THE COUNTER-PRODUCTIVE FANTASY OF A DEBT FREE MONETARY SYSTEM

A contradictory idea raised perhaps in misunderstandings of this material, is that debt itself as a monetary basis is to be eradicated.

A debt under mathematically perfected economy™ however is a far different thing than a debt under usury; and there is a concrete reason that money must come into circulation as a debt.

The reason that new money must come into circulation as a debt is simply that 1) we need further circulation to sustain the trade and payment for new production; and 2) that the juncture of newly introduced production is the opportunity to introduce that currency in a way which allows for its retraction from circulation in accord with the payment of the resultant obligation.

Debt itself is not injurious. The obligations of mathematically perfected economy™ allow us to produce wealth for markets which can pay for the wealth only as they consume of it. Thus the ability to take on debt for which we can be responsible is an advantage: the producers of the wealth can be paid for production we could not distribute otherwise; and the consumers of the wealth can pay for the wealth as they consume of it with an equal measure of their eventual production.

The evil of debts under usury on the other hand is the multiplication of the original obligation; and thereafter, the perpetual further multiplication of the debt in the course of merely maintaining a circulation which is vital to servicing the original debt.

The debts of usury therefore are not merely debts; they are processes which perpetually multiply the original principal.

The evil is not the debt however; it is the process of interest.”

http://www.perfecteconomy.com/pg-counter-productive-fantasy…