Exponential growth needs an exponential amount of energy. We are approaching peak energy therefore further exponential growth is no longer possible.
Over the top of this is the economy which is a simple man made construct. Deflation or inflation will depend on how many dollars they print. If actual energy is no longer growing and population increasing and china getting wealthier everyone else gets poorer either way.
Currently we are going through a process of massive deleveraging and money is being removed from the global economy at a huge rate. At the same time they are printing money furiously to stave off deflation.
I am assuming they are probably just trying to keep the system in equilibrium.
The question is can capitalism survive without exponential growth. Japan has managed it for a while but can the world?
