Daily Archives: 11 September 2025

I Will Be Brief

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But the climate-funding industry mavens still will not enjoy this. Steven Koonis, Hoover Institution Senior Fellow and one of five authors of a Department of Energy report on climate—what really is known and not known about our changing climate—had these points in his Sunday Wall Street Journal op-ed:

  • Elevated carbon-dioxide levels enhance plant growth, contributing to global greening and increased agricultural productivity.
  • Complex climate models provide limited guidance on the climate’s response to rising carbon-dioxide levels. Overly sensitive models, often using extreme scenarios, have exaggerated future warming projections and consequences.
  • Data aggregated over the continental U.S. show no significant long-term trends in most extreme weather events. Claims of more frequent or intense hurricanes, tornadoes, floods and dryness in America aren’t supported by historical records.
  • While global sea levels have risen about 8 inches since 1900, aggregate U.S. tide-gauge data don’t show the long-term acceleration expected from a warming globe.
  • Natural climate variability, data limitations and model deficiencies complicate efforts to attribute specific climate changes or extreme events to human CO2 emissions.
  • The use of the words “existential,” “crisis” and “emergency” to describe the projected effects of human-caused warming on the U.S. economy finds scant support in the data.
  • Overly aggressive policies aimed at reducing emissions could do more harm than good by hiking the cost of energy and degrading its reliability. Even the most ambitious reductions in U.S. emissions would have little direct effect on global emissions and an even smaller effect on climate trends.

It’s long past time to stop funding that industry and shift the funding to energy production while maintaining environmental damage controls. Environmental damage: not from atmospheric CO2 or too many jet aircraft contrails, for instance, but from damages as the acid rain of mercury-laden fossil fuel smoke (nearly completely eradicated); from the disposal of lithium batteries at the end of their battery car lifetimes; and from the tailings from mining the likes of lithium, copper, and cobalt to make those batteries and battery cars.

The Short and Sweet of It

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Government debt is ballooning globally, but this short post centers on US government debt.

Over the past two decades, governments went on a debt binge, fueled by low interest rates. Now that rates have risen, investors worry that Western governments aren’t willing to make politically difficult decisions to curb public spending….

Of particular interest to me is that this has gone on in extreme parallel (to coin a phrase) in the US. In the years (too many of them) following the Panic of 2008, the US Fed kept interest rates, via its benchmark rate setting artificially suppressed, holding them down almost all the way to zero. That fueled the borrowing, since payments on the debt were so cheap. (The heavily negative impact on fixed-income Americans holding, as their primary income source, corporate and government debt instruments was of no mind to the Fed or to the administrations then in power.)

Federal spending needs to come down, certainly, but that’s made harder to do (the primary impediment is political timidity) at the higher interest rates currently extant.

Therein lies the rub. The Fed’s benchmark rates currently are at, or a skosh below, the rates historically consistent with the Fed’s 2% target inflation rate. The current push to lower them even further, globally as well as here at home, is mistaken. That won’t reduce borrowing; it’ll only increase it, partly to roll existent debt and partly to “take advantage of” the lower rates to increase net borrowing.

No. It’s time for the Fed to be quiet and sit down, leaving its benchmark rates at their current level. The only thing for the Fed to say publicly about rates is to announce in clear, no uncertain terms—no Fed speak—that it’s going to sit down and be quiet, and leave its benchmark rates at their current levels. It’ll be costly and slow for existing debt to be paid down, but our economy will recover to even greater prosperity on the other side. The cost of not sitting tight at current levels will be even greater in the long run of burgeoning debt that ends up so great it cannot be repaid, except with inflation destroyed dollars.

John Maynard Keynes once said that in the long run, we’ll all be dead (so who cares, went his subtext). But our children and grandchildren will be living in today’s long run. We should care today.