Agree with your first 3 points. I would also say though that your experience with housing is not unexpected, but this does not contradict the point I'm trying t

Agree with your first 3 points. I would also say though that your experience with housing is not unexpected, but this does not contradict the point I'm trying to make. The comparison would be the situation where you bought that house with cash. If you could even do so, I think it's safe to assume your spend would be even less. The point is, that creation of debt does not immediately net cancel out to a no-op in terms of consideration for monetary inflation. This is all in response to the comment several steps up "Banks lending is an increase in the money supply" and the commenter who presumably disagreed with that by saying that one will not spend that money in the economy because they have to pay it back.