Before banking was invented, rich people lent gold and silver money into the economy. A gold coin LENT is money as debt until it is paid back. A gold coin lent, spent, earned and lent again is two principal debts of the same money – excess principal debt. If almost all of the coins are owned by the rich and lent into circulation, it is perfectly possible for aggregate excess principal debt to arise, invisibly, even in the absence of banking.
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