It is fine to not know where stuff comes from, but it isn’t fine to not know where stuff comes from while dictating to the rest of us how the economy should be run.
A lot of people saw this coming. A lot of people were right. A few MMT informed ecological and labour economists said the inflation would be transitory, not "runaway" because they understand the monetary system like no one else who is mainstream textbook and school trained. Contrary to popular misconception, MMT folks tend to hyper-focus on the real resources. But they also know the source of the price level. They were right.
This is still my favorite doomberg article of all time. I find myself paraphrasing the thesis about not knowing where things come from almost weekly.
If we get inflation, we can just print more money; easy!. And if we do not stop making stuff, the Planet will fly straight into the Sun in 7 years, or maybe in 7 billion years. Same same.
The geniuses in charge are slashing the economy with a double-edge sword. Taking steps back down the energy evolutionary ladder produce a market effect that is the same as inflation - rising prices, but these backward steps are not truly inflation, they are rising costs that translate to a higher price. Rising prices are also an indication of Inflation; however, Inflation, the kind that really hurts in global economy, is uniquely an increase in the money supply that dilutes the value of your currency. The government nitwits in charge are therefore doubly stupid as they are also diluting the money supply with their printing presses whilst also causing increased costs.
As a chemical engineer, I get frustrated by people who turn up their nose and want to shut down oil and gas production. Meanwhile, these same people would go ballistic if they could no longer buy Lululemon yoga pants, North Face jackets, smartphones, and vanilla frappuccinos in plastic cups.
It is NOT OK to not know where things come from!! If 99% of people do not know where things come from, then there's a high chance some of those people will make some terrible decisions for all of us. Sadly, the people who know most about energy systems and critical commodity chemicals (engineers) are not making policy decisions.
Thank you for this article!
Yeh we are heading back to the bottom rung of the ladder! We are burning trees and using corn to create fuel but through political correctness, creatively calling it biomass or clean fuel.
What if oil was actually abiotic and is an ongoing product of massive dynamics in the earths core?
Interesting. Next question: Where does stuff go?
Having been directed to this article, while reading “Back to the Future”.. Both articles, being an excellent read.. Collectively, they tie into the narrative, that it is not fine to dictate changing economics, while being ignorant as to the functions of a modern day economy.. Currently, with the greatest example being put on display, throughout Europe. Where an entire continent of people, has committed themselves to being directed by individuals who are extremely uninformed, so-called leader’s, in Brussels..
This article is so good I just read it twice more. Was just watching someone on one of the cable networks who called the current state of affairs maybe “the biggest self-inflicted wound” in history.
What can I (we) do to fight this and to change the narrative?
Brilliantly written article. Thank you.
I would just clarify the last sentence; “Fossil fuel” Energy is stuff. “Fossil fuel” Energy is life. What’s the price elasticity of demand for life, and who can afford to pay it?
Brilliant article. I hadn't even considered just how much stuff would be dependent on oil byproducts, although it seems obvious now that you explain it so well.
I'd been misled by the constant insistence that there were "green" alternatives to everything, but as seems to be the case with pretty much all "green" alternatives (other than nuclear), they come with their own environmental and economic penalties.
Reading this great article makes one wonder just how many people young and old have been completely "Thunberged"
Excellent piece, thank you!