Please be aware that this is blatantly false. The bank can only loan out less than the amount they have on hand (after subtracting the reserve percentage). Wh

Please be aware that this is blatantly false. The bank can only loan out less than the amount they have on hand (after subtracting the reserve percentage). What happens is that you loan the money, it gets spent, and ends up in your deposits again. THEN, you are effectively counting a dollar as: "Owe $ to original depositor, Get $ from person taking the loan, Owe $ to new depositor". Adding up to 1 dollar. Except when reporting dollars on deposit, you say 2. Individual banks don't "create" money. But as a quirk of lending and taking deposits, the banking system creates money, at least on the books.