You are right that under the current monetary regime "the market" cannot sort it out. This is because money plays two roles; one as a medium of exchange and two as an instrument of power. This is due to allowing the economic exchange medium to be a "store of value" which is a hold-over from gold being used for money. Whenever I say that people freak saying 'how will I save for anything?" But consider that this allows for massive accumulations of money that can be used to dominate and control the market, and of course that is what we have today.

The 1912 Pujo Committee investigation proved, even diagramed, that the banks controlled every industry in the nation. It showed the network of interlocking directorates controlled by the big banks with JP Morgan bank at the very center. However, this problem was solved by the merchant economist Silvio Gesell who realized how demurrage, a parking fee, could applied to money and eliminate the problem of hoarding money for power. His ideas were in fact demonstrated to be a powerful engine for prosperity in Germany and Austria in the depths of the depression. In Wörgl, Austria for instance, 2.5 million in public works was accomplished by the town government issuing only 6000, due to its high velocity circulation. People saw the benefits coming back so fast they began paying their taxes in advance to get more.

As John Kenneth Galbraith said, “The study of money, above all other fields in economics, is one in which complexity is used to disguise truth or to evade truth, not to reveal it. " Obviously the first step is to remove the banks power to create the nations money and have government do it as the Constitution provides. That will allow Congress to govern public policy instead of finance corporations. monetaryalliance.org