[Dan Parker] "Removing the exponential driver that is compound interest from the system is also absolutely necessary in order to have a good money system."
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Interest that is compounding is not the exponential driver, but rather, is the result of compounding debt. Debt that is not being serviced compounds regardless of the rate of interest. Nor does it represent wealth that is being extracted from the community.
Interest on debt that is being serviced is a linear function of time. It may be serviced to the extent that only interest is being paid, in which case, the debt does not compound but remains constant.
The A + B Theorem has nothing to do with interest beyond the fact that it is a B payment along with other B payments, in that it represents payments by each firm or accounting entity to other firms or accounting entities in the structure of production. With financial firms we call it "interest." With ordinary commercial firms we call it "profit." Financial firms are providing a service for the money they are actually being paid.
The Theorem demonstrates why debt must compound so long as there is labor displacement. It represents the continual distortion in contractual relationships within the structure of production - which includes both financial and commercial firms, as well as government - and is a contradiction in the theory of the market.
The empirically confirmable fact is: the ratio of interest actually being paid falls in respect of the totality of debt as it compounds. The remaining interest not being paid is a linear function through time of the debt that is not being serviced. They are paper entries in account books that have little relationship to the real economy except to the extent that it causes contractual relationships in the real economy to become distorted.
That distortion represents false information flowing to entrepreneurs. In the perception of entrepreneurs, projects that otherwise would be profitable, in the absence of the distorted information, become financially unprofitable, and are continually scrapped and thereby wasted. It represents productive potential that is lost forever.
The Dividend and Compensated Price are mechanisms that can consciously correct the distortion as it occurs through time, so that profit and loss will become meaningful information to entrepreneurs, it terms of it indicating consumer ratification of their input to the productive process.