Tuesday, April 5, 2011

Quote of The Day

... and, possibly, the rest of the century:
"...the economy is a function of surplus energy, and money is the medium with which this energy surplus is quantified. From its origins as a claim on human energy (in the form of labour), money has become a claim on energy, past, present or future. At the same time, debt is by definition a claim on future money. So the ultimate nature of debt is that it is a claim on future energy.

A debt-driven system is thus viable if – and only if – the energy of the future is sufficient to meet the claims that exist on it. And the payment of interest in turn requires that the money (that is, the energy-claim) of the future has to be greater than it is today."
From: End Game - The Denouement of Exponentials, Tullett Prebon

2 comments:

  1. Therefore the current global debt-burden is completely irrational, as the energy of the future, on which the debt is a claim, has almost no likelihood of being greater than that produced by our fossil-fuelled economy, or even matching it.

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  2. I'm afraid you're right Hugh.

    There's an interesting interview with the folk from Tullett Prebon towards the end of Peter Day's recent podcast on oil: http://www.bbc.co.uk/podcasts/series/worldbiz/all#playepisode2

    ReplyDelete

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