Just went through a long.. but very interesting video one of my friends sent me! Really learned quite a bit about it…
http://video.google.com/videoplay?docid=-9050474362583451279
But I kind of think it is a little exagerrated by some environmentalist + monarchy/communist people. Though it is true that the money supply will keep increasing because of the interest payments… which has been the case for the past many years…. but this does not necessary translate to consumerism and more trees being cut etc….
The economy can very well produce the same amount of goods. The increase in money supply will just produce inflationary pressures as more money is chasing the same amount of goods. System can still be stable… its just that money will lose its value over time … and like what the video said… it will have the same effect as imposing a tax on those with money….
And surely, that cannot be a bad thing right? Rich people with loads of dollars being taxed more… to create a more equal economy? Hmmm…