Three radical ideas are presented. First, that justification for cancellation of principal is not justified in modern banking. Second, that non-cancellation of loan principal upon payment cures an old problem of maintenance of positive equity in the private sector. And third, that crediting this money to local government,  creates an additional virtuous monetary circuit that ties finances of government directly to commercial activity. This step can cure a problem I have identified with modern monetary theory, which is that breaking the monetary circuit of taxation in the minds of politicians will free them from centuries of restraint, optimizing their opportunities for implementing tyranny. It maintains and strengthens the current circuit, creating a new, more direct monetary circuit that does not enrich modern banks any more than they already are .
Three radical ideas are presented. First, that the rationale for cancellation of principal is not justified in modern banking. Second, that non-cancellation of loan principal upon payment cures an old problem of maintenance of positive equity in the private sector. And third, that crediting this money to local government, or to at-risk ventures that create new utility value creates an additional virtuous monetary circuit that ties finances of government directly to commercial activity. Taking these steps can cure a problem I have identified with modern monetary theory, which is that breaking the monetary circuit of taxation in the minds of politicians will free them from centuries of restraint, optimizing their opportunities for implementing tyranny. It maintains and strengthens the current circuit, creating a new, more direct monetary circuit that in some respects combats inequality .
R
justification
the rationale
A
or to at-risk ventures that create new utility value
R
This step
Taking these steps
R
does not enrich modern banks any more than they already are
in some respects combats inequality