Hi H,

Okay, so I have a question: Could you please expand and explain?
For example:
1) renewable energy prod. growth - you mean what and who exactly?
2) Who counts the "production growth"?
3) No money supply growth allowed otherwise? How do you stop it? Who stops it?
4) Can this be done unilaterally, eg. by the US only?

And so forth.

Hello Aniya,

The first two questions are pretty simple, really - solar, wind, geothermal, fusion,...the list is pretty long. It could also be defined as non-fossil and non-fission. Who counts? The same people that count it today..power cos., national and int'l agencies.

Now as to the other, more complicated questions:

(3) If you want true sustainability, no money supply beyond that will be allowed. But there has to be a very long transition period, too. Eventually, imagine a currency that is backed by say, 1 Greenback = 100 000 "green" BTU. This is not so far-fetched as it sounds: the US dollar today depends on oil for its global reserve status. Who and how stops money supply? The same people who regulate it today: central banks.

(4) Yes it can, and that is very intriguing because it IS feasible, by comparison with a single, global currency. It could happen thus: say today the split in production between "black"/"green" energy is 95%/5% and that production (in BTU) is rising 5%/20% respectively.

The "strictest" money supply policy would only allow M3 to rise by only 5%*20%= 1%. That would be so restrictive right now it would immediately throw the economy into a deep recession.

The "loosest" policy would be 95%*5% + 5%*20% = 5.75%. This would accomplish nothing.

A "transition" policy would be something like this: (1/2)*95%*5% + 5%*20% = 3.375%, i.e. you "penalize" black energy by 50%. At the very start of the transition period that "penalty" could start at 5% and rise gradually.

Monetarism with a twist..."green" monetarism.

Regards