ESG’s Bad (But Not Bad Enough) Year

The year 2022 was not the best of years for ESG (an investment discipline under which portfolio companies are measured against various environmental, social, and governance standards). To take one example, as of January 5, the price of BlackRock’s ESG Screened S&P 500 ETF had declined by around 22 percent over twelve months, underperforming the S&P 500, which fell by around 20 percent. Those are only one year’s results (and they would have been marginally improved by dividends), but it’s still not the greatest of looks for an investment approach often sold (typically with higher fees) as a way of doing well by doing good. Making matters more embarrassing still, stocks in those wicked fossil fuel companies (in which ESG investors tend to be underweight) did well. The S&P 500 Energy sector index rose by around 44 percent over the same period…

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Roxy Music’s Avant-Garde Origin Story

The stylus descends on the first LP by a new band. “You’ve never heard anything like this,” says a friend one day in 1972 — half a century ago, good Lord.

Track one, side one: Glasses clink, conversation, a cocktail party. A piano starts up: insistent, repetitive, fast. Drums pound, guitars surge, a singer begins, his voice distinctive, mannered.

A chorus joins in, an enigmatic, vaguely retro chant — “CPL593H.” Later, the command, “Show me.” A sax wails and shrieks, the volume heads towards eleven, and the pace accelerates. Something electronic is going on in the background, and the singer returns to his earlier lament…

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The Death of the Thatcherite Rebirth

Last week, Britain’s newly minted (and now newly departing) prime minister, Liz Truss, replaced Kwasi Kwarteng as chancellor of the Exchequer (finance minister) with Jeremy Hunt, a figure from the soggy Tory Party’s soggy center who was widely seen as “a safe pair of hands.” Hunt’s allies claimed that he would be CEO to Truss’s chairman, and that is how it turned out….

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To Be Anti-ESG Is to Be against Free Market Capitalism? Not So Much.

With environmental, social and governance (ESG) investing — a profoundly political “discipline” in which actual or prospective portfolio companies are measured against a varying selection of environmental, social and governance metrics — finally coming under the fire that it deserves, its advocates are rushing to its defense, many of them seemingly outraged that a political agenda has attracted the attention of elected politicians who disagree with it…

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Liz Truss: Winning the Poisoned Chalice

There have, it is true, been stickier moments to become Britain’s prime minister: May 1940, for one, when Winston Churchill took the top job. Nevertheless, however glowingly Boris Johnson may, in his farewell speech, have spoken of his legacy (“foundations that will stand the test of time,” “great solid masonry,” the “path to prosperity” paved, and so on), the reality is that Liz Truss, his successor, has inherited one hell of a mess, politically and economically, and time is already running out for her to fix it…

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Losing the Plot: Finance, Natural Gas, and ESG

It’s a crowded field, but as an example of the destructive uselessness of ESG (an investment “discipline” based on analyzing how companies measure up against somewhat vague environmental, social, and governance standards), this story from Bloomberg takes some beating.

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China and an ESG ‘Dilemma’


The Financial TimesMoral Money section is so nauseatingly named that many will be tempted to look away after one glimpse of its title. That would be an error. Grimly fascinating, Moral Money is an invaluable window into the orthodoxies of the corporatist elite, particularly — but of course — when it comes to planetary catastrophe. The FT being what it is, Moral Money’s climate message (in reality an updated version of an ancient blend, millenarianism and rentseeking) is camouflaged, with the crazy played down. It is earnest and preachy, but — underpinned by the comfortable assumption that writer and reader alike see things the same way — not too preachy.

And it is nothing if not revealing.

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The Costs of the Energy ‘Transition’ Won’t Be ‘Transitory’

The appointment of Christine Lagarde as president of the European Central Bank was never going to bode very well for the way that the ECB is run. Lagarde is a politician, not a banker, and, as to her attitudes to rules, well, many of those who followed the euro zone crisis (a time when Lagarde was France’s finance minister) will remember her comments after those in charge approved the first Greek bailout.

Reuters (December 2010):

“We violated all the rules because we wanted to close ranks and really rescue the euro zone,” Lagarde was quoted as saying.

“The Treaty of Lisbon was very straight-forward. No bailout.”

Oh well.

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Watching the Skies: Prudence, not Paranoia

Sure, sure, there was last year’s intelligence report and this year’s congressional hearing. But you really know that UFOs/UAPs are having a moment when they turn up in the Financial Times’ storied Lex column — albeit in a piece that has a faint but unmissable “crazy American” subtext and is a touch disapproving….

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Adam (Smith) and EVs: Going in Different Directions

Central planning is not exactly the best way of organizing an economy (#understatement). That’s true, whether we look at the colossal failures of communism or, for that matter, many less ambitious attempts to manage an economy by decree.

Central planning lite (or relatively lite) has been a feature of the energy “transition” now underway in much of the West for some time. As this transition proceeds, the difficulties flowing from its reliance on aggressive, unrealistic and arrogant directives from above are becoming all too apparent, from the woes associated with wind energy — a technology clearly not ready to fulfill the role assigned to it by the climate technocracy — to growing evidence that forcing people away from conventional autos into electric vehicles is going to lead to immense problems that appear not to have been anticipated. (This may a charitable explanation. Perhaps those in charge were well aware of the problems but were determined to press on regardless. Omelets, eggs, we know that script.)

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