Voodoo Modeling says Climate Change makes interest rates rise
Image by Cortex Zone from Pixabay
By Jo Nova
Henceforth and verily, a witless economic model stacked on top of a skillless scientific one says that eating beef steaks makes the interest rate rise. But, don’t worry, if you spend thousands buying heat pumps, windmills and EVs from Matt Kean’s friends, you’ll pay less on the mortgage (trust us) and Wollemi Capital, who Matt Kean works for, will make more money.
Natural disasters fuelled by a failure to curb global warming will make higher interest rates a permanent feature of Australia’s economy, the government’s climate change tsar Matt Kean has claimed, as analysis shows the extent to which climate inaction will harm the nation – in particular in NSW and Queensland – and reduce households’ income.
The Australian Prudential Regulatory Authority has relied on economic modelling by Oxford Economics Australia to inform its first stress test of how a changing climate could affect home insurance, with the data showing the economy fares better – albeit still with challenges – when strong climate action is delayed and taken in the 2030s rather than not at all.
Mr Kean said Australia’s prudential supervisor had put a scenario estimate on the cost of climate inaction that dwarfed the cost of acting.
“We’re talking about household incomes potentially 20 per cent lower than the status quo, persistent inflation, and rising interest rates driven not by policy mistakes but by floods, fires and other disasters made worse by climate change,” Mr Kean said.
Not only are climate models unable to predict wind, rain, drought, clouds, cyclones, and El Ninos, they also can’t predict the climate in the short run, the long run, or the past either. Therefore the economic modeling is mere fortune-telling or worse, it’s just advertising.
https://joannenova.com.au/2026/05/voodoo-modeling-says-climate-change-makes-interest-rates-rise/
