New Safe Haven Asset?

Could new safe haven asset be identified as companies or entities which comply with environmental, social, and governance (ESG) rules?

A few months ago, in October 2020, IMF Managing Director, Kristalina Georgieva made a speech entitled, “New Bretton Wood Moment” the rebuilding of the monetary system with an agenda.

Intriguingly, the IMF’s speech, which signaled that the most significant development in global finance of this century, was barely mentioned in the mainstream. 

The IMF’s Georgieva claimed in her New Bretton Wood Moment speech that the elite global institution wants to seize the moment by building forward three imperatives; Social policies where monetary and fiscal policy work in tandem; investment in people with an emphasis on young developing economies and the third imperative, climate change.

In support of ESGs as the new safe haven asset IMF’s Georgieva said

“We focus on climate change because it is macro-critical, posing profound threats to growth and prosperity. It is also people-critical and planet-critical. 

In the last decade, direct damage from climate-related disasters adds up to around $1.3 trillion. If we don’t like this health crisis, we will not like the climate crisis one iota. 

Our research shows that, with the right mix of green investment and higher carbon prices, we can steer toward zero emissions by 2050 and help create millions of new jobs” said the IMF’s Georgieva. 

Here comes the zinger;

“We have a historic opportunity to build a greener world—also a more prosperous and job-rich one. With low-interest rates, the right investments today can yield a quadruple dividend tomorrow: avert future losses, spur economic gains, save lives and deliver social and environmental benefits for everyone” added IMF’s Georgieva. 

High up on the agenda of the Great Reset is to “build a greener world” which is why ESGs are likely to be the new safe haven assets as we face the music and dance

The IMF talks about “quadruple dividend tomorrow,” in Green assets, which suggests some type of shareholder capitalism has a seat in the Great Reset, provided that investors dance to the globalist elite ideology and embrace environmentalism and what else?

Rule by the central bank’s fiat currency, which is likely to go digital, as a part of the Great Reset, to support some type of Universal Basic Income (UBI) connected to a social score system will complete the ultimate mas control surveillance system. 

Rule by fiat will be finally compete in the Great Reset. In this totalitarian digital dystopia “You will own nothing, and be happy” any dissidence will automatically trigger sanction from the thought police, the social media platforms. Expressing discontent will lead to social alienation, being locked out of your social media account, or even worse being locked out of your bank account. This is already happening. 

But let’s get back to the crux of this piece, which is identifying potential new safe haven asset ESGs.

What are ESG assets?

These are companies that comply with an ideology of sustainable development in the sphere of environmental concerns, social concerns, and governance. 

So environmental factors include the contribution a company or government makes to climate change through greenhouse gas emissions, along with waste management, and energy efficiency. For example, any company directly or indirectly involved in the mass transportation of people and goods with an emphasis on low or zero carbon emission.

So, any company involved in electric vehicle production, and providing the infrastructure to support carbon-free mass transport is an example of ESG investing.

ESG factors include social which relates to human rights, labor standards in the supply chain, any exposure to illegal child labor, and more routine issues such as adherence to workplace health and safety. Governance refers to a set of rules or principles defining rights, responsibilities, and expectations between different stakeholders in the governance of corporations. 

Could ESG funds be a way of gaining exposure to potentially new safe haven assets?

Yes, ESG funds are portfolios of equities and/or bonds for which environmental, social and governance factors have been integrated into the investment process. In other words, the fund contains stock and bonds which comply with ESG criteria. So, the fund would exclude companies with poor records on pollution, labor relations, or management practices. It would also exclude the sovereign bonds of governments with similar poor records.

What are the advantages of potentially new haven assets, ESG over more typically safe haven assets such as precious metals?

Investing in ESG can provide income either through corporate bond yields or dividends from ESG stocks. Another advantage of investing in the new safe haven ESGs is that you are not going to be offside the central banks’ liquidity cannons. Until the system is ruled by fiat, why own an asset rigged to the downside when the alternative is investing in assets which will benefit from the central banks’ liquidity cannon.

Moreover, investing in the new safe haven ESGs also means you are investing in building a sustainable, cleaner world for posterity and profiting from it too. So, everyone wins.