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# Producer Credit (Producer Credit money system)
## TL;Dr
Producer Credit refers to any credit-based means-of-exchange system where credit-money is created by entities at the point of purchase on the basis of their willingness to accept payment for their future product in units of that money.
## Overview
EC Riegel understood the problem that Marx identified with money framed as a commodity - that it becomes the 'top' commodity - a thing to hold in and of itself. In brief, transforms the economy from a C-m-C economy (where money is a useful means-of-exchange whereby commodities can be traded as needed) into an M-c-M economy, where commodity trading is a means whereby to accumulate money - capital.

Riegel proposed that 'trade creates money, and not vice-versa' - that money should be created at the moment of trade, when a producer buys something, issuing credit as the means-of-exchange to fund the purchase.

> The new concept of money is that, to be sound and stable, and in adequate supply, it must spring solely from the same source from which all wealth springs, namely – the people, and that, to effectively coordinate with our mass production system, the people must issue the money necessary to buy their production. — (*Private Enterprise Money*, Riegel, p8)

Producer Credit is not a 'commodity-framed' money. Units in such a sytems are a 'measure of value', without 'thing-like' properties, providing information about a creditor/debtor relationship, rather than implying any notion of inherent value of the unit.