I am asking in these circumstances what is to be done so that we avoid total collapse.

I see my proposals as completely compatible with kjr's. Ironically, for a true solution to our current difficulties, one that is sustainable, the danger is in doing too little to change the existing system rather than too much.

The problems with compound interest are only further compounded by the criminality which our current system regularly encourages. We need to eliminate the the incentives to criminality along with the opportunities. Our current problems with banks are the direct and understandable consequences of having allowed about half of all supposed real estate financial assets in the system to be bogus or counterfeit. Even the most honest, creditworthy borrower who bought at the top of the real estate bubble has a loan half of the value of which is bogus -- as they have discovered to their sorrow.

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