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Does capitalism depend on credit?
Credit is essential for the continuation of capitalism but also a major source of its instability, writes the MARX MEMORIAL LIBRARY

WELL, the short answer is “yes, capitalism does depend on credit.”  And it depends on debt, the other side of the “coin.”  But the way it manifests itself is complicated.  

Have a look at a £5, £10, £20 or, if you’re rich enough to have one, a £50 note. On the face with the Queen’s head on it, under “Bank of England,” all the notes have written: “I promise to pay the bearer on demand the sum of…” 

They are all promissory notes, IOUs, to you. But try taking your banknotes into a bank to ask for payment and you’ll get a very dusty answer. 

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