I am not sure of the answer you are expecting to your question. Or if you expect one at all. Here's my amateur take. One way is to do nothing and let the chi

I am not sure of the answer you are expecting to your question. Or if you expect one at all. Here's my amateur take. One way is to do nothing and let the chips fall. I imagine this as the economic equivalent of a broken chain in the anchor room of a battleship. Disorderly with lots of collateral damage, wailing, and gnashing of teeth. There is the Andrew Mellon approach to "liquidate! liquidate! liquidate!" the misallocated capital and redeploy as quickly as possible. This means accepting that some portion of the productive capacity at peak monetary supply was based on phantom demand and it needs to be torn down and converted to something productive that will have real demand going forward. Yes, a whole lot of hard-working folks literally wasted years of their lives. I don't know what the collateral damage would be -- probably nasty. This is actually the function of recessions, and a fierce but orderly unwind with social support for the displaced would seem preferable to the constant terror and confusion of attempting to delay the inevitable liquidation and redeployment. Another option is the path we are taking (I say 'we' grudgingly because I disagree, but I am a passenger aboard the United States of Titanic). Attempt to keep the monetary base stable, even though half of it is based on phantom demand. 'Legitimately counterfeit' the balance, theoretically giving businesses and individuals enough cover to pay down debts and become net savers again, then wind down the monetary base to equilibrium. This really hasn't worked for Japan. I'm just speculating...without a market incentive to liquidate and redeploy capital don't we just end up with zombie industries serving the same old phantom demand? Everyone has a job building shit nobody needs, and nobody has a job building shit everyone needs. The remaining productive industries get crushed under the tax burden of supporting the zombies, until it all ends in tears and there is nothing left to redeploy anyway ('Ayn Rand Endgame', anyone?). There is no policy cure for massive fraud and theft. Neither is the tinfoilers' favorite a cure: 'gold-backed non-fractional banking'. There is no magic economic triple antibiotic that will make the owie go away. There is only facing the truth -- you got duped -- excluding those responsible from society, and directing our future efforts to things that actually raise our standard of living (I may be biased, but to me this means technological increments that help us use our limited energy more efficiently).