By Josh Ryan-Collins, New Economics Foundation
Money may not grow on trees, but it does grow at a much faster rate – particularly when created by banks as interest-bearing debt. In modern economies, nearly all money is created in this way. To maintain a stable money supply, debtors must repay both the initial loan and the interest on the loan. This means we need either economic growth at a rate in line with the interest on the debt and/or inflation, both of which we’ve had a great deal of in the past century. But back in the real, natural world, there are limits to growth. The ultimate limit is energy, something all production requires. Humans require food to survive and re-produce. To create this food we need energy, energy that comes, ultimately, from the sun.