The Only Honest Oil Price is a Negative Oil Price
Miracles, or just Kardashev Money at Work?
Imagine the amount of money that could have been won, by anyone placing a bet before covid, that oil prices would go negative within just a few months.
I am not much of a gambler, but I guess a hundred thousand to one, or even a million to one might have been offered against that with confidence by bookies.
None of us saw it coming. Still not many seem to be able to explain it. Definitely not anyone with stakes in oil. Even if they could, they daren’t, lest it happens again.
And it will.
Because it has to, nature insists, we can be sure of that.
The industry claims it was a simple matter of supply and demand, that they just supplied too much, and the demand dropped to the point where there was cost associated with returning some back to suppliers.
Even the Robinhood enterprise failed to mention something very relevant, because presumably, they would prefer not to be seen as aiding and abetting folk to “Gamble” with free money, issued by the government, at the time, just before we saw the oil prices go negative.
What actually happened was a massive increase of folk with no previous trading experience on the markets using the Robinhood app, trading with money they received for free.
So they were not interested in profit, unlike traditional investors like Warren Buffet, who quit the markets at the time, claiming “Something had gone wrong with money”.
There was further evidence of this in the trading of bankrupt stocks
Folk were just buying shares in things they wanted to see rescued, including cars for hire, and cruises on ships, and the laws in US were changed to allow trading in those bankrupt stocks to continue, in the absence of traditional trading, which had largely exited the market following leaders like Buffet.
But they obviously didn’t want oil, so it went negatively priced.
Of course negative oil prices were very bad news for traditional oil investors like Buffet.
But it was good news for the planet. And it revealed that we, joe public actually don’t like oil much either.
For that short time, pure, fine grained democracy was at work in the markets.
Further, it was fuelled by free money, which conventional economists can only conclude has to be in the form of money-as-debt.
But we can see mathematically now that in the presence of solar power, everything changes.
Now, money given for free is backed by real physical product, received for free.
Further, reception of product for free, with no issue of money, in an economy growing nonetheless, has to result in inflation.
This is the real, physical reason for the inflation we are now seeing, and the only way it can be stopped, is by issuing money in response to the energy being received from the sun for free.
We’ve made this physical connection to the sun, in the form of solar farms all over Earth, as surely as a plant forms its first leaves, driven by nature, with ever more physical and financial significance since around 2005.
Now we even have the data and analysis to show this as proofs:
Using the techniques of formal Systems Engineering, we can put all of this together to form the whole system picture, and we have.
This shows categorically that what the connection between economy and solar energy does, is force us to obey some basic laws of nature.
Effectively, we signed a kind of contract with nature when we started to take the energy of the sun, and put it to our economic use.
The rule which we must abide by goes something like this:
Nature is the grand authority. Her currency is energy. There is one issuer and enforcer of that currency, the sun. We must use that currency, or burn.
In truth, we didn’t have a choice of whether or not to sign up to this contract. We either had to sign it, or perish as a species. But since when did that ever stop human contracts? Why would a contract with the grand authority of nature be any different?
Now, we just have to honor it.
But so far, we are not, technically, by not issuing our human money directly in response to receiving that currency of nature, issued by the sun.
Unless that is, we acknowledge that the free money (Stimulus) already handed out during covid, and since, was actually this; money issued in response to receiving the energy of the sun, “Kardashev Money”.
Then all makes perfect sense.
The stimulus money incorrectly identified as being issued as debt, is not actually debt, something owed by people, but actually a credit.
It’s sign changes from negative to positive, just like oil prices went from positive, to negative.
Just like the energy through the plant changes in direction from negative, upwards, drawn from Earth, to positive, downwards, from leaves to Earth, in response to the energy received from the sun on its leaves.
The plant went from living on negative energy, energy extracted from Earth, to positive energy, energy added to Earth, issued by the only source of it, the sun.
Every day, millions upon millions of plants do this, adding the energy to Earth required by all life, including us.
We are doing it right now, once, as a species, after thousands of years living on extracted energy.
After this is acknowledged, and we truly turn on the money taps necessary to honor our contract with nature, then inflation is fixed. We will quickly see in markets true democracy actually working, to fix honest prices on everything, what we really value and don’t value, rather than what makes a profit, and what doesn’t.
Negative pricing, is how a truly free market shows what it doesn’t like.
The only other things that have gone negative priced in history were never commodities, only various forms of garbage.
In the presence of Kardashev Money, oil becomes garbage, consigned to the same pile of unwanted stuff that it created.
Mathematically, it all adds up in terms of energy, positives and negatives can’t be lied about.
Nature just requires that we make our money work the same.
By that we will be honoring the contract with nature.
Until then, nature will continue to devalue money, manifesting as inflation which can’t be stopped.
Depending on our point of view, we might see this as something to commiserate or celebrate. But in the end we all have to come round to the truth, honesty, the way things really work.
Personally I think this is something worth celebrating already.