Inherent in your proposal are two different sources of disintermediated credit. The first is that supplied by the state by spending into existence money for public goods such as housing, transport and energy infrastructure. This would constitute a stimulus to the private sector which then should avail themselves of privately created credit from credit unions, clearing associations and cooperatives so as to take advantage of the potential new activity created by state spending.

Of course the problem just now is that the state is controlled by those blind to real social needs and intent on destructive "austerity" for ends about which we can only darkly speculate. A subsidiary problem is that the state seems intent on spending what money it does spend on saving a failed financial system.

This is an instance in which it is vitally important not only on what the money is spent but on how much money is spent. The projects in which investment is needed on a large scale are largely public goods. The resulting activity from state spending on needed public goods would stimulate the private sector, but, instead we are hearing that public debt, much of it recently incurred in a highly problematic effort to save the existing financial system, is too great to allow for more spending to get the economy going.

We are left with a chicken and egg problem and the solution seems to be to kill and dispose of the existing chickens, which lays poisoned eggs, and create a loan for an organic, green chickens that will produce eggs and more egg laying hens and roosters for slaughter sustainably. But the decisions are made by politicians under the influence of existing chicken farmers who deny the eggs they produce are poisoned.

We need some "fair and balanced" hard hitting reporting of the situation in the news and there is a major problem in that regard.

As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."