@npub167he...0399 Carbon pricing is about creating synthetic assets which are legally required to be bought together with oil. This way the market can never discover the true price of oil because all the price hikes in oil are hidden away inside the price of a carbon credit. Carbon credits being synthetic can be created for no cost just like fiat money. Oil on the other hand cannot be created ex-nihilo.
Oil prices will go up mostly due to worldwide increases in money supply. Energy prices will be how inflation spreads to everything else. Previously this could be contained by adjusting the cost of capital (i.e. interest rate) however ever since we are able to buy a third of the oil in the world without using dollars this interest rate mechanism to control inflation has failed and a new mechanism is needed.
Climate change, energy transition and carbon credits are a dog whistle for this situation
