The second is that the current role of private banking in money creation is wholly dependent on central bank support: by themselves they do not create this value.
Second, why aren’t we taxing the seigniorage that they enjoy now but which is very clearly not theirs?
What seigniorage profits?
No, I get the theoretical arguments, creating money ab initio is a profitable thing to do. Banks create money apparently, therefore they must profit from doing so.
So, where is that profit? How much is it?
Ah, there’s the problem. They don’t make excess profits, do they? Return on equity in banking is, I think I’m right, below the national average. Thus there aren’t such seigniorage profits. Either the process costs as much as it makes, or they’re not making money itself.
Bit of a problem for the theory really.