Biden's 'Green Reset' Could Be Great for Silver / Commodities / Gold and Silver 2021
As top officials around the world convenethis week for a “climate summit,” President Joe Biden’s administration isplanning the most radical expansion of government’s role in the economy sinceFDR’s New Deal.
The objective is nothing short oftransitioning the entire U.S. and world economy to “clean energy” – asdetermined and directed by central planners.
Vice President Kamala Harris vowed, “We arenot going to take it slow. We are not going to take it one step at a time. Weare going to take one giant leap.”
First it was a Green New Deal, then it wasa Great Reset. Now, apparently, it is a Giant Leap.
Or, as the United Nations put it in anarticle published last December (“Green Reset: The Casefor Greening the COVID-19 Recovery through Cities”),it is a Green Reset.
On Wednesday, Treasury Secretary JanetYellen delivered remarks to the Institute of International Finance calling fora radical restructuring of the whole U.S. economy.
“President Biden has outlined an ambitiousstrategy to transition the United States to net-zero emissions and hasmobilized the entire government to achieve it,” Yellen said. “At Treasury, ourgoal is to take this ‘whole-of-government’ approach and turn it into a‘whole-of-economy’ approach.”
During the election campaign, Joe Biden hadinsisted he didn’t support the Green New Deal as dreamed up by socialist Rep.Alexandria Ocasio-Cortez. But now his administration is working to implement iton a slightly scaled-down basis.
But Biden is now pledging to cut U.S.greenhouse emissions 50% by 2030 and achieve “net zero” carbon output by 2035.
That would entail a massive annual reductionin conventional energy usage and massive government-directed reallocation ofresources. Meanwhile China, already the world’s biggest polluter, continues tobusily add more coal-fired power plants to its grid.
The word “China” rarely escapes the mouthof AOC, though. For her, the U.S. is the problem – and Biden’s plannedpower-down of the conventional economy doesn’t go far enough or proceed rapidlyenough.
"We're going to transition to a 100percent carbon free-economy," Ocasio-Cortez said this week as shereintroduced the Green New Deal with Massachusetts Sen. Ed Markey.
“The Green New Deal isn't just a resolution— it is a revolution,” Markey said.
Critics liken the Green revolution to Mao’sGreat Leap Forward – a disastrous government-directed campaign to forciblytransform China’s traditional agrarian economy into fully realized Communism.
Whether the Green Reset is ever fullyimplemented remains to be seen. But some aspects of it, like the increasing useof electric vehicles, are already playing out and will continue to do so in theyears ahead.
Switching from gasoline-burning engines tobattery-powered motors on an increasingly large scale will have profoundimplications for investors. Superstar fund manager Cathie Wood of Ark Investsees the growing EV market as one of the most compelling investment themes ofthe decade.
But that growth is not inevitable, evenwith improving technology and more stringent government mandates. Theelectrification thesis depends crucially on metals including copper,nickel, lithium, and silver remainingplentiful and affordable.
Over the past year, metals prices haveskyrocketed. They could skyrocket further on rising demand and diminishingreserves – not to mention the inflationary policies of the Biden administrationand the Federal Reserve.
Among the biggest winners of the GreenReset could be metals investors.
There will, no doubt, be winners andlosers. Going forward, investing in broad stock market index funds may not workout as well as it has in recent years.
“In the unavoidable shift to clean energy,not every American worker will win out in the near term,” admitted Biden’sSecretary of State Antony Blinken.
As some industries suffer and jobsdisappear, there will be renewed calls for stimulus checks or a more permanentUniversal Basic Income program. Officials will have no hesitancy in creatingcurrency out of thin air in order to prevent a revolt among the dispossessedmasses.
All this adds up to enormous inflation riskfor workers, retirees, and investors.
One of the best inflation-protectionstrategies in this environment may be to own physical silver. It is both amonetary metal and a Green energy metal – used in everything from solar panelsto electric vehicle motors to battery charging stations.
In the event that the Green New Economyeventually collapses like Communism under the weight of excessive restrictionsand controls on productivity, then industrial demand for metals would fallalso.
That’s not likely to happen in these stillearly stages of the Green Reset rollout, but when/if it does, then gold mayshine as the ultimate safe haven.
On Wednesday, gold prices rallied up to a key area of resistance near $1,800/oz.
A breakout above the multi-monthdown-trending channel, confirmed by a strong weekly close, would have hugelybullish implications for precious metals markets.
As great as gold’s potential is amid theaccelerating depreciation of the U.S. dollar, silver’s is even greater amid theGreen Reset.
Stefan Gleason isPresident of Money Metals Exchange, the national precious metals company named 2015"Dealer of the Year" in the United States by an independent globalratings group. A graduate of the University of Florida, Gleason is a seasonedbusiness leader, investor, political strategist, and grassroots activist.Gleason has frequently appeared on national television networks such as CNN, FoxNews,and CNBC, and his writings have appeared in hundreds of publications such asthe Wall Street Journal, Detroit News, Washington Times, and National Review.
© 2021 Stefan Gleason - All Rights Reserved
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