What is money?
Money is something that serves as a unit of account, a store of value and final payment. Today there is no money in the system, because debts are not a reliable store of value. In today’s debt-money system, people refer to cash notes as money, because they serve as a unit of account and as final payment. But they do not serve as a store of value. After all, fiat money was created to steal value.
What is credit?
Credit is an agreement transferring the right to access money from the owner of the money to someone else. A bank deposit is a credit from the depositor to the bank, giving the bank the right to access that money. A mortgage loan is a credit from the bank to the consumer, giving the consumer the right to access money on deposit at the bank.
What is debt?
A debt is the borrower’s agreement to pay money to the creditor.
What is default?
A borrower who can’t pay his obligation is said to be in default. When he cannot pay interest or principal, he has defaulted on the loan agreement.