[pwg]

That is not how things work in the US with banks and loans, they (banks) do actually create "money out of thin air" when they make loans:

https://www.investopedia.com/articles/investing/022416/why-b...

Read the section under the heading: "How Banks Make Loans in the Real World".

[subsistence234]

creating money in the sense of lending on margin is very different from the sense in which the Fed creates money.