by shortonoil » Tue 15 May 2007, 09:36:21
$this->bbcode_second_pass_quote('SevenTen', ']')As fossil fuel depletion rapes the economy, governments continue to respond with inflationary money printing ... but the money supply itself is abstract, and what the abstraction represents is a shrinking resource base. Shrinking, due to fossil fuel depletion. In relative terms, the farther down the depletion curve we go, the exponentially more expensive it becomes to get anything done that uses fossil fuels and a fossil-fuel-depend system. There is a good chance that in the case of a few large scale blackouts, the resources simply won't be there to turn the power back on, and the blackouts become, as Duncan's Olduvai Theory predicts, permanent.
Very well put
Seven. As I’ve been saying for some time that fiat currencies, all 3000 of them that we have seen during the course of civilization, have one commonality - they have all collapsed at some point! The idea, that money creates economic activity, is a paradigm that is so embedded in our culture that we just can not comprehend the fact that it is economic activity that creates money; not visa-a-vis. Economic activity requires energy, and as our energy base declines, so will our economic activity. How much money that then exists - is completely irrelevant.
I wonder if, someday, they will be using Federal Reserve Notes for transformer insulation?
"Paper money eventually returns to its intrinsic value: zero." --Voltaire