The old fuel based energy model is based on fuels that are finite and face an increasing price of fuel every year. An new energy model is based on renewable energy and needs only capital.
The Western World has had it time in the sun. Their wealth levels are too expensive for good competition in an open global market, they have relatively more old not productive demographics and on top of this (or by this?) they can't absorb strong price rises of energy and resources by more efficiency. The best the Western World can do in the 21st century is maintain there current levels of prosperity. This Sustainable Prosperity (often called Economic Adulthood) they only will enjoy if they a) change their energy system, b) prevent a collapse of both their financial sector, c) prevent a collapse of the governmental income and d) prevent a collapse of their currency values. If they can't do this four they will not get Sustainable Prosperity and go into Economic Decline. Bla bla bla on western superiority is just bla bla bla, it's just a self overrating wannabe misconception with neo-colonial roots of the Western World. China and India deliver more Ph.Ds each year than the USA and Europe have all together. The Western World just has become too expensive, too less productive, too credit burdened. Low production and high credit often goes together. Credit than is used to compensate the low production (as in: for consumption and bubbles) instead for production facilities.
Our current fractional reserves based banking model functions only in growing economies. In economies with zero growth and in declining economies it will not survive and lead to defaulting banks and collapse of the financial sector. The reason why fractional reserves based banking not works by less/no growth and by decline is that the money for the interest payment on loans not is created by the economic output. By less/zero/negative growth with mathematical certainty defaults will appear. In no growth economics only 1:1 banking is possible, and an overall fractional reserves based banking model impossible. We have to prevent a collapse of the energy system, of the economic system, of the financial system, of the governmental finance/structures and of currency values.
The 'Energy as ROI' model has the capability to fix bank balance sheet ratios, pension fund coverage ratios and currency values. Plus it gives the financial world income during their transition to 1 to 1 leverage ratios as they faced the fractional reserves based banking unfriendly economic phase on zero growth or even decline.
The 'Energy as Fee' model has the capability to fix bank bank balance sheet ratios. Plus it gives the financial world income during their transition to 1 to 1 leverage ratios as they faced the fractional reserves based banking unfriendly economic phase on zero growth or even decline.
The 'Energy as Fund' model has the capability to use the international capital market for huge macro investments and the same time will deliver national guarantee funds that allows banks to issue energy harvesting facilities finance on the local/nation level to persons/household/companies/municipals.
Author: Gijs Graafland
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