I have watched the Freedman video in its entirety, but there is a fundamental problem with his views - he denies the existence of the 'credit bubble' during the Great Depression! That credit bubble which has been created by the private banking system aided by the government. The Minsky model is a bit more sophisticated model of the financial and economic reality. But with a miner observation: both private and public institutions have a history of misallocating resources, including money. See for example China's economic/financial system and the US economic/financial order. Both suffering with bad-debts, high unemployment, asset bubbles, etc.
Which brings us to today and Menta's "big short". In other words - according to Menta, the private debt burden will overwhelm the public (government) debt burden - at which point the monetary system will reset.
No, i am not betting on it. Simply because without a functioning monetary system there is no private economy, no global economy, we would have to revert to a bartering system.
Unfortunately - no bartering system survives on a world-wide scale.
