It is correct that the money multiplier and loanable funds theories are false. Full stop. Likewise with the “problem” of “the national Debt.” However, rectifying the thinking around these fallacies does not penetrate to the level of actual solutions, only palliatives to one degree or another, unless and until one analyzes money on the conceptual/paradigmatic level. Paradigms/APPLIED concepts current and new are what changes both mental and temporal universe realities. Thus failing to analyze the system conceptually places the cart before the horse.

Banks do create money. That is not the problem. The problem is they create money ONLY AS DEBT/a monopoly paradigm and then when various poorly or completely unregulated forms of speculation, “innovations” like derivatives as we saw before the GFC of 2007 and other more legitimate speculative investments like AI these “externalities” cause a crisis. However, the system with the present monopoly paradigm is basically unstable all by itself its just that the above make it more rapidly so.

The trick is to find a place/places to implement the new paradigm, which is always in complete conceptual opposition to the present anomalous paradigm (read in this instance Strategic Monetary Gifting vs Debt Only), that directly inverts and resolves the problems of inflation, monetary and demand austerity and the system’s basic instability itself…for all economic agents…and that point is regular consumer retail sale and the retail point of finance as well with a policy of a 50% Discount/Rebate at these macro-economic as in universally participated in points in the economy. That is a paradigm change in a single policy…and with the rest of conceptually aligned policy program, ties up the rest of the strings in a complex system like the economy and a universe that is innately emergent.

Finally, realize that all of the remedies of the current problems are actually monetary gifting in one way or another like UBI, job guarantee, debt jubilee, its just that they aren’t sufficiently universally and continually effective…like the above policy at the points of retail sale. Thus they are palliatives that don’t change/invert the systemic realities.

Finally, finally, give everyone, every commercial agent and also the government (already accomplished) an account with the central bank and mandate that it create and fund the Rebate aspect of the 50% Discount/Rebate and Mission Accomplished! for real this time. And consider that taxes are the retail point of government so the 50% Discount/Rebate policy reduces taxes by that percentage. Not even the oligarchs and the banks could bitch about that.