Printing $ 1.7 Trillion for Climate Change: How Joe Biden’s Administration Aims to Promote the “Green New Deal”

In 2020, the US Federal Reserve injected a huge amount of US dollars into special interests in the banking sector to combat the economic effects of the coronavirus outbreak. This week the central bank released its financial stability report, and the Fed discussed tackling climate change for the first time. A number of economists and analysts now believe the Fed intends to help President-elect Joe Biden’s transition team print $ 1.7 trillion for the Democratic Green New Deal plan.

During World War II and after the stock market crash during the Great Depression, President Franklin D Roosevelt (FDR) ushered in a “New Deal” to combat the wounded American economy. In 2020, Americans are hearing about another so-called “Green New Deal” deal designed by Democratic leaders in Congress.

The Green New Deal is a government proposal that aims to harness stimuli and tough laws to combat climate change and economic inequality. The plan calls for the distribution of a huge amount of Federal Reserve (FRN) notes and laws that help America switch from fossil fuels.

For some time, people thought that the Green New Deal would go stale under another four-year Trump presidency and without the help of the Federal Reserve. However, now that Joe Biden is supposed to be the next president of the United States, even if Trump won’t admit it, people are expecting the New Green Deal to be approved by Congress.

Then, this week, the US central bank released the Fed’s Financial Stability Report, which usually discusses a variety of banking procedures but, instead, the Fed highlighted climate change. “Federal Reserve supervisors expect banks to have systems that can appropriately identify, measure, control and monitor all of their material risks, which for many banks are likely to extend to climate risks,” the report said. on financial stability.

Now, this is the first time the Fed has written about tackling climate change in a stability report, but Fed Governor Lael Brainard also addressed the issue in 2019.

The recently released financial stability report has made economists, media and analysts suspect that the Fed will support the Democrats and Biden’s plan to usher in the New Green Deal. It will also allow the US central bank to keep the money tap on full blast, as the New Green Deal needs around $ 1.7 trillion under the proposal.

In addition to receiving $ 1.7 trillion from the Fed and the Treasury, the Democrats want to end hydraulic fracturing in the United States as well. Mainstream media reporters also assume that Lael Brainard is “a major contender for Treasury Secretary in President-elect Joe Biden’s cabinet.”

“It is vitally important to move from recognizing that climate change poses significant financial stability risks to the stage where the quantitative implications of those risks are properly assessed and addressed,” explained Brainard discussing the topic of climate change and its impending effects on the US economy.

Since the announcement that Joe Biden may be the next president of the United States and Pfizer’s proclamation of the vaccine, gold and gold futures have seen the largest daily price drop in seven years. Bitcoin (BTC) prices have done the opposite, and BTC’s value has recently jumped beyond the $ 16,000 price zone. With a possible presidency of Joe Biden, a large number of bitcoin supporters are expecting far more stimulus from the Fed and politicians.

“Now that the US elections are behind us, the focus is returning to the proposed fiscal stimulus package,” said cryptocurrency analyst Simon Peters of Etoro this week. “Even with the prospect of a Covid-19 vaccine, the US economy will still need support to assist it during the period before it is made available to the people. The size of the package and the mechanics behind its funding could be the catalyst to finally get us over $ 17,500, ”Peters added.

Financial experts assume the Fed is planning to help push through the Green New Deal in 2021. However, this week the POTUS in office Donald Trump plans to shake up the Fed board, which has begun to worry US Democrats.

However, the media still assume that President-elect Joe Biden will keep Fed President Jerome Powell in his position after the apparent administrative transition. Just recently, the Fed chairman also discussed the topic of climate change and talked about how it could be incorporated into central bank procedures.

“Incorporating climate change into our thinking about financial regulation is relatively new, as you know,” Powell said. “And we’re very active in the early stages of this, catching up, working with our central bank colleagues and other colleagues around the world to try and think about how this can be part of our structure.”

What do you think of the US Federal Reserve talking about stimulus plans for climate change and the New Green Deal? Let us know what you think about this topic in the comments section below.

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