I'm not sure why you assume people will always take on debt for purchases. I've never taken on debt to purchase anything, not once in my life, and I'm doing jus

I'm not sure why you assume people will always take on debt for purchases. I've never taken on debt to purchase anything, not once in my life, and I'm doing just fine. I own everything I use. I have my own business and never had to take out a loan. My wife runs her own business without ever having taken a loan. I don't know if I necessarily disagree with you about a fixed money supply being bad, but I don't think you provided enough information for me to agree with you either. With a fixed money supply, the FED would be less able to 'manage' the economy, but I think this being bad stems from your argument about money creation and debt. There are other ways for the FED to manage the money supply that have fallen out of favor as they aren't 'free market' enough, like credit/window guidance. That was formally implemented in Japan and led to their most prosperous era, all the way up until incompetence / malfeasance ruined their economy with lending quotas that had to be met, causing their asset bubble in the 1980s. Window guidance also works as an informal/cultural mechanism in Germany and is one of the reasons for their industrial success.