So you like being in debt with no assets
"Picture a family. A very strange family which deals only with money.
They live their lives and their economy is rather balanced. They do have some coins which circulate round and round. No one owes anyone a damn cent. There is no debt.
Mother wants daddy to love her but she can't pay him. So he can't pay the kids to do the chores and mom has to do it all by herself. Everybody is doing work as usual.
Son has some extra money from time to time. One day mom asks him to give her a loan. He accepts and there you go. The first credit is there. She gives daddy the borrowed money so he will be kind to her. With the hard earned cash dad wants to relax a bit and hires daughter to do his lawn mowing. She has some extra cash now and decides to buy back her secret diary which the brother hijacked.
The brother is the master of the universe. He injected money as a central bank to increase M1 and cash in on his criminal activity (sounds like Berlusconi). The overall level of economic activity is on a higher level than it was before, the Fisher formula increased effective M because velocity of money is increased.
Mom is in trouble. Mom is Greece because she borrowed money to work less and now she is in debt.
Dad had increased export activity for a while and decided to use his surplus to buy his leasure time. He could be Swiss.
Daughter is a prudent Brit having sex scandals but paying off when required and the blackmailer is probably oligarch in the making.
Now mom needs to increase her economic activity in the future in order to raise cash to repay the loan. We strongly believe she will do it. The most likely buyer of her future exports will be the son as he is now a rich person. He will buy some luxury item for purpose of ostentation. He will order an extra ironing from mom. Mom will put a very strong price tag on the ironing knowing that he has no use with his receivables on the open market should she default.
Now this was a model with static nominal monetary mass.
In case no one would like to be the first to lend, we could say that they decided to make a new coin and play a lottery to see who would win it. The lucky winner would have a right to draw a loan from the Banco Centrale di Famiglia. In that case we would have increased nominal value and a bit different flow. All in all, the economic activity would increase.
If the lottery winner is doing it for long time, they will become a commercial bank, drawing credit from the central bank and stimulating economic activity by lending. That particular family member would be easy to spot as they would walk around with a golden parachute."
en.m.wikipedia.org
workableeconomics.com
www.investopedia.com
