by Olivia Hanks
The news that Royal Bank of Scotland has cut its investment in fossil fuels by 70% is only the latest in a string of decisions by high-profile investors to pull back from oil and coal. Norway’s sovereign wealth fund has divested from companies that derive more than 30% of their sales from coal; and, last month, the Rockefeller Family Fund announced that it would no longer invest in fossil fuels.
The fact that both Norway and the Rockefeller family derive their wealth from oil has not been lost on commentators. Whether or not you consider it hypocritical to invest ‘dirty’ wealth in ‘clean’ projects (if so, what should be done with it instead?), the low price of oil and coal has offered a perfect PR opportunity with no financial sacrifice.Continue Reading
by Sam Alston
You can probably be excused for failing to notice that commodity prices on the whole have been falling. The price of gold (19.5% fall over the year), wheat (20% fall), and oil (over 30% fall) on global markets have all dropped recently. This has left mainstream finance reporters rather excited. As with house prices rises, commodity price falls are apparently a fundamentally good thing. However it’s worth considering what this commodity price movement actually means.
Lower commodity prices means lower production costs for net importers of commodities (much of the western world), thus supposedly lower prices. The continual rise in the price of things like energy and bread that we have seen in the past few years should abate. Since it has been made clear over the last few years that society no longer guarantees the right to commodities needed to live (like food), a reduction in these prices would potentially be the best step to stop people starving.
Those of a more revolutionary bent, may be slightly disappointed. A high cost of living has helped to bring down dictatorial governments in places like Tunisia, helped prompt the occupy movement, and just last week promoted an uprising in Burkina Faso that saw the parliament burnt to the ground.Continue Reading