Armstrong Economics Blog/Climate Re-Posted Mar 21, 2023 by Martin Armstrong
President Biden’s decision earlier on Monday to veto a bill that would have killed a Labor Department rule on environmental, social, and governance (ESG) investing, has effectively seized your pension and expropriated it directing it to invest in this failed green agenda. That is UNCONSTITUTIONAL and there needs to be an immediate class action suit brought against this outrageous agenda.
In the land of the most insane left-wing Democrats, California, CALPERS, the California pension system for state employees, was directed to invest in “GREEN” projects for political reasons and lost big time. They have been trying to cover-up their politically correct investment decisions ever since. Whenever a politician sticks their foot into how to invest money to carry out their own personal political agenda, not only is that UNCONSTITUTIONAL, but it is really criminal. They are expropriating your pension fund for their agenda.
The Takings Clause of the Fifth Amendment to the United States Constitution reads as follows: “Nor shall private property be taken for public use, without just compensation.” In understanding this provision, we must look to the “intent” of the law when enacted. The Clause was intended to uphold the principle that the government should not single out isolated individuals to bear excessive burdens, even in support of an important public good. What Biden and the Democrats have done is so unconstitutional it is no longer funny. Anyone who voted for this act is NOT qualified to be in Congress for they obviously are ignorant of the Constitution which they have sworn to uphold.
The Democrats, to further their climate agenda, have gone way too far. They have violated the Taking Clause and when this happens, the payment of “just compensation” provides a means of removing any special burden. That would be ALL losses incurred by this order are to be borne by the government. The most important statement of this principle is found in Armstrong v. United States 364 U.S. 40 (1960), where the Supreme Court wrote:
“The Fifth Amendment’s [Takings Clause] . . . was designed to bar Government from forcing some people alone to bear public burdens which, in all fairness and justice, should be borne by the public as a whole.”
Only two Senate Democrats voted with Republicans to overturn the rule on March 1st. Sen. Joe Manchin (D-W.Va.) called Biden’s decision “absolutely infuriating” in a statement remarking that the Biden administration is putting its “radical” and “progressive agenda” ahead of the country’s needs.
The point is that this is TOTALLY Unconstitutional. They can no more do that than order everyone must invest in an abortion clinic.
I have mentioned before, we have some of the largest funds in the entire world as our clients. We were actually asked if we could design a “green portfolio” where they did not lose money. A break-even would be fantastic. Biden has now undermined everyone’s retirement savings by making it illegal to consider risk factors that make NO investment sense.