1. Energy Based Economy Transition from Rich Resource Bases to Lower Grade Resource Sources. - Managing Scarcity -

2. Energy Return on Energy Investment EROI (eroei)

3. Resource Richness

4. Energy and Resources Combined

5. Adjustment We have to face a future in which we will be applying harder to get energy against less rich and more scarce resources This applies in gross terms and even more so in per capita terms for the period in which population continues to grow.

6. Real Inflation Chart Effort per Output

7. Currency Viability Chart UnitsTime in UseIntrinsicScientificallyPortabilityScalabilityWidelyDefinedLong Term ValueDefinableValuedRedemptionStablilityScore Knife Blades *Tens of ‘000shigh goodfairyes Arrow HeadsOf years8873810 54 Cowrie Shells‘000s of yearslow high yesnomedium 248882739 Gold‘000s of yearslowhigh yesnomedium 4910 92852 Seal Oil * 1-2 ‘000 yearshigh yes 10999 67 Wheat * 1-2 ‘000 yearshigh mediumhighyes 10989 66 Cattle *‘000s of yearshighmediumfairpooryes 107538 53 Tobacco * 1-2 ‘000 yearsmedium yes mediumyes 577868849 Printed Money1000 yearsnonenoyes mediumnopoor 0010 80432 Commodity **‘000s of yearshigh pooryes Certificates109 49 860 * - real goods ** - real goods. based

8. Future Currency Viability UnitsTime in UseIntrinsicScientificallyPortabilityScalabilityWidelyDefinedLong Term ValueDefinableValuedRedemptionStablilityScore Energy in 2012 * Just beginninghigh yes 10 1110 71 Commodity **000s of yearshigh poormoderateyes Certificates109 45 957 Wheat * 1-2 thousand yearshigh mediumlowmoderateyes 109434 50 Gold‘000s of yearslowhighmoderatehighyesnomedium 4951092847 Cattle *‘000s of yearshighmediumfairpoormoderateyes 107414 46 Seal Oil * 1-2,000 yearshigh lowno yestime is past 109811 241 Printed Money< 1000 yearsnonenoyes mediumnopoor 00121080434 Knife Blades *Tens of 000slowhighfairpoornoyes not any longer Razor Bladesyears1831110226 Cowrie Shells thousands of yearslow moderatelowno cowrie what? 245212117 * - real goods ** - real goods basedSusceptibility to fraud???????? Ie debasement

9. Energy Reserve Currency Impacts If the international currency reserve system were based on energy certificates, it would have the following impacts: - National currencies would not cross borders nor would any bond or certificate based on them. - speculation would disappear from international finance. - Effectively, energy based reserve certificates would remove the parasitic overhead from international transactions and would leave them without hidden and long lasting obligations. They would be clear cut and short lived. - competitive devaluation of currencies would be eliminated - Dutch disease, wherein one strong sector of a nation’s economy damages other sectors by inflating the value of its currency, would be eliminated - the disconnect between the consumption and real goods production level of nations fostered by fiat currency valuation illusions would be eliminated. Nations would have to produce as much as they consume. - the problem of distorted exchange rates causing a competitive mismatch would be eliminated ie a producer with high material inputs and lower labour efficiency underselling another producer in another country because of exchange rate anomalies would no longer be possible.

10. Trend of Currency Systems Barter – (pre-history to current) Commodity based exchange (pre-history to 1800s) Wheat currency (2000bc – 100bc) Rare and precious artifacts – gold, cowrie shells (4000bc – 1974) Coinage - based usually on precious metals (3000bc – current) Commodity based certificates (6000bc - current) Printed money (1000ad – current) Energy Certificate based International Reserve Currency Energy based national currencies Direct energy exchange