In all of the discussion of these authors, no mention is made of the fact that the structure of our money is one of the greatest impediments to creating a no-growth economy. The inclusion of interest in the definition of money creates a situation in which more money is due from the productive sector of the economy to the financial sector over time. Only principal is created in the money creation process. Interest is simply entered as a debt to the monetary authority creating money as a loan.
In this situation the productive sector must grow, monetizing more and more of earth’s assets in order to maintain the stability of the money system. Our present situation in which the Government is expected to borrow money from the financial sector to provide the growth necessary to keep the money system from disintegrating, is a product of system structure. Government deficits can only be stopped by restructuring money, making it a fee for service business that is a service to the economy rather than a profit center for an elite minority.
If we wish to stem growth, we will have to redefine money.
