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Worrying about unsustainable growth is the selfish tantrum of rich spoilt brats | 55 comments (52 topical, 3 editorial, 0 hidden)
Re: Sustainable GDP Growth is an Oxymoron (none / 0)
Point 1/ GDP is denominated in "deficit-based" money.

Point 2/ with the exception of cash, which is interest-free, this Money is created as (interest-bearing) debt by "credit institutions" aka Banks/Building Societies etc as a multiple of their Capital base in line with BIS requirements.

Point 3/ "Economic Growth" is necessary to create the "wealth" or "money's worth" exchangeable for the further Money required to meet repayments of both capital and interest on these debts.

My understanding is that Interest on Debt is exponential, hence the money supply curves look the way they do.

Therefore a deficit-based monetary system is unsustainable. As is GDP growth.

Am I wrong, or is this how it works?

Best Regards

Chris Cook

"The future is already here -- it's just not very evenly distributed" William Gibson

by ChrisCook (cojockathotmaildotcom) on Thu Aug 3rd, 2006 at 05:02:46 PM EST

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Worrying about unsustainable growth is the selfish tantrum of rich spoilt brats | 55 comments (52 topical, 3 editorial, 0 hidden)
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