A month ago, in a small Discord chat room with a few friends, I wrote another iteration of how I understand economics, which is not quite like anything you can read in a book or learn in a class.
Like most “Major Events”, this one also seems to be serving various purposes for, and presenting various dangers and opportunities to, various peoples, weak and powerful.
We are also coming to the end of the Petro-Dollar and may well have just passed Peak Oil.
A key aspect of the current Corona Virus Scamdemic is the more or less global lockdown and shutdown, collapsing economic activity dramatically world-wide. Global oil shipments have collapsed to half their usual volume, and the price for crude has collapsed to a quarter its usual price. The combination of those two “black swans” has collapsed the “cash flow” of Petro-Dollars through the global oil market to one eighth of "normal (1/2 times 1/4 is 1/8). Actually, less than one eighth, as some of the Petro market has moved out of the US Petro-Dollar into Iranian, Chinese, Russian and other currencies.
Much of the world’s debt, of corporations and governments, large and small, is denominated in Dollars. This means that thousands of “entities”, owing hundreds of trillions of dollars of debt are desperate to make debt payments, as their “cash flow” (US Dollars of current revenue, taxes or other income) has collapsed.
This all amounts to an epic shift in
- the world’s dominate empire (which has been the US and the Anglo-American empire),
- the world’s dominate currency (which has been the US Petro-Dollar),
- the world’s primary energy source, which has been petroleum for the last century,
- the world’s level of technological integration (undergoing massive upgrades), and
- likely, the extent to which our civilization goes off planet for critical mineral resources.
The world’s most powerful (and less powerful) are frantically jockeying for position in this truly epic transformation of our civilization.
The economic and monetary theories that I read in books or learn in classes or listen to in Youtube videos simply can’t handle this level of change.
In the next few posts of this topic, I will (more or less) copy and paste a few comments that I made last month in a private chat with some friends, as I continue to think through what this means and how to best explain it.
Welcome to a strange, half-baked (if that) theory of economics and money that will never earn you a single Dollar in the labor market or a single credit in a college course. At best they could earn you a look of confusion and disapproval from a friend, if you try to relay “this theory” (“these fragmentary speculations”).
If I am most fortunate, then something below will spark some interest and creative spark in another, who might choose to join in the sort of discussion that is needed, like water to a seed, to germinate this seed of a thought and “find out what’s in it” (as Nancy Pelosi famously said of the Obamacare health bill.)