Here’s and excellent, short and sweet description of how mutual credit clearing works to provide interest-free liquidity. From Bartercard New Zealand…
The End of Money and the Future of Civilization
The first edition of my book, The End of Money and the Future of Civilization, was published by Chelsea Green Publishing in 2009. While it remains
as relevant today as it was when first published the printed book has been out of print for several years. But, having had the rights reverted to me by my publisher, I am making the entire book available for free in PDF format. You can read it or download it HERE. If you would like a hard copy of the first edition used copies can still be found on Amazon.com, Abe books, Thrift books and elsewhere.
Better still, you can avail yourself of the new revised and expanded 2024 edition which I have been working on for almost two years and is almost complete. Eighteen chapters have already been posted and can be freely read or download HERE.My previous books, as published, may be freely accessed in digital format by clicking the title below.
Money: Understanding and Creating Alternatives to Legal Tender (2001)
New Money For Healthy Communities (1994)
Money and Debt: a Solution to the Global Crisis (1980)
Collectors may find used and some new print copies of my books as published, on amazon.com and elsewhere online. Start by clicking on the title below:
Money: Understanding and Creating Alternatives to Legal Tender (2001)
Beyond Money- What’s holding back the Paradigm Shift?
- Taking Moneyless Exchange Successfully to Scale
- Reclaiming Your Savings
- The West under oligarchy
- An Honest Money System
- The Money Problem–A Fix
- The End of Money Explained
- The amazing usefulness of AI! Rethinking Money Cretion
- An Economy That Shapes Who We Become-Tim Jenkin explains
- What to do in the face of the dominant systems of health and agriculture that are making us sick?
Beyond Money 
The folowing comment is not my authorship but a friend who wishes to remain anon. : Do you not see how such schemes as Bartercard are fundamentally irrelevant?
What is the Unit of Accounting in this scheme? It is New Zealand dollars.
Bartercard transactions would be income-taxed the same as cash payments. What is useful here is the idea of the “instant credit line” in the scheme. That is good, for people who begin with no assets other than their potential future labor.
Any barter transaction is either (1) pure, simple, direct, or (2) mediated with a Unit of Accounting. If it is the second, it would be a “money transaction” even if formal government money is not involved, because the government Unit of Accounting is involved. The Bartercard scheme is clearly in the (2) group.
Only my proposal for asset barter, where the Unit of Account is itself an asset (e.g. grams of gold) would be a continuation of (1) pure, simple, direct barter.
Asset barter does not need to depend on a single Unit of Accounting. One could use shares of AAPL or even GLD shares (except for the issues of IRS reporting, etc.). Sell me your car for 20 shares of AAPL. I would deliver the shares and you would deliver the title to the car. Barter.
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You need to study the body of work that I have created to get the full picture on liberation from political money and banks. The answer is not commodity money, although commodities might be used to define the measure of value and unit of account, as I write in my books.
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