Excellent post. So the next logical step for governments is to issue debt free money themselves. This would be better, but still a fiat monetary system. Although i don't believe this is your intention, but your post seems to suggest that debt free money issued by the government is the way to go. Which is not the way in my opinion. The way to go is hard sound money and not fiat money.
Any form of hard sound money (bitcoin, gold) is the way to go...