> Private banks increase money supply by lending. If 10 people deposit $1000 in a bank, it can loan $9000 to an 11th person

It's the other way around. When a bank loans someone $1,000, they create a $1,000 deposit (their liability) and a $1,000 asset (their loan). Loans create deposits.

The Treasury can mint coin. But that's basically negligible in modern economies.

The $9000 has to be paid back, and then some. I sure hope you aren't an accountant.

Ummm. No. I suggest you research how balance sheets work.

Unfortunately this kind of thinking is why so many people seem to think the big AI labs are totally killing it the second they make a “profit” on inference. Yes if you ignore the balance sheet all looks fine. Unfortunately companies go bankrupt because of their balance sheets, not operating profits and losses. You can make money on the direct COGS on every transaction and still be bankrupt.