No argument with your analysis of neo-classical economic theory. However, no amount of mere systemic analysis will ever yield a lasting systemic change…only operant applied conceptual/paradigmatic analysis is up to that task. Every paradigm change was accomplished by finding the KEY anomalous concept and then finding a way to resolve its problematic effects. In the present economic and monetary case the current problematic concept is Debt Only which means its a monopoly paradigm that demands that all new money can only be created and distributed as debt. This is exactly analogous to the Roman Catholic Churches monopoly paradigm which was Salvation Via Roman Catholic Sacraments Only. All new paradigms are in complete conceptual opposition to the present paradigm so the opposite concept to Debt Only would be (Strategic) Monetary Gifting.

Now as everyone must and does participate in retail sale Monetary Gifting at both regular consumer retail sale and at the retail point of Finance (one’s monthly mortgage, insurance, automobile or other big ticket item) implementing a 50% Discount/Rebate/double entry bookkeeping policy at these two retail points vastly increases EVERYONE’S purchasing power and the potential demand for every merchant’s goods and service while resolving chronic erosive inflation by implementing beneficial price and asset deflation, i.e. breaking up Finance’s current monopoly paradigm. Just give everyone and every subscribing merchant an account at the central bank and mandate that they fulfill the rebate aspect of the policy at both points. Hence EVERYONE gets $100 worth of groceries or other goods and services for $50, a $60k Tesla for $30k at the dealership and a $500k house for $250k at the home builder…and when your monthly payment for the Tesla and your mortgage comes due the central bank pays 50% of its total to the bank so you actually get the Tesla for the equivalent payment of a $15k loan and the house for the equivalent payment of a $125k loan.

Oh, and by the way you leave the store and check your bank account every month and instead of feeling grumpy as hell you get this big smile on your face and say thank god someone finally found a lasting solution to this human civilization long problem.