@Rico@hellsite.site a bank can create money but it's a liability for them. When a loan is created the borrower spends it and the bank has to pay out. Some *other* bank gets the money, usually.
A bank makes money by getting someone to agree to pay them (a loan). Helping the borrower spend money is an expense that they would avoid if they could, but that's why borrowers agree to loans.
You wouldn't promise a stranger that you will give them $100 for no reason. Same principle.
@Rico@hellsite.site A weird thing about bank deposits is that whether they are money or not depends on your point of view. To everyone outside a bank, a bank deposit is money. To a bank, its own deposits aren’t money, they are IOU’s. But a deposit in any other bank is money.
@Rico@hellsite.site also the Fed pays interest to banks, not the other way around.