To solve the debt crisis, we need to understand the socio-economic connections between our daily lives and the governments actions.
We need a clear understanding and model of the interrelationship between government and bank actions related to the economic crisis and the ripple effect through to large, medium and small business and then on to the individuals.
Here are some key questions?
1. When governments such as Greece and Spain delay payments to suppliers, how does this ripple through the economy if there is no willingness of the banks to lend. Does this cause the need for bigger bank bailouts?
2. What really is the best way to stimulate growth? is it by starting up infrastructure projects, providing incentives to SME's or providing a new lending source for healthy companies which are unable to borrow money?
Let's generate a whole set of scenarios and really define the ripple effects of these actions through the system and then pass them back to the governments so they start to think about what they are doing.