Let’s explore how Net Zero is going to cause hyperinflation in the UK.
Think of the economy as a pyramid comprised of 3 layers.
The bottom layer is occupied by energy and resources. These are the building blocks of an economy.
Goods and services appear in the middle layer of the pyramid. These are the products of an economy.
Money is at the top of the pyramid. Money has no value in and of itself, it is merely a tool that facilitates the exchange of energy, resources, goods and services.
Each layer is dependent on the layer below for its existence. (Note that resources are also dependent on energy to extract and process them).
Therefore, the size of an economy is directly related to the amount of energy and resources a country uses. (There are no rich ‘low energy’ countries).
Net Zero is going to drastically reduce the UK’s access to energy and resources. The inevitable end point of Net Zero will be to stop the exploration, extraction and import of fossil fuels. The Climate and Nature Bill having its 2nd reading in parliament today explicitly states this in section 2.6.d:
‘d) ensuring the end of the exploration, extraction, export and import of fossil fuels by the United Kingdom as rapidly as possible.’
Currently, gas and imports comprise 50% to 70% of UK energy use. Other energy sources will not be able to make up this shortfall.
Therefore, Net Zero will cause a sharp fall in the UK’s access to energy and resources which will lead to a sharp fall in the availability of goods and services.
Inflation is caused either by too much money supply OR too few goods. When both conditions apply the result is hyperinflation.
The only way to avoid hyperinflation would be to reduce the money supply in line with the reduction in energy use but there are no indications that the governnent plans to do this.
I’ll let you do your own research as to what happens to a country undergoing hyperinflation.