Jock, I've heard all the social credit polemic before. I think it is muddled wishful thinking bolstered by a sense of outrage and that social credit is a bad idea.

The purpose of my questions is to clarify the argument in order to reveal its weakness.

OK, so theoretical world time:

A deposits £100 in credit union X. B borrows it and deposits it in credit union Y. C borrows it from credit union Y.

A has £100 (on deposit)
B has £100 (on deposit) and some debts
C has £100 cash and some debts

Er, we've created £200 from somewhere, but these are only credit unions lending what they actually have! (I am of course counting credit union balances as 'money' as you did with bank balances in your argument.)

So what's the problem when banks do the same?