Agreed, and it reflects a swing in power within the circuits of capital from financiers to producers. It's the massive devalorization of overaccumulated financial capital on the one hand... but on the other hand, the crucial question is: who'll buy the goods if they're produced? Supply doesn't create its own demand in a liquidity trap. The Great Depression and WWII were apparently needed during the last great overaccumulation crisis, to devalorize all the economic deadwood and set the conditions for a new round of accumulation. The Gold Standard chaos that culminated in its 1932 crash was like the geographical fix you describe above. John Connally did the same as US Treasury Secretary by going off Bretton Woods, so as to permit inflation at home to travel abroad. That's what these volatile moves of finance do, spread or transfer the devalorization pain elsewhere, often very quickly. That's why capital controls are so crucial to re-establish in all national states, as soon as possible.
(I'll get to three other reply posts tomorrow as I've hit the 3 limit now.)