Their second idea is that as loans are repaid, the banks keep the interest income, but extinguish the money they created to make the loan. As I have pointed out, this will lead to monetary deflation, which will cause the real cost of all extant loans to rise steadily, and which will thereby force large numbers of both personal and business bankruptcies.
Their third idea is to have, effectively, an inflation commission, which dictates how much money the economy “needs”. Now, I have long argued that inflation is theft. There is no other credible way to look at it.
HOWEVER, I could make one exception. What follows is, I think, clever, and has never been tried to my knowledge. One could implement Ben Dyson’s idea for gradual extinction of bank created money, and use fiat money to erase the monetary pressure on those with extant loans. Effectively, they could be paid a stipend to compensate them for the extra money they would have to pay back, since they would be paying in pounds or dollars that would be worth more than when they took the loan out. This would eliminate the economic contraction that would otherwise inevitably attend the implementation of his ideas.
People who did not have loans would see steady increases in their buying power, and people with loans would, optimally (and measuring actual deflation or inflation is a notoriously difficulty process, not least because they are regional variations that are sometimes quite significant), simply pay back what they borrowed.
This is my gradualistic proposal. I will send it to Ben Dyson, but I suspect I am now on his shit list.