Monbiot says what I was trying to say in the pyramid post…
The issue is that capitalism involves lending money at interest. If you lend at 5%, then one of two things must happen. Either the money supply must increase by 5% or the velocity of circulation must increase by 5%. In either case, if this growth is not met by a concomitant increase in the supply of goods and services, it becomes inflationary and the system collapses. But a perpetual increase in the supply of goods and services will eventually destroy the biosphere.
Friday, 22 August 2008