Wed Feb 10th, 2016 at 11:23:28 PM EST
What could the USA do if there is another, more serious global financial collapse? This has been a subject of discussion on several economic, financial and political blogs. The question also applies to any country. But the answer below will be restricted to countires with their own currency.
The government COULD directly spend money into existence for infrastructure projects and other needed projects and services. If every thing is going to Hell in a hand basket, why not have a lot of people doing useful work in the meanwhile, regardless of the monetary and financial mirror, which could shatter, while the real economy could continue to function and people could get money that would buy things or services other people provide. If the currency turns to trash we can have a reset. It has happened many times before. Well done it could immediately re-balance the distribution of wealth significantly.
Of course the current US Congress and President are unlikely to do something like that, but that could change. A financial collapse would be a gale wind behind Sander's sails and could even blow in a Congress with majorities that would support his programs. At least he actually has most of the economists who really understand how both the economy and the monetary system work.
But the possibility of just such a development is a strong reason for the financial sector to try its best not to let this happen now. But they may lose control. I can't specify how, but won't rule out the possibility. And, of course, the biggest disaster would be for this to happen after a 'stay the course', no radical change government has been elected, along with status quo legislators. So, for the USA, if we are to have another GFC, let it be by this summer! Else pray that it doesn't happen until the year before the next general election.