I don't see how the system can be set up without some kind of limit on what the money can be lent for ... and that limit, wherever it happens to be, will end up with business on the opposite side of it. At the same time, there will be purchasing power created by the Treasury lending, which will be deposited in the banking system, and with banks relieved of capital requirements to lend within the Treasury-financed sector, they will have a source of funds to leverage in the out-of-Treasury-finance sector.


I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.