> You do not want the government, which is supervised by politicians, picking who gets loans.

Yes that's why I said there's some value in having private credit creation. In fact, my comment was just lifted from this lecture by Randall Wray where he says precisely what you just said:

https://youtu.be/gI86w6bSmS0?t=445

Although correction to another comment I made: he does specifically say loans should be held by the issuer until maturity.