Isaac Newton and Energy

Dear Ladies and Gentlemen

Today I am pleased to share some thoughts from my friend Bob on fossil versus renewable energy with you. Please feel free to write back to me, and I will be happy to forward your comments to Bob. Please enjoy the read:

“Some day soon our rich societies will collapse. 

GDP Gap:
Robert Solow found that “labour + capital” did not explain GDP growth. It left a gap.  Robert Ayres found the gap – energy consumption.  GDP  correlates perfectly with energy consumption: more energy consumption – more GDP growth, and vice versa.

Where to from here, how do we protect ourselves?  Is a chancy pursuit of high stock returns the answer?  With insider knowledge, supercomputers, and luck, it might be.  For private investors, I would say not.

Isaac Newton:
Isaac Newton was governor of the Bank of England.  He bought South Sea Company shares and got rich selling them before the top. Then he suffered “fear of missing out” bought back in, the bubble burst, he lost everything and died pennilessly.  Furthermore, Newton was a genius.

Governments and their “renewables” paymasters are telling you that fossil fuel energy is optional.  Germany’s Energiewende is an experiment currently suggesting that idea is false.

You can live without fossil energy, billions do.  In the UK energy consumption per capita is approx 125 kgoe/a (kilograms of oil equivalent per annum). In Yemen, it is just 13. Yemeni lifestyles are not like the UK’s, for a good reason.

Wealth:
“Wealth” is not one single thing, and is neither currency nor promissory notes.  Primary wealth is coal in the ground, iron ore, good land.  Secondary wealth is what you can make with them.  Tertiary wealth is currency, which is like a will-o-the-wisp.

Indeed in these times, caution is advisable. Increase resilience, not risk.”

Your Ideas and Thoughts:
Please feel free to share your ideas and thoughts with me, but please do not forget (instead of hitting the reply button) to send your messages to smk@incrementum.li

Many thanks, indeed!

Ladies and Gentlemen, I wish you a good start into the day, a wonderful weekend, and above all, good health!

Yours truly,

Stefan M. Kremeth
Wealth Management
Incrementum AG

Tel.: +423 237 26 60
Cell: +41 79 303 48 39
Im alten Riet 102
9494 Schaan/Liechtenstein
Mail: smk@incrementum.li