tags: reference, definition
# Producer Credit (Producer Credit money system)
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.
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.