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


  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.

  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


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