What's the difference in theory?

Government Bad! Banks Good!

Bush is a symptom, not the disease.

We have government issued money (via the Central Bank and Mint as agents): it's called cash. In around 1960 the proportion of cash in the UK economy was around 30 % of money in issue. Now it's less than 3% and falling.

This government money comes without the interest burden and governments get the benfit of "seignorage".

It's not inflationary, unless you print too much of it: bank money has to be MORE inflationary then government money, all things being equal, because of the additional "rent" to the shareholders with the monetary monopoly.

ie cutting out "super profits" to bank shareholders could not possibly be inflationary.

"The future is already here -- it's just not very evenly distributed" William Gibson