Controlling Energy Prices

By deconsolidating the risk we can control energy prices.

There is a general discussion on this site about deconsolidation, but the recent concern with inflation against falling, consumer income presents the opportunity to briefly discuss a particular case.

What too-big-to-fail, economy-of-scale firms, like Exxon-Mobile, organize to achieve is price control. Being able to control the price is the power to self-determine.

In a free market, when the price (and the marginal profit) gets really high (so high that it is deflationary), entrepreneurs are supposed to actively pursue the profit by adding supply. This requires adding firms and employment, but instead, MBA's learn at Ivy-League business schools that it is more profitable to hedge (invest) the risk by consolidating existing firms, creating the beta volatility (and the accumulation of retributive value) that gives us more government, not less, and increases the probability prices will be controlled by government.

If avoiding the risk of government price controls is the objective, then it is necessary to deconsolidate. "Making money" (monetary expansion), as discussed in the previous article, must achieve a pluralistic rather than a monopolistic, technical objective.

Controlling the price by means of public authority will force consolidated firms to increase the supply to retain the marginal profit. (Notice how the risk is conserved in the form of retributive value.) Resisting a declining rate of profit is job one, which is why Exxon-Mobile is not Exxon and Mobile, and why, without a free-market mechanism in operation, the risk will always go gamma (i.e., it will always transform into the force and legitimacy of public authority).

Price control, whether by free-market means or government authority, is technically achieved because it is necessary to add supply to support the profit, and businesses are in business, technically, to make money.

The argument against controlling the price by means exogenous to the firm (with risk that is retributively alpha or gamma) is that it causes shortage. If that's the case then the price will really be the result of shortage and firms will be added (capital will distribute and employment income will be added) with the technical objective of "making money." The supply needed will be monetarily added to technically support the productivity necessary to fiscally manage it by means of deconsolidation.

In the alpha-risk dimension we all have more than ample opportunity to make money and directly verify the extent of our self-determination by controlling the price.

By always providing ourselves with an alternative to hedge the risk, rather than relying on our future being swapped for risk in dark markets, our freedom, Constitutionally endowed, will be technically confirmed.