1 00:00:00,440 --> 00:00:02,720 Speaker 1: Hello, and welcome back to another episode of The Mark 2 00:00:02,759 --> 00:00:04,680 Speaker 1: mass Show. Or of course, each and every week we're 3 00:00:04,680 --> 00:00:07,240 Speaker 1: talking about the way the world is changing through what 4 00:00:07,280 --> 00:00:11,159 Speaker 1: I call the decentralized revolution. If you haven't noticed, the 5 00:00:11,200 --> 00:00:14,120 Speaker 1: world is changing, but you maybe don't understand what the 6 00:00:14,120 --> 00:00:16,200 Speaker 1: heck is going on, and of course we talk about 7 00:00:16,239 --> 00:00:18,640 Speaker 1: it each and every week most importantly so you can 8 00:00:18,800 --> 00:00:22,200 Speaker 1: understand where things are going. I was talking with my 9 00:00:22,239 --> 00:00:24,680 Speaker 1: show producer Cue before we were recording and going through 10 00:00:24,720 --> 00:00:27,000 Speaker 1: some of the show notes and talking about some of 11 00:00:27,040 --> 00:00:29,000 Speaker 1: the different topics and you know, some of the big 12 00:00:29,040 --> 00:00:31,320 Speaker 1: news topics that came out this week. He's like, Yeah, 13 00:00:31,360 --> 00:00:32,560 Speaker 1: I don't know if it's that big of a story 14 00:00:32,560 --> 00:00:34,960 Speaker 1: because it's not like tradeable. There's nothing that someone's going 15 00:00:35,040 --> 00:00:37,760 Speaker 1: to do to change their investment portfolio off of this. 16 00:00:38,920 --> 00:00:42,440 Speaker 1: And that's absolutely right. What we talk about day to 17 00:00:42,520 --> 00:00:44,519 Speaker 1: day isn't for you to go make a trade in 18 00:00:44,560 --> 00:00:47,040 Speaker 1: your portfolio tonight on your e trade Charles Schwab or 19 00:00:47,040 --> 00:00:49,839 Speaker 1: whatever and profit from this. What it is is it's 20 00:00:49,840 --> 00:00:53,400 Speaker 1: about getting the direction right because the world's changing. 21 00:00:53,760 --> 00:00:54,080 Speaker 2: And so. 22 00:00:55,520 --> 00:00:59,800 Speaker 1: In the quote that's been used way too, way too 23 00:00:59,840 --> 00:01:02,040 Speaker 1: moch used, I would say, but I'm going to use 24 00:01:02,040 --> 00:01:04,440 Speaker 1: it anyway. And that's from the great Wayne Gretzky, the 25 00:01:04,480 --> 00:01:06,600 Speaker 1: great one, one of the best hockey players of all time, 26 00:01:06,600 --> 00:01:08,360 Speaker 1: and he said that the reason why he did so 27 00:01:08,400 --> 00:01:10,840 Speaker 1: good paraphrasing was because he always skated to where the 28 00:01:10,880 --> 00:01:14,160 Speaker 1: puck was going to be, not where the puck was right. 29 00:01:14,280 --> 00:01:16,480 Speaker 1: So you've heard that before, so sorry for me to 30 00:01:16,480 --> 00:01:18,120 Speaker 1: tell you again, but that's really the way it is. 31 00:01:18,360 --> 00:01:19,920 Speaker 1: The reason why it's used so much is because it's 32 00:01:19,920 --> 00:01:21,440 Speaker 1: so true. And so what we want to do is 33 00:01:21,440 --> 00:01:24,200 Speaker 1: we want to position ourselves to where things are going, 34 00:01:24,920 --> 00:01:27,240 Speaker 1: not where they are. If we go to where they are, 35 00:01:27,319 --> 00:01:28,640 Speaker 1: by the time we get there, it's going to be 36 00:01:28,640 --> 00:01:30,720 Speaker 1: too late. And so we want to know where things 37 00:01:30,760 --> 00:01:32,520 Speaker 1: are going, and so we look at the long lens. 38 00:01:32,640 --> 00:01:35,200 Speaker 1: Warren Buffett, of course, you know, good old uncle Charlie 39 00:01:35,959 --> 00:01:39,640 Speaker 1: Warren Buffett. His partner Charlie Munger, has another quote that 40 00:01:39,640 --> 00:01:40,920 Speaker 1: I like to use all the time, and he says 41 00:01:40,959 --> 00:01:44,600 Speaker 1: that the big money is not made in the buying 42 00:01:44,640 --> 00:01:47,120 Speaker 1: and the selling, it's made in the waiting. So you 43 00:01:47,160 --> 00:01:49,280 Speaker 1: put those two things together, it's made in the waiting. 44 00:01:49,320 --> 00:01:54,000 Speaker 1: Waiting for what waiting for the right opportunity waiting for 45 00:01:54,080 --> 00:01:56,720 Speaker 1: that big fat pitch to come. But more importantly, when 46 00:01:56,800 --> 00:01:59,520 Speaker 1: I get into that position, I have to also wait 47 00:02:00,120 --> 00:02:03,280 Speaker 1: or to develop. And so this is about the direction 48 00:02:03,440 --> 00:02:05,600 Speaker 1: of where things are going, so we know that we're 49 00:02:05,600 --> 00:02:09,240 Speaker 1: aligned properly as they continue to materialize. So in this hour, 50 00:02:09,280 --> 00:02:12,519 Speaker 1: we're going to talk about the energy crisis and how 51 00:02:12,560 --> 00:02:17,840 Speaker 1: the transition is causing the failure, how it's the transition 52 00:02:18,880 --> 00:02:21,079 Speaker 1: that's causing the energy christap. We're going to talk about that. 53 00:02:21,120 --> 00:02:23,040 Speaker 1: We're going to look at what the transitions are. We're 54 00:02:23,040 --> 00:02:25,640 Speaker 1: going to look at this ESG, break that down environmental 55 00:02:25,680 --> 00:02:28,200 Speaker 1: social governance. We're going to talk about moving from reliable 56 00:02:28,200 --> 00:02:30,519 Speaker 1: to unreliable energy. We're going to talk about why these 57 00:02:30,560 --> 00:02:34,800 Speaker 1: transitions fail. We're going to cover the origins, the companies 58 00:02:34,840 --> 00:02:37,680 Speaker 1: that are taking advantage of this, if there is any 59 00:02:37,720 --> 00:02:41,120 Speaker 1: real progress, and so much more. This is a big show. 60 00:02:41,600 --> 00:02:44,359 Speaker 1: I know I've talked about ESG a little bit in 61 00:02:44,440 --> 00:02:46,240 Speaker 1: the past, We've never done this deep of a dive, 62 00:02:46,440 --> 00:02:48,800 Speaker 1: and it's important for you to understand this because it 63 00:02:48,880 --> 00:02:54,240 Speaker 1: is literally changing the world. Without energy, I mean I 64 00:02:54,280 --> 00:02:56,480 Speaker 1: can't even say without energy, Without energy, the whole world's dead. 65 00:02:56,480 --> 00:02:57,519 Speaker 2: I mean we need energy. 66 00:02:57,960 --> 00:03:00,360 Speaker 1: The law of energy states that energy cannot be created, 67 00:03:00,480 --> 00:03:03,320 Speaker 1: energy can only be transferred. So everything in life is 68 00:03:03,360 --> 00:03:06,000 Speaker 1: about energy. For example, for you to live, your body 69 00:03:06,080 --> 00:03:10,160 Speaker 1: must burn calories. A calorie is a unit as a 70 00:03:10,200 --> 00:03:14,799 Speaker 1: measurement unit of energy. Right, So the sun produces energy, 71 00:03:14,800 --> 00:03:18,120 Speaker 1: it grows a plant, or the cow eats the plant, 72 00:03:18,800 --> 00:03:21,560 Speaker 1: and that energy from the plant is from the sun 73 00:03:21,639 --> 00:03:23,480 Speaker 1: to the plant, and then from the plant to the cow. 74 00:03:23,520 --> 00:03:25,880 Speaker 1: And then I eat the cow, which gives me energy 75 00:03:26,360 --> 00:03:28,760 Speaker 1: and protein, and then that gives me energy to burn 76 00:03:28,800 --> 00:03:29,440 Speaker 1: as calories. 77 00:03:29,560 --> 00:03:30,760 Speaker 2: And so that's how the whole world works. 78 00:03:30,760 --> 00:03:32,320 Speaker 1: And then I can dig oil out of the ground, 79 00:03:32,320 --> 00:03:34,200 Speaker 1: which is more energy, which think that powers my car, 80 00:03:34,400 --> 00:03:36,400 Speaker 1: and on and on and on. So it's important to 81 00:03:36,520 --> 00:03:43,240 Speaker 1: understand that all of humanity's prosperity and flourishment comes because 82 00:03:43,320 --> 00:03:47,080 Speaker 1: of energy. You know, things used to be really bad 83 00:03:47,160 --> 00:03:49,880 Speaker 1: a long time ago, and really all of history is 84 00:03:49,920 --> 00:03:54,960 Speaker 1: a story of people being cold and hungry. That's most 85 00:03:54,960 --> 00:03:58,360 Speaker 1: of history people being cold and hungry. Read back through 86 00:03:58,400 --> 00:04:01,720 Speaker 1: the early nineteen hundreds, eighteen hundreds to seventeen hundreds. 87 00:04:01,800 --> 00:04:03,040 Speaker 2: You've seen the movies. 88 00:04:02,680 --> 00:04:05,839 Speaker 1: The Game of Thrones, and it looks like all like, oh, 89 00:04:05,880 --> 00:04:07,880 Speaker 1: look at them living in these beautiful castles and life 90 00:04:07,920 --> 00:04:10,480 Speaker 1: is so good. No no, no, no, no, that's not how 91 00:04:10,480 --> 00:04:12,880 Speaker 1: it worked. They were cold and they were hungry, and 92 00:04:12,920 --> 00:04:15,400 Speaker 1: that's how most of the world is. Without energy. There 93 00:04:15,440 --> 00:04:19,279 Speaker 1: was famines, there was droughts. But then we got energy, 94 00:04:19,320 --> 00:04:22,000 Speaker 1: and we could build tractors that could build canals and 95 00:04:22,040 --> 00:04:25,200 Speaker 1: bring water in amazing and it's through the use of 96 00:04:25,440 --> 00:04:27,080 Speaker 1: energy that we've been able to flourish. And you can 97 00:04:27,080 --> 00:04:30,480 Speaker 1: trace back every prosperous nation back to the amount of 98 00:04:30,720 --> 00:04:32,920 Speaker 1: energy that they have. And that's really where the United 99 00:04:32,960 --> 00:04:36,039 Speaker 1: States took off in the lead because we were able 100 00:04:36,080 --> 00:04:39,600 Speaker 1: to harness oil and energy, which led to the industrialization, 101 00:04:39,880 --> 00:04:44,880 Speaker 1: which allowed to massive prosperity through using energy to manufacture 102 00:04:44,880 --> 00:04:46,960 Speaker 1: goods and services that the world wanted, and so forth. 103 00:04:46,960 --> 00:04:48,720 Speaker 1: We're gonna talk about all this. I'm gonna break it 104 00:04:48,760 --> 00:04:51,400 Speaker 1: down and again, if you want to be, if you 105 00:04:51,440 --> 00:04:53,760 Speaker 1: want to be where the puck is going, you have 106 00:04:53,800 --> 00:04:56,520 Speaker 1: to understand this. If you want your investments to be 107 00:04:56,600 --> 00:04:58,760 Speaker 1: in the right place, then you need to understand this. 108 00:04:58,880 --> 00:05:00,720 Speaker 1: Now I like to say it's not true, but of course, 109 00:05:00,760 --> 00:05:02,640 Speaker 1: if you're not already in position, then I suppose you 110 00:05:02,680 --> 00:05:05,960 Speaker 1: should be getting into position. But this is not financial advice. 111 00:05:06,760 --> 00:05:08,360 Speaker 1: But you are listening to the Mark Ma Show. If 112 00:05:08,360 --> 00:05:09,440 Speaker 1: you miss any of this, don't worry. 113 00:05:09,440 --> 00:05:09,960 Speaker 2: I got your back. 114 00:05:10,040 --> 00:05:12,200 Speaker 1: Check me out on the podcast. Just search the Mark 115 00:05:12,240 --> 00:05:14,839 Speaker 1: Ma Show on any of your favorite podcast players. And 116 00:05:15,000 --> 00:05:16,760 Speaker 1: if you could just do me a huge favor while 117 00:05:16,760 --> 00:05:20,880 Speaker 1: you're there, just click on the like review button on 118 00:05:20,920 --> 00:05:22,760 Speaker 1: the podcast. Share it with somebody who you think could 119 00:05:22,760 --> 00:05:23,359 Speaker 1: benefit from it. 120 00:05:23,520 --> 00:05:25,680 Speaker 2: That'd mean the world to me, I'll ask. Okay, so 121 00:05:25,800 --> 00:05:27,160 Speaker 2: let's talk about this for a little bit. 122 00:05:27,240 --> 00:05:28,799 Speaker 1: I want to break this down. We got a lot 123 00:05:28,880 --> 00:05:33,040 Speaker 1: to cover. So first of all, ESG, what is it? 124 00:05:33,120 --> 00:05:36,720 Speaker 1: More importantly, how did we even get here? Okay, now, 125 00:05:37,040 --> 00:05:39,000 Speaker 1: if you want to look at how we got here, 126 00:05:39,000 --> 00:05:40,800 Speaker 1: we kind of have to go back to the origins 127 00:05:40,839 --> 00:05:44,039 Speaker 1: and what we can see that the origins of ESG 128 00:05:44,560 --> 00:05:49,160 Speaker 1: and ESG investing really came by the key decision makers 129 00:05:49,680 --> 00:05:55,279 Speaker 1: who wanted to use social responsibility as like an investing thesis. 130 00:05:56,000 --> 00:05:57,760 Speaker 1: And I have no problem with that. As a matter 131 00:05:57,800 --> 00:06:00,240 Speaker 1: of fact, I'm a huge proponent of that. As a 132 00:06:00,240 --> 00:06:02,359 Speaker 1: matter of fact, I constantly pound the table on that 133 00:06:02,400 --> 00:06:05,880 Speaker 1: we should be voting with our money. So I shouldn't 134 00:06:05,920 --> 00:06:08,040 Speaker 1: be giving my money to things I don't like. So, 135 00:06:08,120 --> 00:06:10,520 Speaker 1: for example, I've been writing a financial newsletter for the 136 00:06:10,600 --> 00:06:14,080 Speaker 1: last seven years where I do give people information on 137 00:06:14,080 --> 00:06:15,560 Speaker 1: what they should be buying and selling. If you want 138 00:06:15,600 --> 00:06:17,479 Speaker 1: to check that out, just go to my website at 139 00:06:17,480 --> 00:06:20,800 Speaker 1: one Mark Moss and you can find out how to 140 00:06:20,839 --> 00:06:24,080 Speaker 1: get access to the newsletter there. But in this newsletter, 141 00:06:24,440 --> 00:06:27,760 Speaker 1: I used to recommend that we bought stocks in China. 142 00:06:28,240 --> 00:06:30,479 Speaker 1: As a matter of fact, we did really really well 143 00:06:30,640 --> 00:06:34,119 Speaker 1: investing into Chinese companies in Chinese stock markets and Chinese 144 00:06:34,160 --> 00:06:36,440 Speaker 1: funds and things like that. Emerging markets are a great 145 00:06:36,480 --> 00:06:39,240 Speaker 1: place to get alpha right out to get profits. But 146 00:06:39,920 --> 00:06:43,359 Speaker 1: about when the pandemic came out, all of a sudden, 147 00:06:43,400 --> 00:06:45,480 Speaker 1: I just thought about it, and I'm like, I don't 148 00:06:45,520 --> 00:06:47,520 Speaker 1: really want to be supporting China anymore. 149 00:06:47,839 --> 00:06:50,840 Speaker 2: There's millions of places to invest. Why do I. 150 00:06:50,800 --> 00:06:52,960 Speaker 1: Need to put my money into those I don't agree 151 00:06:53,000 --> 00:06:55,240 Speaker 1: with them, so I'm no longer going to give them 152 00:06:55,240 --> 00:06:58,880 Speaker 1: my money. So I believe in using your money to 153 00:06:59,160 --> 00:07:01,920 Speaker 1: voice your vote, but also to build the world that 154 00:07:01,960 --> 00:07:04,480 Speaker 1: you want. So, for example, you also know that I'm 155 00:07:04,480 --> 00:07:08,520 Speaker 1: a huge bitcoin proponent. I believe that bitcoin is the 156 00:07:08,560 --> 00:07:11,640 Speaker 1: only tool that we see right now today that can 157 00:07:11,720 --> 00:07:14,520 Speaker 1: change the world, that can free us, and that can 158 00:07:14,600 --> 00:07:17,040 Speaker 1: change the world for better. If not bitcoin, then what 159 00:07:17,240 --> 00:07:18,960 Speaker 1: I don't see anything else now. Maybe something else comes 160 00:07:19,000 --> 00:07:20,600 Speaker 1: in the future, but as of now, that's the only one. 161 00:07:20,640 --> 00:07:24,040 Speaker 1: So I believe that you don't have to that's okay, 162 00:07:24,120 --> 00:07:26,600 Speaker 1: and so I want to see that flourish. So I 163 00:07:26,640 --> 00:07:28,680 Speaker 1: want to put my money into bitcoin. I also want 164 00:07:28,720 --> 00:07:31,880 Speaker 1: to support the ecosystem, so I invest through the entire 165 00:07:31,880 --> 00:07:36,440 Speaker 1: bitcoin ecosystem, including I'm an advisor to a bitcoin venture 166 00:07:36,440 --> 00:07:39,520 Speaker 1: capital fund, Trammel Venture Partners, and I also started my 167 00:07:39,680 --> 00:07:43,480 Speaker 1: own bitcoin fund called the Bitcoin Opportunity Fund, and we're 168 00:07:43,480 --> 00:07:46,280 Speaker 1: investing through the entire bitcoin ecosystem because I want to 169 00:07:46,320 --> 00:07:49,200 Speaker 1: put my money to build the world that I want. 170 00:07:50,120 --> 00:07:50,320 Speaker 2: Now. 171 00:07:50,480 --> 00:07:52,440 Speaker 1: If you'd like to learn more about the Bigcoin Opportunity Fund, 172 00:07:52,520 --> 00:07:55,400 Speaker 1: check it out Bitcoin Opportunity dot Fund. It's go onto 173 00:07:55,400 --> 00:07:58,520 Speaker 1: your website Bitcoin Opportunity Dot Fund. You do need to 174 00:07:58,560 --> 00:08:02,040 Speaker 1: be a credit investor for that, but it's a good 175 00:08:02,040 --> 00:08:04,560 Speaker 1: way to get access to this entire industry that way. 176 00:08:04,600 --> 00:08:08,720 Speaker 1: So anyway, I am a big proponent. I recommend everybody 177 00:08:08,920 --> 00:08:11,600 Speaker 1: invest into building the world that they that we want. 178 00:08:11,760 --> 00:08:14,240 Speaker 1: And so that's how ESG got started, right. It started 179 00:08:14,240 --> 00:08:18,000 Speaker 1: in the nineteen sixties as socially responsible investing, which sounds 180 00:08:18,000 --> 00:08:21,120 Speaker 1: pretty good. Nineteen seventy one, the packs World Fund was 181 00:08:21,200 --> 00:08:25,120 Speaker 1: established by two United Methodist ministers who opposed the Vietnam War, 182 00:08:26,160 --> 00:08:28,320 Speaker 1: so they didn't want to invest any money that would 183 00:08:28,360 --> 00:08:31,560 Speaker 1: go towards the war. Great we saw Amy Dominie, who 184 00:08:31,600 --> 00:08:34,520 Speaker 1: managed KLD Research and Analytics. She created a Domini four 185 00:08:34,600 --> 00:08:36,439 Speaker 1: hundred index in nineteen ninety. 186 00:08:37,080 --> 00:08:38,200 Speaker 2: You know, we can kind of go through this. 187 00:08:40,320 --> 00:08:43,560 Speaker 1: ESG largely came from a combination of national and international standards. 188 00:08:43,559 --> 00:08:47,800 Speaker 1: One of the significant milestones was the United Nation Framework 189 00:08:48,280 --> 00:08:51,480 Speaker 1: Convention on Climate Change in nineteen ninety two. And this 190 00:08:51,559 --> 00:08:54,760 Speaker 1: is where things really started to go a different direction. 191 00:08:55,280 --> 00:08:58,400 Speaker 1: So the UN pushing them in nineteen ninet two, and 192 00:08:58,440 --> 00:09:02,200 Speaker 1: this is where I start to divert from their idea 193 00:09:02,240 --> 00:09:05,559 Speaker 1: of investing socially and my idea of investing socially. I'm 194 00:09:05,559 --> 00:09:07,079 Speaker 1: going to talk about that in a second. If you're 195 00:09:07,160 --> 00:09:09,439 Speaker 1: just tuning in right now, you're listening to the Markmas Show. 196 00:09:09,440 --> 00:09:12,360 Speaker 1: Of course we're always talking about this decentralized revolution. I'm 197 00:09:12,360 --> 00:09:13,880 Speaker 1: going to break this down, so you know where we're going. 198 00:09:14,000 --> 00:09:15,359 Speaker 2: I got to take a quick break. 199 00:09:15,160 --> 00:09:16,640 Speaker 1: But when I come back, we're go and continue talking 200 00:09:16,640 --> 00:09:18,679 Speaker 1: about the origins of ESG. 201 00:09:18,880 --> 00:09:20,360 Speaker 2: You don't want to miss it. We'll be right back. 202 00:09:22,360 --> 00:09:23,079 Speaker 2: All right, Welcome back. 203 00:09:23,080 --> 00:09:25,080 Speaker 1: If you're just tune in, you're listening to the Markmas 204 00:09:25,120 --> 00:09:29,400 Speaker 1: Show and we're breaking down the history of ESG. We're 205 00:09:29,480 --> 00:09:32,200 Speaker 1: talking about the energy crisis and how the transition is 206 00:09:32,360 --> 00:09:34,760 Speaker 1: actually causing the crisis, causing the failure. 207 00:09:34,960 --> 00:09:36,000 Speaker 2: So we're running through ESG. 208 00:09:36,080 --> 00:09:38,240 Speaker 1: We were talking about some of the origins before and 209 00:09:38,320 --> 00:09:41,520 Speaker 1: really where things I said that we should be investing socially, 210 00:09:41,520 --> 00:09:44,319 Speaker 1: We should be investing along with our ideas, our values 211 00:09:44,520 --> 00:09:46,160 Speaker 1: to build the world that we want. That's what we 212 00:09:46,160 --> 00:09:49,720 Speaker 1: want to do, and so I'm okay with it in 213 00:09:49,840 --> 00:09:51,199 Speaker 1: theory we should all be doing that. 214 00:09:51,600 --> 00:09:53,880 Speaker 2: But where it goes wrong is where it got hijacked. 215 00:09:53,880 --> 00:09:56,520 Speaker 1: And so I talked about how really in nineteen ninety two, 216 00:09:56,520 --> 00:10:00,480 Speaker 1: the United Nations created this framework for climate change, and 217 00:10:00,520 --> 00:10:02,920 Speaker 1: this is where things, like I said, really really went 218 00:10:03,000 --> 00:10:06,120 Speaker 1: off the rails. Now we can go back and we 219 00:10:06,120 --> 00:10:09,320 Speaker 1: can see all types of examples through history where people 220 00:10:09,440 --> 00:10:12,520 Speaker 1: formed groups. So like there was one the Women's Christian 221 00:10:12,559 --> 00:10:18,320 Speaker 1: Temperance Union WCTU founded in eighteen seventy four, and they 222 00:10:18,920 --> 00:10:23,840 Speaker 1: promoted investing into things that they shared ideologies. So, for example, 223 00:10:24,320 --> 00:10:27,840 Speaker 1: they didn't invest in the companies that produced alcohol or tobacco. Great, 224 00:10:28,160 --> 00:10:30,240 Speaker 1: if you don't like alcohol, tobacco, you don't want people 225 00:10:30,240 --> 00:10:32,480 Speaker 1: to have it, then don't invest into it. That's fine. 226 00:10:32,559 --> 00:10:34,960 Speaker 1: The company didn't want to invest into any companies that 227 00:10:34,960 --> 00:10:38,760 Speaker 1: would exploit its workers or engage in unethical business practices, Great, 228 00:10:39,360 --> 00:10:40,480 Speaker 1: don't do that if you don't want to. 229 00:10:40,760 --> 00:10:42,640 Speaker 2: I think that that is a good thing. 230 00:10:43,760 --> 00:10:46,400 Speaker 1: But these were like a really like OG, you know, 231 00:10:46,440 --> 00:10:51,720 Speaker 1: old school in socially responsible investing group. And that's okay. 232 00:10:52,000 --> 00:10:55,079 Speaker 1: But going back to ESG for a second, Like I said, 233 00:10:55,120 --> 00:10:56,880 Speaker 1: it was introduced by the UN and we saw it 234 00:10:56,920 --> 00:11:01,400 Speaker 1: really become officially introduced in two thousand SI again by 235 00:11:01,440 --> 00:11:06,240 Speaker 1: the UND in their Principles for Responsible Investment Report pr I, 236 00:11:07,040 --> 00:11:10,960 Speaker 1: and basically the ESG criteria were required to be incorporated 237 00:11:11,160 --> 00:11:14,760 Speaker 1: in the financial evaluations of companies. And so what that 238 00:11:14,880 --> 00:11:18,760 Speaker 1: means is that they now had a set of metrics 239 00:11:19,320 --> 00:11:23,280 Speaker 1: that they could regulate companies by. So we could say, hey, 240 00:11:23,280 --> 00:11:26,040 Speaker 1: we're going to look at you company by all these metrics, 241 00:11:26,080 --> 00:11:29,720 Speaker 1: and if you don't fit into them, then maybe there's 242 00:11:29,840 --> 00:11:31,800 Speaker 1: no money for you. So we're gonna talk about this 243 00:11:31,840 --> 00:11:36,760 Speaker 1: is it's really turned from cooperation and from preference to 244 00:11:36,880 --> 00:11:39,520 Speaker 1: now coercion, and that's where things. 245 00:11:39,280 --> 00:11:40,120 Speaker 2: Fall off the rails. 246 00:11:40,400 --> 00:11:43,960 Speaker 1: Now I want to talk about again. I think this 247 00:11:44,040 --> 00:11:45,880 Speaker 1: is a good thing. We should be investing into things 248 00:11:45,880 --> 00:11:50,720 Speaker 1: that we believe. Milton Friedman a famous economist. If you 249 00:11:50,720 --> 00:11:52,839 Speaker 1: haven't read his stuff, I highly recommend it. He wrote 250 00:11:53,280 --> 00:11:56,880 Speaker 1: a paper on the socially responsibility. The social responsibility of 251 00:11:56,920 --> 00:12:01,920 Speaker 1: business is to increase its profits, because that's sort of 252 00:12:01,960 --> 00:12:05,120 Speaker 1: what a business is for. Now, if you want to 253 00:12:05,160 --> 00:12:08,360 Speaker 1: go be you know, Mother Teresa or Gandhi, then you 254 00:12:08,400 --> 00:12:10,480 Speaker 1: should certainly do that. If you're a church, then you 255 00:12:10,520 --> 00:12:14,000 Speaker 1: should certainly be feeding the poor. But business is in 256 00:12:14,080 --> 00:12:17,080 Speaker 1: the business of business, which is to make profit, and 257 00:12:17,120 --> 00:12:19,840 Speaker 1: it's the socially responsible thing to do. And what he says, 258 00:12:19,840 --> 00:12:21,640 Speaker 1: and I'm going to paraphrase this, and I highly recommend 259 00:12:21,679 --> 00:12:23,880 Speaker 1: you to go read it, but he basically says that 260 00:12:24,679 --> 00:12:29,800 Speaker 1: through the pursuit of profit, you chase the most socially 261 00:12:29,840 --> 00:12:33,600 Speaker 1: responsible goals. So let me give you an example there's 262 00:12:33,640 --> 00:12:35,600 Speaker 1: a local high school here by my studio. I drive 263 00:12:35,600 --> 00:12:37,440 Speaker 1: by it every morning i'm away to the gym, And 264 00:12:37,600 --> 00:12:40,040 Speaker 1: on those fences of the of like the baseball field, 265 00:12:40,200 --> 00:12:42,960 Speaker 1: are like signs, and the whole school are signs of 266 00:12:43,040 --> 00:12:47,600 Speaker 1: all the local businesses, local real estate agents, local dentists, orthodontics, whatever. Right, 267 00:12:48,440 --> 00:12:52,600 Speaker 1: Why do they give money to the school to have 268 00:12:52,679 --> 00:12:55,079 Speaker 1: their sign there? Why do they want to have their 269 00:12:55,120 --> 00:12:58,280 Speaker 1: sign there. Well, they hope it brings them business. So 270 00:12:58,480 --> 00:13:02,760 Speaker 1: through the pursuit of profit it they're acting socially right. 271 00:13:02,840 --> 00:13:05,439 Speaker 1: They're giving money to a good cause in returns of 272 00:13:05,480 --> 00:13:08,920 Speaker 1: hopefully getting a profit back. Now, let me just say 273 00:13:09,200 --> 00:13:12,440 Speaker 1: I also believe that we should all be giving money charitably. 274 00:13:12,800 --> 00:13:14,280 Speaker 1: This is a really big problem that I want to 275 00:13:14,280 --> 00:13:16,960 Speaker 1: dive into just for a second. I was recently on 276 00:13:17,040 --> 00:13:21,400 Speaker 1: an airplane, sitting in first class, sitting next to another 277 00:13:21,440 --> 00:13:23,920 Speaker 1: guy who looked like he I kind of glanced over 278 00:13:23,920 --> 00:13:25,520 Speaker 1: at his work and I could tell he was working 279 00:13:25,559 --> 00:13:27,280 Speaker 1: on some like high level management stuff, and so I 280 00:13:27,360 --> 00:13:28,880 Speaker 1: kind of struck up a conversation with him, which I 281 00:13:28,880 --> 00:13:31,040 Speaker 1: don't always do, and we start then we start getting 282 00:13:31,040 --> 00:13:33,120 Speaker 1: into like business stuff, and then we start getting into 283 00:13:33,160 --> 00:13:34,640 Speaker 1: like investing, and then we start get into like social 284 00:13:34,679 --> 00:13:38,080 Speaker 1: political things. And you know, he really thought that, you know, 285 00:13:38,160 --> 00:13:40,640 Speaker 1: the government needs to continue to tax us so much 286 00:13:40,880 --> 00:13:43,600 Speaker 1: so that they the government, they after they tax us, 287 00:13:43,720 --> 00:13:46,480 Speaker 1: can go do all these welfare programs and things like this. 288 00:13:46,920 --> 00:13:48,440 Speaker 1: And I just said, hey, let let me ask you 289 00:13:48,440 --> 00:13:50,640 Speaker 1: a personal question. I'm sorry if it's too personal, but 290 00:13:52,240 --> 00:13:55,559 Speaker 1: how much of your income do you give to charity? 291 00:13:56,200 --> 00:13:58,240 Speaker 1: Do you donate? Do you do you go on mission 292 00:13:58,240 --> 00:14:01,880 Speaker 1: trips with your kids and help poor people? And they said, no, 293 00:14:01,920 --> 00:14:04,280 Speaker 1: we don't do any of that, and I said, yeah, 294 00:14:04,480 --> 00:14:07,880 Speaker 1: I figured and the reason why is because because you 295 00:14:08,000 --> 00:14:12,120 Speaker 1: don't give, then you feel that nobody else will give. 296 00:14:12,640 --> 00:14:14,160 Speaker 1: And so the only way that those poor people get 297 00:14:14,200 --> 00:14:16,600 Speaker 1: anything is if the government steals it from us and 298 00:14:16,640 --> 00:14:19,960 Speaker 1: then redistributes it. But you see, I give a big 299 00:14:20,040 --> 00:14:22,880 Speaker 1: chunk of what I earn, and so I don't see 300 00:14:22,880 --> 00:14:25,360 Speaker 1: it that way. I see people all around me giving. 301 00:14:25,360 --> 00:14:27,160 Speaker 1: As a matter of fact, I just got back from 302 00:14:27,200 --> 00:14:29,920 Speaker 1: my fifteenth annual dirt bike trip we do called the 303 00:14:29,960 --> 00:14:33,480 Speaker 1: Baja Beach Bash dot com check it out, where we 304 00:14:33,560 --> 00:14:36,440 Speaker 1: raised money for an orphanage down in Mexico this year. 305 00:14:36,640 --> 00:14:40,080 Speaker 1: In twenty twenty three. In July, we raised about four 306 00:14:40,200 --> 00:14:43,720 Speaker 1: hundred thousand dollars me and my buddies for this orphanage. 307 00:14:43,840 --> 00:14:47,440 Speaker 1: We've raised over two point two million dollars for them 308 00:14:47,480 --> 00:14:49,360 Speaker 1: since we've done that. This is just one thing, and 309 00:14:49,400 --> 00:14:51,360 Speaker 1: I'm not here to brag. What I'm saying is that 310 00:14:51,760 --> 00:14:55,239 Speaker 1: we should all be doing this. That's the socially responsible 311 00:14:55,280 --> 00:14:55,720 Speaker 1: thing to. 312 00:14:55,680 --> 00:14:56,320 Speaker 2: Do, all right. 313 00:14:56,400 --> 00:14:59,080 Speaker 1: Now, going back to this, So, this ESG thing, it 314 00:14:59,120 --> 00:15:01,520 Speaker 1: really went off the rails because of the UN, and 315 00:15:01,560 --> 00:15:04,440 Speaker 1: the UN tried to co opt this and then use 316 00:15:04,480 --> 00:15:07,640 Speaker 1: it for coercion. So how did they do that? Well, 317 00:15:07,800 --> 00:15:09,200 Speaker 1: they established these. 318 00:15:09,080 --> 00:15:11,720 Speaker 2: Principles, these ESG principles. 319 00:15:12,240 --> 00:15:16,440 Speaker 1: And they basically got sixty three investment companies with about 320 00:15:16,440 --> 00:15:19,120 Speaker 1: six and a half trillion dollars in assets under management 321 00:15:19,400 --> 00:15:23,000 Speaker 1: to come on board with them. And these these companies 322 00:15:23,000 --> 00:15:24,920 Speaker 1: that controlled six and a half trillion dollars, they got 323 00:15:24,960 --> 00:15:27,600 Speaker 1: them to basically agree that if these companies don't adhere 324 00:15:27,680 --> 00:15:31,120 Speaker 1: to these arbitrary things that we've put together, then they 325 00:15:31,280 --> 00:15:35,000 Speaker 1: get no money. As Mark Carney says, they'll be economic roadkill. 326 00:15:35,200 --> 00:15:37,840 Speaker 1: So who are they? Well, Amy Dominie, we mentioned her 327 00:15:37,880 --> 00:15:41,520 Speaker 1: name before. Brian moynihan, he's the CEO of Bank America. 328 00:15:42,600 --> 00:15:45,160 Speaker 1: Now what's important to understand is that, of course Bank 329 00:15:45,160 --> 00:15:49,640 Speaker 1: of America Brian Monihan the CEO, alongside the Big four 330 00:15:49,680 --> 00:15:52,320 Speaker 1: accounting firms. So you always hear reference to the Big 331 00:15:52,360 --> 00:15:56,240 Speaker 1: four Deloitte, PwC, KPMG, and Ernst and Young. So if 332 00:15:56,240 --> 00:15:59,160 Speaker 1: you're a public traded company or your big forty five 333 00:15:59,200 --> 00:16:01,320 Speaker 1: hundred company, you need use a Big four accounting firm. 334 00:16:01,560 --> 00:16:04,400 Speaker 1: So with Bank of America and the Big Four, they 335 00:16:04,440 --> 00:16:07,920 Speaker 1: accelerated this ESG transformation through the establishment of a set 336 00:16:07,960 --> 00:16:13,400 Speaker 1: of standardized measurements of twenty two specific metrics to create 337 00:16:13,400 --> 00:16:17,160 Speaker 1: a framework for companies to report their results. And if 338 00:16:17,160 --> 00:16:20,520 Speaker 1: the results are favorable, they get funding. If the reports 339 00:16:20,560 --> 00:16:23,600 Speaker 1: are unfavorable, then they get no funding. No money for 340 00:16:23,640 --> 00:16:26,080 Speaker 1: you like the Soup Nazi, all right, So that's sort 341 00:16:26,080 --> 00:16:30,160 Speaker 1: of how this happened. Then we saw other institutions, institutional investors. 342 00:16:29,920 --> 00:16:30,600 Speaker 2: Grab onto this. 343 00:16:30,640 --> 00:16:32,600 Speaker 1: Of course, we talk about Black Rock doing this all time, 344 00:16:32,640 --> 00:16:36,440 Speaker 1: State Street Global Advisors of course as well, and on 345 00:16:36,480 --> 00:16:39,000 Speaker 1: and on and on and so this is a really 346 00:16:39,040 --> 00:16:41,840 Speaker 1: big thing. This is how they've been they've been tackling this. 347 00:16:42,200 --> 00:16:45,000 Speaker 1: Now we can see that a twenty twenty two report 348 00:16:45,160 --> 00:16:48,920 Speaker 1: by the Global Sustainable Investment Alliance found that global ESG 349 00:16:48,960 --> 00:16:53,040 Speaker 1: assets under management reached thirty five point three trillion in 350 00:16:53,080 --> 00:16:56,440 Speaker 1: twenty twenty one, up from twenty two point nine trillion 351 00:16:56,600 --> 00:16:59,400 Speaker 1: in twenty twenty sixteen. So we can see that these 352 00:17:00,000 --> 00:17:04,080 Speaker 1: investment groups are moving into this and putting money into 353 00:17:04,119 --> 00:17:08,920 Speaker 1: anything that could be deemed ESG. But does that change 354 00:17:08,960 --> 00:17:13,120 Speaker 1: the incentive structure just because they say they're ESG, are 355 00:17:13,119 --> 00:17:16,760 Speaker 1: they really how are they reporting this? Well, we're going 356 00:17:16,840 --> 00:17:18,320 Speaker 1: to dig into that. We're going to dig into that. 357 00:17:18,520 --> 00:17:20,719 Speaker 1: We're going to talk about the problems that this has created, 358 00:17:20,720 --> 00:17:22,919 Speaker 1: the crisis that we're literally in because of this, and 359 00:17:22,960 --> 00:17:24,640 Speaker 1: where this goes. If you're just tuning in and you're 360 00:17:24,640 --> 00:17:27,240 Speaker 1: listening to the Mark Mass Show, of course we're aways 361 00:17:27,240 --> 00:17:29,640 Speaker 1: talking about the decentralized revolution, and this is a good 362 00:17:29,680 --> 00:17:34,200 Speaker 1: example of how, you know, good intentions have turned bad 363 00:17:34,359 --> 00:17:37,640 Speaker 1: have now caused a massive crisis that we're dealing with. 364 00:17:37,720 --> 00:17:39,040 Speaker 1: So I'm going to continue to break this down. I'm 365 00:17:39,040 --> 00:17:40,719 Speaker 1: going to show you exactly what ESG is. I'm going 366 00:17:40,760 --> 00:17:42,760 Speaker 1: to show you how these investments are turning sour and 367 00:17:42,920 --> 00:17:47,240 Speaker 1: actually how through mismatched incentives it's causing the crisis that 368 00:17:47,320 --> 00:17:51,480 Speaker 1: we're in. We'll go through some specific examples, especially what's 369 00:17:51,480 --> 00:17:55,680 Speaker 1: happening right now in Saudi Arabia, what's happening in South Africa, 370 00:17:56,000 --> 00:17:59,119 Speaker 1: what's happening in Germany, and yes even here in the 371 00:17:59,200 --> 00:17:59,600 Speaker 1: United States. 372 00:17:59,840 --> 00:18:01,480 Speaker 2: Back of that and more in a minute. Don't go away, 373 00:18:01,520 --> 00:18:02,120 Speaker 2: I'll bear back. 374 00:18:02,880 --> 00:18:04,520 Speaker 1: All right, welcome back if you're just tune in here 375 00:18:04,520 --> 00:18:07,800 Speaker 1: listening to the Mark Moss Show. We're talking today about, 376 00:18:08,040 --> 00:18:10,880 Speaker 1: of course, like always, the decentralized revolution, how the world's changing, 377 00:18:10,880 --> 00:18:13,359 Speaker 1: but specifically today we're talking about the energy crisis and 378 00:18:13,400 --> 00:18:16,080 Speaker 1: how the transition is causing the failure. 379 00:18:16,440 --> 00:18:18,000 Speaker 2: Yeah, that's what's happening now. 380 00:18:18,440 --> 00:18:20,920 Speaker 1: We're talking about these esg these twenty two specific goals 381 00:18:20,920 --> 00:18:23,439 Speaker 1: that companies have to meet if they want to get money, 382 00:18:23,720 --> 00:18:26,680 Speaker 1: if they want investment, and of course if you're a business, 383 00:18:26,720 --> 00:18:30,240 Speaker 1: then you don't have any capital, you don't have a business, 384 00:18:30,280 --> 00:18:32,359 Speaker 1: so of course they have to do that. But what's 385 00:18:32,359 --> 00:18:36,600 Speaker 1: happened is, you know, these create perverted incentives. Remember we 386 00:18:36,680 --> 00:18:40,320 Speaker 1: talked about Freedman talking about really the socially responsible thing 387 00:18:40,359 --> 00:18:43,920 Speaker 1: for businesses to pursue profit. That should be the incentive 388 00:18:44,000 --> 00:18:48,000 Speaker 1: and through that incentive, then they'll have good, you know, 389 00:18:48,040 --> 00:18:50,280 Speaker 1: good things that they do, like giving money to the 390 00:18:50,280 --> 00:18:53,800 Speaker 1: local high school. But when you start to change the incentives, 391 00:18:54,119 --> 00:18:56,879 Speaker 1: then people start optimizing for other incentives. 392 00:18:57,240 --> 00:18:58,600 Speaker 2: So for example, like ESG. 393 00:18:58,840 --> 00:19:01,560 Speaker 1: So if you have to meet all the factors of 394 00:19:01,600 --> 00:19:04,959 Speaker 1: a ESG, you get a lot of money. So what 395 00:19:04,960 --> 00:19:08,119 Speaker 1: do you think happens, Well, companies start trying to optimize 396 00:19:08,160 --> 00:19:10,920 Speaker 1: for ESG, so they get a lot of money. 397 00:19:10,960 --> 00:19:12,159 Speaker 2: And how do they do that? 398 00:19:12,200 --> 00:19:14,639 Speaker 1: Well, they do that through lying and stealing, because of 399 00:19:14,640 --> 00:19:17,120 Speaker 1: course there is really no way to hit all those 400 00:19:17,119 --> 00:19:20,399 Speaker 1: goals without that, so they do what we call green washing, 401 00:19:20,760 --> 00:19:23,320 Speaker 1: so they pretend like they're green even though they're not really. 402 00:19:23,400 --> 00:19:27,840 Speaker 1: How do they do that well? So, for example, one 403 00:19:27,880 --> 00:19:30,320 Speaker 1: of the things is to reduce emissions, that's only part 404 00:19:30,320 --> 00:19:34,240 Speaker 1: of it. So the environmental E, environmental S social G 405 00:19:34,440 --> 00:19:37,920 Speaker 1: is governance. So the E environmental is like how much 406 00:19:37,960 --> 00:19:39,919 Speaker 1: carbon is are you outputting? For example? 407 00:19:40,000 --> 00:19:40,359 Speaker 2: Right? 408 00:19:40,440 --> 00:19:43,040 Speaker 1: Then there's the social so then that's like what are 409 00:19:43,040 --> 00:19:45,000 Speaker 1: you doing socially? And then there's the governance. Do you 410 00:19:45,000 --> 00:19:47,440 Speaker 1: have a diversified board of people on your government board? 411 00:19:47,920 --> 00:19:51,560 Speaker 1: But on the environmental side, you need to not produce 412 00:19:51,560 --> 00:19:54,879 Speaker 1: as much carbon, because supposedly carbon is somehow like thermometer 413 00:19:55,000 --> 00:19:55,480 Speaker 1: of the world. 414 00:19:56,000 --> 00:19:57,479 Speaker 2: That's pretty strange if you think about it. 415 00:19:57,680 --> 00:20:01,200 Speaker 1: But anyway, they're raided by how much carbon they produce 416 00:20:01,640 --> 00:20:03,439 Speaker 1: or don't produce. So one of the things that they 417 00:20:03,480 --> 00:20:09,159 Speaker 1: do is they buy offsets carbon credits. So for some reason, 418 00:20:09,160 --> 00:20:11,560 Speaker 1: there's certain things that you can do that create carbon credits. So, 419 00:20:11,600 --> 00:20:16,479 Speaker 1: for example, Tesla by making electric vehicles somehow creates carbon 420 00:20:16,520 --> 00:20:20,240 Speaker 1: credits that can then be sold. And then these companies 421 00:20:20,280 --> 00:20:23,960 Speaker 1: that produce lots of carbon just buy these carbon credits 422 00:20:23,960 --> 00:20:26,840 Speaker 1: and then somehow that gives them a net zero net 423 00:20:27,200 --> 00:20:30,000 Speaker 1: being you take the total amount they emit minus what 424 00:20:30,040 --> 00:20:33,080 Speaker 1: they bought the credits give them a net zero score. Right, 425 00:20:33,119 --> 00:20:35,000 Speaker 1: that's what they're aiming for, the net they're trying to 426 00:20:35,040 --> 00:20:37,280 Speaker 1: bring down. The problem is is that this is all 427 00:20:37,320 --> 00:20:40,440 Speaker 1: sort of like a big scam. So where are these 428 00:20:40,720 --> 00:20:44,960 Speaker 1: credits being created from, how are they being traded, and 429 00:20:45,000 --> 00:20:46,800 Speaker 1: what is that even doing for the economy or I'm 430 00:20:46,800 --> 00:20:48,520 Speaker 1: sorry for the environment at all. As a matter of fact, 431 00:20:48,560 --> 00:20:52,080 Speaker 1: emissions have not gone down at all. Businesses now just 432 00:20:52,119 --> 00:20:55,800 Speaker 1: spend more money to buy offsets, so they haven't changed 433 00:20:55,800 --> 00:20:58,560 Speaker 1: the amount of carbon going into the world. They've just 434 00:20:58,600 --> 00:21:02,520 Speaker 1: now created a side market. Now, what's wrong with that? Well, 435 00:21:02,800 --> 00:21:05,760 Speaker 1: the side market means that for no other reason than 436 00:21:05,800 --> 00:21:07,920 Speaker 1: to have some arbitrary goal of bringing down carbon, which 437 00:21:08,000 --> 00:21:10,560 Speaker 1: hasn't done any of that. But now they created this 438 00:21:10,640 --> 00:21:13,200 Speaker 1: market which now companies have to buy into, which makes 439 00:21:13,240 --> 00:21:15,200 Speaker 1: their expenses go up, which means they have to bring 440 00:21:15,240 --> 00:21:18,480 Speaker 1: their prices up, which means that you get to pay 441 00:21:18,520 --> 00:21:20,960 Speaker 1: more for your products and services, which means that your 442 00:21:21,040 --> 00:21:23,679 Speaker 1: quality of life went down. It means you have to 443 00:21:23,720 --> 00:21:26,280 Speaker 1: work more hours now to have just the same quality 444 00:21:26,280 --> 00:21:28,440 Speaker 1: of life that you had before because costs have gone 445 00:21:28,480 --> 00:21:29,080 Speaker 1: up so much. 446 00:21:30,080 --> 00:21:30,920 Speaker 2: That's one example. 447 00:21:31,080 --> 00:21:33,399 Speaker 1: We can see report after report after report how it's 448 00:21:33,440 --> 00:21:35,560 Speaker 1: plagued by fraud. At twenty twenty one report by the 449 00:21:35,600 --> 00:21:38,159 Speaker 1: Carbon market Watch found that the carbon credit market is 450 00:21:38,280 --> 00:21:42,359 Speaker 1: plagued by all kinds of fraud. There's double counting, there's 451 00:21:42,600 --> 00:21:45,560 Speaker 1: wash trading, there's green washing. As I said, green washing 452 00:21:45,560 --> 00:21:48,119 Speaker 1: is when a company makes false or misleading claims, but 453 00:21:48,200 --> 00:21:52,919 Speaker 1: it's environmental credentials in order to sell carbon credits. We 454 00:21:52,960 --> 00:21:56,960 Speaker 1: see large corporations exploiting ESG principles. For instance, some might 455 00:21:57,040 --> 00:22:00,239 Speaker 1: use shell companies to make your operations appear more ESG 456 00:22:00,359 --> 00:22:04,320 Speaker 1: compliant than they are. And this isn't just like some theory. 457 00:22:04,359 --> 00:22:06,160 Speaker 1: We see this over and over and over and over. 458 00:22:06,280 --> 00:22:06,920 Speaker 2: As a matter of fact. 459 00:22:07,000 --> 00:22:10,280 Speaker 1: A twenty twenty one report by the Environmental Investigation Agency 460 00:22:10,480 --> 00:22:12,919 Speaker 1: found that several large corporations were using shell companies to 461 00:22:12,960 --> 00:22:17,399 Speaker 1: avoid environmental regulations. Saudi Aramco, one of the largest companies 462 00:22:17,400 --> 00:22:20,040 Speaker 1: in the entire world, has done this with a twenty 463 00:22:20,040 --> 00:22:22,119 Speaker 1: eight billion dollars worth of funds. 464 00:22:24,080 --> 00:22:25,600 Speaker 2: So this is what's happening. 465 00:22:25,640 --> 00:22:28,600 Speaker 1: When you create a perverse set of incentives, then you 466 00:22:28,720 --> 00:22:32,680 Speaker 1: get perverse actions. Now to take advantage of this, of course, 467 00:22:32,720 --> 00:22:35,160 Speaker 1: the big Evil Empire, the largest asset manager of the world, 468 00:22:35,200 --> 00:22:37,680 Speaker 1: black Rock, has jumped into the mix and they started 469 00:22:37,720 --> 00:22:40,439 Speaker 1: creating ESG funds. So now we're going to create these 470 00:22:40,480 --> 00:22:45,200 Speaker 1: ees ETFs that have all these ESG companies in there, 471 00:22:45,320 --> 00:22:49,160 Speaker 1: so we can raise investment capital directly into this ESG fund. 472 00:22:51,119 --> 00:22:55,520 Speaker 1: But turns out when you invest money, you're trying to 473 00:22:55,560 --> 00:22:59,480 Speaker 1: get money back. So if I'm investing money, I wanted 474 00:22:59,480 --> 00:23:01,679 Speaker 1: to go to the companies that have the best chance 475 00:23:01,720 --> 00:23:05,000 Speaker 1: of returning my capital, unless it's a donation. Like I said, 476 00:23:05,040 --> 00:23:07,199 Speaker 1: invest in things that you want. So I give my 477 00:23:07,240 --> 00:23:09,240 Speaker 1: money to things that maybe I don't expect the best 478 00:23:09,240 --> 00:23:11,080 Speaker 1: return from just because that's where I want my money going. 479 00:23:11,200 --> 00:23:13,320 Speaker 1: But for the most part, if you're investing your money, 480 00:23:13,320 --> 00:23:15,520 Speaker 1: you're trying to get the best return possible. It turns 481 00:23:15,520 --> 00:23:17,800 Speaker 1: out when you run a business based off of their 482 00:23:18,320 --> 00:23:22,280 Speaker 1: ESG scores and they're not optimizing for profit, well it 483 00:23:22,359 --> 00:23:24,200 Speaker 1: turns out they don't have the best profit. So it 484 00:23:24,240 --> 00:23:25,639 Speaker 1: turns out they don't do very well. And as a 485 00:23:25,680 --> 00:23:28,560 Speaker 1: matter of fact, es I'm sorry, Blackrock had to close 486 00:23:28,960 --> 00:23:33,560 Speaker 1: their ESG fund because of a lack of interest. Why 487 00:23:33,800 --> 00:23:36,679 Speaker 1: because it had poor performance. So you look at all 488 00:23:36,720 --> 00:23:39,320 Speaker 1: the funds that Blackrock has and the ones that have 489 00:23:39,359 --> 00:23:42,040 Speaker 1: the worst performance, you don't want to invest into them. 490 00:23:42,080 --> 00:23:44,480 Speaker 1: And of course that's the ESG because they weren't optimizing 491 00:23:44,520 --> 00:23:47,919 Speaker 1: for profits, and so you know, there's other parts of it. 492 00:23:48,000 --> 00:23:50,600 Speaker 1: So then there's the social side, which then kind of 493 00:23:50,640 --> 00:23:55,320 Speaker 1: led to this DEI diversity, equity and inclusion. So it's 494 00:23:55,320 --> 00:23:57,840 Speaker 1: sort of like virtue signaling. This is what's led to 495 00:23:57,880 --> 00:24:01,679 Speaker 1: a lot of the Dylan Mrvany Moving, you know, Budweiser controversy, 496 00:24:01,680 --> 00:24:04,760 Speaker 1: things like that because they're trying to now optimize for that, 497 00:24:04,880 --> 00:24:08,520 Speaker 1: for this DEI diversity, equity and inclusion. We can see 498 00:24:08,520 --> 00:24:11,040 Speaker 1: that a Just Capital report around that twenty percent of 499 00:24:11,040 --> 00:24:16,000 Speaker 1: companies with dedicated DEI roles have eliminated or disregarded those 500 00:24:16,119 --> 00:24:19,240 Speaker 1: roles altogether. So they're adopting it, and they're trying to 501 00:24:19,240 --> 00:24:21,440 Speaker 1: do it, but then they realize it doesn't really work 502 00:24:21,520 --> 00:24:24,880 Speaker 1: and it's actually hurting their business of being in business, 503 00:24:24,960 --> 00:24:28,000 Speaker 1: of being in business of making profits, and they end 504 00:24:28,080 --> 00:24:29,880 Speaker 1: up abandoning them. So what they're doing is they're they're 505 00:24:29,880 --> 00:24:32,960 Speaker 1: doing some sort of virtue signaling, but really they're not 506 00:24:32,960 --> 00:24:34,320 Speaker 1: doing anything at all, which is part of the reason 507 00:24:34,359 --> 00:24:37,040 Speaker 1: why you see Nike running Colin Kaepernick or you know, 508 00:24:37,440 --> 00:24:39,840 Speaker 1: like I said, Budweiser with Dylan Morvany. They're trying to 509 00:24:39,920 --> 00:24:44,239 Speaker 1: appease these DEI you know gods, these DEI regulators, if 510 00:24:44,280 --> 00:24:46,560 Speaker 1: you will. But it's a bigger problem than that. So 511 00:24:46,920 --> 00:24:49,760 Speaker 1: ESG is actually causing, as we started out, talking about, 512 00:24:49,880 --> 00:24:52,840 Speaker 1: an actual crisis. So what do I mean by that, Well, 513 00:24:53,080 --> 00:24:57,600 Speaker 1: the biggest thing the E in ESG is environmental, and 514 00:24:57,640 --> 00:25:00,760 Speaker 1: supposedly the goal is to bring carbon down and the 515 00:25:00,840 --> 00:25:05,520 Speaker 1: number one enemy according to them is now energy, specifically 516 00:25:05,840 --> 00:25:09,159 Speaker 1: fossil fuel energy, which is oil and gas, oil and 517 00:25:09,240 --> 00:25:14,280 Speaker 1: natural gas. Now it's funny because do you know what 518 00:25:14,840 --> 00:25:19,040 Speaker 1: fossil fuel is fossil It comes from fossils, So it 519 00:25:19,119 --> 00:25:23,560 Speaker 1: makes you think, like some bad connotations, Well fossil fuel, 520 00:25:23,760 --> 00:25:25,840 Speaker 1: And I'm not a geologist, so if you are, go 521 00:25:25,880 --> 00:25:27,359 Speaker 1: ahead and leave me comments and tell me if I 522 00:25:27,400 --> 00:25:30,680 Speaker 1: get this wrong. But fossil fuel come from fossils, which 523 00:25:30,720 --> 00:25:34,080 Speaker 1: are actually old plants that are in layers of the 524 00:25:34,200 --> 00:25:37,159 Speaker 1: earth that have been carbonized and have turned into oil 525 00:25:37,240 --> 00:25:39,440 Speaker 1: and gas, and so we harvest those out, so sort 526 00:25:39,440 --> 00:25:43,120 Speaker 1: of like environmental, sort of like renewable. But what they've 527 00:25:43,160 --> 00:25:45,560 Speaker 1: done is they've now labeled those to be bad, and 528 00:25:45,640 --> 00:25:47,760 Speaker 1: so now we have to go to wind and solar 529 00:25:48,400 --> 00:25:51,160 Speaker 1: what they call renewable, which is pretty weird because solar 530 00:25:51,200 --> 00:25:52,800 Speaker 1: panels and windmills last about twenty years. 531 00:25:52,800 --> 00:25:57,600 Speaker 2: They're not renewable at all, they're consumable. But anyway, they 532 00:25:57,600 --> 00:25:58,600 Speaker 2: want to go to these renewables. 533 00:25:58,640 --> 00:26:00,720 Speaker 1: So like in Germany, for example, well because of these 534 00:26:01,000 --> 00:26:04,200 Speaker 1: est metrics, they want to transition their energy into green, 535 00:26:04,760 --> 00:26:06,440 Speaker 1: so they want to have wind and solar, and so 536 00:26:06,480 --> 00:26:10,960 Speaker 1: they've started to shut down their energy, including their nuclear reactors. 537 00:26:12,119 --> 00:26:14,600 Speaker 1: Now just recently nuclear actors are now coming back as 538 00:26:14,680 --> 00:26:16,760 Speaker 1: being green, but skipping that what. 539 00:26:16,800 --> 00:26:17,720 Speaker 2: We can see has happened. 540 00:26:17,960 --> 00:26:21,639 Speaker 1: So we saw energy, the energy prices going through the 541 00:26:21,880 --> 00:26:25,480 Speaker 1: roof because they shut down their energy their nuclear reactors. 542 00:26:25,840 --> 00:26:28,480 Speaker 1: Turns out, supply and demand still matters. So when they 543 00:26:28,600 --> 00:26:30,760 Speaker 1: got rid of their nuclear power, their energy prices went 544 00:26:30,760 --> 00:26:32,680 Speaker 1: through the roof. But then the final straw was the 545 00:26:32,800 --> 00:26:35,680 Speaker 1: Russia Ukraine War. They lost the North Stream pipelines and 546 00:26:35,760 --> 00:26:36,600 Speaker 1: they don't have gas. 547 00:26:37,119 --> 00:26:37,280 Speaker 2: Now. 548 00:26:37,400 --> 00:26:39,720 Speaker 1: The reason why this is very very very important to 549 00:26:39,800 --> 00:26:43,879 Speaker 1: understand is because in Europe you have the southern nations 550 00:26:43,920 --> 00:26:47,399 Speaker 1: that we call the pigs Portugal, Italy, Greece, Spain, right, 551 00:26:47,480 --> 00:26:50,480 Speaker 1: the pigs, and they don't really have any industry, they 552 00:26:50,520 --> 00:26:53,360 Speaker 1: don't have any really economic output exports. They have tourism 553 00:26:53,840 --> 00:26:57,560 Speaker 1: mostly and so they're part of the EU European Union. 554 00:26:57,960 --> 00:27:01,640 Speaker 1: But it's Germany that's the manufacturing hub, it's the engine 555 00:27:02,040 --> 00:27:04,360 Speaker 1: of Europe. They're the ones that produce all the exports, 556 00:27:04,400 --> 00:27:06,960 Speaker 1: produce all the money and help support everybody else. But 557 00:27:07,119 --> 00:27:11,120 Speaker 1: because of what Germany has done by chasing ESG, they've 558 00:27:11,160 --> 00:27:14,200 Speaker 1: basically shot themselves in the foot or really shot themselves 559 00:27:14,240 --> 00:27:16,919 Speaker 1: in the head. And so now because of energy prices 560 00:27:17,000 --> 00:27:20,400 Speaker 1: going sky high, it's caused a massive, massive problem. I'm 561 00:27:20,400 --> 00:27:21,920 Speaker 1: gonna break that down for you in a second. If 562 00:27:21,920 --> 00:27:23,920 Speaker 1: you just tune in, you're listening to the markmas Show. 563 00:27:24,359 --> 00:27:28,320 Speaker 1: We're talking about ESG right now, and we're talking about 564 00:27:28,320 --> 00:27:29,920 Speaker 1: the problems that it's created. I'm gonna come back and 565 00:27:29,960 --> 00:27:31,240 Speaker 1: tell you the rest of this in a second. Don't 566 00:27:31,240 --> 00:27:34,359 Speaker 1: go away, I'll bear back, all right, Welcome back. If 567 00:27:34,359 --> 00:27:36,160 Speaker 1: you're just tune in, you're listening to the Mark Maas 568 00:27:36,240 --> 00:27:40,000 Speaker 1: Show when we are talking today about the energy crisis 569 00:27:40,080 --> 00:27:43,120 Speaker 1: and how the transition is causing the failure. Really, we're 570 00:27:43,119 --> 00:27:47,160 Speaker 1: breaking down what ESG is, Environmental social governance, what that means, 571 00:27:47,240 --> 00:27:49,080 Speaker 1: and we're looking at the problem that it's created. 572 00:27:49,119 --> 00:27:50,760 Speaker 2: If you missed any of this, don't worry. Check me 573 00:27:50,800 --> 00:27:51,520 Speaker 2: out on the podcast. 574 00:27:51,600 --> 00:27:53,600 Speaker 1: Just search the Mark mah Show in your favorite podcast player, 575 00:27:53,800 --> 00:27:55,919 Speaker 1: or you can watch me and listen to me at 576 00:27:55,920 --> 00:27:58,480 Speaker 1: the same time on YouTube. Just go to the Market 577 00:27:58,560 --> 00:28:00,919 Speaker 1: Disruptors YouTube channel then you can check me out there. 578 00:28:01,080 --> 00:28:02,920 Speaker 1: But back to who we were talking about. I was 579 00:28:02,960 --> 00:28:05,560 Speaker 1: setting up that Germany has put themselves into a danger situation, 580 00:28:05,640 --> 00:28:09,200 Speaker 1: and not just for Germany, but for the entire European Union, 581 00:28:09,600 --> 00:28:13,880 Speaker 1: because Germany, being the economic engine of the European Union, 582 00:28:14,000 --> 00:28:18,040 Speaker 1: really kind of dragging or or polling the entire European 583 00:28:18,119 --> 00:28:23,680 Speaker 1: Union along together. They embarked on some crazy radical ESG 584 00:28:23,880 --> 00:28:26,400 Speaker 1: policies and that led to them shutting down their own 585 00:28:26,600 --> 00:28:29,560 Speaker 1: energy because who needs it, right, Well, it turns out 586 00:28:30,560 --> 00:28:33,480 Speaker 1: we need it. Turns out it turns out if you 587 00:28:33,520 --> 00:28:35,560 Speaker 1: want to produce goods and services, you need energy. And 588 00:28:35,640 --> 00:28:37,959 Speaker 1: so with energy prices spiking so high, it became very 589 00:28:38,000 --> 00:28:40,960 Speaker 1: problematic for the manufacturers that were usually energy to make 590 00:28:41,000 --> 00:28:42,960 Speaker 1: goods and services. So they had to raise their prices, 591 00:28:43,080 --> 00:28:45,120 Speaker 1: which made it very tough for people living in Germany 592 00:28:45,120 --> 00:28:46,880 Speaker 1: because now all the prices went up on goods and services. 593 00:28:47,120 --> 00:28:49,080 Speaker 1: But the real problem came during the Rush of Ukraine 594 00:28:49,080 --> 00:28:52,760 Speaker 1: situation where they lost access to their natural gas. And 595 00:28:52,880 --> 00:28:55,040 Speaker 1: what we're witnessing now over the last year is that 596 00:28:55,160 --> 00:29:00,600 Speaker 1: Germany is in a process of d industrializing estualizing through 597 00:29:00,640 --> 00:29:03,280 Speaker 1: when we went from no machines to machines, we went 598 00:29:03,320 --> 00:29:08,120 Speaker 1: from the farms into factories. But now they're de industrializing, 599 00:29:08,200 --> 00:29:11,880 Speaker 1: meaning the factories are disappearing. Well that doesn't sound very good. 600 00:29:12,240 --> 00:29:13,200 Speaker 2: Well it's not so. 601 00:29:13,480 --> 00:29:16,120 Speaker 1: Because of the cost of energy are so high and unreliable. 602 00:29:16,320 --> 00:29:19,080 Speaker 1: They're being ration they can't run all the time. Manufacturing 603 00:29:19,080 --> 00:29:23,840 Speaker 1: companies have had to leave Germany. One of their largest companies, BASF, 604 00:29:24,560 --> 00:29:27,800 Speaker 1: has left and they went to China. And when these 605 00:29:27,800 --> 00:29:30,600 Speaker 1: companies leave, they don't just come back, so they're in 606 00:29:30,640 --> 00:29:31,680 Speaker 1: the process of de industrializing. 607 00:29:31,760 --> 00:29:34,160 Speaker 2: Now that's bad for Germany, but it's bad for all 608 00:29:34,240 --> 00:29:34,719 Speaker 2: of Europe. 609 00:29:35,640 --> 00:29:37,880 Speaker 1: As a matter of fact, the IMF International Monetary Fund 610 00:29:37,920 --> 00:29:43,960 Speaker 1: expects the German economy to shrink by zero point three 611 00:29:44,080 --> 00:29:46,640 Speaker 1: percent this year, which doesn't sound like a lot. But 612 00:29:46,760 --> 00:29:50,120 Speaker 1: that's a bad deal. Economies should always be growing. We 613 00:29:50,160 --> 00:29:52,040 Speaker 1: should always be producing more goods and. 614 00:29:52,080 --> 00:29:54,160 Speaker 2: Services, not less. It's a big deal. 615 00:29:54,640 --> 00:29:57,120 Speaker 1: Now that sounds bad. I want to jump to another 616 00:29:57,120 --> 00:29:59,720 Speaker 1: story about South Africa. South Africa is in a world 617 00:29:59,760 --> 00:30:03,000 Speaker 1: of and you won't even believe it. They've been struggling 618 00:30:03,040 --> 00:30:06,800 Speaker 1: with power shortages for years because again, yes, they need 619 00:30:06,880 --> 00:30:10,120 Speaker 1: to be more environmentally conscious, and they need to shut 620 00:30:10,160 --> 00:30:15,560 Speaker 1: down their cheap, reliable, abundant energy sources and transition to 621 00:30:16,240 --> 00:30:20,800 Speaker 1: very expensive, costly and unreliable energy sources for. 622 00:30:20,880 --> 00:30:22,520 Speaker 2: The e you know, the EESG. We got to do 623 00:30:22,560 --> 00:30:22,840 Speaker 2: it right. 624 00:30:23,360 --> 00:30:27,280 Speaker 1: So in South Africa, they have been deteriorating for a 625 00:30:27,320 --> 00:30:31,440 Speaker 1: long time. There's massive economic turmoil and social unrest that's 626 00:30:31,480 --> 00:30:34,160 Speaker 1: happening right now. It's looming ahead of the elections that 627 00:30:34,240 --> 00:30:39,360 Speaker 1: are coming next year, and it's getting really bad. Not 628 00:30:39,520 --> 00:30:41,920 Speaker 1: only is it bad because of the transition, it's also 629 00:30:42,400 --> 00:30:46,800 Speaker 1: hampered by massive amounts of debt, corruption, and yes, of course, sabotage. 630 00:30:47,360 --> 00:30:49,680 Speaker 1: So they're trying to figure this out. They want to 631 00:30:50,560 --> 00:30:55,880 Speaker 1: escape their dependence on coal, cheap, abundant energy and move 632 00:30:55,960 --> 00:31:03,240 Speaker 1: to as I said, unreliable you know, renewables, unreliables. So 633 00:31:03,480 --> 00:31:07,760 Speaker 1: now they've been rash. Since two thousand and seven, s Com, 634 00:31:07,880 --> 00:31:10,360 Speaker 1: which is their power company, has been forced to ration 635 00:31:10,560 --> 00:31:14,840 Speaker 1: power through intentional blackouts known as something called load shedding, 636 00:31:15,280 --> 00:31:18,000 Speaker 1: and we have the same thing in southern California for 637 00:31:18,120 --> 00:31:21,600 Speaker 1: the exact same reasons. California has to also do load 638 00:31:21,640 --> 00:31:23,760 Speaker 1: shedding because we can't produce enough energy for everybody. 639 00:31:24,200 --> 00:31:25,960 Speaker 2: But in South Africa it's way worse. 640 00:31:26,000 --> 00:31:29,920 Speaker 1: As a matter of fact, they've been shutting off the 641 00:31:30,040 --> 00:31:33,600 Speaker 1: power for up to twelve hours per day, and now 642 00:31:33,680 --> 00:31:35,880 Speaker 1: they're predicting that they're going to take the power outages 643 00:31:35,920 --> 00:31:41,400 Speaker 1: up to sixteen hours per day no energy. Now what 644 00:31:41,600 --> 00:31:43,840 Speaker 1: would happen if you shut the power off for sixteen 645 00:31:43,840 --> 00:31:45,720 Speaker 1: hours a day, Well, it turns out you don't have 646 00:31:45,840 --> 00:31:49,160 Speaker 1: a lot of economic activity. The power instability is so 647 00:31:49,400 --> 00:31:53,160 Speaker 1: widespread that they don't They have very very very limited 648 00:31:53,320 --> 00:31:55,760 Speaker 1: hospital services. Turns out, if you go in the hospital, 649 00:31:56,200 --> 00:31:58,560 Speaker 1: you probably need machines suck to electricity and it probably 650 00:31:58,600 --> 00:32:00,920 Speaker 1: needs to be twenty four to seven sixteen hours a 651 00:32:01,000 --> 00:32:03,880 Speaker 1: day of blackouse pride doesn't work, so very limited hospital services. 652 00:32:04,360 --> 00:32:06,960 Speaker 1: Your kid was born premature, needs to go an incubator, Sorry, 653 00:32:08,040 --> 00:32:10,800 Speaker 1: no electricity for you. Oh you had heart attacking, need 654 00:32:10,840 --> 00:32:11,680 Speaker 1: to be on a heart monitor? 655 00:32:11,840 --> 00:32:14,160 Speaker 2: Up, Sorry, no electricity for you. You get the idea. 656 00:32:14,400 --> 00:32:18,560 Speaker 1: We have increasing food and water scarcity, rising bankruptcies, worsening 657 00:32:18,640 --> 00:32:23,120 Speaker 1: crime rates, unemployment exceeding thirty percent, and South Africa's Central 658 00:32:23,160 --> 00:32:26,120 Speaker 1: Bank warns that load shedding is going to cost the 659 00:32:26,200 --> 00:32:29,600 Speaker 1: economy nearly thirteen billion this year. 660 00:32:30,800 --> 00:32:33,920 Speaker 2: So that's what ESG gets you. Good job. 661 00:32:34,480 --> 00:32:36,480 Speaker 1: The coal sector, which is what they're trying to get 662 00:32:36,520 --> 00:32:43,360 Speaker 1: rid of, employees indirectly up to two point three million people. 663 00:32:43,480 --> 00:32:45,640 Speaker 1: So aut a time when they already have unemployment exceeding 664 00:32:45,720 --> 00:32:48,000 Speaker 1: thirty percent, they want to go ahead and just shed 665 00:32:48,120 --> 00:32:49,680 Speaker 1: jobs for another two point three million people. 666 00:32:49,760 --> 00:32:50,440 Speaker 2: Sounds really good. 667 00:32:51,280 --> 00:32:53,200 Speaker 1: South Africa is on a course to see its most 668 00:32:53,240 --> 00:32:55,560 Speaker 1: blackout days in history this year. 669 00:32:56,080 --> 00:32:56,320 Speaker 2: Wow. 670 00:32:57,400 --> 00:32:59,960 Speaker 1: So again, this is the same thing that's happened in California. 671 00:33:00,160 --> 00:33:02,640 Speaker 1: It's not a big it's not it's nothing new. 672 00:33:03,400 --> 00:33:05,320 Speaker 2: So this is where ESG gets you. 673 00:33:05,680 --> 00:33:08,240 Speaker 1: You invest into companies who are not trying their best 674 00:33:08,280 --> 00:33:13,360 Speaker 1: to produce profits. So they've gotten away with this because Blackrock, 675 00:33:13,760 --> 00:33:17,760 Speaker 1: State Street, Vanguard they don't care about profits. Why don't 676 00:33:17,760 --> 00:33:20,760 Speaker 1: they care about profits because it's not their money? Well, 677 00:33:20,800 --> 00:33:24,480 Speaker 1: whose money is it? Well, it's your money, when your pension, 678 00:33:24,560 --> 00:33:26,480 Speaker 1: when you're four oh one k, when your mutual fund 679 00:33:26,600 --> 00:33:31,840 Speaker 1: goes into their management. Blackrock State Street of Vanguard manages 680 00:33:31,920 --> 00:33:35,280 Speaker 1: almost you know, the majority of that. They are investing 681 00:33:35,400 --> 00:33:38,080 Speaker 1: your money and it's not their money. And they make 682 00:33:38,160 --> 00:33:40,680 Speaker 1: money regardless, So what do they care if the companies 683 00:33:40,760 --> 00:33:44,120 Speaker 1: underperform other companies? They would rather push an ideology. That's 684 00:33:44,120 --> 00:33:47,480 Speaker 1: why when people say bud Light, you know they screwed up. 685 00:33:47,520 --> 00:33:50,440 Speaker 1: Hittumar hurts, go woke, go broke. We're gonna, we're gonna, 686 00:33:50,480 --> 00:33:54,160 Speaker 1: we're gonna boycott them. Well, they don't really care. And 687 00:33:54,200 --> 00:33:56,400 Speaker 1: the reason why they don't really care is because they've 688 00:33:56,440 --> 00:34:01,120 Speaker 1: been taken over by these big institutional investors who don't 689 00:34:01,240 --> 00:34:02,120 Speaker 1: invest their own money. 690 00:34:02,160 --> 00:34:02,880 Speaker 2: They invest your. 691 00:34:02,800 --> 00:34:07,240 Speaker 1: Money, and they're more and what they care about more 692 00:34:07,400 --> 00:34:10,759 Speaker 1: is their ideology over profit. And again that's not a 693 00:34:10,840 --> 00:34:13,360 Speaker 1: bad thing. We should be investing our money where we 694 00:34:13,480 --> 00:34:16,719 Speaker 1: see fit. The problem is when you have corporations like 695 00:34:16,800 --> 00:34:20,360 Speaker 1: black Rock, Wall Street, Vanguarden, State Street doing it with 696 00:34:20,520 --> 00:34:21,680 Speaker 1: other people's money. 697 00:34:21,880 --> 00:34:23,720 Speaker 2: That's the problem. That's the way I have a problem. 698 00:34:23,880 --> 00:34:25,200 Speaker 2: You should certainly. 699 00:34:24,920 --> 00:34:27,000 Speaker 1: Invest your money where you see fit, and if you 700 00:34:27,080 --> 00:34:29,600 Speaker 1: lose your money, that's on you. But when you have 701 00:34:29,880 --> 00:34:33,319 Speaker 1: these institutions taking your money and investing in a way 702 00:34:33,360 --> 00:34:36,839 Speaker 1: that doesn't align with your visions. And on top of them, 703 00:34:36,960 --> 00:34:39,959 Speaker 1: not only are they investing against your vision, your ideologies 704 00:34:40,239 --> 00:34:42,200 Speaker 1: in the world that you want, they're not only going 705 00:34:42,239 --> 00:34:45,279 Speaker 1: against that, they're also losing you money at the same time. 706 00:34:46,719 --> 00:34:48,560 Speaker 2: That's the problem. That's a big problem. 707 00:34:49,800 --> 00:34:52,960 Speaker 1: Now, this is a big deal for a lot of reasons. Obviously, 708 00:34:53,080 --> 00:34:54,880 Speaker 1: one we know it doesn't work. Going back to what 709 00:34:55,560 --> 00:34:59,920 Speaker 1: Friedman said, really the social responsible thing is to chase profits, 710 00:35:00,600 --> 00:35:03,160 Speaker 1: because if you think about it, that drives everything. So 711 00:35:03,320 --> 00:35:08,200 Speaker 1: for example, Patagonia is a massive, you know, clothing manufacturer, 712 00:35:08,320 --> 00:35:10,400 Speaker 1: make really really high end jackets and things like that. 713 00:35:10,480 --> 00:35:11,319 Speaker 2: I'm sure you've heard of them. 714 00:35:12,040 --> 00:35:15,080 Speaker 1: Their whole mission is that they make you know, sustainable products. 715 00:35:15,120 --> 00:35:17,279 Speaker 1: They give money back to the environment and things like that. 716 00:35:17,480 --> 00:35:20,239 Speaker 1: So if I care about that and they want to 717 00:35:20,320 --> 00:35:23,920 Speaker 1: make profit, then they do those things and we support them. 718 00:35:24,280 --> 00:35:28,040 Speaker 1: So through their pursuit of profit, they are then doing 719 00:35:28,080 --> 00:35:31,280 Speaker 1: the social responsible thing. If there's two companies, one company 720 00:35:31,320 --> 00:35:33,680 Speaker 1: wants to dump you know, hazardous waste into the desert 721 00:35:33,880 --> 00:35:36,279 Speaker 1: and the other company wants to recycle and make sure 722 00:35:36,320 --> 00:35:39,000 Speaker 1: that the hazards waste doesn't go into the environment, well 723 00:35:39,040 --> 00:35:42,400 Speaker 1: then we would as consumers most likely we would support 724 00:35:42,440 --> 00:35:46,200 Speaker 1: the company that's not turning my hometown into a hazardous wasteland. 725 00:35:46,320 --> 00:35:47,960 Speaker 1: So I would support the one that doesn't, And so 726 00:35:48,160 --> 00:35:50,720 Speaker 1: through their pursuit of profit, hoping that I give them business, 727 00:35:50,960 --> 00:35:53,719 Speaker 1: they do the socially responsible thing. The problem is when 728 00:35:53,719 --> 00:35:57,799 Speaker 1: the incentives get perverted, when the government steps in, they 729 00:35:58,000 --> 00:36:00,359 Speaker 1: and then they bring in the bankers and they bring 730 00:36:00,440 --> 00:36:03,400 Speaker 1: in the investment companies and then they start giving money 731 00:36:04,000 --> 00:36:07,520 Speaker 1: for things insane, things like this that don't work, and 732 00:36:07,600 --> 00:36:11,279 Speaker 1: then people start to change their incentives. Perverse incentives lead 733 00:36:11,320 --> 00:36:15,000 Speaker 1: to perverse outcomes. It all goes back to the money. 734 00:36:16,120 --> 00:36:17,640 Speaker 1: We can talk about every problem in the world, and 735 00:36:17,680 --> 00:36:19,440 Speaker 1: it always comes back down to the money. When the 736 00:36:19,520 --> 00:36:22,440 Speaker 1: money supply is broken, it changes the incentives of everything. 737 00:36:22,480 --> 00:36:23,000 Speaker 1: And we know this. 738 00:36:23,719 --> 00:36:25,279 Speaker 2: It was told one hundred years ago. 739 00:36:26,800 --> 00:36:30,560 Speaker 1: Vladimir Lenin said that the best way to destroy capitalism 740 00:36:30,680 --> 00:36:36,160 Speaker 1: is to debouch the currency through massive inflation. We can 741 00:36:36,400 --> 00:36:39,400 Speaker 1: steal arbitrarily, so when they inflate money, they steal from you, 742 00:36:39,880 --> 00:36:41,680 Speaker 1: and it can be done so far that all relation 743 00:36:41,800 --> 00:36:43,839 Speaker 1: to money is lost and the best way to get 744 00:36:43,920 --> 00:36:48,200 Speaker 1: rich is through gambling and theft. Very prophetic words from 745 00:36:48,320 --> 00:36:51,719 Speaker 1: the leader of the revolution and communist Russia. Anyway, if 746 00:36:51,760 --> 00:36:53,480 Speaker 1: you're just tuning in you're listening to the Mark Mas Show, 747 00:36:53,520 --> 00:36:56,040 Speaker 1: we just run through what esg is and the dangers 748 00:36:56,080 --> 00:36:56,480 Speaker 1: to causes. 749 00:36:56,520 --> 00:36:57,320 Speaker 2: Hopefully that's helpful. 750 00:36:57,440 --> 00:36:59,360 Speaker 1: Share this episode with somebody that you thinks could benefit 751 00:36:59,400 --> 00:37:00,600 Speaker 1: from it, and that's what I got. 752 00:37:00,680 --> 00:37:01,759 Speaker 2: Thanks so much for listening today.