Madam, - The "liquidity crisis" and "credit crunch" are terms that prevent us from understanding what is really happening in the world economy.
Our industrialised society has been built on the back of ever increasing supplies of fossil fuel energy. These sources are finite and non-renewable and, in the case of crude oil, global production has reached a peak and in many countries has been declining for several years. This geological reality is called "peak oil" and will be followed by "peak gas" and "peak coal".
As less energy becomes available to us we will become less productive and the global economy will slow down. As borrowings reduce no new money will be created, and, as old loans are paid back the money supply will shrink. This is the real cause of the current downturn - a reduction in the underlying energy supply.
So let's stop side stepping the real issue. Growth cannot continue indefinitely on a planet with finite resources. In climate change we have overstepped the earth's ability to absorb our pollution; in peak oil we have overstepped the earth's ability to provide us with energy. It is time for a radical rethink. - Yours, etc,
BRIAN DILLON, Ballyline, Callan, Kilkenny.