Blog | Commodities
Cosmic Accounting and the Massive Potential of Green Energy
How to get ahead of the curve on one of the most exciting investment markets out there
December 01, 2020
This is a blog I wanted to write my whole life but did not know how to. In addition to my inability to simply explain the concept, it originally was not being about money and investing—which was a problem.
And this caused another problem. If you read my Tweets, you know that as soon as I talk about anything other than money the comments are rapid and fierce, yelling at me to stay in my lane and stick to money.
But I recently met a genius of a man able to communicate the message I wanted to share—and show how it is also about money and investing.
This message is called “Cosmic Accounting.”
Dr. Buckminster Fuller and entering the world of the invisible
After the influence of my rich dad, there was another man who changed my life. His name was Dr. Buckminster Fuller. Dr. Fuller—or Bucky as those close to him called him—helped me shift my mindset from selfish thoughts of luxury to realizing there is more to life than money.
Dr. Fuller is often called “The Planet’s Friendly Genius.” He is best known for designing the geodesic dome. In 1967, I hitchhiked from my school at Kings Point in New York to Montreal, Canada, which was hosting Expo ‘67. I especially wanted to see Dr. Fuller’s massive geodesic dome. It was unbelievable.
In 1981, I had the opportunity to study with Bucky for a week at a ski resort in Kirkwood, California. That week changed the direction of my life. I studied with him again in 1982 and 1983. He was teaching our class how to predict the future. Unfortunately, Bucky passed away a few weeks after that last event.
Bucky was known for many things. He was a scientist, an architect, a mathematician, and a futurist. Many of his predictions have come true with uncanny accuracy.
Bucky once said that when change went invisible, the speed of that change would increase exponentially—what he called accelerating acceleration.
In his lectures, Dr. Fuller talked about the pace of technology and how we were “entering the world of the invisible.” To him technology was advancing so rapidly that many people were blind to it…and would be blindsided by it.
This is exactly what is happening right now as Green technology. It is taking off fast and quickly becoming more efficient than energy from coal, oil and gas. But most people don’t see it.
Basic accounting for becoming rich
Bucky used to say that our accounting system was all off. And he was right. I wrote a book about it. For those of you who know Rich Dad Poor Dad, at its heart it’s about accounting. Below is a quick refresher.
In Rich Dad Poor Dad I taught the Income statement as seen below:
This is the cash-flow pattern of an asset:
The top part of the diagram is an Income Statement, often called a Profit-and-Loss Statement. It measures income and expenses: money in and money out.
The lower part of the diagram is a Balance Sheet. It’s called that because it’s supposed to balance assets against liabilities.
Many financial novices do not know the relationship between the Income Statement and the Balance Sheet, and it is vital to understand that relationship if you want to be rich.
Assets put money in your pocket.
This is the cash-flow pattern of a liability:
Liabilities take money out of your pocket.
This is really all you need to know.
If you want to be rich, simply spend your life buying assets. If you want to be poor or middle class, spend your life buying liabilities.
Cosmic accounting and the Earth’s income statement
Cosmic Accounting takes the same principles, only the Income Statement is not yours; it’s planet Earth’s, or as Bucky called it, Spaceship Earth.
For decades I have tried to marry the idea of energy and the Earth’s income statement. Why use energy for Earth’s Income Statement? Energy is the biggest product in the world. The problem is most of its being wasted. Energy is also the biggest industry in the world. Civilization runs on energy.
As I mentioned earlier, I could not figure how to accurately create the Earth’s Income statement. That is until I met a genius named Marin Katusa. Katusa is quite possibly the most successful resource venture capitalist and fund manager in the U.S.
More importantly, Marin Katusa and I have come together as brothers, kindred spirits. Why? Because he figured out a way to end our environmental problems through Cosmic Accounting.
Cosmic Accounting: How to quantify the value of Green energy
Katusa’s Cosmic Accounting creates a way to accurately measure the energy output of “green” and alternative energies in comparison to energy created to oil.
Earlier I showed you an excerpt from Rich Dad Poor Dad. When you look at the balance sheet you will notice that your house is not an asset. Your house is a liability. The accountants have it all wrong.
So do those in the energy business. Their accounting and measuring of energy is all wrong. The earth has assets: oil, gas, coal, and nuclear. These make up the nucleus of planet Earth. Or more accurately, surround the nucleus and fuel it.
And we are burning through that fuel. The consequence and punishment of our burning Earth’s fuel is the toxins and pollutants that we create. They are destroying the earth, and they are killing us.
These assets would be called the Earth's savings account. And what happens is when we burn this stuff to provide electricity, it comes out as a liability—toxins and environmental damage.
If you understand a balance sheet (the bottom half of the income statement) you know that for every asset there is a liability. That is why it’s called a balance sheet.
As you know today, the California forests are burning down. We have hurricanes one after the other. We have cancer and death because the toxins go into our body. We breathe toxic air from the exhaust of cars and coal plants and it infects our body’s filters, our body’s organs.
With Covid-19, the reason so many older people die more than younger people is because they have more toxins in their body. It all starts here. It’s all because we're burning fossil fuels or nuclear power, which is the very worst.
The closest nuclear radiation should be to our body is 97 million miles away, the distance of the sun from the earth. Right now we bury nuclear waste in our own planet. Some of it will not neutralize for 24,000 years—all that for a short burst of electricity.
What Katusa figured out was that we could take the income from God or the universe, which is solar, wind tides, geothermal, hydropower and more, and convert it into a measurement that would show the world and investors its true value compared to the earth’s assets. This “Green” income is God’s, or the Universe’s, gift to the world.
The hidden brilliance of Katusa’s Cosmic Accounting
I stated earlier:
Dr. Buckminster Fuller once said that when change went invisible, the speed of that change would increase exponentially—what he called accelerating acceleration.
In his lectures, Dr. Fuller talked about the pace of technology and how we were “entering the world of the invisible.” To him technology was advancing so rapidly that many people were blind to it…and would be blindsided by it.
This is exactly what is happening right now as Green technology is taking off so fast and quickly becoming more efficient than energy from coal, oil and gas.
There is a catch. Right now, even as fast as technology is progressing, we need the earth’s assets to create the technology needed to receive the “Green” income God/the Universe is giving us. Thus, the asset column is generating the ability to receive in the income column.
This is where Katusa’s brilliance comes into the picture. No one could see the value of this Cosmic Accounting. No one could see the truth about the income the Green energy was producing.
Oil and energy businesses knew the value of oil barrels and how much energy they produced. And they knew the value of natural gas and how much energy it produced. They measured this energy output in Barrels of Oil Equivalent or BOEs.
Katusa created a formula for calculating the value of Green energy. He created the GREEN ENERGY Barrel of Oil Equivalent or GBOE so the businesses and investors could compare apples to apples when investing their resources and money.
Through this mathematical formula, Katusa proved that Green energy was more valuable, in large part because it never ran out. The sun, wind, tides and geothermal don’t stop.
Katusa’s formula made the invisible of Cosmic Accounting visible to the world—and to businesses and investors.
Green energy and massive profitability
As I said earlier:
As soon as I talk about anything other than money the comments are rapid and fierce, yelling at me to stay in my lane and stick to money.
I always hesitated talking about the environment in the past because of this, but now Katusa has proven Green energy to be massively profitable. As I said earlier, “Katusa is quite possibly the most successful resource venture capitalist and fund manager in the U.S.” He created a fund for investors to profit from this Cosmic Accounting.
Unfortunately, you and I cannot get in the fund because it is already full, and Katusa is unbending on holding the value for his investors. So, try as hard as I have, he will not accept new investors.
The importance of this blog is not to profit from Katusa’s fund. The purpose is to introduce Cosmic Accounting to the world and show that Green energy is not only going to save the world, but make a lot of profit in the process for those who can see and grasp the concepts in Cosmic Accounting.
Here’s Where it gets exciting for investors and people like you and me. Katusa says:
I am surprised nobody has done this yet, but I am sure the folks at Goldman Sachs will read this report, repackage it as their own concept, and make billions from consolidating the undervalued green energy sector. They can, apply the GBOEs (Green barrels of oil equivalent) concept and get bankers to accept the GBOEs on the balance sheet as they BOEs. That’s fine, I hope they do. I have already have run all the numbers on the best and most undervalued green energy producers in the North America. Once word gets out, the buyers will pay my subscribers and I premium prices for our holdings.
Get a discount on Katusa’s newsletter...exclusive to Rich Dad readers
I do not make investment recommendations. I only promote education. I recently joined Katusa’s newsletter so that I can profit on his findings in the Green energy sector. I am not saying you should join Katusa’s newsletter, but if you follow and value the ideas presented in Cosmic Accounting, then you might consider looking into it.
I asked Katusa if he would give the Rich Dad followers and readers a discount to his newsletter since we understand what he’s doing and Cosmic Accounting, at least on some level. You can read more about his newsletter here: http://www.katusaresearch.com/richdad
I have always said that if you follow the tax code and do what the government wants, you can become wealthy. Now I believe that you can follow what the Universe and God want and become incredibly wealthy. It’s a great time to be alive and make the invisible visible.
Original publish date:
December 01, 2020