Read The Discount Rate Mismatch
This is very enlightening post by Statsguy, a frequent guest contributor to the Baseline Scenario, that explains why we are at a critical point in economic history. The entire system is so far in debt that there is no painless way to get out of it. What would you be willing to sacrifice so that the historic theft of wealth on Wall Street gets justly punished? Your retirement? Your pensions fund? Your home? And don’t think that Canada would be immune. Despite having avoided the worst of the 2007 phase of the Financial Crisis, it is far from over and if the U.S. collapses in earnest, there will be nowhere to hide. This is one of the greatest challenges humanity will face and it is intimately connected to controlling climate change and wether or not the 21st Century descends into the blood bath that was the 20th. If we chose to continue with more or less the same system… then we will likely pay a nasty price.
Wyndtunnel 
You wrote on BaselineScenario…
“Are you basically saying that the future productive capacity of the system will never be enough to pay back the sum of its liabilities meaning that running a Casino is the only option left? Is a brutal financial collapse the only way out (as opposed to a controlled deflation?) Did the World only recover from the Great Depression thanks to WW2 and the wholesale physical destruction of most of Europe and Japan?”
In lieu of you actually receiving a response from StatsGuy, SJ or JK, (in other words, don’t hold your breath) I’ll answer…
Yes, you are correct in presuming the “future productive capacity of the system will never be enough to pay back the sum of its liabilities.” We live in a finite, closed system and most of the “real” resources are more “tapped-out” or contaminated (i.e., fubar) than most people, even the “experts,” are willing to even recognize, let alone admit.
No, the “Casino” is not “the only option left” but given the lack of reason and abject irrationality of most of my “fellow Americans/Earthlings” (and I use that expression VERY loosely) I have grave doubts much of anything will change.
Yes, a “brutal [not to mention deadly] financial collapse” IS “the only way out.” However, that doesn’t really convey the horrific manner in which it unfolds as “mother nature” is going to play a significant role.
Yes, WWII and the destruction you cite WAS the only “remedy” for the Great Depression. For “insight” into what may be coming next, see Chalmers Johnson’s books, “The Sorrows of Empire” and “Nemesis”. Especially IF the GOP wing-nuts regain complete control of Congress in November. And keep a “weather-eye” on India and Pakistan as their countries dry out, they “argue” over water-rights from the Indus and bear in mind that both of those countries already possess nuclear weapons and delivery systems and have never been what anyone could consider “reasonable” or “friendly.” Don’t forget to factor in the proximity/interests of China and Russia, too.
Regarding your post here, you are also correct that “there will be nowhere to hide.”
Personally, I enjoyed(?) both your comments but decided this would be a better venue for my “reply.” Moreover, I skimmed your main page and liked the song lyrics. Have you tried YouTube as a “host” for the music? I’m not sure it “accepts” MP3 but I’ve “seen” songs with a static image, basically turning a “video” into strictly “audio.” Good luck.