What ails the world?

The Economist has an article that has been referenced by a nationally syndicated program. The world's debts are calculated as 70T US Dollars on which has been issued $700T derivatives. The debts are 300% of the world's economic output in a good year. Even at a 3% annual interest, $3T has to be covered from govt revenues. We see then why things like QEs do so little stimulating. And if people refuse to buy the bonds at the current low rates then governments will have to digitize $3T year, which will increase inflation, which will increase interest rates even further.

What is the ultimate solution? Services must be privatized and governments must balance their budget. And we have to have gold-backed money which would involve a devaluation of maybe 90% of fiat money.