[ExI] repercieve the economy [was: Engineering]

Rafal Smigrodzki rafal.smigrodzki at gmail.com
Sun Dec 23 04:27:29 UTC 2012

On Sat, Dec 22, 2012 at 7:57 PM,  <ablainey at aol.com> wrote:

> How is producing your own energy going to create debt?

### Producing your "own" energy in a social setting always requires
resources that have to be obtained from others - solar panels,
fertilizer for corn, land titles, mineral rights, uranium, whatever.
So before you produce energy you always have to incur a debt or a loss
to your current asset balance sheet.

If you use more purchased resources on making this energy than it is
worth to others, you will not be able to pay off the debt incurred to
generate energy.

 As Mirco pointed out, if others are more efficient in producing
energy (e.g. they are using a coal power plant while you are using
solar cells), the price of resources expressed in a standardized
deliverable of energy will be high.

For example, making a solar cell takes a lot of human effort and
various material and immaterial resources (research, capital costs,
electricity, chemicals, accounting, plant security, janitorial staff
etc, etc) per unit of energy generated from cells. But generating
energy from coal takes very little effort per unit of energy. A coal
plant will be able to pay a janitor many joules per hour. The solar
cell producer will have to match that salary - and this high salary
(as expressed in joules) will have to be included in the prices
charged to you for buying the solar cells. The price of solar cells in
joules will be high in relationship to the number of joules you can
generate from them.

So as long as you buy more of other people's work effort per joule of
"your" energy generated than this energy is worth to them, you will
have to go in debt to finance your enterprise.


> You simply allocate the energy units to the creditor when you do generate
> it. I could do that right now as the infrastructure already exists. I have a
> grid tie solar setup, a feed in tarrif and a bank account. Currently the
> meter reads in kWh, that is converted and I am paid for generation in £ and
> then my creditors take payment in £. There is no real reason why the kWh
> need to be converted during the process. They already have a guarenteed 25
> year fixed monetary value per unit. I could in theory set up a loan today
> using future energy generation as a guarantee. Then use that loan to put
> more panels on the roof or improve the efficiency of the system. thus
> increasing my income.

### Ah, now I understand where you are coming from - you stand to gain
from forcing others to buy your electricity, at an inflated price they
would never pay voluntarily.


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