{"id":12239,"date":"2015-09-14T06:18:21","date_gmt":"2015-09-14T11:18:21","guid":{"rendered":"http:\/\/olduvai.ca\/?p=12239"},"modified":"2015-09-14T06:18:21","modified_gmt":"2015-09-14T11:18:21","slug":"peak-oil-ass-backwards-part-2-crashing-oilprices-arent-due-to-an-oil-glut-but-to-demanddestruction-and-peaking-credit","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=12239","title":{"rendered":"Peak Oil Ass-Backwards (part 2): Crashing OilPrices Aren’t Due to an Oil Glut But to DemandDestruction and Peaking Credit"},"content":{"rendered":"
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Peak Oil Ass-Backwards (part 2): Crashing Oil Prices Aren’t Due to an Oil Glut But to Demand Destruction and Peaking Credit<\/a><\/h3>\n

As I began to mention at the end of\u00a0the first part<\/a>\u00a0of this three-parter, I’ve only just recently come to the conclusion that oil prices aren’t going to have a tendency to rise due to the tightening of supply imposed by\u00a0peak oil<\/a>, but to depreciate. This of course flies in the face of the common logic of supply and demand, but when factoring in the method by which the majority of our money is created, a deflationary effect can be seen to come into play. This has taken me an absurdly long time to clue into, for although I’d steadfastly amassed a bunch of pieces (various information), I hadn’t realized they were actually all part of the same puzzle.<\/p>\n

With peak oil and fractional-reserve banking being the first two pieces of this puzzle, the third piece that I needed to factor in (which oddly enough I’d already written about) is the fact that money is a proxy for energy. As I wrote in a previous post,\u00a0Money: The People’s Proxy<\/a>,<\/p>\n

Simply put,… the core function of money is that it enables us to command energy \u2013 the energy used to move our bodies with, to power our machines, to feed to domesticated animals whose energy we then use to do work (which nowadays generally means entertaining us), etc. In other words, it might be tough and\/or inconvenient, but one can get by without money. You\u00a0can’t<\/em>\u00a0get by without energy.<\/p><\/blockquote>\n

In other words, at their core, our economies don’t run on money, they run on energy. Moreover, it doesn’t even really matter what you use as your form of currency \u2013 coins, pieces of paper, gold, zero and one digibits, conch shells, whatever \u2013 because if you don’t have the energy to perform the work and\/or create the products your society expects, the money is virtually useless and worthless.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n

 <\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Peak Oil Ass-Backwards (part 2): Crashing Oil Prices Aren’t Due to an Oil Glut But to Demand Destruction and Peaking Credit As I began to mention at the end of\u00a0the first part\u00a0of this three-parter, I’ve only just recently come to the conclusion that oil prices aren’t going to have a tendency to rise due to […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,3],"tags":[175,2019,1708,7996,536,3044,1775,595,9026,617],"class_list":["post-12239","post","type-post","status-publish","format-standard","hentry","category-economics","category-energy-2","tag-credit","tag-demand-destruction","tag-fractional-reserve-banking","tag-from-filmers-to-farmers","tag-money","tag-oil-glut","tag-oil-price-collapse","tag-oil-production","tag-peak-credit","tag-peak-oil"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/12239","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=12239"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/12239\/revisions"}],"predecessor-version":[{"id":12240,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/12239\/revisions\/12240"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=12239"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=12239"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=12239"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}