“existing money” that someone else took out as a loan at one point
and when the loan is paid back, and the books go positive, that’s even better than getting a free house, or whatever collateral was used. its free money for the bank, money that didn’t exist before the loan created it
But that loan is paid back with existing money, nothing was created. A negative entry is added to their books. Nothing was created.
“existing money” that someone else took out as a loan at one point
and when the loan is paid back, and the books go positive, that’s even better than getting a free house, or whatever collateral was used. its free money for the bank, money that didn’t exist before the loan created it