Any day now we will be able to read the long awaited Second Independent Third Party Report measuring the heat and analyzing the fuel from the E-Cat invented by Andrea Rossi.
Rumors are that it will show significant anomalous heat and to some extent also show which reactions that occur on a nuclear level. These results will be undeniable and the report will be backed by numerous researchers from several institutions worldwide
So, what does this mean?
It means that everything will change. It may take some time, but it means that most things will get significantly cheaper, since energy is such an important part in how we keep warm (and cold), what we eat and how we cook it, how me move about (fuels), and all other things we consume, etc. etc.
I would go so far to say that energy is as close we get to a “gold standard” for our storage of value (ie. the petrodollar). Everything depends on it.
So what will happen when we suddenly gets five times as much energy per petrodollar?
Of course we will consume more energy,but in everything we consume there will be a HR part, so we will also consume more human resources (ie. valuable knowledge), which of course will increase in value. The economic boom will be unparallelled. All food and water scarcities around the globe could be solved if only the local rulers allow it (unfortunately they will not) and the environmental challanges can be solved as well since so much of it comes from air pollution, etc.
The amount of petrodollars around will be the same, so in a classical sense there will be neither deflation or inflation. However the deflation of price in all commodities and products with a high energy content will be huge, but balanced by a equally huge inflation in the new scarcities with low energy content; like human resources, time in general, attractive real estate and other status symbols. Generated profits will be invested in new products like never before. And debts could be paid off.
What about the financial system then?
Since the investment climate will change due to possible high returns, the price of money will go up, which in turn will make it a better investment to pay off debts. There will be some kind of balance, but basically it means that the financial debt crises in EU, US and Japan can be solved due to lower costs, higher taxes and lower unemployment in general.
So are there any losers?
Of course, oil stocks will be valued at cash instead of possible future profits. So the owners of these assets will loose money. Mainly this means savings and pensions of taxpayers; fortunately the same ones that in general will see an even bigger upside. some people and organisations will loose power, like the “green” politicians that make a living out of environmental doomesday scenarios, and maybe most troubling, some governments that are dependent on exporting oil and gas for spendings. I guess Russia beeing the most scary one.