Simplified Economics for EE’s

All of us know that life itself is a manifestation of “Energy”. Thus, access to an  “energy-source” is a fundamental need. Another word used for positive wealth-potential (+voltage) in economics is “asset” as opposed to “liability” or debt-potential (-). Remember we also have money-flow (in and out+/-)analogous to current in economics. 

Renewable Energy falls freely at a rate (power) as sun-light on earth’s surface. We also have stored energy in the form of minerals underground (like capacitors and inductors holding voltage or current).. It is also available in thermal form from the ground as geo-thermal energy in the molten lava in the inner core of earth. The energy per unit- area of earth’s surface in KWH is known. We know how to convert solar energy into electrical power using Silicon Solar panels, and directly into food by farming. In other words, these are the most important assets of any nation. 

Since our government owns land that is not privately owned by citizens, it is leased as mineral rights for energy production.  So if we estimate the total value of energy assets, we know the net asset of any government. Thus a nation can borrow money against its assets from citizens and be solvent as long as it does not lease land to other nations.  In other words, it can be a fundamental scientific basis for currency ( unlike the bit coin). The only time our government goes into a  bad-debt situation  is when it cannot repay its debt in terms of land-area. 

So governments can borrow money so long as it is small compared to their net asset. The fear to borrow is thus ignorance. This point of view is useful in estimating whether many Trillions of dollars is excessive or not. We have nothing to fear except fear itself. But Neanderthal illiterates do not think in terms of science. So we have a national  problem. Countries who are scared of borrowing money to build infrastructure are foolish. Ask Paul.