Energy use is directly proportional to economic productivity
Money is claim on productivity.
Massive debt and money-printing by the West will be massively inflationary unless even cheaper, more dense energy sources are found and used.
in fact, we are going the other direction - using massive debt and fiat money to bring forward LESS dense sources of energy.
Astonishing, isn’t it? When you put it that way...
“Massive debt and money-printing by the West will be massively inflationary unless even cheaper, more dense energy sources are found and used.”
The most inflationary instrument in world history:
“Is the convoluted overpriced real estate market.”
Real estate will stay high the longest before it “deflates a bit” sometime in the 2030’s.
Since 1789 we’ve had a few deflationary cycles, lasting a variety of years.
None of them were because of an energy supply problem. The problem is always an unhealthy expansion of credit/debt to private individuals and businesses, as related to the productivity of the overall economy.
When PPP loans, stimulus, unemployment benefits, and central bank Treasury purchases cease.
Only one axiom will exist:
“It’s only when the tide goes out that you know who’s been swimming naked.”