Frederick Bott
3 min readFeb 11, 2023

--

Trevor, I love the way you've put this, great sales pitch initially for solar, you obviously have a strong handle on technology in general,. Two to the power of fifty, like you've described, is a indeed a big number. We are essentially on the same side, the side of maths and physics :)

So we should see solar comes with a catch - it swaps us, all of humanity to donated energy, as opposed to extracted energy.

This changes the game in ways we are struggling to comprehend, it is very fundamental, it took me quite a few years as a long practicing formal systems Engineer to get my head around even scratching the surface.

The consequence clear to me now, from the formal analyses, whcih are fully validated mathematically, is that many things are turned on their head.

The old rule of money issued diluting capital base, is reverersed.

Solar energy destroys the idea that capital is a fixed base, it creates product including fuel, and even food (See "Solein") out of thin air, at a startling rate, adding to existing stocks of commoditities.

What we have to observe, to preserve any value in money which previously represented only capital, or promises to do labor, is the rule of Austrian Economics:

Issue of money must be balanced with issue of product.

When too much money was issued, with not enough production of physical goods to match the rate of issue, then runaway inflation was seen, as in the classic case of the Weimar, for example.

But when we have nascent creation of product, which adds to capital stocks in one way or another, regardless of what is done with the energy received, it could have just heated somebodie's house, saving them some money on bills, or it could have been transformed to hydrogen fuel, or Solein food, either way it becomes valuable product, whcih has to be ennumerated by issue of money, otherwise the issue of money is being outstripped by creation of product.

See the problem?

The only way around this, is to issue money, and since money-as-debt only tranlates to energy by extraction, because energy received from solar is truly donated, with no per-Joule labor associated, the money has to be issued for free.

You might not like the sound of this, because maybe you are invested in some forms of capital, which you won't like to think are being devalued, but this is a physical thing happening that is far bigger than we can control, we can only respond to it economically by fiddling with things like interest rates and rate of money issue.

Mathematically, nature is screaming at us to issue more money, not less.

The physical reason money is no longer representing actual product, is that the energy product it used to represent is shrinking, whilst another far more valuable energy product is scaling up.

There is no way to retain any value in money which can only represent extracted energy, which is money-as-debt. Further, there is no way to retain any value at all in what is effectively stored energy, ie capital, when live energy from the only source of the latter is scaling up.

So the world is changing, in some very fundamental ways.

One of the things we are going to have to get our heads around, and accept, is that money has to be issued for free, like it was during covid stimulus, in the days of Trump. Only this time, the taps need to be switched on, and left on, to allow the markets no longer trading for profit decide after that, its true value, like all commodities including oil, which again will go negatively priced, but this time never to recover, because this time the free money, representing the free energy will not stop.

Capitalism is finished dude. Now we are moving to energyism, driven by nature.

If you prefer to see something backed by figures, data, and graphs, validating what I am saying here, I did one here:

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

--

--

Frederick Bott
Frederick Bott

Responses (1)