Centralization of money creation at the national level is not ideal. There are 3142 counties in the United States. If during the process of national credit allocation we forget to send money somewhere, we could accidentally destroy a small town or create a slum.

An alternate solution would be to establish state-owned public mortgage banks, which collect interest payments on publicly held real estate loans over land areas roughly the size of a federal congressional district, that spend the interest payment revenue back into circulation on state and local infrastructure.

Public mortgage banks could also be strictly limited to issuing real estate equity loans and mortgages at 100-200% of the replacement cost of improvements whenever that is lower than the sales price.

When banks lend against the present value of future rents the property owner is pledging the surplus labor of future generations of residents as collateral and encouraged to lobby for artificial land scarcity so that rents keep going up. Capping loans in reference to the replacement cost of existing capital would help reign in this dangerous incentive while still creating liquidity for asset holders and publicly capturing interest payments that would otherwise leak out to global financial system to generate additional revenue for local infrastructure reinvestment.