Money Creation is This Simple
A. If money exists, it was created. All money is created by banks, when they make loans. They create brand-new money; they do not loan out deposits. If they did, you could not get your deposit until the loan was paid back!
B. Banks only create the principal when they make the loan – never the interest that needs to be paid back. Since banks create all of our money, and only as a loan, there is no money created to pay interest.
C. Money to pay interest comes from a loan made somewhere else in the system. So, we borrow to have money, then we have to borrow to pay interest on the borrowed money! And we wonder why we are in so much debt?