I think the “money is debt” idea comes from the way that money is created, which is via lending. My understanding is that when a bank lends money, they don’t de

I think the “money is debt” idea comes from the way that money is created, which is via lending. My understanding is that when a bank lends money, they don’t deduct money from the accounts of any of their depositors. They create the loan out of thin air (or out of the borrower’s promise to repay, if you like). Likewise, when the loan is repaid, the money that goes towards the principle is effectively destroyed, and the lender keeps the interest.