Talk:Debt-free money
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Interest-free ‘Money’ Interest free funding streams (money) is a term describing a new concept of funding Government (public good) services that does not add to a nations debt, does not create cost driven inflation and ensures essential services (health, education, welfare etc) are provided on an ‘as and where needed’ basis. The ‘money’ is issued by using a mechanism of credit creation authorised by the elected representatives of the people as opposed to the current practise whereby non elected entities create interest bearing debt to fund infrastructure. The concept of replacing interest bearing debt as the foundation on which economic systems are built is a design concept discussed in the writings of Clifford Douglas (1879 – 1952) who was the founder of Social Credit. He believed that the injection of interest bearing debt into the cycle of production, distribution and consumption is inherently inflationary and ultimately unsustainable. He was also convinced that the use of interest free credit (money) as a substitute for interest bearing debt is critical to resolving the issues associated with poverty and exclusion amidst plenty. An appropriate amount of interest-free credit as a substitute for interest bearing debt would lead to growth and prosperity without the propensity for building inflationary pressure. For example, given that servicing government debt results in the money coming directly from public revenue, the use of an interest free credit mechanism would enable long-term, permanent tax reductions.
[edit] Debt free money versus Interest free credit
The term debt free money, in the context of resolving the problems rooted in the foundation of economic activity, focuses of the wrong area for change. The use of debt free money is a classic platform for building inflationary expectations if such issue is used for consumption rather than for production and would thus require considerable oversight and regulation. The design needed is the gradual substitution of the current concept of using interest bearing debt as the source of virtually all the 'money' in the economy with one that backs debt and its associated imposition on consumers out of the system. The funding of essential infrastructure through a virual interest free credit mechanism is the only concept which can ensure progress toward solving the driver of the myriad issues that politicians, economists and academics have spent the past 300 years debating to little purpose and effect.
I think that this article needs to distinguish between central bank money, which is NOT debt-free, and REAL debt-free money like Lincoln's Greenbacks or Colonial Scrip in the 1750s in the Colonies.
