Credit that grows to the point of debt slavery, where people can’t pay anymore, is slavery. The government can’t pay, the banks are insolvent, and the average citizen is tapped out. Credit bubbles pop, and kill the fiat currency.
That is not capitalism.
Of course it is. Government debt has nothing to do with capitalism per se even socialist nations have debt. China’s is rated below ours.
Private debt has hardly become so bad that “the average citizen is tapped out” that is just an exaggeration.
Credit bubbles don’t “kill” the fiat currency either and their bursting and the resulting deflation generally strengthens that currency.
You should study the history of capitalism.