From the book it appears that the underlying problem in the financial system is that too much money has been created that does not have an adequate productive asset backing it. The assets may be overvalued (a bubble) or they may not exist. The reason that the system has allowed this to occur seems to be that we create new money by creating new debt rather than only creating new money when we have new assets to back the money. That is the current system equates debt with money and allows debt to be created when there are no assets backing the new debt (money). When the debt markets implode then the money markets also implode. Of course the current system is meant to ensure that new assets are created with new money but we know that that does not always happen.

A solution to the problem is to break the link between debt and money and stop creating new money by issuing debt. This can be done by requiring banks to only lend money if they have it on deposit and to find another way to create new money.

One way to create new money is to create restricted money that must be invested to create a new asset. Once the asset is created then the money loses its restrictions.

This can be done in the following way. Give citizens zero interest loans that must be spent on investments that will generate clean energy or will reduce greenhouse gas emissions. When the restricted money is spent on the new assets such as building a solar thermal energy plant then it loses its restrictions.

Australia can do this and free itself from the tyranny of depending on fragile debt markets as the way to fund infrastructure.