The problem is a massive and systemic shortage of Capital to underpin the pyramid of credit created, since the opaque pool of investor capital to whom the banks "outsourced" most of the credit risk - the "shadow banking system" - is finished.

The financial claims which have been manufactured and imposed upon US businesses and individuals (particularly through mortgage loans) exceeded the capability of the US's productive capacity to meet them in or around August last year - the point of "Peak Credit".

While the Fed can provide infinite liquidity, the US cannot recapitalise their banking system without outside assistance ie a Bretton Woods II.

These financial claims constitute debt repayments and interest payments on the debt.

It seems to me that there are two choices for the creditors of the US.

(a) Conventional - reduce the number of claims, by writing off a large part of the debt and converting some of the rest to conventional equity in existing and new US credit institutions;

(b) Unconventional - convert the debt by a networked process of "Unitisation" into a new generation of "Public equity" within a partnership and trust based (rather than Company) legal framework.

If I were a creditor of the US, I would opt for the latter, if I were aware of the possibility.

It is my hope that Iran - if they understand, accept and assimilate my analysis and proposals this week - may promote these ideas in the region because:

(a) their fellow regional OPEC members have more to lose from the conventional approach than anyone else;

(b) the proposals are islamically sound at a fundamental level.

"The future is already here -- it's just not very evenly distributed" William Gibson