The E-Cat as an Economic Stimulus

As economic growth comes to a standstill (or goes backwards), as financial markets slide and public debt cripples nations around the world, we hear a lot of talk about the need for some form of stimulus to spur economic activity.

If consumer spending, normally the most effective driver of economic growth is weak, governments often try to step in to boost activity. One problem with government-provided stimulus is that those countries that need the stimulus the most are the least able to afford it as more borrowing is almost always required when stimulus funds come from government coffers.

Tax cuts are also proposed by many economists and politicians as a way to put more money into the hands of consumers and businesses with the hope that the availability of funds will stimulate spending and spur economic growth. Calls for tax cuts, however, are often countered by calls from others for tax increases to cut government deficits which grow in times of economic crisis.

It is interesting that a potentially revolutionary technology — Andrea Rossi’s E-Cat — should be emerging against a backdrop of a world financial crisis. It may well be that a source of abundant and cheap energy could provide a far better stimulus than any of the tactics tried by governments so far. A dramatic decrease in energy costs should have the effect of putting billions and perhaps trillions of available dollars into the pockets of businesses and consumers which could be used to stimulate growth.

There would also be an important psychological aspect to a successful E-Cat launch — it would provide hope to a world that seems to be increasingly despondent about the future. Many people are deeply concerned about economic, political and environmental issues tied in with our current energy picture, and are unable to see any improvement in the outlook. Cheap, clean energy could provide a tremendous boost to confidence about the future and a major change in attitude could have an important effect on consumer and business spending. Also, if the E-Cat is truly a viable and improved alternative energy source, the new industry that will be built up around it should help create the jobs that are so important in today’s floundering economy.

We’re not there yet — but we may soon find that Andrea Rossi’s invention is the most effective source of economic stimulus available.

  • Hampus

    I was watching the news a couple of weeks ago and they were talking to a professor in economy, he said that after every big down turn in the economy a new technological invention appeared.

    For example the down turn in the 90s lead to the IT revolution. He gave alot of other examples that I have now forgotten but it’s an interesting teori.

    • admin

      Interesting point — yes, it’s been quite remarkable how in despite the various kinds of turmoil we have gone through over the years there seems to be steady, and perhaps accelerating technological development. I think we could be now be about to enter into a new phase of that development with the E-Cat and anything that might spin off it. It will be interesting to see how economic and political systems react.

  • The obvious question is, is the e-cat “too little, too late”. Well. energy accounts for 20% of the economy, so the e-cat will effectively be a tax break of 20% of every person’s and every corporation’s gross. Hardly too little!

    Too late? That’s a big question. I personally think it will be. The e-cat will come with its own set of MAJOR economic turmoil. Careers, corporations, nations will be crushed. The e-cat will take time to spool up. It’ll be most of a decade before e-cat will be a serious economic force. However, many of its negative economic effects will be felt almost immediately.

  • admin

    Hi Bruce,

    If the E-Cat takes it time to spool up, the disruption it causes might be gradual also — meaning more time to adapt to a new world.

    Those whose business models and economies are affected could also be beneficiaries of this new technology along with everyone else.

  • Jay

    I’ve heard the argument that the eCat or some other energy breakthrough will save the economy. The argument ignores that the cause of collapsing economies worldwide is dishonest money. The entire world economy is cratering from the weight of corruption, crony capitalism, wars, and bureaucratic statism that is rooted in our fiat currencies. Likewise, these problems, and many more, that are borne of dishonest money will not be solved until we adopt honest gold-backed money.

  • Bob Norman

    I personally think that something the significant will occur very fast. The economic impact will be seen immediately and people will jump aboard to take advantage of what it offers. Greed and Opportunity will create a development avalanche of development. Because of the media the word will get out quick, each product introduction seems to takeoff in the market faster than the previous invention. Product cycles are shrinking and this is so significant I think everyone will be amazed.

    • I agree with you wholeheartedly, Bob. The e-cat revolution will seem at the start to be going slow, but it will break out to a frenzy once small-scale e-cat generated electricity is in mass production. Existing energy consuming devices (planes, trains, automobiles, home heat, home electricity…) will be the first to transform. After that it’ll be new ideas, stuff that was not doable before. Stuff we haven’t thought of yet.

  • David Linebarger

    I personally think that it will not affect the US as negatively as much as the big oil countries. Big oil countries will have to adapt quickly or face a down economy or worse a collapse. Especially once we have LENR cars.

    Warm Regards,
    David Linebarger

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  • georgehants

    A car based on the E-CAT or electricity supplied by the E-CAT would reduce almost all dependence on oil and reduce emissions to zero.
    As beyond transport the only things necessary for life are warmth, food, housing and clothing which can be supplied by a small percentage of the workforce, the number of hours work required from each individual is small.
    As one adds health, entertainment, and all other necessities and fair luxuries it will still only absorb a relatively small number of people, to give a relative Utopia.
    This is the situation now where all people working in money related occupations are pointless.
    If one adds Rossi’s E-CAT into the equation the whole World can have everything they fairly want with only the Event of a major multiple crop failures as a cause of concern.
    No boom or bust as productivity is stable, no multimillionaires, no leaving wealth to offspring, but everybody only working for society and each individual being rewarded on their own merit, from a dustman to a great inventor.
    But which way chosen by all the people.

  • Zoltan

    I see some quite naive thinking: – the World economy problem is not an energy problem. We have plenty of energy; indeed the whole World is energy. Technically, we jut have an energy-conversion problem, from one sort into another. The economic problems are caused by greed, and uncontrolled bad human nature. It is wishful thinking to expect solution from E-CAT. On one hand, the oil and gas companies practice monopoly, this way exployting people, – of course strongly supported by car makers, air industry (they crashed railroads, public transportation, fast trains, etc), joined by the banking system. Would they easily allow spreading a technology, which ends their monopoly ? They killed people for this before. The E-CAT is not the only this kind of technology, and as far as I can tell, not even the best. Similar results showed up much earlier, like Nicola Tesla’s work, or Joseph Papp’s engines, just to name a few, but there are other results tuday throughout the Worls as well. On the other hand, because of bad human nature, the E-CAT technology, and the likes will also create their own problems: – think of how stupid people would waste energy, overheat everything…And, it is a nuclear reaction, its physics is little understood. Opponents would call possible radiation, running out of control, which may even be true. So, I do not see an easy way of adoption, though I’d love to see these kind of technologies in practice.

    Cheers, Zoltan

  • Brad Arnold

    It is difficult to imagine the transition from the E-Cat being a weird pie-in-the-sky free energy concept, to it being a household word. It has been said that within a generation it will be forgotten why we even needed to oxidize carbon to get heat for electricity.

    On the other hand, a typical coal fired power plant of 500 MWe capacity (of which there are over 600 in the US alone) operating at 40% efficiency would require about 1,250 of Rossi’s 1 MWth devices (each comprised of 125 individual e-cats best I can tell). And that’s only if the device could heat water to close to 600C.

    In other words, the scale of the transition to LENR (which will be inevitable due to the great difference in efficiency between burning coal and generating heat using nickel in a LENR reaction) is difficult to imagine. I would say that if it takes over one thousand 1 megawatt E-Cats (2 meters by 2 meters by 1 meter?), then so be it – that is much better than continuously purchasing, delivering, and consuming vast amounts of coal to power a “typical 500 MWe coal-fired power plant.”