The depth of changes that would be required to regulate banks would take years t

The depth of changes that would be required to regulate banks would take years to ripple through the economy, and force the treasury to operate on Chinese levels of debt – but with pragmatic transparency.

Why? The fundamental problem is not so much fractional reserve (which we can handle) but that debt is leverage for more debt and more debt. So imagine banking every cent was allocated to a specific debt, AND, debt issuers couldn’t resell a debt, only shares of the income from that debt.

That is the only what we call ‘mechanical’ or empirical means of running a banking system. In other words PROBABILITY is improbable (impossible) under the current tolerance for compound debt.

What would happen if we did that, the treasury would rapidly expand debt, making credit money expansion VISIBLE. And as a consequence providing the information we can’t produce in the current economic structure.

Furthermore, it would drastically increase friction in the lending system, because it would end the illusion of risklessness.

Cheers