How does interest fit in here? Isn’t that what creates money AKA inflation?
No, interest is a typical zero-sum transaction where the borrower spends and the lender earns. The loan itself represents a temporary net increase in the money supply, appearing from nothing and then vanishing when it is paid back.
What the poster you're replying to is talking about is called fractional reserve banking. That's how they "create" money.
No, interest is a typical zero-sum transaction where the borrower spends and the lender earns. The loan itself represents a temporary net increase in the money supply, appearing from nothing and then vanishing when it is paid back.