A monetary system dependent on growth

Over the past few days the press and television have returned to the tsunami, and other actual or potential environmental disasters, in the context of attempts to reach international agreement on the reduction of greenhouse gases arising from a continuing commitment to rapid global “economic” activity.

However, none, or almost none, of the major economic powers is prepared to accept that this must involve any significant commitment to a reduction in the growth of their own economy. In fact, it is impossible that such a secular reduction in economic growth can be achieved by any of them for so long as the current monetary system remains unreformed.

theherald