The Difference between Debt-Free Money and Interest-Free Credit

Real Currencies

The endless barrage of debt, debt, debt, makes debt-free money sound very attractive. But the problem is not debt, it’s interest and interest-free credit based money is superior to debt-free currency. On the other hand, debt-free money could easily be repaired to again be a competitive proposition.

Debt-free money is simply unbacked ‘paper’ (nowadays it’d be mostly electronic, of course) money, printed (usually) by the State. It can then either spend it into circulation itself or have the populace do it. The former is commonly referred to as the Greenback, the latter is known as Social Credit.

Interest-free credit is credit by bookkeeping. Not unlike our current fractional reserve banking system, although Mutual Credit is a simpler and superior way of creating credit, as there is no need for deposits (‘capitalization’). Hence Mutual Credit is intrinsically stable, while fractional reserve banking based lending facilities go bust routinely.

Debt-free money…

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