No matter what you say we are all living in debt. Be it individuals, corporations, states or nations, everybody is embroiled in debt and I guess this system would remain in place forever. It has been here forever and it seems like it will remain here forever too. I mean look at the micro or individual level, the overwhelming majority of people buy houses with mortgages ( a kind of debt) even celebrities use only a percentage of money and get a mortgage for the rest in order to buy a house. Same goes with the cars, I become envious of people driving latest model and luxury car for a moment and then realize that maybe the cars are owned not by them but the finance companies and banks.
Corporations and states issue bonds and stocks to finance the expansion and acquisitions and also to fund their ongoing projects in order for their citizens to live a decent life. The same goes for the countries who have to finance the budgets when the revenues generated internally falls short of the expenses that they incur ongoing basis. Rich countries can issue bonds and bills to finance their budget deficits but for the poor or not so poor countries they turn to international financial institutions to get loans from them. Even on a small basis you sometimes finance your purchases through your credit card and pay it later when the statement comes. So anyway you cut the cloth, you are living a life of debt, it may be good for some, bad for some but we are all indebted till we die in some form or the other.