The retail merchant discounts their price 50% to the consumer and the monetary authority gifts the merchant back with $200k on a $400k house. At loan signing the bank creates $200k that pays off the merchant and creates a loan of $200k that the consumer is liable for. The monetary authority pays the bank half of the interest to be paid on the total loan for 15 years at 3%, in this case $24,304.70 that it can immediately put in its “pocket” as income instead of having to garner the interest from the consumer paying the loan for x number of years. In exchange for this immediate gift the bank agrees to reduce the loan amount to $100k.

This policy stabilizes the system by further reducing the otherwise inevitable build up of private indebtedness, and yet the banks get the full profits they would make from a loan of twice the amount that is ultimately financed. This policy effectively integrates parasitic and problematic private finance into the rest of the economy’s legitimate commercial agents.

Nothing is economically and financially impossible when the the highest philosophical and ethical concept man has ever conceived, namely grace, is anchored to temporal reality by accounting.