We agree, money (under various definitions) is created within limits. In fact banks also create money when they take cash deposits (and destroy money when they

We agree, money (under various definitions) is created within limits. In fact banks also create money when they take cash deposits (and destroy money when they hand out cash). If I deposit a $100 bill into a bank we’re increasing the money supply because I have $100 and so does the bank (until it spends it, trades it for a non-money asset or lends it out).