It’s really that simple. However, there is no mention of it (energy) by any of the leading financial or precious metals analysts. For example, in Alasdair Macleod’s recent Goldmoney.com article titled, How To Return To Sound Money, he states the following:
This article provides a template for an enduring sound money solution that will deliver economic progress while eliminating destructive credit cycles. It posits that a properly constructed gold and gold substitute monetary system, which also includes the removal of bank credit inflation as a means of providing investment capital, is the only way that lasting stability and prosperity can be achieved.
Alasdair Macleod, who I have a great deal of respect, doesn’t mention “Energy” once in his entire article suggesting that returning to sound money, through gold, is the only way for lasting stability and prosperity can be achieved. The majority of economic prosperity has come from the burning of oil, natural gas, and coal, not from gold or silver. The precious metals act as money, a store of value, or economic energy, but are not the ENERGY SOURCES themselves. While this is self-evident, it is very important to understand.
The overwhelming majority of analysts do not understand that ENERGY is the driver of the global economy, not finance. Here is a perfect example.
If you want to drive your brand new car to a restaurant, what is NECESSARY to have in that car? Correct… you need the fuel. That $35,000 car is worthless without the fuel. If you had no fuel and I walked up to your house and gave you a ticket for 20 gallons of gasoline, would that get you to the restaurant?? NO… it would not. A Ticket representing gasoline is not the gasoline. This is what people do not understand today.
The money in the bank is not the FUEL; it’s the ticket for the FUEL. Without the burning of billions of barrels of oil and natural gas equivalents, along with coal, the MONETARY SYSTEM would not work. The energy comes first, the money second. It’s always been that way.
Unfortunately, the amount and value of TICKETS in the system have continued to increase exponentially while the quality of the energy is declining. It’s not the quantity of energy that is important, but rather the QUALITY of energy. Because the quality (and soon the quantity) of energy is declining, the tremendous amount of outstanding TICKETS in the world will lose their value.
Which brings us to gold and silver… Fiat Money (Federal Reserve Note) is a mere TICKET for energy in the world, while gold and silver represent a BANK of stored economic energy. There is no stored energy in gold or silver, but they act as a BANK of energy equivalents.
Energy Equivalents Of Fiat Money vs. Precious Metals (based on $ 2.75-gallon gas)
$20 Federal Reserve Note: Intrinsic Paper value of note worth 13 cents (at most) = 1/20th of a gallon gas
1 oz Silver Coin: Worth approximately $18 = 6.5 gallons gasoline
1 oz Gold Coin: Worth approximately $1,550 = 564 gallons of gasoline
The energy equivalent values for the precious metals are considerably higher than the Federal Reserve Note… no shocker there, but this is only part of the equation. I am not going to get into the details in this article, but will be doing so in a new Youtube video update. If you have not yet subscribed to my SRSrocco Report Youtube Channel, please consider doing so at the link: SRSrocco Report Youtube Channel.
Getting back to the failure of financial and precious metals analysts to include ENERGY in their analysis, here is another article focusing on the “symptom” rather than the underlying factor, The Fed Won’t Avert The Next “Crisis”… They Will Cause It:
“Yes, we did indeed need the Federal Reserve to provide liquidity during the initial crisis. But after that, the Fed kept rates too low for too long, reinforcing the wealth and income disparities and creating new bubbles we will have to deal with in the not-too-distant future.
This wasn’t a ‘beautiful deleveraging’ as you call it. It was the ugly creation of bubbles and misallocation of capital. The Fed shouldn’t have blown these bubbles in the first place.”
The quote in that article was from John Mauldin. Mauldin is the typical financial analyst that seems to believe in the ENERGY TOOTH FAIRY. According to Mauldin and 99% of financial analysts, the majority of our problems stem from Central bank intervention, debt, corruption, or some form of socialism. Again, nowhere in the article linked above is the mention of ENERGY…. ZIP… NADDA… ZILCH.
I could go on and on.
One aspect not considered by the Mainstream or Alt-Media analysts is that the Fed and Central Banks are likely postponing the collapse of our global economy for as long as possible. No one seems to GET THIS. Sure, there are a few like Gail Tverberg. She gets it. But, most just point out the mere symptoms without looking at the underlying factor...
- Source, Steve St Angelo, read more here
