If credit implies interest, then, it's a flaw in itself. If interest are charged, the fund for paying back those interest just dont exist. Eg : There is only 100 $ all around the world, and it's mine. Someone borrow me that 100$, and I charge 1% interest. This borrower would never be able to give me the 100$ + interest, because there is only 100 $ in existence..
That's why bankruptcy are built-in in this "credit/interest/fract-banking" system..
That built-in need for bankruptcy (interest) is a major cause of the faillure of the actual monetary system world-wide.
Perso, I dont wish to create a feature in Bitcoin that renders bankruptcy inevitable.
was my 2 satoshi
Sorry, but you are just totally wrong. You are using a static view, which won't work. In the real world, the lender will spend at least one dollar back into circulation in order to capture the value that they earned through the loan, and when they do, the borrower can acquire it and make the final repayment. If the lender fails to do this, then the dollars don't generally circulate, and they will have no value, which would make the loan pointless in the first place.
For people seriously interested in this subject,
Steve Keen has done a lot of work on dynamic nonlinear economics. Read some of his papers and watch some of his videos. He'll fix you right up if you pay attention. At least a couple of his videos cover this topic in great detail. He shows that it is very possible to have a functioning economy (including a loan market with interest) with a fixed amount of currency.