In my opinion the solution is going to have to be to create an international trade credit guarantee society. The WTO could organize this. It could be capitalised (maybe to the tune of $1 trillion) with a loan from the World Bank denominated in the IMF's "Special Drawing Rights" currency. Users of the guarantee (either traders or their countries) would pay an insurance fee for the use of the guarantee, which would be used by the guarantee society to pay the loan back.
Keep up the coverage of the Letters of Credit story, I find them incredible fascinating for some reason. They kinda... capture my fantasy, dunno why. :) Peak oil is not an energy crisis. It is a liquid fuel crisis.
This crisis makes for great "Doom Erotica", I think. A vivid image of what should exist acts as a surrogate for reality. Pursuit of the image then prevents pursuit of the reality -- John K. Galbraith
:-D
