of financial instability involved with credit extension, which Minsky and others have examined in depth. Over-supply and under-demand should be pretty simple to fix through better distribution. The externality problem can be addressed through price reflecting true cost. Financial instability can be reduced, e.g., through incentivizing prudent lending practices and disincentivizing imprudent ones. Market solutions are generally more efficient where there is actual competition. However, in the age of giant corporations that dominant markets, transcend national boundaries, subvert the political process, and suborn officials. These entities are monopolistic and anti-competitive, and need to be broken up. The growing transnational influence of multinationals is one of the chief issues that the world will have to deal with both economically and geopolitically. Otherwise, liberal democracy is at risk. Therefore, market solutions must be tempered with government controls. In addition, government must be proactive where the private sector is either unable or unwilling to do so, e.g., in providing public goods. There also needs to be an operational approach to the global financial system that is not based on mercantilism but rather on everyone doing well. Because of asymmetries, this can only happen through cooperation and coordination instead of relying chiefly on competition. Moreover, the world faces a problem with the allocation and use of real resources, especially energy. Economic growth, necessary to provide for the needs of growing population, is energy constrained. Those contraints are becoming tighter and threaten to constrict necessary growth. The challenge of the 21st century is making the