This article is the part 5 from Chapter 5 of Richard Heinberg’s new book The End of Growth, which is set for publication by New Society Publishers in August 2011. This chapter ‘Shrinking Pie: Competition and Relative Growth in a Finite World’ looks in greater depth at the prospects for further development in in an increasingly resource strained environment.
The E.U., taking its lead from Germany, has allowed the Euro to appreciate against many currencies. Germany’s high-tech exports can survive a strong Euro, but Greece, Spain, and Portugal cannot export successfully under a strong Euro and their already severe economic crises can become much worse. The Irish will have serious problems, and their export problems would have been crippling if they were not a corporate income tax haven. Italy’s, particularly southern Italy’s, ability to export successfully is dubious.
“The Fed’s decisions [to buy U.S. Treasury debt] bring more uncertainty to the global economy. They make it more difficult to achieve a reasonable balance between industrialized and emerging economies, and they undermine the U.S.’s credibility when it comes to fiscal policy. It’s inconsistent for the Americans to accuse the Chinese of manipulating exchange rates and then to artificially depress the dollar exchange rate by printing money.”
Like this article?
Keep the information flowing: Donate to Post Carbon Institute
Stay connected: Receive our monthly e-newsletter
Reposting: See our reposting policy