Money -- it's a gas. And vice versa.

Why is the price of gas so high? Where is the money going? And how can it be brought back down, preferably permanently.

What follows is simplistic -- deliberately so. But any and all complexities that I have ignored -- they are artificial constructs which exist mainly to prop up the current system. They can and should be changed.

Follow The Money

The price of gas has risen, apparently, because supply can't match demand. This is because of the difficulties in bringing Russian gas to market. The result is that, globally, more gas is wanted than can be supplied.

So it becomes a bidding war. Those who can pay more will be sold the gas and those who can't will have to go without. Or buy less of it because they can't afford as much as they want.

But where does the money go?

The cost of extraction and distribution of gas has not changed. The wages paid to those drilling and transporting gas have not changed.

Once the gas is available on the 'market', the speculators and traders will attempt to maximise their own profits, and those of the fossil fuel companies, by suggesting that a bidding process is the best way to handle the thorny issue of who gets what.

Which means that the richer customers can afford it.

Which means the price goes up.

Which means that the speculators and traders, and the gas extracting companies make far higher profits than last year, despite the fact that their work has not changed in the slightest. And the real 'raw' cost of obtaining gas has not changed.

Also bear in mind that the (non-Russian) fossil fuel companies are still extracting and selling as much gas as they possibly can. The amount they themselves are selling has not been affected. No wonder their profits are suddenly huge. And unearned. As close to 'ill-gotten gains' as you can get without being illegal.

The whole process is geared towards maximising the profits of the fossil fuel corporations and the market traders. It is sucking huge sums of money out of other companies, nations and the public. And no one is asking why it has to be this way.

The way in which gas is extracted, marketed, traded and sold is not unchangeable, like the law of gravity. It is a man-made system which is now working to rapidly shift vast amounts of wealth from a wide variety of people, companies and nations into the hands of a very small number of people.

Why are we tolerating this?

Just Say No

The UK government is attempting to find intricate ways to help people with the cost of energy. For example:

• Handouts of money to help (i.e. transferring public funds to fossil fuel companies via people's energy bills).
• State-backed loans (i.e. forcing people to take a loan to help with their payments which will lead to the population paying interest charges to banks).

But no one has suggested simply refusing to buy gas at this price.

The retort to that suggestion would be: "But then others will buy it instead of us. Won't they?"

Will they? Why should they?

What is stopping an international consortium calculating a fair price, probably not that far off what gas cost last year, and simply refusing to pay any more than that?

It would be unrealistic to expect a global agreement. But if enough large nations gathered together to stop this rampant profiteering, what would happen?

Would the 'rest of the world' simply buy all the gas at the inflated price? Or would significantly less be sold?

And, unless the fossil fuel companies can store whatever is left, what would they do next? Turn off the taps? Or accept that the profits they made last year weren't actually that bad and maybe there is a deal to be made?

It would be in the interests of nearly everyone on the planet to do this. Even richer countries, who could afford the 'new' prices, would presumably prefer to pay lower prices.

But Free Markets!

As things stand, the gas providers are ensuring that prices are always pegged at the highest rate possible. By operating through a trading system, they are not literally a cartel, but might as well be.

The supply/demand free market theory runs that, at times of shortage, the price will go up in order to encourage more providers to come to the market. How is that working out at the moment? Where are these new providers? Will they be along soon? How long are we supposed to wait?

Some might deride the idea of massive international cooperation as inappropriate, too much state control, too much interference in the rights of corporations to trade freely. But if the fossil fuel companies can gather together behind a system that inflates their profits, how is it wrong for their customers to similarly gather together and state the price they are prepared to pay?

A bit of robust negotiation will be required to determine how the shortage is spread around -- probably not as simple as every customer getting a fixed percentage of their normal requirement, but probably not far off either.

And, with the excess money that will no longer be paid to fossil fuel companies, everyone can buy warmer clothes, insulate their homes, put up wind turbines, cook themselves a hot meal -- the possibilities are endless.

An Aside -- Bruce Springsteen Tickets

Some tickets for Bruce Springsteen's shows are being sold using a very similar supply/demand market-based approach.

Let the fans decide how much they're prepared to pay. Put the price up further, and further. And then further. Hey, if they're still selling then why not keep going and see how high they can go? Five thousand dollars in some cases (per ticket).

The fans are annoyed.

The solution is simple -- if people stop paying these prices, these prices will drop. If people boycott the tour completely, the system would be scrapped. It's only the willingness to roll over and pay that keeps this practice alive.

Customers need to stop thinking of themselves as individuals trying to outsmart (or outbid) each other. Gather together, have strength in numbers and don't accept price gouging. Admittedly it's easier when dealing with entertainment rather than everyday essentials.

Winter Is Coming

So we'd better get on with it.

Don't enter into any long-term contracts. Get down to the United Nations and have some urgent discussions. Preferably before northern-hemisphere countries need to start heating their homes.

None of this pain is necessary.

Wealth-extracting turbo-capitalism is a man-made structure, not an unchangeable law of nature.

It is not working for us any more. Another way is possible.