Durant wrote:
(REH)
> > Somewhere I read that the market must expand for it to work as a system.
> >
> > Could some of the economists fill me in on that one?
> >
(ED)
> Isn't it obvious, that a profit based
> system needs the profits to grow thus needs the markets to grow,
> so it is doomed when those markets are the shrinking/sliding global middle
> classes?
I'm not an economist. What is obvious to me:
Debt-based money creation requires more money in the future due to interest
charged.
See:http://www.transaction.net/money/index.html for good overview.
Combine this *need* to extract & produce more stuff and to perform more
services with a growing population, and it is easy to see that shrinkage or
steady state economy(Herman Daly) is not tenable. Ray's "must" is an
imperative for the power elite money lenders/creators, and it becomes one
for the borrowers...nearly everyone else! It is theoretically possible to
have a steady state market economy. "Market" meaning the setting of prices
(or barter values) by supply & demand.
Steve
