Timechain Newsletter 02: You can print euros, but not energy
Facilitating access to cheap and abundant energy is the most fundamental objective for any government. Energy is the most important input for any advanced economy as without it, we simply don’t have an economy at all. As we watch energy prices go parabolic in Europe due to decades of centrally planned mismanagement and ideologically driven misinformation, the effect on an ordinary citizens disposable income will be crippling. Businesses and industry starved of spend and subject to extraordinary input costs will simply shut down en masse, causing defaults up the chain to their lenders. When solvency in the banking system is at risk, well, that’s when the solvency of the Sovereign is caused into question (think the Global Financial Crisis a decade ago). In the modern world, access to energy underpins every asset class.