Frederick Bott
2 min readMar 19, 2023

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Brilliant story Enrique, thanks for posting.

It occurs to me that there you are seeing a vital clue, as to the real reason we are seeing inflation.

Contrast with the conventional fossil fueled scenario: You might have bought a gallon of fuel, to do the journey instead.

That gallon of fuel would have required the movement of some money, from your account or pocket, to that of the garage that might have sold you the fuel.

So you would have spent some money that you might otherwise have put towards something nice, maybe a small luxury, like say a bunch of flowers for your wife, partner, friend, or whatever.

If you had spent the money on fuel, it would have gone to the fuel company, who had loaned money from the bank, necessary to extract the fuel from the planet.

Whereas the flower seller didn't lend any money, they are completely solar powered like you, selling flowers from their back garden, gaining an income by that.

The key difference between these two scenarios, is that in the case you bought fuel, money was created, by the bank, whereas if you just bought flowers, no money was created.

Now magnify it up, to lots of people making the same savings on fuel, buying flowers, and lots of people selling flowers for free, with the consequence of much less money being created.

Effectively, the same amount of economic activity occurred, regardless of whether or not everyone spent their money on fuel, or on flowers.

But in the case that less fuel is bought, less money is issued.

Therefore in effect, not enough money is issueed to reflect this new free product way of life, that you and an increasing number of many others are starting to enjoy.

Right there, we see the real reason for inflation.

Creation of actual economic product is now outstripping rate of money issue.

This breaks the rule of Austrian Economics, that issue of money must be balanced by creation of product.

Historically, it was issue of money that usually outstripped creationi of product, thus creating inflation, by money not reflecting product.

Now it is the other way round, product is outstripping issue of money, but the result is the same, money is increasingly becoming less representative of product created, so we see inflation.

This effect, with still only 20 percent or so of all power consumed and used being solar, has another 80 percent of movement to do., to reach 100 percent, which it absolutely will, as surely as any plant switches 100 percent from the energy of Earth to the energy of the sun, from when it first forms leaves.

At what point, will money issuers acknowledge the problem, and start to issue money for free, to reflect product created for free, from free energy, is the real question, I think.

More, with a data based analysis, is here:

https://eric-bott.medium.com/filling-the-current-uk-economy-50-billion-black-hole-with-light-34f9de4df245

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Frederick Bott
Frederick Bott

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