Cousin it Stiglitz has a draft of a better credit system
Start with a closed end e - money system
Then
Use
"The central bank (government) auctions off the rights to issue new credit."
For example
" if the
economy is weaker, it will provide more credit to stimulate the economy" "Note that in this system, banks cannot create credit out of thin air,
and the amount of money being created each month is known with considerable precision."
and the amount of money being created each month is known with considerable precision."
"Conditions would attach to selling the “rights to lend” to the banks.
Minimum percentages of the loans would go to small and medium-size
enterprises and to new enterprises or to underserved communities; a
maximum would go to real estate lending (perhaps apportioned by location,
on the basis of local changes in prices), to purchases of other existing assets,
or to those engaged in speculative activities, like hedge funds. None would
be allocated to socially proscribed activities, like those contributing to global
warming or associated with the promotion of death, such as cigarettes. In
short, there would be minimum standards for social responsibility. There
would be limits on the interest rates charged. Discriminatory lending
practices and other abusive practices by credit card companies would be
proscribed. So, too, would connected lending. "
"
