I think I can safely say now that it is impossible for a financial crash and recession to be averted.

The graph for Corrected Money Supply below (using savings figures on 1 April 2011) makes that clear.

The trajectory of the plunge will be much the same as it was the last time. It won't happen because of the debt or the wranglings in Congress but because several banks have engaged in foolish speculation and are on their way to going bust.

As happened last time, expect them to go crawling to the Fed.

But this time it is also to be hoped that a by-product will be the complete jettisoning of worn-out economic theories and defunct economists.

The logic behind the graph can be read at Riddle of money, finally solved