The world has a debt bubble that is causing economic stagnation and a maldistribution of wealth. It is widely acknowledged that we need to reduce the amount of debt.

Debt is created when we lend money and receive more money back than we lend. Credit is the ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future.

Debt could be created by an organisation selling money they create. This is selling IOUs. Thus any entity can sell IOUs, and people will accept the IOUs if they are confident they will get a return on the IOUs by receiving back goods or services of greater value than the money they paid.

Governments can print money because we have confidence that governments will tax us and will accept their own money.  If they gave us a discount on taxes when we used the money we purchased we would happily buy their money.

Other organisations can issue money and we will buy it from them if we have the confidence they will deliver goods or services in the future.  If they give us back goods and services of greater value than our purchase price then our purchases become an investment.  This is better called negative credit rather than debt.

If we do this we can eliminate money debt and replace it with negative credit for future goods or services. Each time we replace money debt with negative credit, it removes the cost of interest on money and the cost of inflation. It does not eliminate the value of negative credit which is the return on investment.

We can do this one debt at a time without disrupting the economy. The cost of moving to negative credit is more than covered by the removal of the cost of interest and the cost of inflation.

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