As I’ve said many times here I believe Public Banking is a very important aspect of the solution to our monetary and economic problems. The one thing that is missing from all of the leading edge reforms like PB, MMT, Steve Keen’s Minsky disequilibrium/instability theories and Michael Hudson’s correct identification of Finance as the primary business model problem and Rent seeking as its vice ridden economic effects…is they all still remain almost entirely within the current paradigm of Debt Only. The dominating paradigm of Debt Only must ITSELF be overcome. That process begins with CONSCIOUS recognition of what the new paradigm is….otherwise there is all manner of conflict, confusion, palliatives, genuine reforms which are yet “epicycles” and so do not resolve the deepest problem in the area in which the new paradigm must take place. Recognizing the new paradigm is half the battle won, a clarifying experience and a tremendous inducement to its further actualization in the individual and the world. This is not just my opinion it is the correct historical process elucidated by Thomas Kuhn. Let us pursue the new monetary and economic paradigm and look for its various signatures.
The problem is both off budget spending and the fact that we allow financial casino capitalism at all. As to the latter pols have to grow a couple and decide that such destabilizing vehicles and capabilities like derivatives and shorting/naked shorting of the currency will be considered “null and void”. You want to regulate even speculation on regular commodities and actually productive parts of the economy, but you want to particularly stop stupidities and obviously destructive and de-stabilizing speculation on money/debt.