The loss of Ukraine is the beginning of the end
The loss of Ukraine is the beginning of the end “On the eve of the collapse of the Roman Empire, silver coins were so impure and depreciated that whole bags of it were used in circulation.” laughlyn (johan eddebo) All of this is about energy and resources. Capital is nothing but a proxy for goods, services, and the fundamentals of our means of production. Depreciation of the currency is a short-term solution to resource scarcities by externalizing them through exploiting the perceived value of a trusted medium of exchange. This is exactly why we have runaway inflation right now. Energy is the single most important resource, bar none. All forms of economic activity is predicated on available surplus energy as per the laws of thermodynamics. Before the covid situation, Europe and the US each consumed about 20 million barrels of oil per day, totaling around 40 million barrels of oil. Every single day. The shortfall in petroleum production before the Ukraine war was about six million...