The robber rode in on a horse.... Don't shoot the horse

Ann Pettifor has gotten into it with Positive Money. [Here and here.] The excesses of money creation through speculation are the objects of both. Do we correct it by changing the credit system or by correcting it. Positive Money wants to do both. Ann argues that credit is good for productive purposes, and it is the speculators in charge of the system, not the system who need to be reined in.

Japan's control of credit in the 1980s, when it led to focused investment and an export sector that was going to dominate the world is sometimes cited as an example of using controls. Let's remember, the property bubble notwithstanding, Japan did not escape what might be called "speculation."  Guidance, yes. A bureaucracy that is going to get captured by the sector it is supposed to control? No.

Ann's book, Just Money, has the subtitle: "How Society Can Break The Despotic Power of Finance." That despot is the rider, not the credit-creation process itself. Don't shoot the horse.