[Rottersod]

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When a bank loans money, that money is paid back to them. So no money is being created out of thin air.

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Uh....no. US Currency is not backed by any tangible items such as gold (which is really just a hunk of metal with a specific elemental number that humans assigned an arbitrary value to based on its relative scarcity and its ability to exist in a solid and liquid form without losing much mass between transformations). No bank or reserve has actual cash, collateral or metal anywheres near the actual value of their outstanding loans.