. 

http://www.windtaskforce.org/profiles/blogs/excessive-subsidies-for...

 

Values for 2018 are represented in below table.

 

NE Wind/Solar

NE Wind

%

NE Solar

%

Ridgeline

Large-scale

c/kWh

c/kWh

Price to utility

No direct/indirect subsidies

No cost shifting

18.8

100

23.5

100

Less cost shifting

2.4

13

2.1

9

Price to utility

No direct/indirect subsidies 

With cost shifting

16.4

87

21.4

91

Less subsidy, wind

45% of 16.4

7.4

39

Less subsidy, solar

45% of 21.4

9.6

41

Price to utility*

With direct/indirect subsidies

With cost shifting

9.0

48

11.8

50

 

Maine as Third World Country:

CMP Transmission Rate Skyrockets 19.6% Due to Wind Power

 

Click here to read how the Maine ratepayer has been sold down the river by the Angus King cabal.

Maine Center For Public Interest Reporting – Three Part Series: A CRITICAL LOOK AT MAINE’S WIND ACT

******** IF LINKS BELOW DON'T WORK, GOOGLE THEM*********

(excerpts) From Part 1 – On Maine’s Wind Law “Once the committee passed the wind energy bill on to the full House and Senate, lawmakers there didn’t even debate it. They passed it unanimously and with no discussion. House Majority Leader Hannah Pingree, a Democrat from North Haven, says legislators probably didn’t know how many turbines would be constructed in Maine if the law’s goals were met." . – Maine Center for Public Interest Reporting, August 2010 https://www.pinetreewatchdog.org/wind-power-bandwagon-hits-bumps-in-the-road-3/From Part 2 – On Wind and Oil Yet using wind energy doesn’t lower dependence on imported foreign oil. That’s because the majority of imported oil in Maine is used for heating and transportation. And switching our dependence from foreign oil to Maine-produced electricity isn’t likely to happen very soon, says Bartlett. “Right now, people can’t switch to electric cars and heating – if they did, we’d be in trouble.” So was one of the fundamental premises of the task force false, or at least misleading?" https://www.pinetreewatchdog.org/wind-swept-task-force-set-the-rules/From Part 3 – On Wind-Required New Transmission Lines Finally, the building of enormous, high-voltage transmission lines that the regional electricity system operator says are required to move substantial amounts of wind power to markets south of Maine was never even discussed by the task force – an omission that Mills said will come to haunt the state.“If you try to put 2,500 or 3,000 megawatts in northern or eastern Maine – oh, my god, try to build the transmission!” said Mills. “It’s not just the towers, it’s the lines – that’s when I begin to think that the goal is a little farfetched.” https://www.pinetreewatchdog.org/flaws-in-bill-like-skating-with-dull-skates/

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Sign up today and lend your voice and presence to the steadily rising tide that will soon sweep the scourge of useless and wretched turbines from our beloved Maine countryside. For many of us, our little pieces of paradise have been hard won. Did the carpetbaggers think they could simply steal them from us?

We have the facts on our side. We have the truth on our side. All we need now is YOU.

“First they ignore you, then they laugh at you, then they fight you, then you win.”

 -- Mahatma Gandhi

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Vince Lombardi 

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Hannah Pingree on the Maine expedited wind law

Hannah Pingree - Director of Maine's Office of Innovation and the Future

"Once the committee passed the wind energy bill on to the full House and Senate, lawmakers there didn’t even debate it. They passed it unanimously and with no discussion. House Majority Leader Hannah Pingree, a Democrat from North Haven, says legislators probably didn’t know how many turbines would be constructed in Maine."

https://pinetreewatch.org/wind-power-bandwagon-hits-bumps-in-the-road-3/

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