WEBVTT - Energy Crisis: How The Transition Is Causing The Failure 0:00:00.440 --> 0:00:02.720 Hello, and welcome back to another episode of The Mark 0:00:02.759 --> 0:00:04.680 mass Show. Or of course, each and every week we're 0:00:04.680 --> 0:00:07.240 talking about the way the world is changing through what 0:00:07.280 --> 0:00:11.159 I call the decentralized revolution. If you haven't noticed, the 0:00:11.200 --> 0:00:14.120 world is changing, but you maybe don't understand what the 0:00:14.120 --> 0:00:16.200 heck is going on, and of course we talk about 0:00:16.239 --> 0:00:18.640 it each and every week most importantly so you can 0:00:18.800 --> 0:00:22.200 understand where things are going. I was talking with my 0:00:22.239 --> 0:00:24.680 show producer Cue before we were recording and going through 0:00:24.720 --> 0:00:27.000 some of the show notes and talking about some of 0:00:27.040 --> 0:00:29.000 the different topics and you know, some of the big 0:00:29.040 --> 0:00:31.320 news topics that came out this week. He's like, Yeah, 0:00:31.360 --> 0:00:32.560 I don't know if it's that big of a story 0:00:32.560 --> 0:00:34.960 because it's not like tradeable. There's nothing that someone's going 0:00:35.040 --> 0:00:37.760 to do to change their investment portfolio off of this. 0:00:38.920 --> 0:00:42.440 And that's absolutely right. What we talk about day to 0:00:42.520 --> 0:00:44.519 day isn't for you to go make a trade in 0:00:44.560 --> 0:00:47.040 your portfolio tonight on your e trade Charles Schwab or 0:00:47.040 --> 0:00:49.839 whatever and profit from this. What it is is it's 0:00:49.840 --> 0:00:53.400 about getting the direction right because the world's changing. 0:00:53.760 --> 0:00:54.080 And so. 0:00:55.520 --> 0:00:59.800 In the quote that's been used way too, way too 0:00:59.840 --> 0:01:02.040 moch used, I would say, but I'm going to use 0:01:02.040 --> 0:01:04.440 it anyway. And that's from the great Wayne Gretzky, the 0:01:04.480 --> 0:01:06.600 great one, one of the best hockey players of all time, 0:01:06.600 --> 0:01:08.360 and he said that the reason why he did so 0:01:08.400 --> 0:01:10.840 good paraphrasing was because he always skated to where the 0:01:10.880 --> 0:01:14.160 puck was going to be, not where the puck was right. 0:01:14.280 --> 0:01:16.480 So you've heard that before, so sorry for me to 0:01:16.480 --> 0:01:18.120 tell you again, but that's really the way it is. 0:01:18.360 --> 0:01:19.920 The reason why it's used so much is because it's 0:01:19.920 --> 0:01:21.440 so true. And so what we want to do is 0:01:21.440 --> 0:01:24.200 we want to position ourselves to where things are going, 0:01:24.920 --> 0:01:27.240 not where they are. If we go to where they are, 0:01:27.319 --> 0:01:28.640 by the time we get there, it's going to be 0:01:28.640 --> 0:01:30.720 too late. And so we want to know where things 0:01:30.760 --> 0:01:32.520 are going, and so we look at the long lens. 0:01:32.640 --> 0:01:35.200 Warren Buffett, of course, you know, good old uncle Charlie 0:01:35.959 --> 0:01:39.640 Warren Buffett. His partner Charlie Munger, has another quote that 0:01:39.640 --> 0:01:40.920 I like to use all the time, and he says 0:01:40.959 --> 0:01:44.600 that the big money is not made in the buying 0:01:44.640 --> 0:01:47.120 and the selling, it's made in the waiting. So you 0:01:47.160 --> 0:01:49.280 put those two things together, it's made in the waiting. 0:01:49.320 --> 0:01:54.000 Waiting for what waiting for the right opportunity waiting for 0:01:54.080 --> 0:01:56.720 that big fat pitch to come. But more importantly, when 0:01:56.800 --> 0:01:59.520 I get into that position, I have to also wait 0:02:00.120 --> 0:02:03.280 or to develop. And so this is about the direction 0:02:03.440 --> 0:02:05.600 of where things are going, so we know that we're 0:02:05.600 --> 0:02:09.240 aligned properly as they continue to materialize. So in this hour, 0:02:09.280 --> 0:02:12.519 we're going to talk about the energy crisis and how 0:02:12.560 --> 0:02:17.840 the transition is causing the failure, how it's the transition 0:02:18.880 --> 0:02:21.079 that's causing the energy christap. We're going to talk about that. 0:02:21.120 --> 0:02:23.040 We're going to look at what the transitions are. We're 0:02:23.040 --> 0:02:25.640 going to look at this ESG, break that down environmental 0:02:25.680 --> 0:02:28.200 social governance. We're going to talk about moving from reliable 0:02:28.200 --> 0:02:30.519 to unreliable energy. We're going to talk about why these 0:02:30.560 --> 0:02:34.800 transitions fail. We're going to cover the origins, the companies 0:02:34.840 --> 0:02:37.680 that are taking advantage of this, if there is any 0:02:37.720 --> 0:02:41.120 real progress, and so much more. This is a big show. 0:02:41.600 --> 0:02:44.359 I know I've talked about ESG a little bit in 0:02:44.440 --> 0:02:46.240 the past, We've never done this deep of a dive, 0:02:46.440 --> 0:02:48.800 and it's important for you to understand this because it 0:02:48.880 --> 0:02:54.240 is literally changing the world. Without energy, I mean I 0:02:54.280 --> 0:02:56.480 can't even say without energy, Without energy, the whole world's dead. 0:02:56.480 --> 0:02:57.519 I mean we need energy. 0:02:57.960 --> 0:03:00.360 The law of energy states that energy cannot be created, 0:03:00.480 --> 0:03:03.320 energy can only be transferred. So everything in life is 0:03:03.360 --> 0:03:06.000 about energy. For example, for you to live, your body 0:03:06.080 --> 0:03:10.160 must burn calories. A calorie is a unit as a 0:03:10.200 --> 0:03:14.799 measurement unit of energy. Right, So the sun produces energy, 0:03:14.800 --> 0:03:18.120 it grows a plant, or the cow eats the plant, 0:03:18.800 --> 0:03:21.560 and that energy from the plant is from the sun 0:03:21.639 --> 0:03:23.480 to the plant, and then from the plant to the cow. 0:03:23.520 --> 0:03:25.880 And then I eat the cow, which gives me energy 0:03:26.360 --> 0:03:28.760 and protein, and then that gives me energy to burn 0:03:28.800 --> 0:03:29.440 as calories. 0:03:29.560 --> 0:03:30.760 And so that's how the whole world works. 0:03:30.760 --> 0:03:32.320 And then I can dig oil out of the ground, 0:03:32.320 --> 0:03:34.200 which is more energy, which think that powers my car, 0:03:34.400 --> 0:03:36.400 and on and on and on. So it's important to 0:03:36.520 --> 0:03:43.240 understand that all of humanity's prosperity and flourishment comes because 0:03:43.320 --> 0:03:47.080 of energy. You know, things used to be really bad 0:03:47.160 --> 0:03:49.880 a long time ago, and really all of history is 0:03:49.920 --> 0:03:54.960 a story of people being cold and hungry. That's most 0:03:54.960 --> 0:03:58.360 of history people being cold and hungry. Read back through 0:03:58.400 --> 0:04:01.720 the early nineteen hundreds, eighteen hundreds to seventeen hundreds. 0:04:01.800 --> 0:04:03.040 You've seen the movies. 0:04:02.680 --> 0:04:05.839 The Game of Thrones, and it looks like all like, oh, 0:04:05.880 --> 0:04:07.880 look at them living in these beautiful castles and life 0:04:07.920 --> 0:04:10.480 is so good. No no, no, no, no, that's not how 0:04:10.480 --> 0:04:12.880 it worked. They were cold and they were hungry, and 0:04:12.920 --> 0:04:15.400 that's how most of the world is. Without energy. There 0:04:15.440 --> 0:04:19.279 was famines, there was droughts. But then we got energy, 0:04:19.320 --> 0:04:22.000 and we could build tractors that could build canals and 0:04:22.040 --> 0:04:25.200 bring water in amazing and it's through the use of 0:04:25.440 --> 0:04:27.080 energy that we've been able to flourish. And you can 0:04:27.080 --> 0:04:30.480 trace back every prosperous nation back to the amount of 0:04:30.720 --> 0:04:32.920 energy that they have. And that's really where the United 0:04:32.960 --> 0:04:36.039 States took off in the lead because we were able 0:04:36.080 --> 0:04:39.600 to harness oil and energy, which led to the industrialization, 0:04:39.880 --> 0:04:44.880 which allowed to massive prosperity through using energy to manufacture 0:04:44.880 --> 0:04:46.960 goods and services that the world wanted, and so forth. 0:04:46.960 --> 0:04:48.720 We're gonna talk about all this. I'm gonna break it 0:04:48.760 --> 0:04:51.400 down and again, if you want to be, if you 0:04:51.440 --> 0:04:53.760 want to be where the puck is going, you have 0:04:53.800 --> 0:04:56.520 to understand this. If you want your investments to be 0:04:56.600 --> 0:04:58.760 in the right place, then you need to understand this. 0:04:58.880 --> 0:05:00.720 Now I like to say it's not true, but of course, 0:05:00.760 --> 0:05:02.640 if you're not already in position, then I suppose you 0:05:02.680 --> 0:05:05.960 should be getting into position. But this is not financial advice. 0:05:06.760 --> 0:05:08.360 But you are listening to the Mark Ma Show. If 0:05:08.360 --> 0:05:09.440 you miss any of this, don't worry. 0:05:09.440 --> 0:05:09.960 I got your back. 0:05:10.040 --> 0:05:12.200 Check me out on the podcast. Just search the Mark 0:05:12.240 --> 0:05:14.839 Ma Show on any of your favorite podcast players. And 0:05:15.000 --> 0:05:16.760 if you could just do me a huge favor while 0:05:16.760 --> 0:05:20.880 you're there, just click on the like review button on 0:05:20.920 --> 0:05:22.760 the podcast. Share it with somebody who you think could 0:05:22.760 --> 0:05:23.359 benefit from it. 0:05:23.520 --> 0:05:25.680 That'd mean the world to me, I'll ask. Okay, so 0:05:25.800 --> 0:05:27.160 let's talk about this for a little bit. 0:05:27.240 --> 0:05:28.799 I want to break this down. We got a lot 0:05:28.880 --> 0:05:33.040 to cover. So first of all, ESG, what is it? 0:05:33.120 --> 0:05:36.720 More importantly, how did we even get here? Okay, now, 0:05:37.040 --> 0:05:39.000 if you want to look at how we got here, 0:05:39.000 --> 0:05:40.800 we kind of have to go back to the origins 0:05:40.839 --> 0:05:44.039 and what we can see that the origins of ESG 0:05:44.560 --> 0:05:49.160 and ESG investing really came by the key decision makers 0:05:49.680 --> 0:05:55.279 who wanted to use social responsibility as like an investing thesis. 0:05:56.000 --> 0:05:57.760 And I have no problem with that. As a matter 0:05:57.800 --> 0:06:00.240 of fact, I'm a huge proponent of that. As a 0:06:00.240 --> 0:06:02.359 matter of fact, I constantly pound the table on that 0:06:02.400 --> 0:06:05.880 we should be voting with our money. So I shouldn't 0:06:05.920 --> 0:06:08.040 be giving my money to things I don't like. So, 0:06:08.120 --> 0:06:10.520 for example, I've been writing a financial newsletter for the 0:06:10.600 --> 0:06:14.080 last seven years where I do give people information on 0:06:14.080 --> 0:06:15.560 what they should be buying and selling. If you want 0:06:15.600 --> 0:06:17.479 to check that out, just go to my website at 0:06:17.480 --> 0:06:20.800 one Mark Moss and you can find out how to 0:06:20.839 --> 0:06:24.080 get access to the newsletter there. But in this newsletter, 0:06:24.440 --> 0:06:27.760 I used to recommend that we bought stocks in China. 0:06:28.240 --> 0:06:30.479 As a matter of fact, we did really really well 0:06:30.640 --> 0:06:34.119 investing into Chinese companies in Chinese stock markets and Chinese 0:06:34.160 --> 0:06:36.440 funds and things like that. Emerging markets are a great 0:06:36.480 --> 0:06:39.240 place to get alpha right out to get profits. But 0:06:39.920 --> 0:06:43.359 about when the pandemic came out, all of a sudden, 0:06:43.400 --> 0:06:45.480 I just thought about it, and I'm like, I don't 0:06:45.520 --> 0:06:47.520 really want to be supporting China anymore. 0:06:47.839 --> 0:06:50.840 There's millions of places to invest. Why do I. 0:06:50.800 --> 0:06:52.960 Need to put my money into those I don't agree 0:06:53.000 --> 0:06:55.240 with them, so I'm no longer going to give them 0:06:55.240 --> 0:06:58.880 my money. So I believe in using your money to 0:06:59.160 --> 0:07:01.920 voice your vote, but also to build the world that 0:07:01.960 --> 0:07:04.480 you want. So, for example, you also know that I'm 0:07:04.480 --> 0:07:08.520 a huge bitcoin proponent. I believe that bitcoin is the 0:07:08.560 --> 0:07:11.640 only tool that we see right now today that can 0:07:11.720 --> 0:07:14.520 change the world, that can free us, and that can 0:07:14.600 --> 0:07:17.040 change the world for better. If not bitcoin, then what 0:07:17.240 --> 0:07:18.960 I don't see anything else now. Maybe something else comes 0:07:19.000 --> 0:07:20.600 in the future, but as of now, that's the only one. 0:07:20.640 --> 0:07:24.040 So I believe that you don't have to that's okay, 0:07:24.120 --> 0:07:26.600 and so I want to see that flourish. So I 0:07:26.640 --> 0:07:28.680 want to put my money into bitcoin. I also want 0:07:28.720 --> 0:07:31.880 to support the ecosystem, so I invest through the entire 0:07:31.880 --> 0:07:36.440 bitcoin ecosystem, including I'm an advisor to a bitcoin venture 0:07:36.440 --> 0:07:39.520 capital fund, Trammel Venture Partners, and I also started my 0:07:39.680 --> 0:07:43.480 own bitcoin fund called the Bitcoin Opportunity Fund, and we're 0:07:43.480 --> 0:07:46.280 investing through the entire bitcoin ecosystem because I want to 0:07:46.320 --> 0:07:49.200 put my money to build the world that I want. 0:07:50.120 --> 0:07:50.320 Now. 0:07:50.480 --> 0:07:52.440 If you'd like to learn more about the Bigcoin Opportunity Fund, 0:07:52.520 --> 0:07:55.400 check it out Bitcoin Opportunity dot Fund. It's go onto 0:07:55.400 --> 0:07:58.520 your website Bitcoin Opportunity Dot Fund. You do need to 0:07:58.560 --> 0:08:02.040 be a credit investor for that, but it's a good 0:08:02.040 --> 0:08:04.560 way to get access to this entire industry that way. 0:08:04.600 --> 0:08:08.720 So anyway, I am a big proponent. I recommend everybody 0:08:08.920 --> 0:08:11.600 invest into building the world that they that we want. 0:08:11.760 --> 0:08:14.240 And so that's how ESG got started, right. It started 0:08:14.240 --> 0:08:18.000 in the nineteen sixties as socially responsible investing, which sounds 0:08:18.000 --> 0:08:21.120 pretty good. Nineteen seventy one, the packs World Fund was 0:08:21.200 --> 0:08:25.120 established by two United Methodist ministers who opposed the Vietnam War, 0:08:26.160 --> 0:08:28.320 so they didn't want to invest any money that would 0:08:28.360 --> 0:08:31.560 go towards the war. Great we saw Amy Dominie, who 0:08:31.600 --> 0:08:34.520 managed KLD Research and Analytics. She created a Domini four 0:08:34.600 --> 0:08:36.439 hundred index in nineteen ninety. 0:08:37.080 --> 0:08:38.200 You know, we can kind of go through this. 0:08:40.320 --> 0:08:43.560 ESG largely came from a combination of national and international standards. 0:08:43.559 --> 0:08:47.800 One of the significant milestones was the United Nation Framework 0:08:48.280 --> 0:08:51.480 Convention on Climate Change in nineteen ninety two. And this 0:08:51.559 --> 0:08:54.760 is where things really started to go a different direction. 0:08:55.280 --> 0:08:58.400 So the UN pushing them in nineteen ninet two, and 0:08:58.440 --> 0:09:02.200 this is where I start to divert from their idea 0:09:02.240 --> 0:09:05.559 of investing socially and my idea of investing socially. I'm 0:09:05.559 --> 0:09:07.079 going to talk about that in a second. If you're 0:09:07.160 --> 0:09:09.439 just tuning in right now, you're listening to the Markmas Show. 0:09:09.440 --> 0:09:12.360 Of course we're always talking about this decentralized revolution. I'm 0:09:12.360 --> 0:09:13.880 going to break this down, so you know where we're going. 0:09:14.000 --> 0:09:15.359 I got to take a quick break. 0:09:15.160 --> 0:09:16.640 But when I come back, we're go and continue talking 0:09:16.640 --> 0:09:18.679 about the origins of ESG. 0:09:18.880 --> 0:09:20.360 You don't want to miss it. We'll be right back. 0:09:22.360 --> 0:09:23.079 All right, Welcome back. 0:09:23.080 --> 0:09:25.080 If you're just tune in, you're listening to the Markmas 0:09:25.120 --> 0:09:29.400 Show and we're breaking down the history of ESG. We're 0:09:29.480 --> 0:09:32.200 talking about the energy crisis and how the transition is 0:09:32.360 --> 0:09:34.760 actually causing the crisis, causing the failure. 0:09:34.960 --> 0:09:36.000 So we're running through ESG. 0:09:36.080 --> 0:09:38.240 We were talking about some of the origins before and 0:09:38.320 --> 0:09:41.520 really where things I said that we should be investing socially, 0:09:41.520 --> 0:09:44.319 We should be investing along with our ideas, our values 0:09:44.520 --> 0:09:46.160 to build the world that we want. That's what we 0:09:46.160 --> 0:09:49.720 want to do, and so I'm okay with it in 0:09:49.840 --> 0:09:51.199 theory we should all be doing that. 0:09:51.600 --> 0:09:53.880 But where it goes wrong is where it got hijacked. 0:09:53.880 --> 0:09:56.520 And so I talked about how really in nineteen ninety two, 0:09:56.520 --> 0:10:00.480 the United Nations created this framework for climate change, and 0:10:00.520 --> 0:10:02.920 this is where things, like I said, really really went 0:10:03.000 --> 0:10:06.120 off the rails. Now we can go back and we 0:10:06.120 --> 0:10:09.320 can see all types of examples through history where people 0:10:09.440 --> 0:10:12.520 formed groups. So like there was one the Women's Christian 0:10:12.559 --> 0:10:18.320 Temperance Union WCTU founded in eighteen seventy four, and they 0:10:18.920 --> 0:10:23.840 promoted investing into things that they shared ideologies. So, for example, 0:10:24.320 --> 0:10:27.840 they didn't invest in the companies that produced alcohol or tobacco. Great, 0:10:28.160 --> 0:10:30.240 if you don't like alcohol, tobacco, you don't want people 0:10:30.240 --> 0:10:32.480 to have it, then don't invest into it. That's fine. 0:10:32.559 --> 0:10:34.960 The company didn't want to invest into any companies that 0:10:34.960 --> 0:10:38.760 would exploit its workers or engage in unethical business practices, Great, 0:10:39.360 --> 0:10:40.480 don't do that if you don't want to. 0:10:40.760 --> 0:10:42.640 I think that that is a good thing. 0:10:43.760 --> 0:10:46.400 But these were like a really like OG, you know, 0:10:46.440 --> 0:10:51.720 old school in socially responsible investing group. And that's okay. 0:10:52.000 --> 0:10:55.079 But going back to ESG for a second, Like I said, 0:10:55.120 --> 0:10:56.880 it was introduced by the UN and we saw it 0:10:56.920 --> 0:11:01.400 really become officially introduced in two thousand SI again by 0:11:01.440 --> 0:11:06.240 the UND in their Principles for Responsible Investment Report pr I, 0:11:07.040 --> 0:11:10.960 and basically the ESG criteria were required to be incorporated 0:11:11.160 --> 0:11:14.760 in the financial evaluations of companies. And so what that 0:11:14.880 --> 0:11:18.760 means is that they now had a set of metrics 0:11:19.320 --> 0:11:23.280 that they could regulate companies by. So we could say, hey, 0:11:23.280 --> 0:11:26.040 we're going to look at you company by all these metrics, 0:11:26.080 --> 0:11:29.720 and if you don't fit into them, then maybe there's 0:11:29.840 --> 0:11:31.800 no money for you. So we're gonna talk about this 0:11:31.840 --> 0:11:36.760 is it's really turned from cooperation and from preference to 0:11:36.880 --> 0:11:39.520 now coercion, and that's where things. 0:11:39.280 --> 0:11:40.120 Fall off the rails. 0:11:40.400 --> 0:11:43.960 Now I want to talk about again. I think this 0:11:44.040 --> 0:11:45.880 is a good thing. We should be investing into things 0:11:45.880 --> 0:11:50.720 that we believe. Milton Friedman a famous economist. If you 0:11:50.720 --> 0:11:52.839 haven't read his stuff, I highly recommend it. He wrote 0:11:53.280 --> 0:11:56.880 a paper on the socially responsibility. The social responsibility of 0:11:56.920 --> 0:12:01.920 business is to increase its profits, because that's sort of 0:12:01.960 --> 0:12:05.120 what a business is for. Now, if you want to 0:12:05.160 --> 0:12:08.360 go be you know, Mother Teresa or Gandhi, then you 0:12:08.400 --> 0:12:10.480 should certainly do that. If you're a church, then you 0:12:10.520 --> 0:12:14.000 should certainly be feeding the poor. But business is in 0:12:14.080 --> 0:12:17.080 the business of business, which is to make profit, and 0:12:17.120 --> 0:12:19.840 it's the socially responsible thing to do. And what he says, 0:12:19.840 --> 0:12:21.640 and I'm going to paraphrase this, and I highly recommend 0:12:21.679 --> 0:12:23.880 you to go read it, but he basically says that 0:12:24.679 --> 0:12:29.800 through the pursuit of profit, you chase the most socially 0:12:29.840 --> 0:12:33.600 responsible goals. So let me give you an example there's 0:12:33.640 --> 0:12:35.600 a local high school here by my studio. I drive 0:12:35.600 --> 0:12:37.440 by it every morning i'm away to the gym, And 0:12:37.600 --> 0:12:40.040 on those fences of the of like the baseball field, 0:12:40.200 --> 0:12:42.960 are like signs, and the whole school are signs of 0:12:43.040 --> 0:12:47.600 all the local businesses, local real estate agents, local dentists, orthodontics, whatever. Right, 0:12:48.440 --> 0:12:52.600 Why do they give money to the school to have 0:12:52.679 --> 0:12:55.079 their sign there? Why do they want to have their 0:12:55.120 --> 0:12:58.280 sign there. Well, they hope it brings them business. So 0:12:58.480 --> 0:13:02.760 through the pursuit of profit it they're acting socially right. 0:13:02.840 --> 0:13:05.439 They're giving money to a good cause in returns of 0:13:05.480 --> 0:13:08.920 hopefully getting a profit back. Now, let me just say 0:13:09.200 --> 0:13:12.440 I also believe that we should all be giving money charitably. 0:13:12.800 --> 0:13:14.280 This is a really big problem that I want to 0:13:14.280 --> 0:13:16.960 dive into just for a second. I was recently on 0:13:17.040 --> 0:13:21.400 an airplane, sitting in first class, sitting next to another 0:13:21.440 --> 0:13:23.920 guy who looked like he I kind of glanced over 0:13:23.920 --> 0:13:25.520 at his work and I could tell he was working 0:13:25.559 --> 0:13:27.280 on some like high level management stuff, and so I 0:13:27.360 --> 0:13:28.880 kind of struck up a conversation with him, which I 0:13:28.880 --> 0:13:31.040 don't always do, and we start then we start getting 0:13:31.040 --> 0:13:33.120 into like business stuff, and then we start getting into 0:13:33.160 --> 0:13:34.640 like investing, and then we start get into like social 0:13:34.679 --> 0:13:38.080 political things. And you know, he really thought that, you know, 0:13:38.160 --> 0:13:40.640 the government needs to continue to tax us so much 0:13:40.880 --> 0:13:43.600 so that they the government, they after they tax us, 0:13:43.720 --> 0:13:46.480 can go do all these welfare programs and things like this. 0:13:46.920 --> 0:13:48.440 And I just said, hey, let let me ask you 0:13:48.440 --> 0:13:50.640 a personal question. I'm sorry if it's too personal, but 0:13:52.240 --> 0:13:55.559 how much of your income do you give to charity? 0:13:56.200 --> 0:13:58.240 Do you donate? Do you do you go on mission 0:13:58.240 --> 0:14:01.880 trips with your kids and help poor people? And they said, no, 0:14:01.920 --> 0:14:04.280 we don't do any of that, and I said, yeah, 0:14:04.480 --> 0:14:07.880 I figured and the reason why is because because you 0:14:08.000 --> 0:14:12.120 don't give, then you feel that nobody else will give. 0:14:12.640 --> 0:14:14.160 And so the only way that those poor people get 0:14:14.200 --> 0:14:16.600 anything is if the government steals it from us and 0:14:16.640 --> 0:14:19.960 then redistributes it. But you see, I give a big 0:14:20.040 --> 0:14:22.880 chunk of what I earn, and so I don't see 0:14:22.880 --> 0:14:25.360 it that way. I see people all around me giving. 0:14:25.360 --> 0:14:27.160 As a matter of fact, I just got back from 0:14:27.200 --> 0:14:29.920 my fifteenth annual dirt bike trip we do called the 0:14:29.960 --> 0:14:33.480 Baja Beach Bash dot com check it out, where we 0:14:33.560 --> 0:14:36.440 raised money for an orphanage down in Mexico this year. 0:14:36.640 --> 0:14:40.080 In twenty twenty three. In July, we raised about four 0:14:40.200 --> 0:14:43.720 hundred thousand dollars me and my buddies for this orphanage. 0:14:43.840 --> 0:14:47.440 We've raised over two point two million dollars for them 0:14:47.480 --> 0:14:49.360 since we've done that. This is just one thing, and 0:14:49.400 --> 0:14:51.360 I'm not here to brag. What I'm saying is that 0:14:51.760 --> 0:14:55.239 we should all be doing this. That's the socially responsible 0:14:55.280 --> 0:14:55.720 thing to. 0:14:55.680 --> 0:14:56.320 Do, all right. 0:14:56.400 --> 0:14:59.080 Now, going back to this, So, this ESG thing, it 0:14:59.120 --> 0:15:01.520 really went off the rails because of the UN, and 0:15:01.560 --> 0:15:04.440 the UN tried to co opt this and then use 0:15:04.480 --> 0:15:07.640 it for coercion. So how did they do that? Well, 0:15:07.800 --> 0:15:09.200 they established these. 0:15:09.080 --> 0:15:11.720 Principles, these ESG principles. 0:15:12.240 --> 0:15:16.440 And they basically got sixty three investment companies with about 0:15:16.440 --> 0:15:19.120 six and a half trillion dollars in assets under management 0:15:19.400 --> 0:15:23.000 to come on board with them. And these these companies 0:15:23.000 --> 0:15:24.920 that controlled six and a half trillion dollars, they got 0:15:24.960 --> 0:15:27.600 them to basically agree that if these companies don't adhere 0:15:27.680 --> 0:15:31.120 to these arbitrary things that we've put together, then they 0:15:31.280 --> 0:15:35.000 get no money. As Mark Carney says, they'll be economic roadkill. 0:15:35.200 --> 0:15:37.840 So who are they? Well, Amy Dominie, we mentioned her 0:15:37.880 --> 0:15:41.520 name before. Brian moynihan, he's the CEO of Bank America. 0:15:42.600 --> 0:15:45.160 Now what's important to understand is that, of course Bank 0:15:45.160 --> 0:15:49.640 of America Brian Monihan the CEO, alongside the Big four 0:15:49.680 --> 0:15:52.320 accounting firms. So you always hear reference to the Big 0:15:52.360 --> 0:15:56.240 four Deloitte, PwC, KPMG, and Ernst and Young. So if 0:15:56.240 --> 0:15:59.160 you're a public traded company or your big forty five 0:15:59.200 --> 0:16:01.320 hundred company, you need use a Big four accounting firm. 0:16:01.560 --> 0:16:04.400 So with Bank of America and the Big Four, they 0:16:04.440 --> 0:16:07.920 accelerated this ESG transformation through the establishment of a set 0:16:07.960 --> 0:16:13.400 of standardized measurements of twenty two specific metrics to create 0:16:13.400 --> 0:16:17.160 a framework for companies to report their results. And if 0:16:17.160 --> 0:16:20.520 the results are favorable, they get funding. If the reports 0:16:20.560 --> 0:16:23.600 are unfavorable, then they get no funding. No money for 0:16:23.640 --> 0:16:26.080 you like the Soup Nazi, all right, So that's sort 0:16:26.080 --> 0:16:30.160 of how this happened. Then we saw other institutions, institutional investors. 0:16:29.920 --> 0:16:30.600 Grab onto this. 0:16:30.640 --> 0:16:32.600 Of course, we talk about Black Rock doing this all time, 0:16:32.640 --> 0:16:36.440 State Street Global Advisors of course as well, and on 0:16:36.480 --> 0:16:39.000 and on and on and so this is a really 0:16:39.040 --> 0:16:41.840 big thing. This is how they've been they've been tackling this. 0:16:42.200 --> 0:16:45.000 Now we can see that a twenty twenty two report 0:16:45.160 --> 0:16:48.920 by the Global Sustainable Investment Alliance found that global ESG 0:16:48.960 --> 0:16:53.040 assets under management reached thirty five point three trillion in 0:16:53.080 --> 0:16:56.440 twenty twenty one, up from twenty two point nine trillion 0:16:56.600 --> 0:16:59.400 in twenty twenty sixteen. So we can see that these 0:17:00.000 --> 0:17:04.080 investment groups are moving into this and putting money into 0:17:04.119 --> 0:17:08.920 anything that could be deemed ESG. But does that change 0:17:08.960 --> 0:17:13.120 the incentive structure just because they say they're ESG, are 0:17:13.119 --> 0:17:16.760 they really how are they reporting this? Well, we're going 0:17:16.840 --> 0:17:18.320 to dig into that. We're going to dig into that. 0:17:18.520 --> 0:17:20.719 We're going to talk about the problems that this has created, 0:17:20.720 --> 0:17:22.919 the crisis that we're literally in because of this, and 0:17:22.960 --> 0:17:24.640 where this goes. If you're just tuning in and you're 0:17:24.640 --> 0:17:27.240 listening to the Mark Mass Show, of course we're aways 0:17:27.240 --> 0:17:29.640 talking about the decentralized revolution, and this is a good 0:17:29.680 --> 0:17:34.200 example of how, you know, good intentions have turned bad 0:17:34.359 --> 0:17:37.640 have now caused a massive crisis that we're dealing with. 0:17:37.720 --> 0:17:39.040 So I'm going to continue to break this down. I'm 0:17:39.040 --> 0:17:40.719 going to show you exactly what ESG is. I'm going 0:17:40.760 --> 0:17:42.760 to show you how these investments are turning sour and 0:17:42.920 --> 0:17:47.240 actually how through mismatched incentives it's causing the crisis that 0:17:47.320 --> 0:17:51.480 we're in. We'll go through some specific examples, especially what's 0:17:51.480 --> 0:17:55.680 happening right now in Saudi Arabia, what's happening in South Africa, 0:17:56.000 --> 0:17:59.119 what's happening in Germany, and yes even here in the 0:17:59.200 --> 0:17:59.600 United States. 0:17:59.840 --> 0:18:01.480 Back of that and more in a minute. Don't go away, 0:18:01.520 --> 0:18:02.120 I'll bear back. 0:18:02.880 --> 0:18:04.520 All right, welcome back if you're just tune in here 0:18:04.520 --> 0:18:07.800 listening to the Mark Moss Show. We're talking today about, 0:18:08.040 --> 0:18:10.880 of course, like always, the decentralized revolution, how the world's changing, 0:18:10.880 --> 0:18:13.359 but specifically today we're talking about the energy crisis and 0:18:13.400 --> 0:18:16.080 how the transition is causing the failure. 0:18:16.440 --> 0:18:18.000 Yeah, that's what's happening now. 0:18:18.440 --> 0:18:20.920 We're talking about these esg these twenty two specific goals 0:18:20.920 --> 0:18:23.439 that companies have to meet if they want to get money, 0:18:23.720 --> 0:18:26.680 if they want investment, and of course if you're a business, 0:18:26.720 --> 0:18:30.240 then you don't have any capital, you don't have a business, 0:18:30.280 --> 0:18:32.359 so of course they have to do that. But what's 0:18:32.359 --> 0:18:36.600 happened is, you know, these create perverted incentives. Remember we 0:18:36.680 --> 0:18:40.320 talked about Freedman talking about really the socially responsible thing 0:18:40.359 --> 0:18:43.920 for businesses to pursue profit. That should be the incentive 0:18:44.000 --> 0:18:48.000 and through that incentive, then they'll have good, you know, 0:18:48.040 --> 0:18:50.280 good things that they do, like giving money to the 0:18:50.280 --> 0:18:53.800 local high school. But when you start to change the incentives, 0:18:54.119 --> 0:18:56.879 then people start optimizing for other incentives. 0:18:57.240 --> 0:18:58.600 So for example, like ESG. 0:18:58.840 --> 0:19:01.560 So if you have to meet all the factors of 0:19:01.600 --> 0:19:04.959 a ESG, you get a lot of money. So what 0:19:04.960 --> 0:19:08.119 do you think happens, Well, companies start trying to optimize 0:19:08.160 --> 0:19:10.920 for ESG, so they get a lot of money. 0:19:10.960 --> 0:19:12.159 And how do they do that? 0:19:12.200 --> 0:19:14.639 Well, they do that through lying and stealing, because of 0:19:14.640 --> 0:19:17.120 course there is really no way to hit all those 0:19:17.119 --> 0:19:20.399 goals without that, so they do what we call green washing, 0:19:20.760 --> 0:19:23.320