Interesting. But if the ability to "create" money were stripped from the banks and left on the FED alone, it may be one more reason for banks to drag their feet in the lending process. Everyone remembers 2008 and the aftermath. Banks being irresponsible led to the disaster but it was banks being overly frugal that exacerbated the problem. Imagine you owned a contracting business that used to have a $1mm line of credit in 2007? Guess what, in 2008 that thing disappeared. You now owed $200k to a construction materials business and couldn't pay it. Both you and the construction materials business were kaput by 2010. Between the two of you 100 people lost jobs. Between those 100 people, 50 more service providers (cleaners, landscapers, babysitters, etc) lost jobs. -This story happened a lot. I saw it first hand and still see the effects of it to this day. My point is that if the banks have even less control of the cash-flow process they're likely to be even more stingy with loans.