https://www.lewrockwell.com/2025/07/no_author/stepping-out-of-the-debt-trap/
It doesn’t really matter that some banks are “Canadian” and some are “American.” They are all part of the problem: a monetary system that is designed to extract value and wealth by keeping us in a collective state of perpetual debt servitude. And it certainly appears to be a global problem: every country (except perhaps Macau) has a national debt. In Canada, the federal government is in debt, the provincial governments are in debt, and the average Canadian household has a debt-to-income ratio of more than 170%.
But money does not need to be issued on the basis of interest-bearing debt, and credit does not need to be misallocated for unproductive and destructive purposes.
Money’s primary function is to facilitate exchange. Mutual credit clearing can serve that purpose and utilize the positive aspects of a credit system. It is essentially a bookkeeping system that keeps an ongoing record of members’ transactions (sales and purchases) and account balances (credits and debits). Membership within a network is entirely voluntary, and every member is both a producer and a consumer, a seller and a buyer. Members can receive short-term interest-free credit, which can reduce their expenses, and allows them to temporarily obtain more than they have provided if they are ready, willing and able to deliver an equal value of their own goods and services within a specified period of time. Goods and services simply pay for other goods and services. The allocation of credit for productive purposes preserves the value of the accounting unit within the network and prevents inflation. Longer-term financing can be provided from actual savings and saved credits, using equity financing or debt financing.
Precious metals and distributed ledger technology can still potentially play a role in a credit system. As Thomas Greco has suggested, a market basket of commodities (including gold and silver) can be used as a benchmark standard for defining an accounting unit to provide a more stable measure of value. He has mentioned that blockchain technology may have a useful role in a credit clearing network or private credit currency as a way to create exchangeable “token” vouchers that represent a claim upon goods and services that the issuer has promised to deliver.
Credit has been severely misused and abused by governments and banks, but the problem isn’t credit in itself. And mutual credit clearing might not change the entire monetary system, but it does provide an opportunity for the allocation of interest-free credit for productive purposes to facilitate the exchange of goods and services, which is a step in the right direction.
