a sort of political "albedo flip.

What is needed is a financial "albedo flip".

A move from a deficit-based financial system to an "asset-based" system.

This is achievable through direct investment in the future production of renewable energy through units in "Pools" of future production.

Exchanging Value now for future energy production, and creating fungible/ exchangeable energy units which are capable - on a suitable market platform and within the legal framework of a "Clearing Union" - of becoming a form of energy-based currency.

Ideally such Pools would be funded in part by a levy or tax (carbon tax)on the use of non-renewables - collected at the clearing level. Until carbon credits - another deficit-based system, but one advocated widely, and also in the CAT study - are shown up for the complete bollocks they are by an alternative that actually works, then that won't happen.

I am sure Jerome and most others on ET are fed up with me saying this, but most of the "investment" currently made in renewables, and in which he is a leading exponent - is not "investment" at all but secured lending.

A big difference. In fact, all the difference in the world. The wrong "polarity".

Such deficit-based financing constitutes a future claim over renewables based upon virtually NO real Value now other than the small amount of Capital required by the Bank of International Settlements (pursuant to Basel Accords I and II).

So only a very small amount of the "investment" - "Equity" in companies "owning" the assets, and the tiny amount of bank capital backing the credit - consists of Value, as opposed to its antithesis - an IOU or claim over Value.

That is the fact of it: banks rarely "invest" - they create credit and lend it - and for so long as they are credit intermediaries, rather than service providers - then they are part (the greater part) of the problem, not part of the solution.

I'll try not to say it again today: but I'm going to keep on saying it!


"The future is already here -- it's just not very evenly distributed" William Gibson