America is underwriting its own demise.
The world’s leading asset manager of some $10 trillion in assets did so 18 months after China helped foist a pandemic on America and the world that has caused incalculable damage in blood, treasure, and sacrificed liberty and justice.
It did so after China crushed Hong Kong, clashed with India, antagonized Australia, and as it threatens a takeover of Taiwan.
It did so surely knowing those funds ultimately redound to the benefit of the sworn adversary of the United States that seeks to supplant it and reign as the dominant world power.
And it did so irrespective of its claimed fealty to progressive investing principles.
Pottinger noted:
“The retirement savings of millions of Americans currently finance Beijing’s military modernization and support Chinese companies that are complicit in genocide and other crimes against humanity. Even as Beijing was systematically expelling foreign journalists from China and making the country’s investment climate increasingly opaque, stock index providers such as FTSE Russell and MSCI continued to add Chinese companies to their indexes, sometimes under pressure from Beijing. Because many American funds benchmark their investments to those same indexes, billions of U.S. dollars automatically flow to Chinese companies, including those that Washington has sanctioned or subjected to export controls.”
Meanwhile, many financial firms pledging allegiance to “environmental, social, and governance” standards (ESG) demonstrate that those concerns don’t stretch beyond America’s shores.
As Pottinger says:
“Some money managers ... eschew investing in Western companies that don’t meet ... ‘ESG criteria’ ... but happily invest in Chinese companies that feature atrocious records in all three categories. There are U.S. university endowments, for instance, that could deliberately decide to invest in only ESG-compliant companies in the United States but simultaneously invest in a raft of Chinese firms that flout all accepted standards of corporate governance and environmental stewardship.
“Chinese firms contribute more to greenhouse gas emissions, ocean plastic pollution, and illegal fishing than do the companies of any other country on earth. As for social responsibility, a wide variety of Chinese companies—from leading technology firms to manufacturers that export globally—work with Beijing’s security apparatus to track, incarcerate, and extract forced labor from ethnic Uyghur and Kazakh Muslims. With respect to corporate governance, CCP cells, operating mostly in secret, wield significant and often decisive control over Chinese companies—making a mockery of Western standards of corporate transparency and independence.”
American—increasingly in-name-only—financial firms, which lubricate the global economy, epitomize the woke elite, who reject the very system from which they have so richly benefited.
The existential crisis concerns our understanding of who we are as a nation, our confidence in its purpose, and our resolve to do whatever is necessary to defend and protect it and cultivate its greatness.
Unserious as this cynical charade is, it may prove fatal.
Domestic peace and prosperity will erode, morale will recede, the will to survive—let alone thrive—will be extinguished.