Today's Takeaway: The law of large numbers behind global carbon pricing will create sentiment and technical currency swings in the Yen Index (EUR, USD, GBP / JPY). Watch which central banks start talking about carbon pricing policies as an early signal for currency swings. The European Central Bank (ECB) appears to be leading this charge.
A freezing cold this February 2021 is requiring refineries to flare carbon gases over unsuspecting communities in Texas. As if power outages during the freezing cold were not enough, water lines failed at multiple points leaving some residents without water and heat. The peril to life and limb started with 10 confirmed deaths. To add insult to injury one Texas elected official proposed citizens should "man up and find a way to survive." Constituents were not pleased.
Increasing climate variability appears to be washing up against the rocky shores of polarized America. If climate variance continues to generate climate perils with loss of life and property damage, central banks will likely move ahead and start pricing in the cost of carbon.
And what about carbon gasses released in unsuspecting residential neighborhoods last week? Central banks have started researching the costs of toxic carbon releases, building on legal casework which goes back to US constitutional law and the nuclear test trials of the 20th century.
The Bank of England assumes inaction on global climate change. Therefore, the Bank of England has started researching the estimated climate resiliency cost as; the expenditures needed to defend the British Islands from rising tides, health impacts and more violent storm damage to property.