agent, do not *want* to give up capital assets in order to hold your intrinsically worthless junk just because I have a need to make transactions. Why does someone always have to pay seignorage to someone else? I just want to hold capital assets. "It's backed deposits that crash." As you once said, debt is like glass. Deposits crash because they are short term debt backed by long term assets. This is impossible BS, but people fall for the illusion of stability long enough for the system to get super leveraged. I'm explicitly not proposing repo (debt) backed money. The money I'm proposing is equity. It is not a senior claim on the pool of capital assets; it's the only claim. You can't have a run on it. "So does it make sense for the ECB to lend to banks at 1.25%, on loans collateralised by government bonds, even with a haircut, and not lend to the governments at anything like those terms?" Yes, because the loans to the government would not be secured. Central bank loans to banks are always double secured. They provide a senior claim on the bank, and should the bank go bust and not be able to fulfill its promise, the government security is taken in place. A loan to government provides the central bank with a direct claim on the government, but no extra security is being provided as collateral to make the loan good should the government go bust. Such lending is much