The Collapse of the $5 Trillion Green Energy Scam: A New Era of Investment Opportunities

By Doug Casey, December 2024

The world has witnessed an extraordinary financial commitment to green energy initiatives in the past two decades. Governments worldwide have spent over $5 trillion to subsidize wind, solar, and other so-called "renewable" energy technologies. However, despite this enormous expenditure, the world still relies on hydrocarbons for 84% of its energy needs—a meager 2% reduction since the green energy revolution began.

What does this tell us about the efficacy of green energy subsidies? And why is the world still dependent on fossil fuels, even after such a significant financial push? The reality, as Doug Casey explains, is that the green energy push is less about saving the environment and more about ideological and economic manipulation, with potentially disastrous consequences for both energy consumers and investors alike.

The Triumph of Pseudoscience Over Physics

Doug Casey’s perspective on the green energy movement is both blunt and thought-provoking. He suggests that the push for green energy is not driven by scientific facts but by political motivations, pseudoscience, and a disregard for economic reality. The movement, he argues, is rooted in an anti-human agenda—driven by people who believe reducing human consumption, and even population, will "save the Earth." This worldview is rooted in an ideology that prioritizes the environment over human flourishing, and it’s being force-fed through government mandates, subsidies, and regulations.

Casey points out that renewable energy sources like wind and solar, while useful for certain specific applications, are fundamentally impractical for mass power generation in an industrial society. Not only are these energy sources costly to build and maintain, but they also come with the major flaw of being intermittent and unreliable. When the wind isn’t blowing or the sun isn’t shining, these sources of energy are useless without a substantial backup infrastructure—usually fossil fuel or nuclear power plants. The high costs and inefficiencies of these systems continue to drain capital, which could be better allocated to more practical and efficient energy solutions.

Electric Vehicles (EVs): A Case of Subsidized Failure

The same forces that are pushing the green energy agenda are also backing the rise of electric vehicles (EVs). However, even with government subsidies, EVs are still far from competing with gasoline-powered vehicles on price and performance. According to J.D. Power, the average EV still costs about 21% more than a comparable gasoline car, despite extensive government support.

Casey argues that the government should not be involved in subsidizing any technology—especially not those that distort the market and misallocate resources. While EVs may offer some benefits in specific circumstances, such as city driving or short-range use, they are not the solution to global transportation needs. Casey believes that the free market should determine which technology succeeds, not bureaucrats and policymakers. Furthermore, EVs require vast amounts of additional electrical power to operate, which would necessitate the construction of more power plants—primarily fossil-fuel-powered ones—alongside a massive upgrade to the power grid.

This raises the issue of economic distortion, with government-subsidized EVs diverting resources away from more efficient technologies. If EVs continue to be forced into the market, the automotive industry could face bankruptcies, and investors could be left holding the bag.

The Green Energy Hysteria: A Globalist Agenda

For many, the green energy movement is part of a larger globalist agenda aimed at controlling populations and enriching insiders. According to Casey, the climate hysteria sweeping the globe is a form of mass manipulation, where ordinary people are frightened into compliance while the elite benefit. He draws parallels between this and previous moral panics—such as the hysteria surrounding saving the whales or the overblown fears of the "climate crisis."

The goal, as Casey sees it, is not to address real environmental issues, but to impose control over economies and societies. This manipulation is carried out by politicians, academics, and media figures who push the climate agenda to serve their own political and economic interests.

Carbon Credits and Carbon Accounting: A Scam in the Making

The push for carbon credits and carbon accounting is another example of a system built on false premises, according to Casey. He highlights how the concept of carbon credits—essentially the ability to offset carbon emissions by purchasing credits from other entities—has become a lucrative business for a select few, but it ultimately serves no real purpose in reducing global emissions.

Casey dismisses the idea of carbon being "toxic" and treats CO₂ as a natural and essential component of life on Earth. The war on carbon, driven by the green agenda, is not based on scientific fact, but on a distorted view of environmentalism that serves to control industry and energy production.

He argues that carbon credits and carbon accounting are destined for the dustbin of history, with future generations likely to look back on them as a huge, misguided waste of time and resources.

Investment Implications of the Green Energy Scam

The economic consequences of the green energy agenda are far-reaching, and the capital misallocation involved is already becoming apparent. The world is pouring vast amounts of money into inefficient and unreliable energy sources, and this is having a negative impact on global economic growth, standards of living, and technological advancement. For investors, this presents both a challenge and an opportunity.

Hydrocarbons and Nuclear Power: The Real Investment Winners

Despite the green energy hysteria, there are clear investment opportunities in the energy sector—particularly in hydrocarbons (oil, natural gas, and coal) and nuclear energy. Casey argues that these energy sources remain the backbone of global energy production, and they will continue to be for the foreseeable future. In fact, these sectors are likely to see significant gains as the public and governments begin to realize the limitations of wind, solar, and other renewable technologies.

For speculators, this represents a prime opportunity to stay long on oil, gas, and coal while also positioning for the rise of nuclear energy. As the green agenda unravels and the economic realities become more apparent, the demand for reliable and efficient energy will drive up prices in these sectors. Moreover, uranium and nuclear power are seeing a resurgence, with increasing interest from both investors and governments looking to diversify away from fossil fuels.

Precious Metals: A Safe Haven Amidst Economic Chaos

In addition to hydrocarbons and nuclear energy, investors should also look to precious metals, which are increasingly seen as a store of value in times of economic uncertainty. As governments continue to waste capital on green energy initiatives, inflation and economic instability are inevitable. Precious metals like gold and silver offer a hedge against this instability, preserving wealth and purchasing power when fiat currencies lose their value.

Gold, in particular, has historically been a safe-haven asset during times of financial chaos, making it an attractive option as global economies continue to wobble under the weight of massive debt and inefficient energy policies. As investors begin to realize the scale of the green energy debacle, they will seek refuge in tangible assets, and precious metals will likely see an increase in demand as a result.

Conclusion: Reality Always Wins

The green energy scam, as Doug Casey describes it, is built on a foundation of pseudoscience, economic distortions, and ideological motivations. Despite the massive sums of money spent on subsidies and the growing political pressure to adopt renewables, the reality remains that these technologies are far from ready to replace fossil fuels on a mass scale. For investors, the message is clear: while the green energy push may dominate the headlines, the real opportunities lie in hydrocarbons, nuclear power, and precious metals.

As the public begins to question the green energy agenda and its economic implications, those who have the foresight to stay invested in traditional, reliable energy sources like oil, gas, uranium, and precious metals will likely benefit the most.