The only real solution to the current problems is to deal with the bad debt. That applies equally to the USA, the UK, Japan and the EMU. The problem is that the bad debt belongs to the wealthiest people in each country and if it is properly handled they will take a big hit. The effects of that hit would be to reduce the Gini coefficient significantly while enabling the remaining banks and the rest of the economy to start a new economic cycle. Everything else just prolongs the agony.

By 1934 almost all the bad debt from the Crash of '29 and subsequent crashes had been written down. That has not happened yet this time only because we have figured out how not to deal with the bad debt. If we do write off the bad debt then all we have to do is see what would be required to restart the economy.

A crash program to deal with global warming and to provide for real social needs, pursued on an ever increasing scale right up to where wage push inflation starts to be a problem would probably do it. But it should be accompanied by fiscal reforms to increase taxes on the wealthy, including large inheritance taxes. That will insure the value of the money and lead towards greater social equality and stability.

"It is not necessary to have hope in order to persevere."