Me in Words

Governments will never let the price of oil go up due to increases in money supply, because that will cause prices of everything else to go up. So they will use taxes, interest rates, and carbon credits to bring down the price of oil.

We are already past peak cheap energy, but if we admit it, then bond prices will fall even more than it already has (to control inflation). Nobody would buy long term government bonds. And this will adversely affect the establishment, and their existing power structures.

Carbon credits are an interesting instrument to hide peak cheap oil. It forces oil consumers (mostly big companies) to still have cheap oil, but hide the scarcity of oil inside a synthetic instrument called the Carbon Credit which is a certificate that allows companies to use energy from oil (and other chemicals).

Even price of gold, and other materials/minerals are pegged to the price of cheap energy.

Even solar panels require coal to purify silicon. Even Uranium, Lithium and copper require coal and oil to mine. Because mining equipment doesn’t use solar or nuclear energy.

In other words we are very close to energy/material cliff, and a drastic reduction in quality of life. The lack of price discovery in energy is the cause of it.