I also have to wonder about solar collectors. These aren’t solar cells in power generating panels. They are parabolic arrays of mirrors (no photovoltaic technology, in other words) that focus sunlight into a tight focal point in order to generate a lot of heat. This is usually used to boil water to power a traditional steam generator. (It’s like melting crayons or lasering ants with a magnifying glass, only this uses mirrors so it doesn’t need a big precision lens.) No, it wouldn’t always be practical, but there’s a LOT of radiation coming from our local star that could be harnessed.

Wind and water power are driven largely by the sun and the spin of the planet (winds are created by temperature differentials that happen as the planet turns under the light, and water currents have similar properties). That’s why I don’t count them in my comment on a zero sum system. That said, you’re both right, there’s a good deal of energy to be harnessed there, too. Perhaps they aren’t enough to completely replace fossil fuels, but they are certainly enough to be cogs in a more comprehensive energy replacement solution. There’s also a lot to be derived from nuclear power, and even that’s part of the zero sum system.

Wolfgang, your comment deserves a response, but I want to ponder it a bit more. Suffice it to be said for now, I agree with your assessment, and great points.

First, gold by nature is a finite resource and as such is guaranteed to be deflationary with time. Take the total amount of gold reserves, divide it by the population of 1970 then 1980 and the picture becomes clear: gold not only retains ALL of its original value, but actually becomes more valuable with population growth. This simply couldn’t be allowed to happen, hence the gold heist of April 3, 1933.

Second, businesses-like people-want money right now and very few (especially publicly traded companies) want to wait for the funds to become available much less save until they are. Under a GS, money for business expansion would have to come from profits SAVED by the company, not “new” money created from nothing. This form of expansion demands fiscal responsibility from company A and decreases the chances of that company receiving an authorized heist….. daarrghh I mean bailout from taxpayers since there is little chance for a domino effect to begin. Publicly traded companies imo should be illegal because they add insane amounts of pressure to grow! grow! grow! and little incentive to remain modestly profitable. Couple that with fractional reserve fiat money and a domino effect is guaranteed by design.

Soooo, the question, now that we have identified the problem, is what to do? What economic system would be sustainable as well as profitable to all parties involved? Furthermore, now that the fractional reserve parasite is so much a part of reality, how could it be scaled back out of existence without the bankers deciding to use a nuclear explosion as a diversion?

@Chris: now there’s an idea ! ^^ Problem would be that the solar panels woud be underused, of course, as they would rarely be in an optimal position. :p

Besides sun, you did miss air as an endless supply for energy. I suppose you could argue that wind could stop blowing eventually, but energy from wind turbines is a source.

Maybe put those on the top of rooftops too. ooooh, how about solar powered panels on the turbines? =P

Well, that, and the U.S. government is more focused on bailing out the “Big Three” car makers and things like corn ethanol. The “green” church of Al Gore has some interesting priorities.

I like the idea of using rooftops, even in residential areas. No, it won’t be useful in all areas (Oregon or London, for example), but there would be areas that it would make sense. There’s plenty of desert out there as well.

Just a quick note on the solar energy: currently, we have few different ways of harnessing it. Mainly, solar panels. The problem with solar panels are currently twofolds:
-> Their construction generates a VERY high rate of pollution. Which is rather ironic for something presented as ecological.
-> Their efficency is far from perfect. (see wikipedia). The best ones are currently at a 15% maximal efficiency (attained during a clear winter day, maximum exposition, bla bla bla), which means at best 150W/m²
But they are working on improving them.
I personnaly think that, instead of solar panel “farms”, degrading thousands of acres of greenland, they should install them on skyscrapers’ roofs. Almost no one uses roofs, after all…

As to the rest of the article, great writing as always !

Melf, I’m not so sure that capitalism itself is to blame; if the system were built on fair valuation and a monetary standard (gold or otherwise), we’d not be seeing these sorts of trouble. It’s the interest/usury (and fiat money and fractional reserve lending) that drives the fraudulent exponential “growth”, not so much the exchange of money for goods.

“What goes up, must come down”

Great post though.