Sweden dumps carbon glutton Australian bonds

Welcome to the future at the AFR:

Sweden’s central bank said on Thursday (AEDT) it had sold off bonds from the oil-rich Canadian province of Alberta and parts of Australia because it felt that greenhouse gas emissions in both countries were too high.

Riksbank Deputy Governor Martin Floden said the bank would no longer invest in assets from issuers with a large climate footprint, even if the yields were high.

“Australia and Canada are countries that are not known for good climate work. Greenhouse gas emissions per capita are among the highest in the world,” he said in a speech at Orebro University in Sweden.

Here it is:

Better warm up those priting presses for “quiet Australian’s” mortgage rates.

David Llewellyn-Smith

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.

He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.

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Comments

        • It’s worse than that. We don’t pay AUD for anything – we mainly pay in USD or EUR and we buy those currencies in the FX market using AUD. If (when) the market decides the AUD has become a bit stinky you can hello to a lot of inflation. But don’t worry, rates will remain low and the printers will remain on. On the other hand …

      • Inflation is great if you have debt, but it’s managing the inflation and the right kind of inflation (that eats away at debt) like via wages growth that counts.

  1. 13 hours ago

    How good is this carbon tax!

    Jessica Irvine has the same idea as me.

    It was the British economist Arthur C Pigou who first proposed the idea of applying taxes to goods or activities that society has collectively decided it would like to discourage. The beauty of such “Pigouvian taxes” is that they not only change behaviour, they also raise revenue

    For every dollar raised through the pollution tax, I pledge that Australian households will receive a full dollar via a “pollution tax rebate”. I personally guarantee that no Australian household will be worse off under our pollution tax and rebate scheme.

    https://www.smh.com.au/environment/climate-change/how-good-is-this-carbon-tax-psst-pm-s-speech-falls-off-the-back-of-a-truck-20191113-p53a9h.html

    The fake Greens did not even give me a $50 carbon compo cheque.

    • Pls explain how a carbon tax doesn’t raise the cost of living for everyone?

      And, indeed, if you’re handing out rebates, who on earth is actually paying this tax? Are Govts raising any money at all?

      Asking for a confused friend

      • Because the fake Greens put in the carbon tax.

        Frydenberg has a policy of giving out carbon compo cheques:

        “This is money that is going to go into people’s pockets to help meet the cost of their next power bill,” Mr Frydenberg told Nine’s Weekend Today Show on Sunday.

        22 hours ago, Jessica Irvine said she wants carbon compo cheques. Nick Xenophon gave out carbon compo cheques.

  2. What is truly amazing is China has half the per capita emissions as Australia, yet 55x the population. But we’re the bad guys…

    • So, what would you tell the PRC to do: (1) reduce the emissions by a factor of ~25 , or (2) cull the population by a factor of ~50?
      I think you’d like to see both.

      • The population of China will peak in 2023.

        Australia should also have a shrinking population soon but the fake left keeps importing petrol consumers and the fake left refuses to build high speed rail in Australia. Hats off to China for building HSR to get the emissions down.

      • Hey comrade, we are doing our best to reduce our per capita emissions by letting every man and his dog in, so I guess it’s only reasonable for China to do the opposite?? What do you think?

    • NoodlesRomanovMEMBER

      Wow.. I hope you are a Reusa wannabe trying to get a reaction for a laugh. Ding ding. You got me.

      • Hey comrade #2, what isn’t funny is China’s co2 emissions in 2017 were 9.8 billion tonnes, vs. Australia’s 414 million tonnes. Feel free share your enlightenment though, we’d all love to hear it…

    • The planet is over populated if we’re gonna all have the lifestyles of Western Nations and burn the level of fossil fuels to sustain that lifestyle. So either we:
      a.) Curb population growth.
      or
      b.) Change from fossil fuels to renewables.
      or
      c.) Do both (which I’m an advocate of)… although Western Nations are already having less Children. That means that 3rd World countries need to have less kids (Educating women helps) and if we start investing in renewables then maybe we will all be better off..

  3. but Sweden will continue to support bloodshed in the Middle East to secure Hydrocarbons.
    the left make me sick

    • I’m all for piling on, Rod, but are they really a major player in the Middle East — outside of inviting large numbers of migrants from those parts into their midst? Do they have much in the way of military out there? Genuine questions.

      • They are not a big player, but they support all the Hydrocarbon wars. The irony to me is breathtaking.

        If the people that ran this planet really gave a crap about this stuff they and Australia would not be occupying countries to get their oil and gas, and planning new wars to that end.
        They certainly would not be caring about human rights in Venezuela if they were not sitting on worlds largest reserves of Oil.

        One thing I would like to know which no one seems to want to discuss here or in MSM.

        What is a country like ours with a massive welfare state going to do with itself if it does not export several hundred billion dollars worth of Coal, Gas and Oil. ?
        Export Solar Cells ? I doubt it.

        Australia will be like Naru after the phosphate ran out.

        Maybe the Coal and Gas companies should have a shut down for six months to give everyone a taste of the future they crave.

        • Rod, the world is jam-packed full of hypocrisy, no doubt. And you’re right the welfare state is basically doomed without exporting fossil fuels – mind you, it will go bankrupt of its own accord at some point anyway, but yes, our natural resources exports are the chief prop for the current largesse. Part of the issue is that so many people have this perverted view of the way the world really works – it doesn’t matter how many times you tell them that every dollar spent comes out of the pockets of taxpayers they still believe that the gubbermint has a fountain in a secret room that gushes money.

          Never mind, Venezuela / Weimar etc will not happen to us – we’re different 😉 Etc

  4. Meh they are still pissed Norway made a killing out of oil. And are probably even more so now Norway has taken the self-righteous path on emissions thankful they made their 100’s of billions when no one thought too hard about it…..