Well, except that bidding up occurs because there is too much cash available compared to certain resources,
It occurs when it is, And there are some pockets where that's true, but on the whole our economy is cash starved as evidenced by involuntary unemployment being at a non-zero rate and private debt being excessively high to paper over the gap.
a problem that your policies on generation of cash would make worse.
My policies involve putting cash where it creates the most resources. Our current policies create _just as much_ but put it where it creates the least resources by only making available in the form of loans or credit. Plus my policy reduces the amount of cash that's generated just to pay the financial sector rent/private tax on making cash to fill the shortfall.
Face it, your ideals don't work at all if you leave anyone in control of disproportionate amounts of capital, so at some point you have to advocate taking away "excess savings" through tax or another mechanism.
You don't need to tax savings themselves, just tax excessively rapid liquidation. I covered taht above when I suggested heave taxes on financial income over 2x median. Cash out a massive chunk of savings at once and a good section of it should disappear to prevent just such manipulation unless you spend it on increasing production, and thus can deduct it.
Our whole economy, the world economy and federal monetary policy are all premised on revenue offsetting expenditures, notwithstanding the theory behind your arguments.
Not since we adopted fiat currency. The myth is used to trick people into supporting bad policy, but our primary agents of monetary policy have been outright begging the federal government to run a large enough deficit to keep the economy healthy and pointing out that they're effectively paralyzed because of underspending. The only reason the myth persists is because it benefits the financial sector at the expense of the economy and because it gives the politicians who sell it a level to manipulate the electorate.
Bank lending or loan repayment/savings will automatically offset just about any fiscal increase we can make, it will just mean that government, not banks control the tax rates in proportion to the shift of debt from private accounts to public ones.
Sure it's possible that we can get to the point whee too much money is going in, but the Fed has much better control over that, and can warn us long before it even comes close be being a dire as out current shortfall is so that we can adjust tax and spending policies to account for it.