myths, page-9

I agree with you Dopey. Minsky had it right, not Keynes or Freedman.

The 'reset' will more likely be in the form of a forced global debt moratorium in the wake of the Great Deflation (which is merely in its early stages). The Great Depression took 10 years to play out and this historic deflation should take a similar time frame (ie. bottoming around 2017).

Debt default, restructuring & deleveraging are all deflationary and with nearly $50 trillion in outstanding debt in risk of implosion there is no way that central bankers around the world can reflate this credit bubble. So the monetary reset will be a forced one, not voluntary.