She brilliantly shows within the first couple of minutes how the Chinese simply create the money needed to pay off unpaid debt….and thereby cancels it. If the money system is digital and the loan is to yourself (the Chinese government) why hobble yourself with repaying it…unless of course you’re obsessed with pain and suffering, i.e. you just have an authoritarian mind. Of course with Social Credit for the government which is western finance “with Chinese characteristics” you also DO have the problem of building bridges to no where or high rises and malls that are ghost towns and hence a tendency to incredible waste and over usage of resources.

If you had Social Credit for the individual with a middle class Dividend and a deflationary Discount you’d have immediate individual freedom AND free flowingness of the system…..and a vector toward increasing freedom for both ….despite innovation and AI destroying employment.

The money system is digital, + and – , debt and repayment. You simply have to utilize that fact and that tool…as a means of creating individual freedom and systemic free flowingness rather than creating a public monopoly or leaving the current private one intact…both of which will morph into tyranny….unless its POLICIES are MANDATED to create freedom. And the combination of Social Credit policies and a tri-level banking system of National Credit Office, Public Banking as Ellen has enumerated many times and a de-throned, de-toothed and neutered private system of intermediation of only priorly earned and saved money, but no powers to create/leverage up such funds.

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Making it clear in the first post…A loan IS an obligation to repay, however, if there is a macro-economic scarcity of individual incomes the “game” of repayment is rigged to be lost by the most businesses, particularly new and smaller start ups, and we see that this is a statistical fact. And that fact means oligopoly and corporate “global reach” is and always will be the trend. Unless of course you remedy it in the name of individual economic freedom and systemic free flowingness with a Dividend and Discount.

And the problem that Austrians are always harping about, malinvestment, is remedied by honest, non-self interested and rigorous underwriting…like a Public Banking system would be much better able to accomplish.