There is an interesting piece in 13 November Guardian from Gavyn Davies, a Treasury adviser from 1992 to 1997.
"I refer you to the work of a sober, mainstream economist who has gone on to greater things.
In an uncannily prescient speech in 2002 (Deflation: Making Sure It Doesn't Happen Here), he laid out a detailed plan for avoiding deflation in a western economy. This involved printing money to bail out failing banks, and buying troubled assets such as mortgage-backed securities. If necessary (and we are not quite there yet, in my opinion), he advocates printing more money to finance an increase in the budget deficit and pay directly for tax cuts. That man was Ben Bernanke, now the chairman of the US Federal Reserve. Read his speech on the Fed's website. So far, about two-thirds of the plan has been implemented, and he clearly stands ready to complete the job if needed".
So the direct issue of money by Government in a deflationary situation is now on the mainstream agenda. I hope we can now draw a line under the theoretical debate here and go forward to campaign in the public forums for Government money to be issued to enterprises that are in the interests of society and environment, becauseif left to their own devices, they will tend to issue the money to bolster up General Motors and the military industrial complex.
Another nail in the lid of the coffin of those who cherish the belief that banksters have a God-given monopoly on the issue of money...