Frederick Bott
4 min readDec 16, 2021

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Thanks for your informative diagrams, I hadnt seen before.
I am not an economist, but am a long practicing "Professional" model based systems Engineer. That is why I like your diagrams. Effectively, those are System Models, or more accurately; "Model views".
Recently, an unpaid project of mine has been to be modelling the system of humanity also, with an intention of solving, or at least understanding the environmental issue, which is not so obviously related to conventional economic analyses, as far as I have seen, but from the systems Engineering point of view, which must cover all stakeholders, it absolutely is.
Something I've never liked much about economic theory, and still really don't, is how everything seems arguable.
No-one seems willing to commit to a system which is definitive, which can be proven as "Delivered" or not.
Most economists seem to enjoy arguing over most things, in a way everyone's opinion is valid.
But in Systems Engineering we are not afforded that luxury, a system will either fly, or it won't. There is only one physical reality we can apply, and anyone found not to be seeing it quickly finds themselves out of work.
Anyway, a fundamental issue that most economic analyses I've seen so far seem to have, is that the system from the economist's point of view, always misses something fundamental, which if added would make the system much easier to verify right or wrong; Energy.
In your diagrams, by the "Austrian Economics" ideal that all money issued should be backed by product, energy should accompany all money flows, since every unit of money is exchangeable for an amount of fuel containing energy. Now the problem starts to become clearer when we realise that a unit of energy does not actually change value in nature, it is a fixed quantity of Joules, which has a fixed capability in nature. So why should money be allowed to change in terms of capability? There should be no such thing as market prices, for energy, we should know exactly the capability of any particular unit of currency, because we know the capability of a Joule of energy, otherwise could never have built things that actually fly.
So it seems to me that to build an economy which actually functions as intended, it has to include energy. Energy has to align with money. All money has to have an energy standard, rather than a gold standard as it had previously.
When we do that, we can actually Engineer the economic system of humanity, to actually calculate all the liquid flows in your diagrams adding things like pressure, voltage, etc.
Also an energy input would be found to be needed in diagrams concerning sources of money, to show where all energy comes from; the sun.
That would assist us greatly in sorting out the energy issue, because curremtly, very few people seem to know or accept the very simple yet fundamentally important fact that the sun is the single source of all energy, that is the only reality we have to play with, it all comes from the sun, and it isn't renewable, not in any way at all.
As long as we don't have things like that clear, eveything is up for argument, and we will argue, rather than fix the problem, it seems to me.
The harsh fact is, there seems to be many "Professional" occupations which will become redundant, when the smoke clears.
Perhaps that is what is really happening, when we notice so many jobs are being automated. The only difference between an individual pretending to be busy in a "Bullshit job", and a corporate tribe of individuals "In business" to "Sequestrate Carbon", is that one is an individual, and the other is a tribe.
The good news, after all cynicism, is that all energy is free. Therefore to increase the rate of money issued, we need only increase the amount of free energy accepted at the input from the sun.
That means all money issued should be backed by solar energy infrastructure, to ensure sufficient energy is being received, to justify the printing of the money, since every joule of energy received is convertible to hydrogen fuel.
What all of this leads to is free money.
That is the only way out of the energy and environment crises.
Physical fact, whether we like it or not, the value in capital is not what was thought, it isn't reality.
The value is in energy, the thing we are running out of whilst sufferring from the toxic wsdte of consuming it, extracted always from capital, because of course it can't be known otherwise, if there has never been identified the grand donor of all energy and all real wealth, the sun. Of course we had to run out of capability to do that, and that is what is happening right now.
But most people don't understand, and they won't, until things like this are sorted out, they just see our writings on these things as more time wasted, when actually it isn't, this is the most valuable time ever spent by people in our history, it seems to me, because it will fix the problem.
There is only one solution.
We must connect to the sun.
When we do that, all else is fixed.
If we don't, then everything stays wrong, until the end of us.

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Frederick Bott
Frederick Bott

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