But the bank hasn't made any money?! It just wants back "more" than it "gave". Am I missing something? The one who is forced to "create" the money is the one who has to pay back the 1$ extra in interests (which previously did not exist). But he is not allowed to create any! So he has to create anything of value and sell that for money, so he can pay back the money and the interest.
But that just moves it to the next poor fellow.
> But the bank hasn't made any money?! It just wants back "more" than it "gave". Am I missing something?
Let's take the example where the bank loans out $10 and wants back $11. The money created in this example is not $1 (when the loan is eventually paid back and the bank makes $1 profit), it's $10 (when the loan is initially given out).
Let's imagine that the bank does not want to make a profit and only wants back $10. Even in this example the bank is creating $10. If you sum up how much money everybody has, people have $10 more money the moment the loan is given out.
It is also a feedback loop where many of the steps are used to invest in the economy and create more value. So as long as the investments pay off it is a virtuous feedback loop.
Doesn't this create a feedback loop?