> It knows it has $1000 lying around doing nothing useful so it just gives a fraction of it to me as a loan. The bank does the following:
The bank does not have to do this everytime, Most of times it just creates a loan account and adds a number in the database and creates money out of thin air.
The bank does not have to do this everytime, Most of times it just creates a loan account and adds a number in the database and creates money out of thin air.